eToro earnings beat estimates, shares slide on TradeZero acquisition

Finance Financial Services Written by: Emily Jarvie 12:59 Tue 11 Aug 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The Canberra Times, and... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. eToro Group Ltd View Price & Profile eToro earnings beat estimates, shares slide on TradeZero acquisition Published: 12:59 11 Aug 2026 EDT eToro Group Ltd (Unlisted (US):ETRO) reported second quarter 2026 results that topped Wall Street expectations, but shares fell about 13% on the news of the company’s planned acquisition of US-focused online brokerage TradeZero for up to $231 million. The trading and investing platform reported adjusted diluted earnings per share of $0.68, compared with consensus estimates ranging from $0.61 to $0.65. Net contribution rose 9% year over year to $229 million, edging above expectations of roughly $225 million. Net income increased 77% from a year earlier to $53 million, while adjusted net income rose 17% to $63 million. Adjusted EBITDA increased 9% to $78 million. The company said the increase in net contribution was driven primarily by higher equities trading activity, which helped offset softer cryptocurrency volumes. GAAP diluted earnings per share rose to $0.58 from $0.31 in the second quarter of 2025, while adjusted diluted EPS increased from $0.56. eToro also reported growth in its user base and assets. Funded accounts increased 18% year over year to 4.28 million, while assets under administration rose 10% to $19.2 billion. The company had $1.2 billion in cash, cash equivalents and short-term investments as of June 30. Alongside the results, eToro announced an agreement to acquire TradeZero in a cash-and-stock transaction valued at up to $231 million. The deal includes cash and up to 2.5 million newly issued Class A common shares, subject to customary purchase price adjustments. TradeZero, founded in 2015, operates across the US, Canada and international markets and provides trading platforms, broker-dealer infrastructure and tools for active traders. eToro said the acquisition will strengthen its presence in the US and broaden the products and services available on its platform. TradeZero generated approximately $80 million in revenue with an 81% gross margin over the last 12 months, according to eToro. The company expects the transaction to be accretive to adjusted EPS in the first year after completion. The acquisition is expected to close in the first half of 2027. “Today's announcement is an important step in building our US business,” eToro co-founder and CEO Yoni Assia said in a statement. “TradeZero has built a successful franchise, with differentiated technology, broker-dealer infrastructure and a highly engaged trading community.” Continue reading