eToro acquires TradeZero for up to $231 million as crypto revenue falls 30%

Aug 11, 2026

eToro Group Ltd. has agreed to acquire United States online brokerage TradeZero for up to $231 million in cash and stock to accelerate its US expansion. The deal comes as eToro reports strong Q2 2026 GAAP net income of $53 million, beating EPS estimates at $0.68. However, eToro's crypto asset revenue fell 30% to $1.34 billion amid a sharp 73% year-on-year drop in July crypto trades. Despite the earnings beat, eToro stock fell roughly 8% to 10% following the announcement.

TradeZero acquisition

▪TradeZero generated approximately $80 million in revenue with an 81% gross margin over the 12 months ended June 30, 2026.
▪eToro Group Ltd. agreed to acquire the United States-focused online brokerage TradeZero for up to $231 million, consisting of cash and up to 2.5 million newly issued Class A common shares.
▪The acquisition of TradeZero by eToro Group Ltd. is expected to close in the first half of 2027, pending regulatory approvals.

eToro Q2 2026 financial results

▪Following the Q2 2026 earnings and acquisition announcement on August 11, 2026, eToro Group Ltd. stock (ETOR) fell between 7.8% and 10.5% in Tuesday trading.
▪eToro Group Ltd. reported a GAAP net income of $53 million for Q2 2026, representing a 77% year-on-year increase from $30 million.
▪eToro Group Ltd. reported that funded accounts grew 18% year-on-year to 4.28 million, while assets under administration reached $19.2 billion in Q2 2026.
▪eToro Group Ltd. posted adjusted diluted earnings of $0.68 per share for Q2 2026, beating the Wall Street consensus estimate of $0.61 per share.

Crypto revenue decline

▪eToro Group Ltd.'s Q2 2026 crypto asset revenue fell approximately 30% year-on-year to $1.34 billion from $1.9 billion.
▪Equities and commodities trading on eToro Group Ltd. generated $141 million in net income during Q2 2026, while crypto assets contributed only $19.7 million.
▪Total cryptocurrency trades on eToro Group Ltd. fell to 1.4 million in July 2026, marking a 73% decline year-on-year, while the average invested amount per trade fell 50% to $182.

US market expansion strategy

▪eToro Group Ltd. is acquiring TradeZero to obtain its broker-dealer infrastructure, proprietary trading tools, and active-trader base to accelerate launching new products in the United States.
▪eToro Group Ltd.'s United States crypto offerings remain restricted to Bitcoin, Ethereum, and Bitcoin Cash following a 2021 settlement with the Securities and Exchange Commission.
▪eToro Group Ltd. entered the New York market in April under the state's BitLicense regime, which it received from the New York Department of Financial Services in 2023.

Recent eToro acquisitions

▪eToro Group Ltd. acquired the self-custody crypto wallet provider Zengo in 2026 for a reported purchase price of approximately $70 million.
▪eToro Group Ltd. acquired Israel-based cryptocurrency exchange Bit2C as part of its ongoing investment and expansion strategy.