eToro posted a $7.2 million loss from crypto trading in the second quarter of 2026, although the company’s overall profit was higher than analysts expected. Revenue from cryptocurrency assets dropped to $1.35 billion from $1.91 billion a year earlier, and the cost to generate that revenue matched at $1.35 billion. While other parts of eToro’s business grew, crypto activity slowed, marking a sharp change from the $37.7 million profit in the same quarter last year.
eToro, based in Tel Aviv, reported $53 million in net profit for the quarter. Its adjusted diluted earnings per share reached $0.68, beating the average analyst forecast of $0.61. The company’s broader business was supported mainly by equity trading. The number of funded accounts climbed by 18% to 4.28 million, while the net contribution increased by 9% year over year to $229 million.
Source: investors.etoro.com
However, the trading environment was far weaker for the cryptocurrency industry. 1.4 million cryptocurrency trades were recorded by eToro in July, a 73% decrease from the same month the previous year. The average size of a crypto trade also dropped by 50% to $182.
The figures suggest that the platform is seeing less activity from crypto traders even as it continues to build new products for the sector. eToro said it is developing onchain perpetual futures and that crypto buying power is “coming soon”, pointing to plans to give users more ways to participate in digital assets.
The weaker crypto results did not stop eToro from expanding its wider brokerage business. In a deal for up to $231 million in cash and equity, the business announced that it will purchase US brokerage firm TradeZero.
Subject to regulatory clearances, the transaction is anticipated to conclude in the first half of 2027. In addition to providing tools targeted at short sellers, TradeZero offers commission-free trading in US equities and options.
etoro Q2 Results Are Live!
Check out the latest shareholder update on our Investor Relations website 👉https://t.co/hn3KP5jJOp
At 08:30 AM ET / 1:30 PM UK, our CEO and CFO will also break down the results LIVE on X.
— etoro (@eToro) August 11, 2026
For now, the deal appears to be primarily a move to strengthen eToro’s US brokerage and distribution business. Neither company has announced specific plans involving crypto, blockchain or tokenization as part of the TradeZero transaction.
TradeZero generated about $80 million in revenue in the 12 months through June, according to eToro. The deal is also the third acquisition signed by eToro this year.
Investors appeared disappointed by the earnings despite the overall profit beat. eToro shares fell as much as about 11% following the announcements and were trading more than 12% lower in the hours after the results, at around $29.80.
The contrasting numbers highlight an interesting shift in eToro’s business. While crypto was once an important source of trading activity, equities and other financial products are currently making a stronger contribution to the company’s results.
At the same time, eToro is not stepping away from crypto. Its plans for onchain perpetual futures and additional crypto buying power suggest that the company expects digital assets to remain an important part of its product offering.
The latest results also show that crypto revenue alone does not tell the whole story. eToro’s cryptoasset revenue remained substantial at $1.35 billion, but the cost associated with that business left the company with a loss. This means the profitability of crypto trading can change sharply depending on market conditions, trading volumes and the economics of executing transactions.
For eToro, the challenge now is to balance its expanding crypto offering with the more stable contribution coming from its equity business. The TradeZero acquisition could strengthen its position in US markets, while new crypto products could help revive digital-asset activity if trading conditions improve.
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