Key Highlights

  • Third quarter EPS was USD 0.14 against an estimated USD 0.27, and Revenue of USD 186.0 million trailed estimates.
  • Net contribution fell 13% year over year to USD 186 million, while adjusted EBITDA declined 56% to USD 34 million.
  • Funded accounts rose 18% to 4.39 million, and Equity Assets under administration reached a record USD 11.5 billion.
  • The company announced a USD 250 million buyback program and guided fourth quarter adjusted operating expenses below the third quarter.

eToro Group (NASDAQ:ETOR) reported third quarter 2026 Earnings Per Share of USD 0.14, below the USD 0.27 estimate. Revenue of USD 186.00 million came in just under the USD 187.19 million estimate. Net contribution declined 13% from the same quarter last year, and adjusted EBITDA of USD 34 million was down 56%.

Management described the quarter as one of customer growth alongside weaker trading-related income. Funded accounts increased 18% year over year to 4.39 million, including the effect of acquisitions. Equity assets under administration reached a record USD 11.5 billion, up 24% and more than double the USD 5 billion reported two years earlier, while total assets under administration of USD 20.8 billion were unchanged from a year ago.

Where Contribution Came From

Net trading contribution from capital markets, covering equities, commodities and currencies, rose 21% year over year to USD 88 million, which the company attributed mainly to a more favorable asset mix and better take rates. Crypto net trading contribution rose 141% from the prior quarter to USD 26 million as activity and pricing recovered in August and September, but it was 53% lower than a year earlier. That figure included a USD 6 million positive valuation effect from corporate crypto holdings, leaving USD 20 million from customer activity.

Net interest income was USD 50 million, down 19% year over year, which the company tied to an 11% decline in interest-earning assets from a smaller Margin book and lower crypto activity. eToro Money contributed USD 20 million, down 5% on lower customer activity.

Costs, Cash and Capital Returns

Adjusted operating expenses were USD 152 million, up 1% from the second quarter and within guidance. Adjusted selling and Marketing expense was USD 68 million, adjusted Research and Development was USD 37 million, and adjusted general and administrative was USD 48 million. Net Income for the first nine months of 2026 was USD 150 million, compared with USD 147 million a year earlier.

The company ended the quarter with USD 1.2 billion in cash, cash equivalents and short-term investments and generated USD 21 million of free Cash Flow from operations. Alongside the results it introduced a USD 250 million share repurchase program. For the fourth quarter, it guided adjusted operating expenses to be lower than in the third quarter, with management describing a decline of about 5% or more.

Usage of application programming interfaces and agentic trading rose 250% from the prior quarter. The eToro App Store, launched last quarter, now lists more than 250 apps. In the United States the company launched 26 smart portfolios after receiving its registered Investment adviser license.

An Acquisition announced in August for about USD 225 million is guided to close in the first half of 2027, subject to regulatory approvals and customary conditions. Management also said it aims to grow its Latin America Business to USD 100 million in revenue within two to three years, and that after four acquisitions this year it plans to slow the pace to integrate them.

Metrics That Frame the Next Report

The figures to follow are crypto activity levels, the interest-earning asset base, take rates in Capital Markets and the pace of Buybacks under the new program. Progress on integrating acquired businesses is the other item management highlighted.