Key Highlights

  • Third-quarter net contribution was USD 186 million, down 13% from a year earlier, and adjusted EBITDA fell 56% to USD 34 million, management said, as lower crypto contribution and heavier Marketing spend weighed on profitability.
  • Adjusted Diluted Earnings per Share were USD 0.26 compared with USD 0.60 in the third quarter of 2025, while Net Income for the first nine months of 2026 was USD 150 million against USD 147 million.
  • Net trading contribution from Capital Markets rose 21% to USD 88 million, while crypto contribution was USD 26 million, up 141% from the second quarter but down 53% from a year earlier.
  • eToro introduced a USD 250 million share repurchase program and ended the quarter with USD 1.2 billion in cash, cash equivalents and short-term investments, plus USD 21 million of free Cash Flow from operations.

Profit Squeeze as Crypto Activity Cools and Marketing Stays High

eToro (NASDAQ:ETOR) reported third-quarter 2026 results on a call on November 10, 2026. Management said net contribution of USD 186 million fell 13% year over year, with adjusted operating expenses of USD 152 million, up 1% from the second quarter. Adjusted EBITDA of USD 34 million is consistent with that gap between contribution and costs. Adjusted selling and marketing expense was USD 68 million, which management said included launch costs for a new app and refreshed brand, and it expects those costs to decline in the fourth quarter. The chief executive said lower Volatility across equities, commodities and crypto softened trading after a strong first half.

Revenue Mix: Stronger Equities and Commodities, Weaker Interest Income

The platform lets retail customers trade equities, commodities and crypto and also offers a banking-style money product. Capital markets contribution grew on a better asset mix and higher take rates. The USD 26 million crypto figure included a USD 6 million valuation gain on the company's own crypto holdings, so management put underlying customer-driven contribution at USD 20 million. Net interest income was USD 50 million, down 19%, because interest-earning Assets fell 11%, and eToro Money contributed USD 20 million, down 5%. Funded accounts rose 18% to 4.39 million, including acquisitions, and total assets under administration were USD 20.8 billion, unchanged from a year earlier, with Equity assets at a record USD 11.5 billion. October assets were USD 19.2 billion, down 6%.

Buyback, TradeZero and Argentina Deals Shape the Capital Plan

Management said it expects the USD 225 million TradeZero acquisition, announced in August, to close in the first half of 2027, subject to regulatory approvals, and to add to adjusted earnings per share in the first full year before synergies. It also announced an agreement to buy LB Finanzas, a digital Investment and neo-banking platform in Argentina. The new repurchase program of USD 250 million was described as reflecting confidence in growth, and management said timing and amount depend on market conditions. Management said November has so far seen more equity activity than October. Management expects fourth-quarter adjusted operating expenses to be lower than in the third quarter.

Where Things Stand

The decline came from a cooler crypto and trading backdrop meeting a Fixed Cost base, not from lost customers. eToro (NASDAQ:ETOR) grew funded accounts 18%, but net contribution fell 13% and adjusted EBITDA fell 56% to USD 34 million, while adjusted earnings per share dropped to USD 0.26. The buyback, a USD 1.2 billion Liquidity cushion and the pending acquisitions are the counterweights. Management gave no numeric profit guidance in the call, so watch fourth-quarter marketing costs, crypto activity and regulatory approval for TradeZero.