eToro Group Ltd

eToro Group Ltd (NASDAQ: ETOR) is an Israel-based company that operates a social trading and investment platform. Through its platform, users can access and review other investors’ portfolios and performance data, engage in discussions, exchange investment ideas, and learn from shared strategies within a collaborative online community.

Financial Performance Overview

• Full-Year Revenue and Profitability Expansion: eToro delivered record full-year performance in 2025, reflecting the strength of its diversified multi-asset platform. Net Contribution increased by 10% year over year to USD 868 million, compared to USD 788 million in 2024. GAAP Net Income rose 12% to USD 216 million, while Adjusted EBITDA grew 4% to USD 317 million. This performance demonstrates operating leverage despite fluctuating market conditions, particularly within crypto markets.
• Fourth Quarter Financial Trends: In Q4 2025, Net Contribution declined 10% year over year to USD 227 million, primarily due to exceptionally strong trading conditions in Q4 2024. However, GAAP Net Income increased 16% to USD 69 million, reflecting improved cost discipline and diversified income streams. Adjusted EBITDA declined 19% year over year to USD 87 million, reflecting normalization in market activity.

Key Operating Metrics and Platform Growth

• Funded Accounts and User Expansion: Funded Accounts reached 3.81 million in Q4 2025, representing a 9% year-over-year increase. Growth was driven by sustained customer acquisition efforts and strong retention, reinforcing the scalability of eToro’s global platform.
• Assets Under Administration (AUA): Assets Under Administration increased 11% year over year to USD 18.5 billion in Q4 2025. Growth was supported by market gains and positive net inflows, reflecting improved investor engagement across asset classes.

Revenue Diversification and Trading Activity

• Multi-Asset Contribution Dynamics: eToro’s multi-asset strategy continued to provide resilience across market cycles. Net trading income from equities, commodities and currencies increased year over year, while crypto trading revenues remained substantial despite volatility. The diversification across capital markets, cryptoassets, interest income and subscriptions helped stabilize overall contribution levels.
• Interest Income and Capital Efficiency: Net interest income from users rose meaningfully year over year, supported by higher interest-earning assets and elevated rate environments. Interest-earning assets increased significantly in 2025, strengthening recurring income streams and enhancing capital efficiency.

Strategic Product Expansion and Innovation

• Trading and Market Access Expansion: During 2025, eToro broadened global market access by expanding to 25 stock exchanges and increasing its cryptoasset offering to over 150 tokens. The Company introduced 24/5 trading across major U.S. indices and began rolling out 24/7 trading for select assets, reinforcing its positioning as an always-on platform.
• AI Integration and Investing Ecosystem: The launch of “Tori,” eToro’s AI Analyst, alongside public APIs and the forthcoming App Store, marked a strategic step toward AI-enabled investing personalization. Institutional partnerships for Smart Portfolios and the launch of Alpha Portfolios further strengthened its differentiated investing proposition.

Wealth Management and Neo-Banking Growth

• Long-Term Savings and Wealth Solutions: eToro expanded its wealth management footprint through UK ISA growth, French retirement products, and Australian superannuation offerings. Assets under administration in UK ISA products grew sevenfold year over year, demonstrating strong product-market fit.
• Expansion of eToro Money Ecosystem: The neo-banking segment gained momentum, with eToro Money accounts reaching 1.87 million and debit card transaction volumes increasing 6.5x year over year. The integration of local bank accounts and crypto wallet functionality enhanced user engagement and strengthened ecosystem stickiness.

Balance Sheet Strength and Capital Allocation

• Liquidity Position: As of December 31, 2025, the Company held USD 1.3 billion in cash, cash equivalents and short-term investments. Operating cash flow remained strong, reinforcing financial flexibility and supporting future strategic initiatives.
• Shareholder Returns and Capital Strategy: The Board approved a USD 100 million increase to the share repurchase authorization, bringing total remaining authorization to USD 150 million. This reflects confidence in long-term growth prospects and prudent capital allocation.

Strategic Positioning and Outlook

• Platform Resilience and Market Adaptability: January 2026 KPIs indicated continued engagement, with funded accounts and capital markets trading activity rising year over year. While crypto trading activity moderated, capital markets activity strengthened, demonstrating effective diversification.
• Long-Term Structural Tailwinds: The Company’s strategic focus on AI integration, on-chain infrastructure readiness, global localization, and multi-asset exposure positions it to benefit from structural shifts in retail investing. Its evolution toward a financial “super-app” supports long-term growth ambitions across trading, investing, wealth management, and neo-banking verticals.

Key Risks:

• Exposure to Market Volatility: A significant portion of revenue is driven by trading activity across equities and cryptoassets; sharp declines in market volatility or prolonged downturns—particularly in crypto—could materially impact transaction-based income and net contribution.
• Regulatory and Compliance Risk: As a global multi-asset platform operating across multiple jurisdictions, eToro faces evolving regulatory frameworks in securities, derivatives, cryptoassets, and digital banking, which could increase compliance costs or restrict certain product offerings.
• Dependence on Retail Trading Activity: Revenue concentration in retail trading volumes makes performance sensitive to shifts in investor sentiment, lower engagement levels, or reduced speculative activity during stable market periods.
• Technology and Cybersecurity Risk: The company’s AI-driven, digital-first infrastructure and crypto integration increase exposure to cybersecurity threats, system outages, data privacy concerns, and operational disruptions that could impact user trust and platform stability.

Technical Observation (on the daily chart):

• The stock remains in a sustained medium-term downtrend, characterized by a sequence of lower highs and lower lows since mid-2025. Price action continues to trade below both the 20-day and 50-day moving averages, confirming persistent bearish structure.
• The 20-day MA (USD 29.02) remains below the 50-day MA (USD 33.43), reflecting negative momentum alignment. The downward slope of both averages suggests that rallies are currently corrective rather than trend-reversing.
• The RSI is near 43, indicating weak momentum but not oversold conditions. This suggests limited buying pressure and no strong bullish divergence at present.
• Support and Resistance Levels: Immediate support appears near the recent low around 24–25. A decisive break below this zone could extend downside pressure. On the upside, resistance is visible near around 29 (short-term) and stronger resistance around 33–34 (50-day MA region).
• Trading volume remains relatively subdued, indicating a lack of strong accumulation. The absence of high-volume bullish candles limits conviction in any near-term rebound.

eToro delivered a strong performance in FY2025, demonstrating the resilience and scalability of its diversified multi-asset platform. Net Contribution rose 10% year over year to USD 868 million, while GAAP Net Income increased 12% to USD 216 million, supported by disciplined cost management and expanding revenue streams. Funded accounts grew 9% and Assets Under Administration increased 11% to USD 18.5 billion, reflecting sustained user acquisition and healthy engagement. The Company’s expanding product ecosystem—spanning AI-driven investing tools, global market access, wealth solutions, and neo-banking—alongside a strong liquidity position, reinforces its strategic positioning for continued long-term growth.

Supported by a growing customer base, strengthening balance sheet, and sustained earnings momentum, a ‘Buy’ rating has been given eToro Group Ltd (NASDAQ: ETOR) at the closing market price of USD 27.46 as of Feb 13,2026. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is February 13,2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.