Trading platform eToro Group Ltd. posted a $7.2 million loss in its crypto trading division during the second quarter of 2026, marking a sharp reversal from the $37.7 million profit recorded in the same period last year. Despite the slump in digital asset activity, the company beat Wall Street earnings expectations on the back of resilient stock trading performance, it said in a press statement.
The Tel Aviv-based platform’s quarterly cryptoasset revenue fell roughly 29% year-over-year to $1.35 billion. With matching costs of revenue for the segment, the digital asset division swung nearly 120% into negative territory. Softening crypto engagement extended into July, with total monthly crypto trades dropping 73% year-over-year to 1.4 million and the average trade size falling 50% to $182.
Notwithstanding the crypto decline, eToro reported strong overall consolidated financial performance. Driven primarily by heightened equities trading, total net contribution rose 9% year-over-year to $229 million. Adjusted diluted earnings per share reached $0.68, comfortably beating analyst consensus estimates of $0.61. Total funded accounts on the multi-asset platform grew 18% to 4.28 million.
To expand its footprint in North America, eToro also announced a definitive agreement to acquire U.S. online brokerage TradeZero for up to $231 million in cash and stock. Known for its active trading features, commission-free stock and options trading, and short-selling tools, TradeZero generated approximately $80 million in revenue over the 12 months ending in June. The transaction represents eToro’s third signed acquisition of 2026 and is scheduled to close in the first half of 2027, pending regulatory approvals.
Investors focused heavily on the crypto slowdown following the release, sending eToro’s stock down more than 12% to around $29.80 per share in post-announcement trading. Nevertheless, management expressed confidence in the company’s broader multi-asset strategy, highlighting ongoing product developments including on-chain perpetual futures and expanded buying power tools designed to capture market shifts.
