eToro's Profit Plunged 74% as Crypto Trading Cooled

eToro Group Ltd. reported third-quarter net income (GAAP) of $15 million on Tuesday, down 74 percent from $57 million a year earlier.

eToro Group Ltd. (NASDAQ: ETOR), the trading and investing platform, announced the results on Tuesday. The quarter ended September 30, 2026.

Net contribution, eToro's top-line measure after cryptoasset costs and margin interest, fell 13 percent to $186 million. It was $215 million in the third quarter of 2025.

The company said the decline was driven primarily by decreased crypto trading activity. Net crypto trading contribution was $26 million, down from $56 million a year earlier, Barron's reported from the earnings presentation.

Capital markets helped at the margin. Chief Financial Officer (CFO) Meron Shani said capital markets net contribution increased 21 percent year over year.

Profit fell further than the top line

Adjusted net income, a non-GAAP measure that strips out share-based pay and other items, fell 60 percent to $24 million. It was $60 million a year earlier.

Diluted earnings (GAAP) were $0.14 a share, down from $0.53 a share a year earlier.

Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA, non-GAAP) fell 56 percent to $34 million. It fell from $78 million a year earlier.

Adjusted diluted earnings were $0.26 a share, down from $0.60 a share. Selling and marketing spending rose to $68 million from $48 million, adding cost pressure.

Expectations were low, and still missed

Wall Street analysts had expected net income of $22 million, according to estimates compiled by FactSet. Reported net income of $15 million came in well below that mark.

The adjusted miss was narrower. Adjusted diluted earnings of $0.26 a share narrowly missed the $0.27 FactSet expectation, Barron's reported.

Analysts had anticipated net contribution of $187.2 million, according to FactSet. The reported $186 million fell just short.

More accounts, flat assets

Funded accounts, users who have deposited funds and traded at least once, rose 18 percent to 4.39 million. The count was 3.73 million a year earlier, lifted by user acquisition and retention, the company said.

Assets under administration were flat at $20.8 billion. Cash, cash equivalents and short-term investments were $1.2 billion at September 30.

"We delivered continued growth in our user base, with funded accounts up 18% year-over-year to 4.39 million and assets under administration of $20.8 billion," Shani said.

For the first nine months, net income was $151 million, versus $147 million a year earlier. The third-quarter drop therefore sits inside a roughly flat nine months.

October showed the weakness continuing

October crypto trades fell 62 percent year over year to 2.0 million. The invested amount per crypto trade fell 29 percent to $228.

Capital markets trades fell 22 percent to 48.2 million in October. Assets under administration slipped to $19.2 billion, down 6 percent.

Funded accounts still grew in October, reaching 4.42 million, up 18 percent. Shani said crypto activity sequentially recovered during the quarter, even as October stayed far below year-earlier levels.

A $250 million buyback is the counterweight

eToro's board authorized a share repurchase program of up to $250 million. Repurchases may use open-market trades, private deals, block trades or an accelerated program.

The company said its current share price does not fully reflect its fundamental value. It said timing and size will depend on market price, conditions and liquidity needs.

Shares fell on the report

eToro's stock was down 6.1 percent as of 10:30 a.m. Tuesday, Barron's reported. The snapshot is intraday, not a closing price.

What remains unknown

What remains unknown starts with crypto activity. eToro has not said when crypto trading volumes or invested amounts will return to year-earlier levels.

How much of the $250 million authorization will actually be spent, and how fast, is also unknown. Whether capital markets growth can keep offsetting crypto weakness is also unknown.

The fourth quarter will test the offset

What to watch: monthly crypto trades and invested amounts against October's lows, and capital markets contribution against its 21 percent growth rate. Watch also the pace of buyback execution in coming filings.