eToro Shares Jump 19% later than Q4 Earnings Beat on Strong Multi-Asset Trading
How Strong Were the Fourth-Quarter Results?
Shares of trading and investing platform eToro climbed 18.4% later than the company reported fourth-quarter earnings that exceeded Wall Street expectations, supported by robust activity in equities and commodities.
The Tel Aviv-based fintech, listed on Nasdaq under the ticker ETOR, posted adjusted earnings of 71 cents per share for the three months ended December 31. Analysts had expected 63 cents per share, according to LSEG data.
GAAP net income for the quarter rose to $69 million, up 16% year over year. Adjusted net income reached $251 million for the full year, while adjusted EBITDA totaled $317 million. increased 11% year over year to $18.5 billion in the fourth quarter, and funded accounts grew 9% to 3.81 million.
Despite the earnings beat, net contribution for the fourth quarter declined 10% to $227 million.
Investor Takeaway
What Drove Trading Activity?
from equities, commodities and currencies rose 43% year over year to $115.6 million. U.S. equity markets advanced during the quarter, supported by interest-rate cuts that boosted investor confidence. Commodities trading was particularly strong.
Crypto markets were more volatile. BTC recorded its largest monthly drop since mid-2021 in November, reducing activity among some digital-asset traders. Revenue from “cryptoassets” declined to $3.6 billion in the fourth quarter from $5.8 billion a year earlier.
Chief Executive Officer Yoni Assia described a change in client behavior. “There’s somewhat of a convergence or a shift from crypto, which now has lower volatility, to gold, silver and other commodities that have higher volatility,” he told analysts.
On the derivatives side, net trading income from crypto derivatives reached nahead $74 million in the fourth quarter, compared with a $130 million loss in the identical period a year earlier.
Did Growth Continue Into 2026?
ahead data for January 2026 points to continued activity. Total trades in capital markets reached 74 million, up 55% year over year. The invested amount per trade rose 8% to $252. Crypto trades fell 50% to 4 million, while interest-earning assets increased 17% to $7.7 billion. Total money transfers surged 68% to $1.8 billion.
Assets under administration stood at $18.4 billion in January, up 2% from a year earlier.
For the full year 2025, eToro reported net contribution of $868 million, GAAP net income of $216 million, and adjusted net income of $251 million.
Investor Takeaway
What About Capital Returns and Strategy?
The company ended 2025 with $1.3 billion in cash, cash equivalents and short-term investments. Its board approved a $100 million increase to its existing share repurchase program, bringing total available authorization to $150 million.
Management said it views purchasebacks as an efficient use of capital at current valuations. Assia pointed to broader industry developments, stating, “We are operating at a pivotal moment for financial services,” referencing advances in artificial intelligence and on-chain infrastructure.
During 2025, eToro expanded its global footprint by adding equities from 25 stock platforms and increasing its crypto offering to more than 150 digital assets. The company also broadened derivatives and futures access in Europe and the UK and is introducing 24/7 trading for select assets this quarter.
eToro went public last May in a Nasdaq IPO that raised about $620 million and valued the company at over $4 billion. Shares traded at $32.58 in morning activity following the results.
While digital-asset revenue softened in the fourth quarter, gains in equities, commodities and derivatives trading supported overall profitability. The latest results suggest the platform’s broader asset mix remains a key driver of performance when crypto volumes cool.
