Net Contribution of $258 million, up 19% YoY
Net Income of $82 Million, up 37% YoY
Adjusted EBITDA of $109 million, up 35% YoY
4.02 million funded accounts, up 12% YoY
NEW YORK, May 12, 2026 (GLOBE NEWSWIRE) -- eToro Group Ltd. ("eToro", or the "Company") (NASDAQ: ETOR), the trading and investing platform, today announced financial results for the first quarter ended March 31, 2026.
"I'm incredibly proud of the eToro team for delivering our strongest quarterly financial results as a public company, while continuing to accelerate product innovation. In the first quarter, we introduced 24/7 trading for commodities, equities and indices, added Japanese equities, and launched crypto trading in New York. We also saw acceleration in product launches with many new apps within the eToro App Store, AI-powered Agent Portfolios, and an integration with xAI for Tori, our AI agent.
"The acquisition of Zengo, a leading self-custodial crypto wallet provider, meaningfully advances our strategy of bridging traditional finance with on-chain infrastructure, prediction markets, perpetuals and the broader crypto ecosystem.
"Looking ahead, we continue to enhance our global product offering, deepen our investment in on-chain technologies, and grow our suite of AI-driven tools, which we believe will fundamentally reshape how retail investors engage with the markets and unlock new opportunities for growth," commented Yoni Assia, CEO and Co-Founder of eToro.
"Strong first quarter 2026 results supported by a surge in commodities trading, demonstrated the strength of our multi-asset business model. We delivered compelling financial performance through a combination of diversified revenue streams, strong funded accounts growth, and increased customer engagement. We continue to execute with discipline and focus as we seek to deliver long-term value to our shareholders," said Meron Shani, eToro CFO.
First Quarter 2026 Financial and Product Highlights(1)
-- Net contribution increased by 19% year-over-year to $258 million,
compared to $217 million in the first quarter of 2025, driven primarily
by increased commodities trading activity.
-- Net income (GAAP) increased by 37% year-over-year to $82 million,
compared to $60 million in the first quarter of 2025.
-- Adjusted Net Income (Non-GAAP) increased by 28% year-over-year to $86
million, compared to $67 million in the first quarter of 2025.
-- Adjusted EBITDA (Non-GAAP) increased by 35% year-over-year to $109
million, compared to $80 million in the first quarter of 2025, largely
due to increased net contribution.
-- Adjusted Diluted EPS (Non-GAAP) was $0.91, compared to $0.77 in the first
quarter of 2025.
-- Funded Accounts increased 12% year-over-year to 4.02 million compared to
3.58 million in the first quarter of 2025. This was driven primarily by
increased marketing spend on user acquisition and retention efforts.
-- Assets under Administration grew by 15% year-over-year to $17.0 billion,
compared to $14.8 billion in the first quarter of 2025.
-- Cash, Cash Equivalents and Short Term Investments were $1.3 billion as of
March 31, 2026.
-- Launched key products in AI, 24/7 trading, savings and eToro Money across
our four pillars of Trading, Investing, Wealth Management and
Neo-Banking.
-- Acquisition of Zengo, a leading self-custodial crypto wallet provider,
which closed on April 30th, 2026.
(1) See "Non-GAAP Financial Metrics and Key Performance Indicators" below for additional information and a reconciliation to GAAP for all Non-GAAP financial metrics. Adjusted EBITDA margin is based on net contribution.
April KPI metrics(2)
eToro also reported the below selected monthly business metrics for April 2026:
-- Assets under Administration (AUA) were $18.7 billion, up 19%
year-over-year.
-- Funded Accounts were 4.07 million, up 13% year-over-year.
-- Capital Markets/ECC Activity
-- Total number of trades for April was 63 million, up 50%
year-over-year;
-- Invested amount per trade for April was $197, down 48%
year-over-year.
-- Crypto Activity
-- Total number of trades for April was 2 million, down 32%
year-over-year;
-- Invested amount per trade for April was $207, down 22%
year-over-year.
-- Interest Earning Assets for April were $7.0 billion, up 28%
year-over-year.
-- Total Money Transfers for April were $1.4 billion, up 53% year-over-year.
Business Highlights
eToro accelerated product development in the first quarter, launching products and services to support users at every stage of their investing journey.
-- Trading: eToro expanded its offering with the launch of 24/7 trading for
select commodities, equities and indices. Commodities trading accounted
for approximately 60% of trading commissions in the quarter, and volumes
increased nearly fourfold year-over-year. With the addition of Japanese
equities, eToro now offers users the ability to trade equities from 26
exchanges. The Company introduced crypto trading for users in New York,
successfully activating its BitLicense and Money Transmitter License.
-- Investing: eToro continued to enhance its investing experience including
the launch of the eToro App Store, a marketplace enabling investors and
developers to access, build, share, and scale trading and analytics
applications directly within the eToro ecosystem. As part of its
commitment to AI-powered investing, eToro introduced Agent Portfolios,
dedicated sub-portfolios, which provide a structured way to experiment
with intelligent portfolio automation in a controlled environment through
a simple conversational interface with Tori, eToro's AI agent. eToro also
expanded its partnership with xAI, embedding real-time market sentiment
powered by Grok 4.2 directly into Tori's investing workflow.
-- Wealth Management: eToro strengthened its wealth offering supported by
growth in UK ISAs and the launch of an upgraded subscription service. The
Company is targeting a market opportunity exceeding $1 trillion, with
strong momentum in the UK cash ISA segment, where assets under management
in the quarter grew 15x year-over-year. eToro introduced an upgraded
eToro Club Subscription, providing access to exclusive wealth tools,
enhanced investing features, and premium rewards.
-- Neo-Banking: The European rollout of the eToro Money card continued to
see strong adoption, with the number of new cards issued increasing 2.2x
quarter-over-quarter. eToro continues to expand its localized experience
to strengthen user trust, drive adoption, and support sustainable growth
across key regions.
-- M&A: In April, eToro announced the acquisition of Zengo, combining
eToro's global multi-asset platform and distribution with Zengo's secure,
self-custodial wallet technology. The acquisition strengthens the
Company's digital asset capabilities and accelerates its strategy to
bridge traditional finance with on-chain infrastructure and the
crypto-native economy.
(2) Numbers may not sum up due to rounding; percentage changes based on unrounded data. This selected preliminary data has not been audited or reviewed and should not be extrapolated for future periods. April 2026 metrics are based on currently available information and are subject to update. Final results and other business metrics for the full fiscal quarter will be available in our filings with the U.S. Securities and Exchange Commission ("SEC") or otherwise publicly disclosed and might vary from the information above. eToro's management uses the foregoing key performance indicators to help evaluate the business, measure its performance, identify trends, prepare financial projections and make business decisions. Definitions of performance indicators can be found elsewhere in this press release.
Conference Call and Livestream Information
eToro will host a video call to discuss its results at 5:30 a.m. PT / 8:30 a.m. ET today, May 12, 2026. The video call can be accessed at investors.etoro.com, along with this earnings press release and accompanying slide presentation. The event will also be live streamed to eToro's YouTube and X.com official channels.
Contact
Media Relations -- pr@etoro.com
Investor Relations -- investors@etoro.com
About eToro
eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we've created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media center here for our latest news.
ETORO GROUP LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
March 31 December 31
---------- -------------
2026 2025
Unaudited Unaudited
---------- -------------
Assets
Current assets:
Cash and cash equivalents 1,047,403 1,072,641
Restricted cash 327 329
Short-term investment 228,248 202,688
Counterparties 347,053 249,055
Cryptoassets 60,536 62,606
Receivable from omnibus accounts 8,951 26,820
Other receivables and prepaid expenses 66,339 61,299
--------- ----------
1,758,857 1,675,438
--------- ----------
Non-current assets:
Restricted cash 11,794 11,688
Right of use assets 25,695 41,873
Property and equipment, net 8,681 7,361
Goodwill and other intangible assets, net 42,508 43,211
Deferred taxes 11,513 11,776
--------- ----------
100,191 115,909
--------- ----------
Total Assets 1,859,048 1,791,347
--------- ----------
Liabilities and equities
Current liabilities:
Accounts payable 5,163 4,435
Current maturities of long-term lease
liabilities 5,462 5,978
Short term liabilities 7,923 8,994
Payable to users 190,579 107,830
Accrued expenses and other payables 239,123 215,414
--------- ----------
448,250 342,651
--------- ----------
Non-current liabilities:
Employee benefit liabilities, net 923 962
Long-term lease liabilities 28,207 48,485
Deferred taxes 4,495 4,659
--------- ----------
33,625 54,106
--------- ----------
Equity attributable to equity holders of the
company:
Common share premium 1,280,706 1,273,894
Preferred share premium -- --
Treasury shares (165,157) (62,085)
Advanced Investment Agreement 9,091 9,091
Other capital reserve 1,881 5,441
Retained Earnings 250,652 168,249
--------- ----------
1,377,173 1,394,590
--------- ----------
Total liabilities and equity 1,859,048 1,791,347
--------- ----------
ETORO GROUP LTD.
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME (LOSS)
U.S. dollars in thousands
Three months ended Three months ended
------------------ --------------------
March 31, 2026 March 31, 2025
------------------ --------------------
Unaudited Unaudited
------------------ --------------------
Revenue and income:
Net trading income from
equities, commodities and
currencies 165,637 96,837
Revenue from cryptoassets 2,153,099 3,500,800
Net trading income from
cryptoassets derivatives 33,391 77,051
Net interest income from users 47,326 52,618
Currency conversion and other
income 30,976 23,911
Other interest income 8,707 4,164
----------------- -----------------
Total revenue and income 2,439,136 3,755,381
----------------- -----------------
Costs:
Cost of revenue from
cryptoassets 2,171,127 3,528,853
Margin interest expense 9,854 9,159
Research and development 41,087 36,621
Selling and marketing 61,505 61,222
General, administrative and
operating costs 58,383 49,502
Finance and other income, net (2,015) (517)
----------------- -----------------
Total costs 2,339,941 3,684,840
----------------- -----------------
Income before taxes on income 99,195 70,541
Taxes on income 16,791 10,589
----------------- -----------------
Net income 82,404 59,952
----------------- -----------------
Other comprehensive income, net:
Items that may be reclassified
subsequently to profit or loss:
Cash flow hedges, net of tax (3,560) (2,229)
----------------- -----------------
Other comprehensive loss for the
period, net of tax (3,560) (2,229)
----------------- -----------------
Total comprehensive income 78,844 57,723
----------------- -----------------
Basic net income per share 0.98 0.79
Diluted net income per share 0.86 0.69
Weighted-average shares of
common shares used to compute
net income per share
attributable to common
shareholders:
Basic 84,155,367 75,712,289
Diluted 94,177,135 86,576,130
ETORO GROUP LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
Three months ended Three months ended
------------------ --------------------
March 31, 2026 March 31, 2025(3)
------------------ --------------------
Unaudited Unaudited
------------------ --------------------
Cash flows from operating
activities:
------------------ --------------------
Net income 82,404 59,952
Adjustments to profit or loss
items:
Depreciation, amortization,
impairment and disposal Costs 3,216 3,011
Share-based payment 4,052 4,287
Evaluation of liabilities (1,071) 1,831
Revaluation of fair value of
cryptoassets and
counterparties 99,937 51,830
Non-cash revenue from staking
and blockchain rewards (6,605) (8,723)
Non-cash costs from staking and
blockchain rewards 4,287 5,847
Finance and other income, net (2,015) (517)
Taxes on income, net 16,791 10,589
----------------- ----------------
Total adjustments 118,592 68,155
----------------- ----------------
Changes in asset and liability
items:
Increase of counterparties (194,072) (63,184)
Decrease of cryptoassets 197 13,154
Increase of other receivables
and prepaid expenses (9,168) (7,029)
Increase of restricted cash (82) (124)
Increase of user and omnibus
accounts, net 99,928 48,901
Decrease of accounts payable (499) (670)
Increase (decrease) of accrued
expenses and other payables 14,649 (19,753)
Decrease of employee benefit
liabilities, net (601) (29)
----------------- ----------------
Adjustments: cash items (89,648) (28,734)
----------------- ----------------
Interest received (paid), net
during the period (1,151) 967
Taxes paid, net during the
period (5,801) (5,557)
----------------- ----------------
Net cash provided by operating
activities 104,396 94,783
----------------- ----------------
Cash flows from investing
activities:
Purchase of intangible assets (165) (57)
Increase of short-term deposits (137,515) (86,000)
Decrease of short-term deposits 112,307 75,000
Increase of long-term
investments (500) --
Purchase of property and
equipment (2,122) (522)
----------------- ----------------
Net cash used in investing
activities (27,995) (11,579)
----------------- ----------------
Cash flows from financing
activities:
Exercise of options 1,638 280
Repayment of lease liability (1,391) (1,147)
Purchase of treasury shares (101,102) --
----------------- ----------------
Net cash used in financing
activities (100,855) (867)
----------------- ----------------
Exchange differences on balances
of cash and cash equivalents (784) 7,379
----------------- ----------------
Increase (decrease) in cash and
cash equivalents (25,238) 89,716
----------------- ----------------
Cash and cash equivalents at
beginning of period 1,072,641 575,395
----------------- ----------------
Cash and cash equivalents at end
of period 1,047,403 665,111
(3) The comparative financial information has been adjusted to reflect the change in accounting policy regarding the classification of $5 million USDC as cash equivalents.
Non-GAAP Financial Metrics and Key Performance Indicators
This press release and the accompanying tables contain financial measures that are not calculated in accordance with International Financial Reporting Standards nor with Generally Accepted Accounting Principles (collectively "GAAP") metrics, including Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS. The inclusion of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. eToro believes these non-GAAP financial measures provide important supplemental information to management regarding financial and business trends used in assessing its results of operations. eToro believes excluding specified items provides a more meaningful comparison to the corresponding reporting periods and internal budgets and forecasts, assists investors in performing analysis that is consistent with financial models developed by investors and research analysts, provides management with a more relevant measure of operating performance and is more useful in assessing management performance.
eToro urges its investors to review the reconciliations of the non-GAAP financial measures included in this press release to the most directly comparable GAAP financial measure set forth herein, and not to rely on any single financial measure to evaluate eToro's business.
This press release also includes key performance indicators that eToro's management uses to help evaluate the business, measure its performance, identify trends, prepare financial projections and make business decisions. eToro's key performance indicators include Funded Accounts, Assets Under Administration and Net Contribution. Definitions of performance indicators can be found elsewhere in this press release.
ETORO GROUP LTD.
RECONCILIATION OF NON-GAAP METRICS
U.S. dollars in thousands
Three months ended Three months ended
-------------------- --------------------
March 31, 2026 March 31, 2025
-------------------- --------------------
Unaudited Unaudited
-------------------- --------------------
Net income 82,404 59,952
Finance expense, net 2,091 (517)
Taxes on income 16,791 10,589
Share-based payment expense 4,068 4,287
Depreciation and amortization 3,216 3,010
Employee non-cash expense 5,119 (1,049)
Transaction related costs -- 2,091
Other expenses (income), net (5,177) 1,831
---------------- ----------------
Adjusted EBITDA 108,512 80,194
---------------- ----------------
ETORO GROUP LTD.
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME
U.S. dollars in thousands
Three months ended Three months ended
-------------------- ----------------------
March 31, 2026 March 31, 2025
-------------------- ----------------------
Unaudited Unaudited
Net income 82,404 59,952
Share-based payment expense 4,068 4,287
Amortization 868 838
Employee non-cash expense 5,119 (1,049)
Transaction related costs -- 2,091
Other expenses (income), net (6,147) 1,831
Adjusted net income before
tax 86,312 67,950
--------------- ---------------
Tax impact (662) (1,201)
--------------- ---------------
Adjusted net income 85,650 66,749
--------------- ---------------
Basic shares outstanding 84,155,367 75,712,289
Diluted shares outstanding 94,177,135 86,576,130
Basic Non-GAAP EPS $ 1.02 $ 0.88
--------------- ---------------
Diluted Non-GAAP EPS $ 0.91 $ 0.77
--------------- ---------------
Basic GAAP EPS $ 0.98 $ 0.79
--------------- ---------------
Diluted GAAP EPS $ 0.86 $ 0.69
--------------- ---------------
Definitions of Certain Metrics
Adjusted EBITDA: Adjusted EBITDA is a non-GAAP financial metric that we define as net income adjusted to exclude finance and other expenses, net, taxes on income, share-based payment expense, depreciation and amortization, employee non-cash expense, one-time transaction costs and other expense.
Adjusted EBITDA Margin: Adjusted EBITDA Margin is a non-GAAP financial metric that we define as Adjusted EBITDA divided by Net Contribution.
Adjusted Diluted Earnings Per Share (Adjusted Diluted EPS): Adjusted Diluted EPS is a non-GAAP financial metric and is calculated by dividing the Adjusted Net Income attributable to common shareholders by the diluted shares outstanding during the period. Adjusted Diluted EPS excludes the impact of the same non-recurring or non-operational items to provide investors with a normalized measure of profitability on a per-share basis.
Adjusted Net Income: Adjusted Net Income refers to a company's net income after making adjustments for non-recurring, one-time, or non-cash items such as restructuring charges, asset impairments, acquisition-related expenses, or gains/losses from discontinued operations.
Assets under administration (AUA): AUA reflects the aggregate fair value of assets held by users within the platform, including those held by third-party partners for execution or custody services, categorized as follows:
-- Crypto: Includes all cryptocurrencies and users' crypto assets held in
eToro digital wallets.
-- Equities: Includes stocks, ETFs, and assets managed under the Spaceship
program.
-- Cash: Includes customers' uninvested cash (e.g., cash balances, eMoney
balances, in-process cashouts), as well as cash used for margin or posted
as collateral for leveraged positions.
Funded Accounts: Funded Accounts are users who have completed KYC, AML and other onboarding processes, activated their account, deposited funds, executed at least one trade at any time and have a positive account balance (invested or uninvested). Funded Accounts represent the deepest level of our user acquisition funnel and are the users from whom we generate total commission.
Interest Earning Assets: Interest Earning Assets are the average monthly balances of users' cash balances, corporate cash, users' total leveraged positions and stakeable cryptoassets.
Invested amount per trade: The total invested amount divided by the total number of trades. For reporting purposes, we present this measure separately for capital markets (equities, commodities, and currencies) and for cryptoassets, in order to highlight trends across the two categories, given their unique characteristics.
Net Contribution: Net Contribution reflects Total revenue and income, less the Cost of revenue from cryptoassets and Margin interest expense. We use Net Contribution to evaluate the net contributions of our users' activity on our platform before considering the overhead costs associated with our operations.
Net Contribution consists of the following five components, each representing revenue or income divided across our products based on the distinct patterns upon which we monetize users' activity on the platform. We evaluate the performance of our business and our success in both diversification and risk management across these five components:
-- Net Trading Contribution (Equities, Commodities and Currencies) is equal
to our Net trading income from equities, commodities and currencies.
-- Net Trading Contribution (Cryptoassets) is equal to Revenue from
cryptoassets plus Net trading income (loss) from cryptoasset derivatives
less Cost of revenue from cryptoassets, excluding the net contributions
from blockchain rewards and staking activity.
-- Net Interest Contribution represents Net interest contribution from users
plus Other interest income plus the net contributions of staking activity,
less Margin interest expense.
-- eToro Money comprises the vast majority of our Currency conversion and
other income. It represents the income earned from our money management
services, including currency conversions, withdrawals, interchange on our
debit card, transfers of cryptoassets, and fees relating to our
cryptoasset wallet services.
-- Subscriptions and Other is the remainder of Currency conversion and other
income not attributable to eToro Money plus the net contributions of
blockchain rewards.
Net Income: Net income represents the company's total earnings or profit for a given period, calculated as total revenue minus all expenses, including operating costs, depreciation, interest, taxes, and other income or expenses. It reflects the company's overall profitability according to GAAP standards.
Total Money Transfers: Total money transfers are the cumulative value across the respective period of user deposits, withdrawals, and cross-currency trade funding via eToro Money IBAN.
Trades: Trades represent the total number of orders that were placed by users and executed during the applicable period. Trades include self-directed and copy trades, and each trade reflects either the opening or closing of a position by a user.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook, market positioning development plans and growth strategy. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "outlook," "guidance," "expect, " "anticipate," "should," "believe," "hope," "target," "project," "plan, " "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," "shall" and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond eToro's control. eToro's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to market volatility and erratic market movements; failure to retain existing users or add new users; extreme competition; changes in the regulatory and legal framework under which we operate; regulatory inquiries and investigations; our estimates of our financial performance; interest rate fluctuations; the evolving cryptoasset market, including the regulations thereof; conditions related to our operations in Israel, including the ongoing war; risks related to data security and privacy and use of Open Source Software ("OSS"); risks related to artificial intelligence ("AI"); the ability to maintain the listing of our securities on Nasdaq; changes in general economic or political conditions; changes to accounting principles and guidelines; unexpected costs or expenses; and other factors described in "Risk Factors" in our Annual Report on Form 20-F for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission ("SEC") on March 2, 2026, as such factors may be updated from time to time in eToro's filings with the SEC, which are, or will be, accessible on the SEC's website at www.sec.gov.
Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent eToro's views as of the date of this press release. eToro anticipates that subsequent events and developments will cause its views to change. eToro undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing eToro's views as of any date subsequent to the date of this press release.
Source: eToro Group Ltd.
(END) Dow Jones Newswires
May 12, 2026 07:00 ET (11:00 GMT)