Q2 2026 eToro Group Ltd. Earnings Call Transcript
Key Points
- Net contribution increased 9% year-over-year to $229 million, with adjusted EBITDA up 9% to $78 million, demonstrating strong financial performance.
- Funded accounts grew 18% year-over-year to 4.28 million, driven by marketing investment and improved user retention.
- The planned acquisition of TradeZero is expected to be strategically and financially attractive, with $80 million in revenues and over 80% gross margins, and is anticipated to be accretive to adjusted EPS in the first full year post-completion.
- The launch of the new AI-powered app and eToro Edge platform, along with agent portfolios and sub-accounts, positions the company for future growth and enhanced user engagement.
- Savings offering AUM grew 15 times year-over-year, and eToro Money card issuance increased over 30% quarter-over-quarter, indicating strong momentum in wealth management and neobanking segments.
- Crypto net trading contribution declined year-over-year to $11 million, reflecting lower trading activity and a shift of users towards equities, with a $2 million negative valuation impact on corporate crypto holdings.
- Assets under administration in July totaled $18.5 billion, down 5% year-over-year due to a decline in crypto pricing.
- July capital markets trading activity was flat year-over-year, with a slowdown in commodities and a correction in popular stocks, leading to a temporary reduction in user activity.
- Adjusted OpEx is expected to be slightly higher in Q3 due to continued investment in growth activities, including marketing and R&D.
- The TradeZero acquisition, while promising, involves integration risks and will not close until the first half of 2027, with limited financial details disclosed at this stage.
Hi, my name is Daniel Amir, Head of Investor Relations.
This webcast is being recorded and will be available for replay in the Investors section of eToro's website.
Our earnings press release, investor presentation, and July monthly spreadsheet is now available on our website at investors.etoro.com.
Today, I'm joined by Yoni Asia, our CEO, and by Miron Shani, our CFO. Following the prepared remarks, we will conduct a Q&A session and answer questions from both institutional research analysts and a selection of the most upvoted question previously submitted by eToro's retail shareholders.
But before we begin, I want to note that today's discussion contains forward-looking statements, including statements about goals. Business outlook, industry trends, market opportunities, expectations for future financial performance and similar items, all of which are subject to risks, uncertainties, and assumptions.
And you can find more information about these risks and uncertainties in the press release that we issued today and in the risk factors section at our
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