eToro Group Ltd. engages in the development, management, and provision of online trading software solutions and services. The firm's trading platform, eToro, ...
eToro Group Ltd. (NASDAQ: ETOR) is a global fintech focused on retail investing and trading. Founded in 2007 in Tel Aviv by Yoni Assia, Ronen Assia, and David Ring, the company’s core purpose is to lower the friction of participating in financial markets. Instead of treating trading purely as a ...eToro Group Ltd. (NASDAQ: ETOR) is a global fintech focused on retail investing and trading. Founded in 2007 in Tel Aviv by Yoni Assia, Ronen Assia, and David Ring, the company’s core purpose is to lower the friction of participating in financial markets. Instead of treating trading purely as a standalone execution activity, eToro combines an electronic trading platform with social features—supporting discovery of strategies and signals, and enabling users to observe and interact with other market participants (often referred to as “social trading”).
From a business model perspective, eToro sells an investing/trading experience to individuals and retail investors through its app and web platform. The offering is multi-asset, spanning equities, digital assets (including cryptocurrencies), commodities, and currencies, with products typically structured for retail access (including CFD-style trading depending on jurisdiction and instrument). This multi-asset approach helps the platform attract users who want one interface for diversified market exposure rather than multiple brokers.
Product and services include: (1) brokerage-style trading and investing capabilities; (2) social/community tooling that provides visibility into other traders’ activity and strategy performance; (3) user onboarding and account management for clients across multiple countries; and (4) ongoing platform operations such as market data integration, risk controls, and compliance tooling. In many markets, users can start with relatively small amounts and gain access to instruments that may include fractional exposure.
Cost and “BOM” considerations for a platform company like eToro typically concentrate on software engineering, cybersecurity, market-data connectivity, regulatory/compliance operations, customer support, and ongoing infrastructure (cloud/latency/availability). Because eToro is platform-centric, the largest recurring operating cost lines are generally personnel and technology operations, along with compliance and payment/settlement-related costs rather than physical assets.
Financially, eToro’s outcomes are influenced by trading and investing activity levels, volatility, customer growth, and regulatory environment—factors that affect revenue generation and risk outcomes. As a publicly traded company, it reports performance through measures such as profitability, margins, and cash-flow generation; its market valuation also reflects investor expectations about user growth and platform monetization.
Key people include founder and CEO Yoni Assia (also associated with chairman/leadership), alongside other senior executives such as Ronen Assia and Dr. Hedva Ber (Global COO & Deputy CEO, per leadership sources). The company’s “wishes” and strategic direction are centered on expanding retail access to trading and investing—maintaining a large international user base while improving platform usability, investing intelligence, and safety/compliance across jurisdictions.
Overall, eToro positions itself at the intersection of brokerage technology and social/community engagement, aiming to make global markets more understandable and accessible for everyday investors while operating as a regulated fintech broker/investment platform.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$13.8B
+9.4%
-10.6%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$215.7M
+12.1%
-35.1%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+5.5%
+1.8%
-1.0%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+2.0%
-7.9%
-28.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+1.6%
+2.5%
-27.4%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$257.7M
-3.2%
-63.5%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+1.9%
-11.5%
-59.2%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
7.4%
+27.2%
+5.0%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
217.88x
+6091.3%
-20.6%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Daniel Amir: 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 Assia, our CEO; and by Meron 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 questions 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 filings at SEC.gov. Actual results may differ, and we take no obligation to revise or update any forward-looking statements. Finally, during today's meeting, we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Definitions and reconciliation of GAAP to non-GAAP measures is available in our press release, investor presentation, and on the SEC.gov website as applicable. With that, I will pass the call to Yoni.
Jonathan Assia: Thank you, Daniel, and thank you to everyone joining us today. Welcome to etoro's Second Quarter 2026 Earnings Call. After Meron and I conclude our prepared remarks, we'll open the call for your questions. We delivered another strong quarter, demonstrating the strength of our diversified business model. One of etoro's key differentiators is our ability to perform across a wide range of market environments, and the second quarter was another example of that. As investor activity shifted from commodities to equities, our platform continued to deliver strong results, underscoring the value of offering users access to multiple asset classes through a single platform. Net contribution increased 9% year-over-year to $229 million and adjusted EBITDA grew 9% to $78 million. We also continue to see strong momentum across our key performance indicators as part of our growth strategy. Funded accounts increased 18% year-over-year to 4.28 million, driven by marketing investment and improved user retention, while assets under administration grew 10% year-over-year to more than $19 billion, reflecting continued strong user inflows. Today's announcement of our planned acquisition of TradeZero marks another important milestone for etoro. TradeZero has built a successful franchise with differentiated technology, a robust broker-dealer …
