eToro IPO 10x Oversubscribed as Crypto Rebound Attracts Investors: Report

Investor interest for eToro’s long-awaited IPO has surged beyond expectations, reportedly prompting the fintech firm to shut its order books earlier than planned.

According to Calcalist, the offering, led by Goldman Sachs and Jefferies, is reportedly more than ten times oversubscribed. Backed by high demand and renewed interest for crypto platforms, eToro is now expected to raise over $500 million at a valuation exceeding $4 billion.

Citing sources familiar with the matter, the underwriters have informed roadshow participants that no further orders will be accepted beyond Monday. The high investor interest may now be expected to prompt a boost in the IPO pricing, adding further upside to the company’s capital raise.

Missed Window, Now Seizing the Moment

eToro initially aimed to go public in 2021 but shelved those plans amid regulatory uncertainty surrounding digital assets. That landscape shifted in 2024, as Donald Trump’s return to the White House caused renewed hope in the crypto and fintech sectors. With regulatory sentiment easing and market confidence returning, eToro seized the window it once missed.

Founded in Israel, eToro operates a trading platform for stocks, ETFs, and cryptocurrencies. The company’s recent financial results reflect a major turnaround, largely driven by a rebound in crypto trading volumes.

"The principal purposes of this offering are to increase our capitalisation and financial flexibility, and to create a public market," the company recently stated. "We intend to use the net proceeds from this offering for general corporate purposes, including working capital, operating expenses, and capital spending."

Strong Financial Performance

After reporting a net loss of $21 million in 2022, the company swung to a $192 million profit in 2024. Earnings per share followed suit, rising from a loss of $11.45 in 2022 to $0.80 in 2023, and then to $9.85 in 2024.

The trading boom in digital assets played a key role in eToro’s financial rebound. Revenue jumped from $639 million in 2023 to $931 million in 2024, while EBITDA nearly tripled from $117 million to $304 million over the same period.

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While eToro’s numbers look strong, the company is forecasting a lower income income due to growing marketing expenses. As reported by financemagnates, the company foresee a lower Q1 net income of between $56 million and $60 million compared to the same quarter last year, when it earned $64 million.

According to the Israeli fintech giant, the expected drop in net income is due to higher marketing investment, which was partly offset by a fall in share-based payment expenses.

The firm also expects lower adjusted EBITDA. In the first quarter of last year, the company posted $87 million for the first three months of 2024. However, from January to March 2025, this figure is expected to drop between $76 million and $80 million.