Online trading platform eToro (NASDAQ: ETOR) delivered mixed results in its first earnings report as a public company, with net contribution climbing 26% in Q2 2025 while net income stayed essentially flat compared to the same period last year.
eToro Posts 26% Jump in Net Contribution Despite Flat Earnings
The company posted net contribution of $210 million for the second quarter, up from $167 million a year earlier, driven primarily by increased trading activity across its platform. However, net income under generally accepted accounting principles (GAAP) held steady at $30.2 million, compared to $30.6 million in the second quarter of 2024.
The earnings included $15 million in costs related to eToro's initial public offering and other one-time expenses. When excluding these items, adjusted net income rose to $54.2 million from $44.2 million in the prior year period.
Metric | Q2 2025 | Q2 2024 | Change |
Net Contribution | $210M | $167M | +26% |
Net Income (GAAP) | $30.2M | $30.6M | -1% |
Adjusted EBITDA | $72M | $55M | +31% |
Funded Accounts | 3.63M | 3.17M | +14% |
However, compared with Q1 2025, net contribution fell by about 3%, while net income dropped by nearly 50%, shrinking from $60 million in the first three months of 2025. Adjusted EBITDA, meanwhile, declined by 10% from $80 million.
User Base and Assets Show Growth
Funded accounts grew 14% to 3.63 million users, up from 3.17 million last year. The increase came from both new customer acquisition efforts and the company's 2024 purchase of Australian investing app Spaceship.
More notably, assets under administration surged 54% to $17.5 billion, nearly doubling from $11.3 billion in the second quarter of 2024. This metric tracks the total value of assets held by users on the platform, including cryptocurrencies, stocks, and cash balances.
The company ended June with $1.2 billion in cash and short-term investments.
CEO Highlights Product Expansion
Chief Executive Yoni Assia emphasized the company's product development during the quarter. “In the second quarter, we offered 24/5 trading for U.S. equities, introduced new long-term portfolios in partnership with Franklin Templeton, and launched savings products in France, all while strengthening our footprint in Asia through our new Singapore hub,” Assia said.
The company rolled out several new features, including 24/5 trading for 100 U.S. stocks, allowing users to trade outside normal market hours. eToro also expanded its U.S. cryptocurrency offerings to over 100 digital assets and introduced AI-powered investment strategies called Alpha Portfolios.
Cryptocurrencies account for the overwhelming majority of the company’s revenue, while trading in other instruments currently represents only a small share.
Revenue Source | Q2 2025 | Q2 2024 | Change |
Crypto Revenue | $1,915M | $1,640M | +17% |
Equities/Commodities | $114M | $83M | +37% |
Net Interest Income | $44M | $50M | -12% |
Currency Conversion | $23M | $18M | +27% |
Total Revenue | $2,094M | $1,849M | +13% |
Geographic and Product Diversification
eToro continued expanding beyond its core trading business. The company launched French savings products including retirement and life insurance options. In Europe, it rolled out the eToro Money debit card offering 4% stock rewards on purchases.
The platform also activated its license from Singapore's financial regulator, establishing the city-state as its Asian headquarters. CFO Meron Shani noted the company's “focus on profitable revenue growth” in its first quarter as a publicly traded entity.
Looking ahead, Assia highlighted plans for tokenization technology and AI tools that he believes “will transform how retail investors interact with the markets and create new opportunities for growth.”
