Investors gave eToro Group (NASDAQ: ETOR) a quick double-take yesterday (Tuesday). Pre-market shares climbed roughly 6% to $41.20 on a 35% earnings beat, then reversed once the conference call started, dropping more than 6% intraday before settling at $37.61, a 3% loss for the session.

The Q1 numbers were a clean beat on the headline figures, with adjusted EPS of $0.91 against a $0.69 consensus and net contribution up 19% year-over-year to $258 million. Assets under management declined quarter over quarter, while average trade sizes shrank by nearly 50% year over year.

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The Q1 figures FinanceMagnates.com reported yesterday showed net income up 37% on a near-fourfold surge in commodities trading. CEO Yoni Assia opened the analyst call by calling it the "fourth consecutive strong quarter since becoming a public listing."

Technically, the stock still sits near the local highs it has drawn for about a month, levels last seen in December 2025. But the price action puts the shares more than 40% below the $67 first-day close eToro registered on its May 2025 Nasdaq debut, and roughly 28% below the $52 IPO offer price.

The eToro’s AUA Number Investors Won't Headline

eToro's earnings deck leads with "AUA grew 15% YoY to $17 billion." Three quarters back, the same chart tells a different story.

Source: eToro shareholder update, May 12, 2026.

That is $3.8 billion in client assets that have walked off the platform or depreciated since the September peak, a sequential erosion of 18% over two quarters. April rebounded to $18.7 billion in the monthly KPI release, but eToro is still trading well below the Q3 high.

The press release frames the story through the year-over-year lens, which works because Q1 2025 was a weak comparable.

The drag is concentrated in one place. Crypto assets held on the platform fell from $7.8 billion at the end of Q3 2025 to $4.1 billion at the end of March, a 47% decline in two quarters.

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Equity AUA has climbed in the same window, from $6.5 billion to $9.3 billion, but the offset has not been enough to keep the total rising.

Assia framed the crypto decline as opportunity rather than risk, telling analysts that "crypto downtimes are the time to build." The framing tracks with eToro's February pivot story, but the underlying asset retention question keeps surfacing.

Margin Math the Call Surfaced

CFO Meron Shani told analysts the company will scale selling and marketing Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term spend from 22% of net contribution in Q1 to 25% by year-end 2026, repeating the commitment first made on the Q4 2025 call in February.

At Q1 net contribution of $258 million, every percentage point added is roughly $2.6 million in incremental quarterly marketing. Shani also confirmed adjusted operating expenses rose 7% sequentially, with a $12 million step-up in customer acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term costs the main driver.

Asked about Q2 trends, Shani said the company expects revenue per trade to be "just slightly above the range" of 60 to 75 cents the company normally guides to, a step down from the elevated Q1 print that commodities trading powered.

Net trading contribution from crypto was $13 million in Q1, with Shani specifying that the figure includes a $5 million negative valuation impact on eToro's own corporate crypto holdings.

Strip that out and the underlying user-driven crypto trading business contributed $18 million, less than half the level reported a year ago.

Average Trade Size Collapsed

The Q1 invested amount per capital markets trade was $197, down from $304 in Q4 2025 and from $262 a year earlier. April held flat at $197 against $379 in April 2025, a 48% year-over-year drop.

eToro attributes the trend to a higher mix of copy and automated trading, but the figure is also consistent with retail clients trading leveraged commodity CFDs rather than larger directional cash positions.

The balance sheet hints at the same shift. Counterparty balances, which represent collateral posted with trading counterparties on the hedging side of the book, rose 39% in the quarter to $347 million from $249 million at the end of December.

For comparison, XTB delivered an 88% revenue jump on 370,000 new clients in a single quarter, while Plus500 lifted its full-year 2026 outlook on $242 million in Q1 revenue.