TLDR
- eToro posts strong Q2 growth, but stock plunges 8% on sharp intraday selloff.
- AI tools, new products fuel eToro’s Q2 surge, yet shares tumble despite gains.
- eToro grows revenue 26%, expands globally, but stock faces steep market drop.
- Big Q2 wins for eToro in AI, crypto, and wealth — market still sells the news.
- eToro’s Q2 earnings shine with global expansion, but traders send shares lower.
eToro Group Ltd. saw its shares fall sharply on Tuesday despite reporting strong second quarter earnings. The stock dropped from a morning high near $59 to about $50 and closed at $50.74. Trading stayed flat for the rest of the day, with a small after-hours rise to $50.89.
Strong Revenue Growth with Product Expansion
The company reported a 26% year-over-year increase in net contribution, reaching $210 million for the quarter ended June 30, 2025. Adjusted EBITDA climbed 31% to $72 million, supported by revenue gains and disciplined expense control. Adjusted net income reached $54.2 million, up from $44.2 million in the prior year period.
eToro strengthened its product portfolio across trading, investing, wealth management, and neo-banking during the quarter. It launched 24/5 trading for 100 U.S. equities and expanded its crypto coverage to over 130 assets globally. The company also introduced tokenized U.S.-listed stocks, preparing for future transfer-enabled offerings.
In wealth solutions, eToro rolled out French savings products such as retirement and life insurance plans. It expanded recurring investments beyond Europe to the United Arab Emirates. These moves broadened access to long-term, tax-advantaged investment options on the platform.
AI-Driven Tools and Strategic Partnerships
The quarter saw the introduction of AI-powered Alpha Portfolios, which use proprietary retail trading data and external sources for investment strategies. The company partnered with Franklin Templeton to launch target-date investment portfolios, further diversifying its offerings. It also unveiled AI-driven analyst features, enabling personalized insights and platform guidance.
eToro released APIs for strategy building and customization. These tools support advanced portfolio management, aiming to increase engagement and retention across its growing user base. Such innovations reflect the company’s push toward integrating advanced technologies into all service areas.
User growth remained steady, with funded accounts rising 14% year-over-year to 3.63 million. The acquisition of the Australian app Spaceship contributed to this expansion. Assets under administration increased by 54% to $17.5 billion, driven by higher activity and increased product adoption.
Financial Position and Market Reaction
Net income under GAAP totaled $30.2 million, slightly down from $30.6 million a year earlier, due to IPO-related costs. Cash, cash equivalents, and short-term investments stood at $1.2 billion at quarter-end, providing strong liquidity. The company maintains a healthy balance sheet to support its growth initiatives.
eToro remains focused on expanding its market presence through product innovation, global reach, and integration of new technologies. The company expects these strategies to create sustainable value and long-term growth.
