eToro Q2 Earnings Exceed Expectations, Stock Down 2.7%

eToro Q2 earnings exceed consensus expectations, with adjusted earnings and net contribution surpassing forecasts. Despite this, the company's stock fell 2.7% in early trading. eToro's strong performance marks its first quarterly earnings announcement as a publicly traded company following its IPO in May. The online trading platform reported a robust Q2, with its number of users and trading volume also exceeding expectations.

Title: eToro Q2 Earnings Beat Expectations, Stock Falls 2.7% in Early Trading

eToro Group (NASDAQ: ETOR), the online trading platform, posted strong Q2 results, marking its first quarterly earnings announcement as a publicly traded company following its IPO in May. The company's stock, however, dipped 2.7% in early trading. Its number of funded accounts rose to 3.63M in Q2 2025 from 3.58M in Q1 and 3.17M in last year's Q2 [2].

The company reported a net contribution of $210M for the second quarter, exceeding the consensus of $195M. This represents a 26% increase year-over-year from $167M in the previous quarter [3]. Adjusted EBITDA also topped the $67M consensus, declining from $80M in Q1 but rising from $55M in Q2 2024 [3].

eToro's CEO and Co-Founder Yoni Assia noted several product expansions during the quarter, including 24/5 trading for U.S. equities, new long-term portfolios in partnership with Franklin Templeton, and savings products in France. The company also strengthened its footprint in Asia by launching its Singapore hub [2, 3].

Despite the positive earnings report, the stock experienced a drop in early trading. Analysts from Mizuho Securities view eToro’s Q2 report as "upbeat," noting the company's continued expansion of its trade offering, including tokenized U.S. stocks and broader access to futures and spot-quoted futures [1]. However, the company's trading activity in cryptocurrencies slowed compared to previous quarters.

eToro's revenue source breakdown for Q2 2025 shows significant growth in crypto revenue, which increased by 17% to $1,915M, and equities/commodities revenue, which grew by 37% to $114M [3]. Net interest income and currency conversion also contributed positively, albeit with a slight decrease in net interest income by 12% to $44M.

Looking ahead, eToro plans to leverage tokenization technology and AI tools to transform how retail investors interact with the markets and create new opportunities for growth. The company aims to continue its geographic and product diversification efforts, including further expansion in Europe and Asia.

References:
[1] https://www.tipranks.com/news/the-fly/mizuho-views-etoro-q2-earnings-report-as-upbeat-thefly
[2] https://seekingalpha.com/news/4483835-etoro-q2-adjusted-earnings-net-contribution-exceed-consensus-stock-slips
[3] https://www.financemagnates.com/fintech/etoro-revenue-jumps-26-but-profits-stay-flat-in-public-debut/