eToro shares drop 10% as Revenues fall 11% in Q2 2026 to $229 million

Online broker eToro saw its shares fall more than 10% on Tuesday after the company reported second-quarter 2026 results showing a slowdown in activity and profitability. Net contribution, eToro's revenue metric, declined 11% quarter-over-quarter to $229 million from $258 million in Q1 2026, while net profit came in at $53.5 million, down 35% from the record $82.4 million posted in the prior quarter.

Core revenue from equities, commodities and FX trading totaled $141.6 million in Q2 2026, down 14% from $165.6 million in Q1, accounting for a significant portion of the drop in overall topline activity. The company also announced the acquisition of TradeZero, a move aimed at strengthening its presence in the US online brokerage market and expanding its offering for active traders.

Shares were trading around $30.50 in early Tuesday trading, versus Monday's close of $34.00. The stock remains above its 52-week low of $24.74 set in February but is still well below the $52 IPO price from May 2025. The results contrast with rival neobroker Robinhood, which reported record revenue in Q2 2026 even as crypto trading activity declined, offset by strength in other areas such as prediction markets.

Funded accounts rose 18% year-over-year to 4.28 million, compared with 3.63 million in Q2 2025 and 4.02 million in Q1 2026. Assets under administration grew 10% year-over-year to $19.2 billion, up from $17.5 billion a year earlier and $17.0 billion in Q1 2026.

For July 2026, eToro reported AUA of $18.5 billion, down 5% year-over-year, and funded accounts of 4.32 million, up 18%. Total trades were flat at 48.5 million, while invested amount per trade fell 23% to $207. Crypto trades plunged 73% year-over-year to 1.4 million, with invested amount per crypto trade down 50% to $182. Interest earning assets were $6.8 billion, down 8%, while total money transfers rose 10% to $1.1 billion.

CEO Yoni Assia said the company delivered another strong quarter while executing on its long-term strategy, highlighting new product launches and the TradeZero acquisition. CFO Meron Shani noted that more than 60% of users who traded commodities during Q4 2025 to Q1 2026 subsequently traded equities in Q2 2026, and nearly nine in ten of those users also traded crypto on the platform. Shani described TradeZero as highly complementary and said the acquisition is expected to be financially accretive.