eToro Q3 Profit Falls 74% as Crypto Trading Slows; Funded Accounts Rise 18%
eToro reported third-quarter net income of about $15 million, down 74% from $57 million a year earlier, as weaker crypto trading dragged on results. Funded accounts rose 18% to 4.39 million, and the company announced a $250 million share repurchase authorization.
Written by CoinArticle’s AI Newsroom · from 2 cited sources. How we work
Earnings Miss and Share Reaction
eToro's third-quarter adjusted earnings came in at $0.26 per share, below analyst expectations of $0.32, according to the company's results. Shares fell as much as 8% during Tuesday's session after initially dropping 6.4% in premarket trading.
Revenue and Trading Activity
Net contribution fell 13% to $186 million from $215 million, and adjusted EBITDA dropped 56% to $34 million. Crypto trades on the platform fell 62% year over year to 2 million in the period, and the average invested amount per crypto trade declined 29% to $228. Trading across equities, commodities and currencies also weakened, with transactions down 22% to 48.2 million.
Customer Growth and Capital Returns
Funded accounts rose 18% to 4.39 million, while assets under administration held flat at $20.8 billion. Capital markets net contribution increased 21% year over year, partly offsetting the weakness in crypto. The company also announced a $250 million share repurchase program and an agreement to acquire LB Finanzas, an Argentina-based digital investment and payments platform.
Interpreting the Results
The two sources agree on the headline figures, though they frame the quarter differently. One report emphasizes the earnings miss and share decline, while the other stresses that account growth and trading revenue moved in opposite directions. Both note that a larger customer base did not immediately translate into higher revenue, since trading activity is what drives most of the earnings.
Limits of the Data
The sources attribute the decline primarily to crypto activity, but eToro's net contribution also reflects weaker equity, commodity and currency trading, so the crypto slowdown cannot be isolated as the sole cause. The repurchase authorization is also a ceiling rather than a confirmed buyback; the sources do not report how much stock was actually bought in the quarter.
Why It Matters
For Traders
Weaker crypto volumes on eToro point to softer retail demand in the near term, though a single platform's results are an incomplete gauge of market-wide activity.
For Investors
The gap between rising funded accounts and falling net contribution suggests customer growth alone will not restore earnings without a recovery in trading activity.
For Builders
Brokerage revenue here tracks transaction volume more than account count, so products should be measured on activity and yield rather than sign-ups.
This article is for information only and is not financial advice. Read the full disclaimer.
