eToro Reports $7.2 Million Crypto Loss Despite Strong Overall Earnings

eToro Faces Crypto Losses in Second Quarter

eToro reported a significant $7.2 million loss in its crypto trading division during the second quarter of 2026, a sharp decline from a $37.7 million profit reported in the same quarter the previous year. The company’s total crypto revenue fell to $1.35 billion, approximately 29% lower than the $1.91 billion earned a year prior.

Declining Crypto Revenue and Trading Activity

The sharp decrease in revenue was primarily attributed to a downturn in crypto trading activity, with eToro recording 1.4 million crypto trades in July, marking a 73% drop compared to the prior year. Additionally, the average crypto trade value decreased by 50% to $182. eToro’s CEO, Yoni Assia, emphasized that despite these challenges, the firm delivered a strong overall performance.

Net Contribution and Overall Performance

In terms of overall earnings, eToro reported a net contribution of $229 million, which represents a 9% year-over-year increase. Funded accounts also grew, increasing by 18% to reach 4.28 million. However, after the earnings announcement, the company’s shares dropped by about 12%, trading around $29.80.

Acquisition of TradeZero

In addition to its financial performance, eToro announced an agreement to acquire TradeZero, a U.S.-based brokerage firm, for up to $231 million in cash and stock. This transaction is expected to complete in the first half of 2027, pending necessary regulatory approvals. TradeZero offers commission-free trading for U.S. stocks and options and generated roughly $80 million in revenue over the past year.

Looking Ahead

Despite the current challenges in the crypto market, eToro is also focusing on innovation, with plans to launch on-chain perpetual futures and enhance its crypto buying power in the near future.