In the second quarter of 2026, eToro Group Ltd. (NASDAQ: ETOR) reported a $7.2 million pre-tax loss on crypto trading as retail activity cooled sharply, even as adjusted diluted earnings per share of $0.68 beat analyst consensus estimates of $0.61, according to company earnings released on Tuesday.
The Bottom Line
- Crypto Downturn: eToro’s crypto trading division generated a $7.2 million loss in Q2 2026, marking a decline of nearly 120% from the $37.7 million gain recorded in the same period last year.
- Surging Equities: Total net contribution rose 9% year-over-year to $229 million, buoyed primarily by strength in equity trading and an 18% increase in funded accounts to 4.28 million.
- Market Reaction: Despite beating adjusted earnings per share estimates at $0.68 versus the expected $0.61, eToro (NASDAQ: ETOR) shares traded roughly 12% lower at $29.80 following the release.
Decoding the Q2 Balance Sheet Contraction
Here is the math: eToro (NASDAQ: ETOR) reported $1.35 billion in cryptoasset revenue, which was offset by an identical $1.35 billion in the cost of revenue from cryptoassets. This dynamic left the platform $7.2 million in the red, a steep decline from the $37.7 million profit secured a year earlier.
The platform logged 1.4 million crypto trades in July, representing a 73% contraction compared to the same month in the prior year. Simultaneously, the average size of a crypto trade fell 50% to $182. Total net contribution climbed 9% year-over-year to $229 million, sustained by robust activity in traditional equities and a broader client base.
Account Growth and Strategic Pivots
Client acquisition remained a bright spot for the Tel Aviv-based firm. Funded accounts expanded 18% year-over-year, reaching 4.28 million users.
According to the company’s earnings report, eToro (NASDAQ: ETOR) is currently developing onchain perpetual futures, with dedicated crypto buying power features slated for release soon.
Financial Performance Overview
| Financial Metric | Q2 2026 | Q2 2025 (Prior Year) | YoY Change / Status |
|---|---|---|---|
| Crypto Trading Profit/Loss | -$7.2 million | +$37.7 million | Declined ~120% |
| Cryptoasset Revenue | $1.35 billion | $1.91 billion | Decreased ~29% |
| Total Net Contribution | $229 million | $217 million | Increased 9% |
| Funded Accounts | 4.28 million | 3.58 million | Increased 18% |
| Adjusted Diluted EPS | $0.68 | N/A | Beat $0.61 estimate |
Shareholder Reaction and Forward Guidance
Although adjusted diluted earnings per share reached $0.68—outpacing the $0.61 consensus projected by analysts—shares fell as much as 11% immediately following the report. By the trading session hours after publication, shares exchanged hands around $29.80, down more than 12%.
Disclaimer: The information provided in this article is for educational and informational purposes only and does not constitute financial advice.
