eToro's crypto trading operations recorded a $7.2 million loss in the second quarter of 2026, according to its Q2 earnings report—a 120 percent swing from the $37.7 million gain posted in the same period a year earlier.
The Tel Aviv-based platform generated $1.35 billion in gross cryptoasset revenue for the quarter, down 29 percent from $1.91 billion in Q2 2025. Cost of revenue from cryptoassets matched that $1.35 billion figure dollar for dollar, producing the reported loss.
Crypto activity cratered. eToro logged 1.4 million crypto trades in July, a 73 percent drop year over year. Average crypto trade size fell 50 percent to $182.
eToro's overall net contribution still rose 9 percent year over year to $229 million, driven by equity trading. Funded accounts grew 18 percent to 4.28 million.
Adjusted diluted earnings per share came in at $0.68, beating analyst estimates of $0.61. Shares still fell as much as 11 percent after the earnings release and traded more than 12 percent lower at approximately $29.80 in the hours that followed.
The company also announced a deal to acquire TradeZero, a U.S. brokerage firm, for up to $231 million in cash and stock. eToro expects to close the acquisition in the first half of 2027, pending regulatory approvals.
TradeZero offers commission-free trading in U.S. stocks and options, with tools built for short sellers. Neither eToro nor TradeZero disclosed plans to integrate crypto, blockchain or tokenization into TradeZero's existing services. The deal is positioned to expand eToro's U.S. brokerage and distribution footprint.
TradeZero generated approximately $80 million in revenue in the 12 months ending in June. The acquisition is eToro's third signed deal this year.
