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- Crypto trading volumes nearly triple YoY, driven by retail activity.
- Derivatives losses offset some gains, but net income rises 48% to $57M.
- Strategic AI tools, staking, and share buybacks position eToro for continued growth.
eToro Group Ltd. (ETOR) has delivered robust financial results for Q3, highlighting surging crypto activity and strategic expansion, even as derivatives losses weighed on profits.
Crypto Trading Volumes Soar
eToro’s crypto revenue hit $3.97 billion in Q3, a nearly threefold increase from $1.4 billion a year ago, driven by a surge in retail activity. October alone saw 5 million crypto trades, up 84% YoY, with the average trade size climbing 52% to $320.
The US market showed particularly strong momentum, with newly funded accounts surpassing full-year 2024 levels. This growth coincided with eToro expanding supported crypto assets from 3 to 110. The platform also introduced staking for Cardano, Ethereum, and Solana, alongside yield-bearing tokens, further boosting retail engagement.
However, high hedging costs in crypto derivatives offset gains, resulting in net losses exceeding $18 million. Hedging expenses totaled $3.89 billion, nearly matching the revenue from derivatives trading.
Solid Overall Financial Performance
Despite derivatives setbacks, eToro’s overall financial health remains strong. Net income rose 48% YoY to $57 million, supported by diversified revenue streams and a $150 million share buyback program, including a $50 million accelerated buyback.
Company-wide metrics also improved: net contribution increased 28% YoY to $215 million, while adjusted EBITDA climbed 43% to $78 million. Assets under administration reached $20.8 billion, up 76% YoY, with funded accounts growing 16% to 3.73 million.
Strategic Innovation and Market Outlook
eToro launched several initiatives, including AI-powered trading tools, 24/5 access to major US indices, and a premium subscription tier (eToro Club). Shares rose 8% in early trading following the results announcement on November 10.
Also Read: How eToro’s $5 Bitcoin Buy Became a $50M Sale – And Why CEO Yoni Assia Still Regrets It
Analysts remain optimistic, highlighting crypto volumes exceeding forecasts and maintaining a Buy rating. CEO Yoni Assia emphasized a focus on trading, investing, wealth management, and neo-banking, while expanding innovation in crypto and AI.
With disciplined cost management, diversified revenue streams, and strong US and Asian market prospects, eToro is positioned to drive sustainable growth and long-term shareholder value.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
