Key Takeaways
- • eToro's Q2 crypto revenue declined 30% year-over-year to $1.34 billion from $1.9 billion in Q2 2025, reflecting broader weakness in cryptocurrency trading activity and market conditions.
- • Crypto trading volume contracted sharply in July 2026, with trade count falling 73% year-over-year to 1.4 million trades and investment volume dropping 50%, signaling reduced retail investor engagement.
- • eToro announced acquisition of TradeZero to accelerate US market expansion, with the online brokerage generating approximately $80 million in annual revenue (12 months through June 2026) and maintaining an 81% gross margin.
- • Total company revenue fell to $1.59 billion in Q2 from $2 billion year-over-year, while net income declined to $53.4 million companywide, with crypto segment net income at $19.7 million.
- • Multi-asset platform strategy includes planned acquisition of Zengo, a self-custodial crypto wallet company, complementing the TradeZero deal as eToro diversifies beyond cryptocurrency trading into broader investment and custody solutions.
Summary
eToro reported a significant contraction in cryptocurrency-related revenue during the second quarter of 2026, with crypto revenue falling approximately 30% year-over-year to $1.34 billion from $1.9 billion in the comparable 2025 period. The decline reflects mounting headwinds in the retail crypto trading market, a segment that has historically driven the majority of eToro's revenue. Total company revenue fell to $1.59 billion in Q2 2026 from $2 billion in Q2 2025, indicating that weakness extended beyond the crypto segment.
Trading activity metrics underscore the severity of the slowdown. The number of crypto trades executed on eToro's platform in July 2026 plummeted 73% year-over-year to 1.4 million trades, while investment volume contracted 50% over the same comparison. These declines suggest reduced retail participation in cryptocurrency markets and lower average transaction sizes among active users. Despite the revenue decline, eToro maintained positive net income of $53.4 million companywide in Q2, with the crypto segment specifically generating $19.7 million in net income.
In response to challenging cryptocurrency market conditions, eToro announced plans to acquire TradeZero, an online brokerage platform, as part of a broader strategic push to expand its presence in the US market and reduce dependency on volatile crypto trading revenues. TradeZero generated approximately $80 million in revenue over the 12-month period ending June 30, 2026, and operates with a healthy 81% gross margin, suggesting a profitable and complementary business model. This acquisition represents eToro's continued evolution toward a diversified multi-asset platform.
Additionally, eToro has been expanding its product ecosystem through the planned acquisition of Zengo, a self-custodial cryptocurrency wallet company announced in April 2026. These strategic acquisitions reflect management's intent to broaden the platform's value proposition beyond trading into adjacent services including brokerage and digital asset custody solutions, thereby stabilizing revenue streams and reducing exposure to trading volume cyclicality in cryptocurrency markets.
Trading activity metrics underscore the severity of the slowdown. The number of crypto trades executed on eToro's platform in July 2026 plummeted 73% year-over-year to 1.4 million trades, while investment volume contracted 50% over the same comparison. These declines suggest reduced retail participation in cryptocurrency markets and lower average transaction sizes among active users. Despite the revenue decline, eToro maintained positive net income of $53.4 million companywide in Q2, with the crypto segment specifically generating $19.7 million in net income.
In response to challenging cryptocurrency market conditions, eToro announced plans to acquire TradeZero, an online brokerage platform, as part of a broader strategic push to expand its presence in the US market and reduce dependency on volatile crypto trading revenues. TradeZero generated approximately $80 million in revenue over the 12-month period ending June 30, 2026, and operates with a healthy 81% gross margin, suggesting a profitable and complementary business model. This acquisition represents eToro's continued evolution toward a diversified multi-asset platform.
Additionally, eToro has been expanding its product ecosystem through the planned acquisition of Zengo, a self-custodial cryptocurrency wallet company announced in April 2026. These strategic acquisitions reflect management's intent to broaden the platform's value proposition beyond trading into adjacent services including brokerage and digital asset custody solutions, thereby stabilizing revenue streams and reducing exposure to trading volume cyclicality in cryptocurrency markets.
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