Key Takeaways
- • eToro agreed to acquire US-focused online brokerage TradeZero for up to $231 million in a cash-and-stock deal, consisting of cash and up to 2.5 million newly issued eToro Class A shares, subject to customary purchase price adjustments.
- • eToro's Q2 2026 crypto-related revenue declined approximately 30% year-over-year to $1.34 billion from $1.9 billion in Q2 2025, while total platform revenue fell to $1.59 billion from $2 billion in the comparable 2025 period.
- • TradeZero generated $80 million in revenue over the trailing twelve months ending Q2 2026 with an 81% gross margin; eToro expects the acquisition to be accretive to adjusted earnings per share in the first year post-closing, anticipated for H1 2026.
- • The acquisition strengthens eToro's US expansion strategy and retail customer base while addressing crypto revenue headwinds by diversifying into equities and commodities trading through TradeZero's active trader infrastructure.
- • Total cryptocurrency trades on eToro's platform fell 73% year-over-year to 1.4 million trades in July 2026, with invested amounts declining 50%, reflecting volatile market conditions in the digital asset space.
Summary
eToro announced its agreement to acquire TradeZero, a US-focused online brokerage serving active traders, in a transaction valued at up to $231 million. The consideration consists of cash and up to 2.5 million newly issued eToro Class A shares, subject to standard purchase price adjustments. The acquisition is expected to close in the first half of 2026 and represents a strategic expansion of eToro's presence in the US retail trading market.
The TradeZero deal comes as eToro navigates a significant headwind in its core crypto business. In Q2 2026, the company reported total revenue of $1.59 billion, down from $2 billion in the same quarter of 2025. Crypto-related revenue specifically declined approximately 30% year-over-year to $1.34 billion from $1.9 billion in Q2 2025. Despite the decline, eToro reported net income of $19.7 million from crypto assets and total net income of $53.4 million, with equities and commodities generating $141 million in net income. The platform's cryptocurrency trading activity deteriorated further in July, with total trades falling 73% year-over-year to 1.4 million, while the invested amount declined 50%.
TradeZero brings meaningful operational scale to the acquisition. The target generated approximately $80 million in revenue over the trailing twelve months ended June 30, 2026, with an impressive 81% gross margin. eToro expects the acquisition to expand its retail customer base and provide stronger trading infrastructure, while delivering accretive adjusted earnings per share in the first year following close. The deal aligns with eToro's multi-asset platform strategy, which has gained traction through cross-trading behavior—CFO Meron Shani noted that more than 60% of users who traded commodities in Q4 2025 to Q1 2026 subsequently traded equities in Q2 2026, with nearly 90% of those users also trading crypto on the platform.
The transaction reflects eToro's broader diversification efforts amid crypto market volatility. The company reported 4.28 million funded accounts, representing 18% year-over-year growth. Earlier in 2026, eToro announced plans to acquire Zengo, a self-custodial wallet provider, further expanding its digital asset ecosystem. ETOR shares declined more than 5% in pre-market trading on the announcement day, reflecting investor concerns about revenue headwinds despite management's accretion expectations for the TradeZero acquisition.
The TradeZero deal comes as eToro navigates a significant headwind in its core crypto business. In Q2 2026, the company reported total revenue of $1.59 billion, down from $2 billion in the same quarter of 2025. Crypto-related revenue specifically declined approximately 30% year-over-year to $1.34 billion from $1.9 billion in Q2 2025. Despite the decline, eToro reported net income of $19.7 million from crypto assets and total net income of $53.4 million, with equities and commodities generating $141 million in net income. The platform's cryptocurrency trading activity deteriorated further in July, with total trades falling 73% year-over-year to 1.4 million, while the invested amount declined 50%.
TradeZero brings meaningful operational scale to the acquisition. The target generated approximately $80 million in revenue over the trailing twelve months ended June 30, 2026, with an impressive 81% gross margin. eToro expects the acquisition to expand its retail customer base and provide stronger trading infrastructure, while delivering accretive adjusted earnings per share in the first year following close. The deal aligns with eToro's multi-asset platform strategy, which has gained traction through cross-trading behavior—CFO Meron Shani noted that more than 60% of users who traded commodities in Q4 2025 to Q1 2026 subsequently traded equities in Q2 2026, with nearly 90% of those users also trading crypto on the platform.
The transaction reflects eToro's broader diversification efforts amid crypto market volatility. The company reported 4.28 million funded accounts, representing 18% year-over-year growth. Earlier in 2026, eToro announced plans to acquire Zengo, a self-custodial wallet provider, further expanding its digital asset ecosystem. ETOR shares declined more than 5% in pre-market trading on the announcement day, reflecting investor concerns about revenue headwinds despite management's accretion expectations for the TradeZero acquisition.
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