Key Takeaways
- • eToro agreed to acquire US-based brokerage TradeZero for up to $231 million in cash and up to 2.5 million newly issued Class A shares, subject to purchase price adjustments, with regulatory clearance expected before closing in 2027.
- • TradeZero generated approximately $80 million in annual revenue with an 81% gross margin in the 12 months ended June 30, 2026, valuing the acquisition at roughly 2.9 times revenue.
- • Cryptocurrency trading activity on eToro's platform collapsed 73% year-over-year to 1.4 million total trades in July 2026, with invested amount per crypto trade halving to $182, underscoring the strategic shift toward equities.
- • eToro's net contribution rose 9% year-over-year to $229 million in Q2 2026, with net income of $53.5 million; funded accounts reached 4.28 million, up 18% year-over-year.
- • Net trading income from equities, commodities, and currencies increased $27.6 million year-over-year to $141.6 million, now representing the platform's largest revenue driver and exceeding the total increase in net contribution.
Summary
eToro, the Nasdaq-listed trading and investing platform, announced its acquisition of TradeZero, a US-based equities and options brokerage, for up to $231 million. The deal, disclosed on August 11, 2026, consists of cash payments and up to 2.5 million newly issued Class A shares, with purchase price adjustments to be determined. TradeZero, founded in 2015, operates an active trader-focused brokerage with operations across the United States, Canada, and international markets. The company generated approximately $80 million in revenue during the 12 months ended June 30, 2026, with a notably high 81% gross margin, placing the valuation at approximately 2.9 times revenue.
The acquisition represents a strategic pivot for eToro as its cryptocurrency business faces significant headwinds. Cryptocurrency trades on the platform plummeted 73% year-over-year to 1.4 million trades in July 2026, while the invested amount per crypto trade declined 50% to $182. This deterioration in crypto activity prompted management to accelerate expansion into the US equities market, where performance has remained robust. According to eToro's second-quarter 2026 results, net trading income from equities, commodities, and currencies rose $27.6 million year-over-year to $141.6 million—a figure that alone exceeds the platform's total net contribution growth of $19.8 million for the period.
eToro's overall financial position remained solid despite crypto headwinds. Net contribution increased 9% year-over-year to $229 million, and the company posted net income of $53.5 million in Q2 2026. Funded accounts grew 18% year-over-year to 4.28 million, demonstrating continued user acquisition momentum. Yoni Assia, eToro's co-founder and chief executive, stated that the TradeZero combination "gives us a faster path to launching new products for US customers." TradeZero's Canadian operations, which gained dealer member status with Canadian investment regulators in February 2022, provide additional geographic diversification and regulatory infrastructure for North American expansion.
The transaction requires regulatory clearance before closing, expected in 2027. TradeZero carries historical significance from the 2021 meme-stock trading episode, reflecting its position in the active retail trading segment. The acquisition aligns eToro's strategic direction toward multi-asset platforms anchored in equities, away from its earlier emphasis on cryptocurrency trading as a primary growth driver.
The acquisition represents a strategic pivot for eToro as its cryptocurrency business faces significant headwinds. Cryptocurrency trades on the platform plummeted 73% year-over-year to 1.4 million trades in July 2026, while the invested amount per crypto trade declined 50% to $182. This deterioration in crypto activity prompted management to accelerate expansion into the US equities market, where performance has remained robust. According to eToro's second-quarter 2026 results, net trading income from equities, commodities, and currencies rose $27.6 million year-over-year to $141.6 million—a figure that alone exceeds the platform's total net contribution growth of $19.8 million for the period.
eToro's overall financial position remained solid despite crypto headwinds. Net contribution increased 9% year-over-year to $229 million, and the company posted net income of $53.5 million in Q2 2026. Funded accounts grew 18% year-over-year to 4.28 million, demonstrating continued user acquisition momentum. Yoni Assia, eToro's co-founder and chief executive, stated that the TradeZero combination "gives us a faster path to launching new products for US customers." TradeZero's Canadian operations, which gained dealer member status with Canadian investment regulators in February 2022, provide additional geographic diversification and regulatory infrastructure for North American expansion.
The transaction requires regulatory clearance before closing, expected in 2027. TradeZero carries historical significance from the 2021 meme-stock trading episode, reflecting its position in the active retail trading segment. The acquisition aligns eToro's strategic direction toward multi-asset platforms anchored in equities, away from its earlier emphasis on cryptocurrency trading as a primary growth driver.
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