eToro Group (NASDAQ: ETOR) is buying US-focused brokerage TradeZero. Price tag: up to $231 million in cash and stock. The deal lands against a backdrop where crypto-related revenue dropped roughly 30% year-over-year. (The Block)
Cash plus up to 2.5 million newly issued Class A shares. The Block says closing is expected in the first half of 2027, pending regulatory approvals. Cointelegraph pegged the first half of 2026. Almost certainly a typo given the August 11 announcement date. (Cointelegraph)
The Q2 2026 numbers make the logic hard to miss. Net contribution: $229 million, up 9% year-over-year, driven mainly by stronger equities trading. GAAP net income jumped 77% to $53 million. Adjusted EBITDA climbed 9% to $78 million. Total revenue hit $1.59 billion, down from $2 billion in the comparable 2025 period. (The Block)
Crypto went the other direction. Hard. Cointelegraph reports crypto asset revenue fell to $1.34 billion, down about 30% from $1.9 billion in Q2 2025. Total crypto trades in July cratered 73% year-over-year to 1.4 million. Invested amounts? Down 50%. Equities and commodities-related trading generated $141 million in net income over the quarter. By Q1, crypto had already shrunk to 5% of eToro’s total net trading profit. (Cointelegraph)
TradeZero itself is no slouch. Founded in 2015, the firm generated about $80 million in revenue with 81% gross margins over the trailing 12 months ended June 30. eToro projected the deal would be accretive to adjusted earnings per share in its first full year.
“Today’s announcement is an important step in building our U.S. business,” eToro CEO Yoni Assia said. “TradeZero has built a successful franchise, with differentiated technology, broker-dealer infrastructure and a highly engaged trading community. This combination gives us a faster path to launching new products for U.S. customers and strengthens our offering.” (The Block)
Users kept coming regardless. Funded accounts climbed 18% to 4.28 million. Assets under administration reached $19.2 billion, up 10% from a year earlier. Cash position: $1.2 billion in cash, cash equivalents and short-term investments.
Q2 was still a step down from record Q1. Net contribution fell from $258 million. Adjusted EBITDA from $109 million. Net income from $82 million.
eToro CFO Meron Shani offered a cross-sell data point. More than 60% of users who traded commodities during Q4 2025 to Q1 2026 subsequently traded equities in Q2 2026. Nearly nine in ten of those users also traded crypto on the platform. (Cointelegraph)
Assia framed the acquisition as part of a longer arc. “Technology continues to reshape how people invest and manage their money,” he said. “Throughout our history, eToro has embraced these shifts, from social investing to crypto, and today AI and on-chain finance represent the next chapter in that evolution.” (The Block)
The TradeZero purchase extends a buying streak. In April, eToro acquired crypto wallet provider Zengo, reportedly for about $70 million. Also snapped up Israel-based exchange Bit2C. In July, led a $12.5 million strategic round in Extended, an onchain perpetual futures exchange. (The Block)
Shares of ETOR closed down 7.81% at $31.35, according to Yahoo Finance. Gave back a pre-market gain.
