EToro reports second quarter crypto loss even as total profit beats estimates
Trading platform eToro reported a $7.2 million loss in cryptoasset revenue for the second quarter, despite overall profit beating analyst estimates. The company also announced the acquisition of U.S. brokerage firm TradeZero for up to $231 million.
Why it matters
The results highlight the cooling of retail crypto trading activity and eToro's strategic pivot toward traditional equity brokerage expansion.
The Tel Aviv, Israel-based trading platform reported $1.35 billion in cryptoasset revenue, around 29% lower than the $1.91 billion a year earlier. Its cost of revenue from cryptoassets was $1.35 billion, leaving a $7.2 million loss, compared with a $37.7 million gain a year earlier.
EToro said it is developing onchain perpetual futures and that crypto buying power is “coming soon.” Crypto activity has cooled, however: the company reported 1.4 million crypto trades in July, down 73% from a year earlier, while the average crypto trade fell 50% to $182.
Overall, eToro’s net contribution rose 9% year over year to $229 million, driven mainly by equity trading, while funded accounts increased 18% to 4.28 million. Shares fell as much as about 11% after the announcements. The report also noted that the adjusted diluted earnings per share of $0.68 beat analysts’ estimates of $0.61.
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