The October numbers from eToro point to a quieter user base. Clients placed 2.0 million crypto trades during the month, down 62% from a year earlier. Funded accounts rose 18% to 4.42 million over the same period. So more people have accounts, but they are trading less and putting less money to work per trade.
Crypto Revenue Takes a Hit
The trend shows up in the third-quarter results. Net income fell 74% year over year to $15 million. Net contribution, eToro’s main revenue measure, dropped 13% to $186 million. That was the second straight quarterly decline. Crypto contributed about $28.3 million after costs, down from $59.0 million a year earlier. The drop is close to the crypto revenue decline Robinhood reported for the same quarter. CFO Meron Shani said crypto activity recovered from the second quarter, though the year-over-year comparison remains weak.
Broader Trading Slows
Capital markets trades fell 22% to 48.2 million. The average amount invested per trade dropped 49% to $184. Net trading income from equities, commodities and currencies rose 21% year over year to $88.5 million. But that was 38% below the second quarter. Net interest income from users fell 15% to $50.0 million. Adjusted EBITDA dropped 56% to $34.2 million, with a margin of 18% of net contribution. A year earlier the margin was 36%.
October operating metrics also softened. Interest-earning assets fell 20% to $7.0 billion. Assets under administration slipped 6% to $19.2 billion, and money transfers fell 21% to $1.1 billion. Selling and marketing expenses rose 42% to $68.1 million, equal to 37% of net contribution. That was up from 22% a year earlier. eToro said account growth came mainly from user acquisition and retention efforts.
Shares Under Pressure, Buyback Added
The stock was already under pressure before the results. eToro shares fell 34.9% in the third quarter, while the median of 13 listed brokers and platforms gained 5.9%, according to FM Intelligence calculations. After the report, shares fell as much as 4.8% to $22.21 shortly after the New York open. At about $22.40 early in trading, they were 36% below their end-2025 close and 57% below the $52 IPO price. The board authorized a repurchase program of up to $250 million. That is about 14% of market value based on the third-quarter weighted share count. It follows $189.1 million eToro spent on its own shares in the first half. eToro also agreed to buy LB Finanzas, an Argentine investment and payments platform, after signing for US broker TradeZero in August. Cash, cash equivalents and short-term investments stood at $1.2 billion at the end of September.
