eToro shares fall 6.39% premarket as adjusted EPS drops to $0.26
Key Facts
eToro reported results for the third quarter ended September 30 on November 10, 2026, posting adjusted diluted earnings of $0.26 per share, compared with analyst consensus of $0.32, according to an Investing.com report. The stock fell 6.39% in premarket trading after the results, the same report said. The results showed year-over-year declines in profitability and activity metrics, while the funded account base continued to grow. The company said lower cryptocurrency trading activity was the primary driver of the decline in net contribution. Meanwhile, the board approved a share buyback program of up to $250 million.
Net contribution was $186 million in the third quarter, down 13% from $215 million in the same period of 2025, with the company attributing the decline mainly to lower cryptocurrency trading. Weaker operating revenue weighed on earnings: GAAP net income fell 74% to $15 million from $57 million. Adjusted net income also declined 60% to $24 million, compared with $60 million a year earlier. Adjusted EBITDA fell 56% to $34 million from $78 million. On a per-share basis, adjusted diluted earnings were $0.26, versus $0.60, while GAAP diluted earnings were about $0.14, versus $0.53.
The profit contraction coincided with an expanding customer base: funded accounts rose 18% year over year to 4.39 million, compared with 3.73 million in the third quarter of 2025. eToro said the growth was driven mainly by user acquisition and retention efforts. Assets under management, however, remained steady year over year at $20.8 billion, highlighting the gap between the increase in account numbers and the lack of asset growth during the period. Chief Financial Officer Meron Shani said capital markets contribution rose 21% year over year and cryptocurrency activity recovered sequentially during the quarter. Chief Executive Yoni Assia said the company launched a new app during the quarter, built from scratch with AI at its core, adding that this enables it to launch products at a faster pace.
October metrics provided a more recent picture of activity after the quarter ended. The company said assets under management were $19.2 billion, down 6% year over year, while funded accounts reached 4.42 million, up 18%. The number of cryptocurrency trades fell to 2.0 million, down 62% year over year, while the amount invested per trade dropped 29% to $228. In capital markets, currencies and commodities, the number of trades was 48.2 million, down 22% year over year, while the amount invested per trade declined 49% to $184. Total money transfers also fell 21% in October to $1.1 billion. These metrics point to continued weakness in trading volumes after the quarter in which the company linked lower net contribution to reduced cryptocurrency activity.
eToro announced an agreement to acquire LB Finanzas, an Argentine investment and payments platform, in a move the company said was aimed at expanding its presence in Latin America. Cash and cash equivalents and short-term investments totaled $1.2 billion on September 30. This follows a second quarter in which net contribution rose 9% year over year to $229 million and adjusted EBITDA increased 9% to $78 million. In that quarter, the company said net contribution from cryptocurrency trading was $11 million, and that the year-over-year decline mainly reflected lower trading activity and a shift by users toward stocks. In trading, ETOR shares closed at $23.32 on November 9, according to EL7 data.
The board-approved buyback program has a cap of up to $250 million, according to the company’s announcement; the disclosure did not state that purchases of that size had actually been made. eToro scheduled a call to discuss the results for November 10, 2026, at 8:30 a.m. Eastern Time, with a webcast through its investor relations website and the company’s official YouTube and X channels. The results announcement was released before the market opened that day. The call gives the company an opportunity to discuss its quarterly results and the activity metrics in its disclosure. October’s data, including year-over-year declines in assets under management and trades, remain the latest performance indicators the company has reported since the quarter ended.