eToro Group (NASDAQ:ETOR) Posts Earnings Results, Beats Estimates By $0.07 EPS

eToro Group (NASDAQ:ETOR) announced its earnings results on Tuesday. The company reported $0.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.07, Briefing.com reports. eToro Group had a net margin of 2.17% and a return on equity of 20.19%. The company had revenue of $1.59 billion during the quarter. During the same quarter last year, the firm posted $0.56 earnings per share. The business’s quarterly revenue was down 23.9% compared to the same quarter last year.

Here are the key takeaways from eToro Group’s conference call:

• Strong second-quarter performance: Net contribution rose 9% year over year to $229 million and adjusted EBITDA increased 9% to $78 million, while funded accounts grew 18% to 4.28 million and assets under administration reached more than $19 billion.
• TradeZero acquisition expands U.S. capabilities: eToro agreed to acquire TradeZero for up to approximately $230 million in cash and stock, adding U.S. and Canadian scale, futures, shorting, margin and options-related capabilities. Management expects the transaction to be adjusted-EPS accretive in the first full year after completion.
• Product expansion is broadening engagement: eToro launched its AI-powered app, the Edge platform for active traders, Agent Portfolios and sub-accounts, while savings AUM grew 15-fold year over year and eToro Money card issuance increased more than 30% sequentially.
• Crypto activity weakened: Crypto net contribution fell to $11 million as users shifted toward equities, and the company recorded a $2 million negative valuation impact on corporate crypto holdings. July AUA declined 5% year over year to $18.5 billion, primarily due to lower crypto prices.
• Near-term spending and activity outlook is mixed: Third-quarter operating expenses are expected to rise modestly as eToro continues investing in marketing and R&D; July trading activity was seasonally flat, although management said activity improved during the first 10 days of August.

eToro Group Price Performance

ETOR stock traded up $0.27 during trading on Thursday, reaching $28.74. The company’s stock had a trading volume of 782,806 shares, compared to its average volume of 1,175,892. The company has a quick ratio of 3.92, a current ratio of 3.92 and a debt-to-equity ratio of 0.02. The company’s fifty day moving average is $37.77 and its 200-day moving average is $34.93. The company has a market capitalization of $2.38 billion, a P/E ratio of 10.81, a price-to-earnings-growth ratio of 0.63 and a beta of 1.68. eToro Group has a 1 year low of $24.74 and a 1 year high of $48.90.

Insider Activity at eToro Group

In other news, CEO Hedva Ber sold 55,160 shares of the company’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $41.90, for a total value of $2,311,204.00. Following the completion of the transaction, the chief executive officer owned 20,660 shares of the company’s stock, valued at $865,654. This represents a 72.75% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Hedge Funds Weigh In On eToro Group

Several institutional investors have recently bought and sold shares of the stock. T. Rowe Price Investment Management Inc. boosted its holdings in shares of eToro Group by 67.4% during the 4th quarter. T. Rowe Price Investment Management Inc. now owns 1,695,702 shares of the company’s stock valued at $59,571,000 after purchasing an additional 683,008 shares during the last quarter. Invesco Ltd. boosted its stake in eToro Group by 14,120.4% during the fourth quarter. Invesco Ltd. now owns 974,243 shares of the company’s stock valued at $34,225,000 after buying an additional 967,392 shares during the last quarter. Galaxy Group Investments LLC purchased a new position in eToro Group during the 4th quarter valued at approximately $1,409,000. Vident Advisory LLC increased its stake in eToro Group by 26.2% in the 4th quarter. Vident Advisory LLC now owns 22,754 shares of the company’s stock worth $799,000 after acquiring an additional 4,723 shares during the last quarter. Finally, EP Wealth Advisors LLC bought a new stake in eToro Group in the 4th quarter worth approximately $1,445,000.

Analysts Set New Price Targets

Several brokerages have recently weighed in on ETOR. Cantor Fitzgerald dropped their price target on shares of eToro Group from $61.00 to $53.00 and set an “overweight” rating on the stock in a research note on Wednesday. Citizens Jmp lifted their target price on eToro Group from $85.00 to $90.00 and gave the company a “market outperform” rating in a research report on Wednesday, May 13th. UBS Group cut their price target on eToro Group from $50.00 to $35.00 and set a “neutral” rating for the company in a report on Wednesday. Keefe, Bruyette & Woods reduced their price target on eToro Group from $45.00 to $35.00 and set a “market perform” rating for the company in a research report on Wednesday. Finally, Zacks Research downgraded eToro Group from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, July 14th. Ten equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, eToro Group currently has an average rating of “Moderate Buy” and an average price target of $52.40.

Key eToro Group News

Here are the key news stories impacting eToro Group this week:

• Positive Sentiment: eToro reported second-quarter 2026 adjusted diluted EPS of $0.68, above consensus estimates of approximately $0.61–$0.65. The company also highlighted record assets under administration and continued growth in funded accounts. eToro Reports Second Quarter 2026 Results
• Positive Sentiment: The proposed $231 million acquisition of TradeZero would expand eToro’s U.S. presence, adding brokerage capabilities and potentially strengthening its long-term competitive position. Management also pointed to increased use of AI tools by customers and ongoing digital-asset activity. eToro Acquires TradeZero
• Neutral Sentiment: Analysts remain broadly constructive but have reduced targets following the results. Susquehanna lowered its target to $51 while maintaining a positive rating; Mizuho set $52 with an outperform rating; Cantor Fitzgerald and Needham each set $53 with overweight and buy ratings, respectively.
• Neutral Sentiment: Other firms adopted more cautious stances: Goldman Sachs lowered its target to $36 and UBS and Keefe, Bruyette & Woods each moved to $35, with neutral or market-perform ratings. These targets still imply upside from recent trading levels but signal lower earnings or valuation expectations.
• Negative Sentiment: The TradeZero announcement triggered a sharp selloff, suggesting investors are concerned about the acquisition’s cost, execution risks and ability to generate returns. The reaction overshadowed the quarterly beat. eToro Earnings Beat Estimates, Shares Slide on TradeZero Acquisition
• Negative Sentiment: Although EPS exceeded expectations, quarterly revenue declined 23.9% year over year, leaving investors focused on slowing top-line growth and the company’s relatively low 2.17% net margin.

About eToro Group

eToro Group Ltd. (NASDAQ: ETOR) is a global multi-asset brokerage company known for its social trading platform. The company enables individual and institutional investors to trade and invest in a broad range of financial instruments, including stocks, exchange-traded funds (ETFs), commodities, indices, forex, and cryptocurrencies. eToro’s platform integrates a user-friendly interface with advanced trading tools, catering to both novice and experienced market participants.

A distinguishing feature of eToro’s offering is its CopyTrader™ functionality, which allows users to replicate the trades of selected investors on the platform.