Social trading platform eToro reported robust Q3 2025 results, with crypto trading volumes soaring amid US expansion.
However, high hedging costs in crypto derivatives nearly erased departmental profits. Overall net income rose 48% YoY to $57 million, backed by diversified revenue and $150 million share buyback announcement.
Crypto Trading Volumes Triple YoY
eToro’s crypto-related revenue reached $3.97 billion in Q3, up from $1.4B a year earlier, driven by a sharp increase in retail activity. October saw 5 million crypto trades, an 84% YoY jump, with average trade size rising 52% to $320. In the US, newly funded accounts already surpassed full-year 2024 levels after expanding supported crypto assets from 3 to 110.
Staking for Cardano, Ethereum, and Solana was introduced, alongside yield-bearing tokens. Despite the surge, crypto derivatives recorded net losses of over $18 million, driven by hedging expenses totaling $3.89 billion—nearly matching revenue.
Overall Financials Show Strong Growth
Company-wide metrics remained solid. Net contribution grew 28% YoY to $215M, while adjusted EBITDA climbed 43% to $78M. Assets under administration (AUA) hit $20.8 billion, up 76% YoY, with funded accounts reaching 3.73 million (+16%). GAAP net income was $57 million.
eToro launched AI-powered strategy tools, 24/5 trading for major US indices, and a premium subscription tier (eToro Club). A $150 million share repurchase program—$50 million via accelerated buyback—was also unveiled. Shares rose 8% in early trading following the November 10 release.
eToro Group Ltd. (ETOR) share price: Yahoo Finance
Market Reaction and Outlook
Analysts viewed results positively, noting that crypto volumes exceeded forecasts and maintaining a Buy rating. Community feedback on X highlighted retail crypto demand recovery and upcoming wallet features supporting on-chain lending and prediction markets.
Tokenized stocks on Ethereum remain under regulatory scrutiny. CEO Yoni Assia emphasized, “We remain focused on executing our strategy across trading, investing, wealth management, and neo-banking while driving innovation in crypto and AI.
With disciplined cost management and diversified revenue streams delivering sustainable profit growth, eToro is well-positioned for continued US market penetration and accelerated expansion across Asia in 2026, capitalizing on macro tailwinds to drive long-term shareholder value.
