eToro Group Ltd. reported its third‑quarter 2025 financial results, posting an adjusted earnings per share of $0.60—$0.02 above the consensus estimate of $0.58. Total revenue climbed 63% to $4.11 billion, driven by a 120% jump in crypto‑asset revenue and a 45% increase in equity‑trading fees, while operating costs rose only 12% due to disciplined hiring and technology investments. Net contribution rose 28% year‑over‑year to $215 million, and the company’s adjusted EBITDA margin expanded to 36%, up 370 basis points from 32% in the same period last year, reflecting a higher mix of high‑margin crypto and wealth‑management services and the benefits of scale.
The earnings beat can be attributed to a combination of cost control and pricing power. eToro’s cost of revenue for crypto assets, which historically has thin economics, was offset by higher fee volumes and a shift toward more profitable equity‑trading segments. Management’s focus on operational efficiency—reducing support‑center spend and leveraging AI‑driven risk tools—helped keep operating expenses in check, allowing the company to translate revenue growth into a stronger margin.
Revenue growth was uneven across segments. Crypto‑asset revenue, the largest contributor, grew 120% to $1.8 billion, driven by increased trading volume on the platform’s native token and a broader adoption of DeFi products. Equity‑trading fees rose 45% to $1.2 billion, supported by a 15% increase in U.S. retail traders and a 10% rise in institutional client activity. The company also reported a 30% rise in wealth‑management fees, reflecting deeper client engagement with its robo‑advisory services.
While year‑over‑year growth remains robust, the company noted a sequential slowdown in net contribution and user growth. Funded accounts grew 16% year‑over‑year but only 8% quarter‑over‑quarter, and assets under administration increased 76% year‑over‑year but 12% quarter‑over‑quarter. Management cited the thin economics of crypto intermediation and increased regulatory scrutiny as headwinds that may temper short‑term momentum.
eToro announced a share‑repurchase program of up to $150 million, underscoring confidence in its cash‑generating capacity. CEO Yoni Assia said the company is “well positioned to capture significant growth opportunities presented by macro tailwinds and to deliver long‑term shareholder value.” CFO Meron Shani highlighted the “strength of our diversified revenue streams across segments and geographies, robust user engagement, and disciplined cost management” as key drivers of the quarter’s performance.
revised_sentiment_rating
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.