EToro reports second quarter crypto loss even as total profit beats estimates
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
eToro reported a $7.2 million loss in crypto trading during the second quarter of 2026, a sharp decline from a $37.7 million profit in the same period the previous year. Cryptoasset revenue fell from $1.91 billion to $1.35 billion, while crypto activity, including trade volume and average trade size, dropped considerably. Despite this, overall net contribution rose 9% to $229 million, and funded accounts increased 18% to 4.28 million. The company also announced plans to acquire U.S. brokerage TradeZero for up to $231 million.
Why it matters
The decline in crypto revenue and activity illustrates a cooling in the crypto trading market on eToro’s platform. However, eToro’s overall profit beating estimates and growth in equity trading and accounts suggest diversification beyond crypto trading is helping sustain the business. The acquisition of TradeZero signals eToro’s strategic expansion in U.S. brokerage services.
Key context
Crypto trading revenue and profits have decreased significantly from the prior year amid reduced trading volume and smaller average trade sizes. eToro is developing new crypto-related products such as onchain perpetual futures and plans to introduce crypto buying power. The TradeZero acquisition is eToro’s third acquisition this year and will expand its U.S. brokerage footprint, pending regulatory approval.
Key numbers and entities
eToro reported a $7.2 million loss in Q2 2026 crypto trading versus a $37.7 million profit a year earlier. Crypto revenue was $1.35 billion, down from $1.91 billion. July crypto trades dropped 73% year over year, with average trade size halved to $182. Net contribution rose 9% to $229 million; funded accounts grew 18% to 4.28 million. Adjusted diluted EPS was $0.68, beating estimates of $0.61. eToro agreed to acquire TradeZero for up to $231 million. TradeZero’s last 12 months revenue was about $80 million.
What remains unclear
The source does not specify detailed reasons for the drop in crypto trading volume and average trade size. It also does not clarify any future crypto, blockchain, or tokenization plans related to the TradeZero acquisition. Further details on the timeline and regulatory approval process for the acquisition remain unaddressed.