EToro's TradeZero Acquisition Announced Amid 30% Decline in Q2 Cryptocurrency Revenue
In conjunction with reporting a roughly 30% drop in cryptocurrency revenue versus Q2 2025, trading platform eToro has revealed plans to purchase TradeZero as it pursues expansion throughout the United States.
As part of its strategic expansion efforts across the United States, trading platform eToro has announced its intention to purchase US-based online brokerage TradeZero, the company disclosed on Tuesday.
According to its second-quarter financial results, eToro posted total revenue of $1.59 billion, representing a decrease from the $2 billion recorded during the same period in 2025. Crypto asset revenue reached $1.34 billion, reflecting approximately a 30% reduction compared to the $1.9 billion achieved in the second quarter of 2025. Despite this decline, the platform disclosed crypto-related costs of revenue amounting to $1.35 billion and generated net income of $19.7 million from crypto assets. The company's overall net income stood at $53.4 million.
Trading activities involving equities and commodities produced $141 million in net income for eToro.
As the company works toward establishing itself as a comprehensive multi-asset platform, it has been pursuing an expansion strategy focused on digital assets. The platform revealed its plans in April to purchase Zengo, a provider of self-custodial wallet services.
More than 60% of users who traded commodities during Q4 2025 to Q1 2026 subsequently traded equities in Q2 2026, and nearly nine in ten of those users have also traded crypto on eToro.
Meron Shani, Chief Financial Officer at eToro
The platform experienced a drop in total cryptocurrency transactions to 1.4 million during July, representing a year-over-year decrease of 73%. The invested amount similarly declined by 50%.
For the twelve-month period concluding on June 30, 2026, TradeZero produced approximately $80 million in revenue while maintaining gross margins of 81%. Following the transaction's completion, which eToro anticipates will occur during the first half of 2026, the company projects the acquisition will contribute positively to adjusted earnings per share within the initial year.
Based on data from Yahoo Finance, shares of ETOR trading on the Nasdaq experienced a decline exceeding 5% during pre-market trading on Tuesday, appearing set to continue the downward trend that began on Monday.