eToro Q2 Profit Misses, Stock Drops 8% as Crypto Slump Hits Trading
ETOR sits 26% above its 52-week low of $24.74.
Summary
eToro's Q2 profit jumped 77% to $53 million but missed the $55.1 million FactSet consensus, sending shares down 8.3%. The earnings miss comes alongside a stark July crypto trading slump — trades down 73% year-over-year and invested amount per trade halved — signaling a key revenue engine is sputtering. The company also confirmed its acquisition of TradeZero for up to $231 million, adding a US broker-dealer and $80 million in revenue, but the deal isn't expected to close until H1 2027. This follows the earlier TradeZero announcement today, but the earnings miss and crypto weakness are new negative catalysts. With crypto prices down sharply over the past year, the core trading business faces headwinds that the TradeZero deal won't address near-term.
At the time of this announcement, ETOR was trading at $31.14 on NASDAQ in the Finance sector, with a market capitalization of approximately $2.5B. The 52-week trading range was $24.74 to $58.82. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.