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eToro
(NASDAQ:ETOR)
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Rating:70Outperform
Price Target:
$27.00
▼(-12.65% Downside)
Action:Reiterated
Date:08/11/26
ETOR scores well on financial quality (low leverage and strong recent cash generation) and a constructive earnings call showing continued user growth and profitability. The main constraints are weak technicals (below major moving averages with negative MACD) and business volatility, including crypto-driven AUA swings and uneven revenue patterns.
Positive Factors
User and asset growth
Strong growth in funded accounts and assets under administration indicates expanding customer adoption and platform engagement. A larger user and asset base can support recurring activity, improve monetization opportunities, and strengthen eToro’s competitive position over the next several quarters.
Negative Factors
Highly volatile revenue profile
Large swings in revenue make eToro’s earnings power difficult to forecast and indicate meaningful sensitivity to trading activity and market conditions. Even with strong recent margins, unstable top-line performance can complicate planning, investment decisions, and the sustainability of reported profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
User and asset growth
Strong growth in funded accounts and assets under administration indicates expanding customer adoption and platform engagement. A larger user and asset base can support recurring activity, improve monetization opportunities, and strengthen eToro’s competitive position over the next several quarters.
Read all positive factors
eToro (ETOR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.97B
Dividend YieldN/A
Average Volume (3M)1.01M
Price to Earnings (P/E)8.1
Beta (1Y)1.72
Revenue Growth9.87%
EPS Growth32.48%
CountryUS
Employees1,520
SectorGeneral
Sector StrengthN/A
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)3.01
Shares Outstanding66,806,610
10 Day Avg. Volume912,870
30 Day Avg. Volume1,013,849
Financial Highlights & Ratios
PEG Ratio1.39
Price to Book (P/B)2.10
Price to Sales (P/S)0.21
P/FCF Ratio11.38
Enterprise Value/Market Cap1.24
Enterprise Value/Revenue0.29
Enterprise Value/Gross Profit3.05
Enterprise Value/Ebitda7.14
Forecast
1Y Price Target
$43.69Price Target Upside41.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)2.35
Revenue Forecast (FY)$899.79M
eToro Business Overview & Revenue Model
Company Description
eToro Group Ltd. engages in the development, management, and provision of online trading software solutions and services. The firm's trading platform, eToro, allows users to trade financial instruments. It also enables non-professionals to trade i...
How the Company Makes Money
eToro primarily makes money by monetizing trading and investing activity on its platform through transaction-related fees and spreads, plus ancillary account and service revenues. Key revenue streams include: (1) Trading spreads and transaction fe...
eToro Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
Overall the call was constructive and growth-oriented: management reported solid top-line and profitability gains (net contribution +9%, adjusted EBITDA +9%), strong user and product momentum (funded accounts +18%, major AI and product launches, savings AUM 15x growth), and a strategic acquisition (TradeZero) to expand U.S. capabilities. Near-term headwinds include crypto-driven AUA volatility (July AUA -5% YoY), a pullback in margin usage, seasonality in July trading activity, and higher near-term operating spend for growth initiatives. On balance, positives around growth, product innovation, and a strong balance sheet outweigh the short-term cyclicality and integration risks.Positive Updates
Net Contribution and Adjusted EBITDA Growth
Net contribution increased 9% year-over-year to $229 million and adjusted EBITDA grew 9% year-over-year to $78 million, with an adjusted EBITDA margin of 34% (in line with prior year).
Negative Updates
Crypto Revenue Weakness and Valuation Hit
Crypto net contribution was $11 million in Q2, reflecting lower trading activity and a shift to equities; corporate crypto holdings incurred a $2 million negative valuation impact, leaving balances of $30 million.
Read all updates
Q2-2026 Updates
Positive
Negative
Net Contribution and Adjusted EBITDA Growth
Net contribution increased 9% year-over-year to $229 million and adjusted EBITDA grew 9% year-over-year to $78 million, with an adjusted EBITDA margin of 34% (in line with prior year).
Read all positive updates
Company Guidance
Guidance focused on modest near-term investment and deal timing: management expects Q3 adjusted OpEx to be slightly higher than Q2 (driven by continued marketing spend and a small R&D increase), noted early August improvement after July, and reiterated the planned TradeZero acquisition (up to $231M) is expected to close in H1 2027 and be adjusted EPS‑accretive in the first full year post‑close; key reported metrics include Q2 net contribution $229M (+9% YoY), adjusted EBITDA $78M (+9% YoY) with a 34% margin, adjusted OpEx $151M, adjusted S&M $68M (29% of net contribution), adjusted R&D $33M, adjusted G&A $51M, adjusted diluted EPS $0.68 vs $0.56 prior year, cash and short‑term investments $1.2B, operating cash flow $39M, Q2 funded accounts 4.28M (+18% YoY) and AUA >$19B (+10% YoY), Q2 net trading contribution from capital markets $142M (+25% YoY) with number of trades +64% YoY, crypto net contribution $11M (crypto holdings balance $30M with a $2M valuation hit), net interest income $49M (+7% YoY; higher interest‑earning assets +12%), etoro Money contribution $26M (+44% YoY; money transfers +92% YoY), July funded accounts 4.32M (+18% YoY), July AUA $18.5B (‑5% YoY due to crypto pricing), and July trade activity flat YoY.eToro Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
82
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 8.48B | 13.81B | 12.62B | 3.88B | 6.33B | 945.43M |
| Gross Profit | 800.27M | 757.84M | 680.52M | 404.71M | 361.34M | 945.43M |
| EBITDA | 342.03M | 307.44M | 296.12M | 68.13M | -178.71M | 0.00 |
| Net Income | 261.44M | 215.70M | 192.38M | 15.26M | -214.98M | -265.70M |
Balance Sheet | ||||||
| Total Assets | 1.82B | 1.79B | 1.19B | 800.16M | 2.40B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 1.21B | 1.28B | 3.63B | 388.33M | 358.96M | 0.00 |
| Total Debt | 35.01M | 102.95M | 48.30M | 36.46M | 45.86M | 0.00 |
| Total Liabilities | 454.75M | 396.76M | 358.99M | 202.60M | 1.89B | 553.55M |
| Stockholders Equity | 1.36B | 1.39B | 832.38M | 597.56M | 515.43M | 581.38M |
Cash Flow | ||||||
| Free Cash Flow | 303.22M | 257.68M | 266.21M | 111.41M | 342.75M | 0.00 |
| Operating Cash Flow | 310.63M | 262.52M | 268.58M | 111.83M | 346.98M | 0.00 |
| Investing Cash Flow | -92.68M | -87.85M | -68.53M | -1.42M | -24.92M | 0.00 |
| Financing Cash Flow | -242.56M | 319.95M | -3.19M | -10.74M | -291.38M | 0.00 |
eToro Technical Analysis
Negative
30.91
Price Trends
27.92
Negative
32.85
Negative
33.01
Negative
Market Momentum
-1.18
Negative
33.78
Neutral
19.50
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ETOR, the sentiment is Negative. The current price of 30.91 is above the 20-day moving average (MA) of 25.20, above the 50-day MA of 27.92, and below the 200-day MA of 33.01, indicating a bearish trend. The MACD of -1.18 indicates Negative momentum. The RSI at 33.78 is Neutral, neither overbought nor oversold. The STOCH value of 19.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ETOR.
eToro Risk Analysis
eToro disclosed 83 risk factors in its most recent earnings report. eToro reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
eToro Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $737.37M | 6.57 | 13.05% | 1.19% | 41.46% | -8.31% | |
77 Outperform | $14.79B | 10.32 | 28.42% | 2.48% | 44.47% | 39.64% | |
70 Outperform | $1.97B | 8.08 | 18.97% | ― | 9.87% | 32.48% | |
70 Outperform | $16.20B | 14.88 | 22.05% | 1.25% | 16.84% | 20.39% | |
70 Outperform | $22.89B | 47.47 | 13.58% | ― | 37.19% | ― | |
68 Neutral | $91.64B | 44.13 | 22.70% | ― | 39.14% | 14.06% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
* General Sector Average
ETOR
eToro
24.30
-13.74
-36.12%
FUTU
Futu Holdings
98.92
-69.13
-41.14%
TIGR
Up Fintech Holding
4.06
-6.09
-60.00%
XP
XP
29.35
12.56
74.80%
HOOD
Robinhood
96.58
-37.75
-28.10%
CRCL
Circle Internet Group, Inc. Class A
86.62
-43.24
-33.30%
eToro Corporate Events
eToro Posts Strong Q2 2026 Results and Moves to Acquire TradeZero
Aug 11, 2026
On August 11, 2026, eToro reported results for the second quarter ended June 30, 2026, highlighting a 9% year-on-year rise in net contribution to $229 million and a 77% jump in GAAP net income to $53 million. Funded accounts grew 18% to 4.28 milli...
eToro Moves to Acquire TradeZero in $231 Million Deal to Speed Up U.S. Expansion
Aug 11, 2026
On August 11, 2026, eToro announced an agreement to acquire TradeZero, a U.S.-focused online brokerage serving active traders, in a deal valued at up to $231 million in cash and newly issued Class A shares. The acquisition, which remains subject t...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.