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eToro
(NASDAQ:ETOR)
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Rating:70Outperform
Price Target:
$37.00
▲(19.70% Upside)
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
Conservative balance sheet & cash
Large cash reserves and consistently positive operating/free cash flow in recent years provide durable financial flexibility. Low leverage and a growing equity base support investment, product rollout, buybacks and buffer against trading-cycle volatility, enabling multi‑year strategy execution.
Negative Factors
Severe revenue volatility
Very large top‑line swings undermine predictability of margins, investment planning and cash conversion. Dependence on episodic trading volumes and asset‑price movements means earnings can swing sharply across cycles, complicating multi‑period forecasting and capital allocation.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet & cash
Large cash reserves and consistently positive operating/free cash flow in recent years provide durable financial flexibility. Low leverage and a growing equity base support investment, product rollout, buybacks and buffer against trading-cycle volatility, enabling multi‑year strategy execution.
Read all positive factors
eToro (ETOR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.51B
Dividend YieldN/A
Average Volume (3M)692.51K
Price to Earnings (P/E)10.6
Beta (1Y)1.70
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. Volume651,765
30 Day Avg. Volume692,508
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$45.00Price Target Upside45.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)2.55
Revenue Forecast (FY)$923.98M
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 16, 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 | 66.99M | -180.62M | 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 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 |
|---|---|---|---|---|---|---|---|
84 Outperform | $907.32M | 8.00 | 13.81% | ― | 41.46% | -8.31% | |
82 Outperform | $17.42B | 11.99 | 28.42% | 2.62% | 44.47% | 39.64% | |
72 Outperform | $22.12B | 50.56 | 13.58% | ― | 37.19% | ― | |
70 Outperform | $2.51B | 10.62 | 18.97% | ― | 9.87% | 32.48% | |
69 Neutral | $9.13B | 9.20 | 22.05% | 2.28% | 16.84% | 20.39% | |
61 Neutral | $93.74B | 45.37 | 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
31.98
-14.75
-31.56%
FUTU
Futu Holdings
122.14
-60.59
-33.16%
TIGR
Up Fintech Holding
5.04
-7.28
-59.09%
XP
XP
18.23
0.50
2.83%
HOOD
Robinhood
104.81
3.97
3.94%
CRCL
Circle Internet Group, Inc. Class A
95.55
-24.59
-20.47%
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...
eToro Shareholders Approve Governance Changes and File New BVI Charter
May 29, 2026
On May 26, 2026, eToro Group Ltd. held its annual meeting of shareholders in Bnei Brak, Israel, with both Class A and Class B shareholders present and a quorum established. Investors approved all proposals on the agenda in line with the company...
eToro Posts Record Q1 2026 Results and Closes Zengo Crypto Wallet Acquisition
May 12, 2026
On May 12, 2026, eToro reported that for the first quarter ended March 31, 2026, net contribution rose 19% year-on-year to $258 million and GAAP net income climbed 37% to $82 million, supported by a surge in commodities trading. Adjusted EBITDA in...
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.