EToro to buy TradeZero as Q2 crypto revenue falls 30%

Trading platform eToro is set to acquire US online brokerage TradeZero as part of its expansion into the United States market. This acquisition comes as eToro reported a significant decline in crypto-related revenue, falling by approximately 30% compared to the second quarter of 2025. In its latest financial report, eToro disclosed a total revenue of $1.59 billion for Q2 2026, down from $2 billion in the same period last year.

Of this revenue, $1.34 billion was generated from crypto assets, representing a 30% decrease from $1.9 billion in Q2 2025. Despite the revenue drop, eToro still reported $1.35 billion in crypto-related cost of revenue and $19.7 million in net income from crypto assets, resulting in a total net income of $53.4 million. The company continues to diversify its offerings, with equities and commodities-related trading contributing $141 million in net income.

CEO Meron Shani highlighted that users who traded commodities in Q4 2025 and Q1 2026 were more likely to trade equities and crypto on eToro during Q2 2026. However, cryptocurrency trading on the platform dropped to 1.4 million in July, a 73% decline year-on-year, with invested amounts down 50%. eToro anticipates that the acquisition of TradeZero will be beneficial to its adjusted earnings per share in the first year following the closing of the deal, expected in the first half of 2026.

The acquisition was announced on Tuesday in pre-market trading, with eToro's shares (ETOR) on the Nasdaq trading platform down over 5%.