eToro Crypto Trades Fell 62% in October as Accounts Grew 18%

By Marcus Bennett

eToro clients placed 2.0 million crypto trades in October, 62% fewer than a year earlier, even as funded accounts increased 18% to 4.42 million, according to the brokerage’s monthly update accompanying its third-quarter 2026 results.

The divergence matters more than either headline alone. More customers held eToro accounts, but they traded less often and committed less money. Capital-markets trades fell 22% year over year to 48.2 million, while the average amount invested per trade dropped 49% to $184.

Net income fell 74% year over year to $15 million. Net contribution, eToro’s main revenue measure, declined 13% to $186 million. That was the second straight quarterly decline, following $258 million in the first quarter and $229 million in the second. Diluted GAAP earnings per share were $0.14, versus $0.53 a year earlier.

Adjusted EBITDA fell 56% to $34.2 million. Its margin dropped to 18% of net contribution, half the 36% recorded a year earlier.

What does the account growth change for eToro?

Funded accounts reached 4.39 million at the third-quarter end, according to the results table, and rose to 4.42 million in October. eToro attributed most of the growth to user-acquisition and retention efforts. Selling and marketing expenses climbed 42% to $68.1 million, or 37% of net contribution, up from 22%.

eToro added funded accounts faster than it converted them into trading revenue. The wider market was busier: FM Intelligence estimated retail trading volumes rose 8% quarter over quarter in the third quarter. Its client activity did not match that backdrop.

October’s financial metrics also weakened year over year. Interest-earning assets fell 20% to $7.0 billion, assets under administration slipped 6% to $19.2 billion, and money transfers fell 21% to $1.1 billion. For the quarter, assets under administration were $20.8 billion, flat year over year.

Crypto remained the sharpest drag on profitability. It contributed about $28.3 million after costs, down from $59.0 million a year earlier. FinanceMagnates.com calculated a 52% decline, close to Robinhood’s reported 55% fall in crypto revenue for the same quarter.

“Crypto activity sequentially recovered,” CFO Meron Shani said in the release, referring to the change from the second quarter. The sequential improvement did not erase the year-over-year contraction.

Other businesses provided only a partial offset. Net trading income from equities, commodities and currencies rose 21% year over year to $88.5 million. It remained 38% below the $141.6 million recorded in the second quarter. Net interest income from users fell 15% to $50.0 million.

Product expansion and capital allocation

eToro is trying to convert account growth into deeper engagement. Chief Executive Yoni Assia said the rebuilt app, designed around AI, was “enabling us to ship products faster.” The company also expanded Edge, its desktop terminal for active traders. Users of API and agentic trading rose 250% from the second quarter.

Capital allocation moved on several fronts. The board authorized a share-repurchase program of up to $250 million, about 14% of eToro’s market value according to FinanceMagnates.com’s calculation from the third-quarter weighted share count. eToro had spent $189.1 million on its own shares in the first half, when its closing price ranged from $24.76 to $41.98.

M&A adds markets and products. eToro agreed to buy LB Finanzas, an Argentine investment and payments platform, after signing for U.S. broker TradeZero in August. Cash, cash equivalents and short-term investments stood at $1.2 billion at the end of September.

The market response was volatile. Shares fell as much as 4.8% to $22.21 shortly after the New York open, close to the $22.05 intraday low set on October 30. Within minutes, they briefly traded above Monday’s $23.32 close, then slipped again.

At roughly $22.40 in early trading, the shares were 36% below their end-2025 close and 57% below the $52 initial public offering price. The stock fell 34.9% in the third quarter, while the median change among 13 listed brokers and platforms was a 5.9% gain, according to FM Intelligence calculations.

The next quarterly results cycle will show whether a larger funded-account base and broader trading tools can lift activity enough to offset higher acquisition spending, while the TradeZero and LB Finanzas deals expand eToro beyond crypto.