eToro Net Income Drops 74% as Board Approves $250M Buyback

By Daniel Okafor

eToro reported third-quarter net income of $15 million, down 74%, and said its board approved a share buyback of up to $250 million as reduced cryptocurrency trading weighed on results.

Net contribution totaled $186 million, down 13% from a year earlier, while adjusted EBITDA fell 56% to $34 million. eToro said reduced cryptocurrency trading was the main driver of the contribution decline.

Those measures show the contraction across the earnings figures the company cited. Net income fell more sharply than net contribution, and adjusted EBITDA dropped by more than half. The results do not break out trading contribution by product, but they identify weaker crypto trading as the main stated cause of the contribution decline.

How did crypto trading affect eToro’s results?

Funded accounts reached 4.39 million by quarter-end, up 18% from a year earlier. Assets under management stood at $20.8 billion, unchanged from the same period a year earlier.

Those customer and asset measures moved differently from earnings. eToro reported more funded accounts without higher assets under management, and the expansion did not prevent net contribution from falling. The figures do not quantify the contribution from crypto or the company’s other assets.

For a multi-asset trading platform, the split makes the operational consequence clear: customer growth did not translate into stronger trading-linked contribution during the quarter. Funded accounts rose 18%, yet net contribution fell 13%, adjusted EBITDA fell 56% and net income fell 74%.

October supplied a sharper post-quarter signal. After the quarter closed, eToro recorded 2 million crypto transactions, down 62% from a year earlier. The company’s figures say the decline in crypto activity continued beyond the quarter, even as funded accounts had grown by quarter-end.

The October count is a monthly figure, not a third-quarter transaction total, so the two periods should not be conflated. Its significance is directional: crypto transactions were down 62% year over year after the company identified reduced crypto trading as the main reason contribution fell.

What does the $250 million buyback change?

The board’s repurchase authorization provides a capital-return component alongside the weaker trading results. Its stated ceiling is $250 million. The approval is capped, not a commitment to spend the full amount, and the results provide no execution timetable or share-count target.

That leaves both the timing and scale of any purchases undetermined. The $250 million figure establishes the program’s limit, not its realized cost, while the reported operating weakness provides the financial context for the authorization.

Across the quarter, the operating picture remained divided. Lower earnings and crypto activity sat alongside funded-account growth and stable assets under management, a contrast consistent with a multi-asset platform whose customer base expanded while trading-linked returns weakened.

Despite that expansion, net contribution of $186 million, adjusted EBITDA of $34 million and net income of $15 million all ended below their year-earlier levels. The disclosed data does not separate crypto from other trading activity, so the reported contraction centers on trading activity rather than a smaller account base.

For the business, the near-term task is to convert account growth into higher assets and activity without further pressure on contribution. Because the results disclose no buyback execution deadline, the $250 million program’s pace remains unresolved, while October’s 62% transaction decline leaves crypto activity as the clearest near-term operating question.