eToro's Q3 net income drops 74% to $15 million as crypto trading weakens

By Tom Whitfield

eToro reported third-quarter net income of $15 million, a 74% drop from $57 million a year earlier, as weaker crypto trading eroded earnings at the Nasdaq-listed brokerage. The company disclosed the figures in its earnings release on Tuesday.

Net contribution fell 13% to $186 million from $215 million in the prior-year quarter, driven primarily by reduced crypto trading activity. Adjusted EBITDA declined 56% to $34 million from $78 million.

Crypto revenue told the sharpest story. Revenue from crypto assets dropped to $1.35 billion from $3.97 billion a year earlier, while the associated cost of crypto asset revenue fell to $1.29 billion from $3.89 billion.

How does the slowdown fit eToro's recent trajectory?

The third-quarter contraction extends a pattern visible throughout 2025. In August, The Block reported that eToro posted $53 million in second-quarter net income on $229 million in net contribution — both down from its record first quarter, though net contribution still grew year over year on stronger equities trading. The first quarter had already shown a 50% year-over-year drop in crypto trades.

The Q3 result continues that slide. Crypto activity, once the engine of eToro's revenue growth, now subtracts from the top line even as equities cushion the decline.

What did October's trading data show?

The slowdown has continued into the fourth quarter. October crypto trades fell 62% year over year to 2 million, and the average invested amount per crypto trade declined 29% to $228 during the month, the firm said on Tuesday.

Activity weakened across asset classes, not just crypto. eToro recorded 48.2 million trades in October across equities, commodities and currencies, down 22% from October 2025.

What is the company doing about it?

Despite the earnings contraction, eToro's user base and asset base held steady. The platform ended September with 4.39 million funded accounts, an 18% increase from a year earlier, and assets under administration were unchanged at $20.8 billion.

The board approved a $250 million share buyback program alongside the results. Purchases will remain subject to market conditions and the company's liquidity requirements.

The buyback signals management's confidence in the balance sheet even as retail crypto engagement cools — a contrast with the trading volumes that powered earlier quarters. Whether the fourth quarter stabilizes will hinge on whether October's 62% decline in crypto trades marks the bottom of the cycle or the start of a prolonged retrenchment.