ETOR

Image source: The Motley Fool. Tuesday, Aug. 11, 2026 at 8:30 a.m. ET Head of Investor Relations - Daniel Amir CEO - Jonathan Assia CFO - Meron Shani Daniel Amir: Hi. My name is Daniel Amir, Head of Investor Relations. This webcast is being recorded and will be available for replay in the Investors section of etoro's website. Our earnings press release, investor presentation, and July monthly spreadsheet is now available on our website at investors.etoro.com. Today, I'm joined by Yoni Assia, our CEO; and by Meron Shani, our CFO. Following the prepared remarks, we will conduct a Q&A session and answer questions from both institutional research analysts and a selection of the most upvoted questions previously submitted by etoro's retail shareholders. But before we begin, I want to note that today's discussion contains forward-looking statements, including statements about goals, business outlook, industry trends, market opportunities, expectations for future financial performance and similar items, all of which are subject to risks, uncertainties, and assumptions. And you can find more information about these risks and uncertainties in the press release that we issued today and in the Risk Factors section at our filings at SEC.gov. Actual results may differ, and we take no obligation to revise or update any forward-looking statements. Finally, during today's meeting, we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Definitions and reconciliation of GAAP to non-GAAP measures is available in our press release, investor presentation, and on the SEC.gov website as applicable. With that, I will pass the call to Yoni. Jonathan Assia: Thank you, Daniel, and thank you to everyone joining us today. Welcome to etoro's Second Quarter 2026 Earnings Call. After Meron and I conclude our prepared remarks, we'll open the call for your questions. We delivered another strong quarter, demonstrating the strength of our diversified business model. One of etoro's key differentiators is our ability to perform across a wide range of market environments, and the second quarter was another example of that. As investor activity shifted from commodities to equities, our platform continued to deliver strong results, underscoring the value of offering users access to multiple asset classes through a single platform. Net contribution increased 9% year-over-year to $229 million and adjusted EBITDA grew 9% to $78 million. We also continue to see strong momentum across our key performance indicators as part of our growth strategy. Funded accounts increased 18% year-over-year to 4.28 million, driven by marketing investment and improved user retention, while assets under administration grew 10% year-over-year to more than $19 billion, reflecting continued strong user inflows. Today's announcement of our planned acquisition of TradeZero marks another important milestone for etoro. TradeZero has built a successful franchise with differentiated technology, a robust broker-dealer infrastructure, and a highly engaged trading community. This combination gives us a faster path to launching new products for U.S. users and strengthens our offering. I will provide additional details on the acquisition later in my remarks. But perhaps the most important thing this quarter demonstrates is execution. Every few years, technology fundamentally changes the way people invest. Throughout our history, etoro has embraced those shifts, from social investing to crypto, and now to AI and on-chain finance. Social investing made investing collaborative. Crypto introduced new financial infrastructure. Now AI is changing how people discover opportunities, analyze information, and make decisions. We don't see these as separate trends. We see them as the same evolution, and our edge has always been spotting these shifts early, simplifying them, and making them accessible to millions of users. This quarter, we kept turning that into our products. Our new app reflects that strategy and our journey towards becoming a financial superapp. This isn't simply a redesign. The app brings together AI personalization and a growing ecosystem of apps and agents. Through Tori, our AI agent, the platform delivers proactive insights, helping users better understand their portfolios, identify opportunities, and stay informed wherever they are. Rather than waiting for users to search for information, the experience increasingly anticipates what matters to them and delivers relevant insights when they need them. More broadly, we remain focused on 4 strategic pillars: trading, investing, wealth management, and neo-banking. Let me walk you through some of the highlights of the quarter. Let's start with trading. As I mentioned earlier, the second quarter once again demonstrated the strength of our diversified multi-asset platform. Over the past 3 quarters, we've seen our users shift their activity across asset classes, from crypto to commodities and now to equities, highlighting the resilience of our business model and the value of offering investors access to a broad range of markets through a single platform. We believe this highlights one of etoro's greatest competitive advantages. Regardless of where market opportunities emerge, our users can seamlessly move across asset classes within a single platform, driving higher engagement, long-term retention, and continued business performance. We also launched etoro Edge, a new web platform designed for active traders, combining professional-grade trading tools with the intelligence of our AI ecosystem. As our users become more experienced, we continue to invest in products that support every stage of their investing journey, from first-time investors through to highly active traders. We've also recently introduced the ability for users to increase their equity and crypto buying power directly from their etoro cash account, simplifying access to margin trading. Lastly, expanding access to differentiated investment opportunities remains a key strategic priority. During the quarter, we enabled pre-IPO trading in SpaceX price and eligible customers to participate in the SpaceX offering, an example of our broader effort to increase access to IPOs and other investment opportunities, particularly for our European users. Turning to investing. Investing is becoming increasingly personalized. For many years, the industry focused on giving people access to the markets. We believe the next phase is about giving investors access to more intelligent tools, helping them combine their own judgment with AI while always remaining in control of their decisions. During the quarter, we continued to expand our investing ecosystem through the etoro App Store, which now includes more than 75 applications built by developers, partners, and Pro Investors. These give users new ways to discover ideas, analyze markets, and personalize how they invest on an open platform that will keep evolving. We also launched Agent Portfolios, letting users connect AI agents to dedicated portfolios within their etoro account while keeping full control over their objectives, capital allocation, and risk parameters. Agent Portfolios don't replace the investor. They extend what the investor can do within boundaries they define. As part of this, we introduced agentic investing, enabling users to create and manage multiple agents through Tori. Last month, we also introduced sub-accounts, giving investors the ability to organize their investments around different financial goals, whether it's saving for a child's education, buying a home or planning for retirement. Combined with Agent Portfolios and agentic investing, these capabilities provide investors with more personalized and flexible ways to invest while remaining firmly in control of their financial decisions. Turning to wealth management. Helping people build long-term wealth remains central to our strategy. That's why we continue to expand the products that support users throughout their financial journey. Our savings offering has real momentum. This quarter, we saw 15x year-over-year growth in AUM, which reinforces the strength of our long-term saving proposition and our strategy of building a full wealth platform alongside our trading business. Finally, in neo-banking, we continue to make it easier for users to move and manage their money across traditional and digital finance. We recently launched etoro Work, making it easier for employees to invest directly from every paycheck. Investing consistently over time is one of the most powerful ways to build wealth, and etoro Work brings that right into people's everyday financial lives. Earlier this quarter, we also announced the acquisition of crypto wallet provider Zengo, strengthening our self-custody offering, making a strategic investment in Extended, an on-chain perpetual futures platform, and became a founding partner of OpenUSD. Reducing friction between traditional finance and digital assets is an important step towards making digital assets more accessible to a much broader audience. We're also seeing strong momentum across etoro Money. The number of etoro Money cards issued across Europe increased by more than 30% quarter-over-quarter, reflecting growing engagement with our offering, an increasing role etoro plays in our users' everyday financial lives. Taken together, these product innovations and partnerships reinforce our long-term strategy of connecting traditional finance with the on-chain economy while making it simpler for users to access digital assets, self-custody, and decentralized finance through the etoro ecosystem. Finally, let me come back to TradeZero. Today, we announced our planned acquisition of TradeZero for up to $230 million in cash and stock. TradeZero is a highly complementary business that significantly strengthens our presence in the U.S., one of our most important growth markets, and opens access also to the Canadian market. It brings an experienced U.S. management team and a highly engaged active trader community. TradeZero is also expected to bring differentiated capabilities, including 4 proprietary trading platform, advanced tools and features and robust broker-dealer infrastructure that further strengthens our platform. We see real opportunities here to accelerate innovation, enhance client experience, and broaden the products and services we offer across both platforms. This is also anticipated to be a financially attractive transaction. TradeZero generated approximately $80 million in revenues in the last 12 months with more than 80% gross margins in Q2 2026. That makes it an immediately complementary addition to our financial profile while strengthening our long-term growth prospects. We look forward to welcoming the TradeZero team to etoro following the close of the transaction in the first half of 2027. To close, we're excited by our second quarter and by the momentum across the business through the first half. We remain focused on executing our long-term strategy, investing across AI, digital assets, wealth management and financial services while selectively expanding our footprint through initiatives like the acquisition of TradeZero. Every few years, technology changes investing. Every time, etoro embraced it, from social investing to crypto, and now to AI and on-chain finance. Our focus hasn't changed, using technology to open the global markets and help millions of people become more confident and more successful investors. We're excited about what comes next and about turning this approach into products that create long-term value for our users and our shareholders. With that, I will hand it over to Meron. Meron Shani: Thank you, Yoni. We delivered another solid quarter, demonstrating the resilience of our diversified multi-asset business model. Second quarter net contribution grew 9% year-over-year to $229 million, while adjusted EBITDA grew 9% year-over-year to $78 million. Our adjusted EBITDA margin was 34%, in line with the same period last year. Our KPIs also remained strong during the second quarter, with assets under administration increasing 10% year-over-year to $19 billion and funded accounts growing 18% year-over-year to 4.28 million. This growth was driven by continued investment in user acquisition and retention. Let's take a closer look at the second quarter financials by business line. Our net trading contribution from capital markets, equities, commodities and currencies, grew 25% year-over-year to $142 million. This was driven by increased user engagement, with many users moving from crypto into commodities into equities as market conditions evolved. The number of trades increased 64% year-over-year, supported by strong activity in equities and continued engagement in copy trading. We're also encouraged by the continued high invested amounts on the platform. As users broaden their investing activity beyond crypto and commodities into equities and other asset classes, they are investing more across the platform. This is exactly what we would expect from a diversified multi-asset offering and is an important driver of the long-term growth. Net trading contribution from crypto was $11 million. The year-over-year decline primarily reflects lower trading activity and the continued shift of users towards equities. We have seen this cyclicality in the crypto market over the past 15 years. Crypto net contribution also includes a $2 million negative valuation impact relating to our corporate crypto holdings, resulting in a balance of $30 million at the end of Q2. Net interest income contributed $49 million, up 7% year-over-year, which was largely driven by a 12% increase in higher interest-earning assets as a result of an increase in users' cash deposits and corporate cash. etoro Money's contribution grew 44% year-over-year to $26 million, driven by 92% year-over-year increase in total money transfers as we continue to experience increased deposits and user activity. Turning into expenses. Our adjusted OpEx for the quarter was $151 million, up 1% quarter-over-quarter. The results were driven by an $8 million increase in sales and marketing expense, reflecting our continued investment in customer acquisition. This was largely offset by lower R&D and G&A expenses. Adjusted sales and marketing expense was $68 million, representing 29% of net contribution and in line with our strategic decision to accelerate funded accounts growth in 2026 I discussed earlier this year. Adjusted R&D expense was $33 million while adjusted G&A and operating expenses for the quarter were $51 million. Our adjusted diluted EPS for the quarter was $0.68 compared to $0.56 in the second quarter of 2025. Moving to our balance sheet. We ended the quarter with $1.2 billion in cash, cash equivalents and short-term investments and generated $39 million of cash from operating activities during the quarter. In accordance with our previously announced share purchase program, in the second quarter, we repurchased approximately 2.3 million shares for an aggregate amount of approximately $87 million. As Yoni mentioned, today, we announced the acquisition of TradeZero for up to $231 million. In the last 12 months, TradeZero generated approximately $80 million in revenues with more than 80% gross margin. We believe that the transaction is strategically compelling, financially attractive, and expected to be adjusted EPS-accretive to earnings in the first full year post-completion. We will provide additional details once the transaction closes as expected in the first half of 2027. Now let me share a few comments on the third quarter trends. As part of our quarterly results today, we also released our July monthly KPIs. Turning to our key metrics for July. Funded accounts grew 18% year-over-year to 4.32 million. Assets under administration totaled $18.5 billion, down 5% year-over-year as a result of the decline in crypto pricing. On capital markets trading activity, the number of trades is flat year-over-year and consistent with seasonal patterns. With regards to adjusted OpEx, we expect Q3 to be slightly higher than Q2 due to continued investment in growth activities. To summarize, we are pleased with our second quarter performance, and the announced acquisition of TradeZero. We continue to generate strong cash flow, invest with discipline, and allocate capital thoroughly while maintaining flexibility to pursue strategic opportunities such as TradeZero. We believe that we are well positioned to continue delivering sustainable, profitable growth and long-term shareholder value. With that, Daniel, let's move to Q&A. Daniel Amir: Thank you, Meron. The first question comes from our list of questions that have been pre-submitted by our retail investors. This question is for you, Yoni. etoro unveiled a brand refresh and product announcements in July. What are you most excited about from that event in July? Jonathan Assia: Well, I'm definitely most excited about our 2 significant product launches, the new etoro AI app, where we actually written from scratch the entire app of etoro, taking probably more than 500 man-years of work on the existing etoro app and rewriting everything with AI. That puts the infrastructure not only for a much faster development process, but also a faster app with AI built in, where Tori, our AI agent, is front and center. The second part was the launch of Edge, a new professional trading platform that's meant for the most active traders on the etoro platform with charts and automated trading coming very soon into our now Pro trading platform. Operator: [Operator Instructions] We have a question from the line of Dan Dolev with Mizuho. Dan Dolev: Really, really strong results today. Congratulations, Yoni and Meron. I have 2 quick questions. One, we noticed that your account growth on a sequential basis and an year-over-year basis continues to accelerate. So can you tell us a little bit of the sustainability of this and what you're doing to get there? And then I have a quick follow-up. Jonathan Assia: Sure. So one of the great unlocks we've had in Q2 was driven by a very strong momentum in our savings offering in the U.K. and globally as well. And we do expect that to continue. So as we create more products, each product also gets its specific funnel. So it's not only about increasing the marketing spend, it's about increasing the marketing spend and also scaling up the product offering of etoro to create more channels. We do believe that from a both product perspective and global perspective, with the acceleration now of the product road map with the 2 existing acquisitions that were completed in Q2 and now looking forward also to TradeZero, we'll be able to continue both product expansion and then adoption to all of the local markets, growth markets, and, therefore, continue to expand marketing moving forward. Dan Dolev: Got it. And then my follow-up quickly is on TradeZero. Really nice to see the acquisition here in the U.S. Maybe can you tell us a little bit more of the strategic rationale? Like what incremental capabilities, products are you eyeing? What was the main decision-maker here? Jonathan Assia: So first of all, a great team that we've known for a while in TradeZero, great team based here in the U.S., in New York, a very big focus on scaling the capabilities of the etoro offering in the U.S. specifically, enabling a lot of the features that are very popular of etoro outside the U.S., here in the U.S., for example, leverage trading, margin trading as well as futures that's launched for TradeZero here in the U.S. and shorting capabilities, which are actually very unique to TradeZero's technology and patents. So one is a focus on the U.S., bringing all of the global capabilities of etoro together with the self-clearing capabilities of TradeZero here to the U.S. to the etoro platform once we complete integration. And the second part, similar to our focus with the new Edge platform, which is meant for the more active trader segment, TradeZero shows great capabilities on building a community of more active traders that are always on their more desks of focus, and we believe that our combined now capabilities of both clearing, leverage trading, short on stocks as well as the professional trading platform will attract more sophisticated audience that can also, by the way, use then our APIs and AI to trade across asset classes and now very soon globally on the etoro platform. Operator: Our next question comes from the line of Dan Fannon of Jefferies LLC. Daniel Fannon: So wanted to follow up on the outlook for Q3 and then maybe a little bit longer term on the spend. I assume some of the increased expenses you mentioned for 3Q reflects the acquisitions that closed in 2Q. So maybe if you could give us a little bit of revenue contribution from those transactions and then also unpack a bit of the increased spend as you think about the back half of the year. Meron Shani: Sure. Yes, I'll take it. So while we don't break the revenues from the new acquisitions, it's going to be in the crypto space, not a material number at this stage. We expect that to increase in the future also as crypto becomes on the other side of the cyclicality. So that's on that, on the revenue side. On the cost side, it's no material amount. It's part of the growth that we expect in Q3, but the numbers there are not really material. Daniel Fannon: And so then the increase is mostly reflected around marketing in terms of the Q3? Meron Shani: It's a combined of marketing and it's combined with a slight increase in R&D as well. Daniel Fannon: Okay. Great. And then just as a follow-up, as you think about the environment today where obviously crypto has been under pressure, some of your other peers have seen a benefit of prediction markets picking up. I was hoping you could talk about your strategy for other products, particularly prediction, perpetuals, some of these other areas that are increasingly in focus as we think about retail participation. Jonathan Assia: Sure. So perpetual markets and futures is something that's embedded in the global etoro platform. Prediction markets was actually launched during Q2 as a first product on the Zengo noncustodial wallet. So our global customers, where applicable, can actually trade prediction markets on Zengo. We are looking right now, especially with the acquisition of TradeZero, which already supports futures in the U.S., to launch prediction markets in the U.S. as we progress on the integration with TradeZero. On perpetuals specifically, we're looking at launching first Europe now with TradeZero futures in the U.S., which basically is the same framework for perpetuals, both on TradFi, which is the core and the vast majority of the business, but also looking at DeFi opportunities in perpetuals, which is a small minority investment we did in a perpetual decentralized exchange as well. Just as an example of how this connects, how the 2 worlds connect is, for example, in the SpaceX IPO, we actually launched a perpetual future trading the SpaceX price prior to the IPO. Then in the IPO, we distributed the IPO shares to retail demand in the U.K. And a day after, we started trading 24/7 SpaceX shares based also on perpetual futures prices. Operator: Our next question comes from the line of Craig Siegenthaler with Bank of America. Craig Siegenthaler: My question is on your Agent Portfolios that you launched, I think, back in March. How has progress with your agentic trading progressed? Can you disclose client assets or number of accounts? And based on that first batch of accounts, how is monetization activity differed from your average account? I'm wondering if you're seeing higher trading velocity, lower cash sweep balances. And I just have one follow-up after that, too. Jonathan Assia: Sure. So first of all, we're very excited to see the early adoption of Agent Portfolios. We shared some data on social. It's not in front of me. I'll ask the team to see whether we can have an updated slide here soon. But it's a relatively small amount of customers that are trading in very high volumes. So what we're seeing is more sophisticated users right now, and we're simplifying the product, actually launching today the ability to connect Claude Connector and official Grok Connector as well. So when our customers today actually open Grok across the globe, and we actually provide a free Super Grok to our Pro Investors across the globe, so when they open their Grok, they can actually see an official Grok connector. You can actually click connect to your SSO to your etoro account and then create Agent Portfolios basically directly from Grok, from Claude, coming very soon to the rest of the models as well. What we're seeing is more technical sophisticated users right now that have been early adopters to AI, building Agent Portfolios and building agentic trading strategies. Now we've been doing this for a while now. Our long/short portfolios, our Alpha Portfolios in etoro, which have, by the way, been performing amazing over the past year on the etoro platform, are all based on agentic trading, on quantitative trading. What we're seeing in communities of active traders in etoro today is that they're starting to use AI to actively trade 24/7 in their accounts. We also started seeing more activity of 24/7 and actually of over-the-weekend trading, both in commodities now and equities as well, and we expect that trend to continue to accelerate. Craig Siegenthaler: And then just for a follow-up there. Do you have any plans to launch internal native option that maybe you could charge for in addition to sort of the external options you have today? And can clients still connect via an API? I think that's how it initially was. Or is there MCP connectivity too? And then based on your comments, is it semi or fully autonomous now? Is there a human sort of decision on that final trade? Or is it trading fully autonomous? Jonathan Assia: So we do have MCP trading enabled on etoro. So what I mentioned that actually launched yesterday is your ability to actually connect to the MCP of etoro. You can actually look at it at builders.etoro.com. So a lot of people that are also building apps are building based on the MCPs and an official Grok and Claude connector. So you can actually click in Grok itself, say, connect to my etoro account, then go with your user name, password, if you're logged in, or if you're logged in, just connect and authorize basically Grok to trade in your account, then Grok can actually trade autonomously. So you can actually create a scheduled task, an autonomous agent in Grok that looks at the market, that explores the market and automatically trades in your account. You can do it in Grok or Claude or you can do it with Tori, our own AI agent that's based on the frontier models of Grok right now. So it is fully automated. Of course, the users can define their permissions of the MCP. So you can decide that the connector that you're connecting into etoro is, for example, only for read, or you can define for an AI agent specifically to only operate on a specific Agent Portfolio or sub-portfolio. So we've built it in a very, very flexible way where the users have basically the control to define how they want to operate with AI. Regarding options trading, we haven't launched API trading yet for options. So we do have APIs for crypto trading, stock trading, leverage trading as well as commodities trading. Now actually, with the TradeZero acquisition, I've been actually trading options with my AI connected to TradeZero APIs. So we hope very soon to integrate that into our global offering as well. Operator: Our next question comes from the line of James Yaro with Goldman Sachs. James Yaro: I wanted to turn again to the TradeZero acquisition. Could you just update us on the broader U.S. growth strategy? And I guess, are you contemplating any additional acquisitions in the region? Or does this get you to what you think is critical mass? Jonathan Assia: So I think this is a great acquisition to have a significant team and business here in the U.S., and great infrastructure for us to be basically connected directly into the markets. In addition to that, we recently received our RIA license as well, which will enable us to also launch the Smart Portfolios. I would say the core strategy is very consistent. First of all, make sure that we launch in the U.S. all of the products that we have overseas. Now with the TradeZero acquisition, that completes futures, so the ability to trade on commodities, currencies and indices, leveraged trading as well as short. So a lot of the popular more active trader parts of the etoro platform globally will come into the U.S. with the RIA license, Smart Portfolios and copy trading. And what we're doing is bringing all of the successful products of etoro into the U.S. to increase basically the lifetime value, the product attachment in the U.S., and then start basically scaling marketing the same way that we do outside the U.S. We are looking at additional opportunities, by the way, both in the U.S. and globally. I would say that the -- both our appetite for acquisition remains strong, and we continue to have great engagement from potential targets across the globe, including the U.S. James Yaro: Just as a quick follow-up, any ability to provide any additional KPIs or metrics around the deal? I think the areas that I think we'd be interested in would be number of customers, the assets under the AUA base and, I guess, just some of the growth trends in those that we see over time, if you're able to. Jonathan Assia: Sure. What we've discussed is we'll do that closer to closing or post-closing as we look at consolidating, obviously, numbers and metrics of etoro and TradeZero. Operator: Our next question comes from the line of Devin Ryan with Citizens Bank. Devin Ryan: Question just on crypto and kind of the outlook there. Yoni, obviously, as you guys talked about, you have a long history with this asset class, longer than most. And as we look at kind of the recent results in July as well, obviously, a lot of pressure. I think investors have been a little bit more negative on this element of the market. But as we think about recent pressure, kind of cyclical versus maybe some other kind of real speculative tail coming out of the market and maybe that kind of continues, it sounds like you're still pretty constructive on the intermediate term from a cyclical perspective. So I'd just love to get some perspective around, like, what is underpinning that, Yoni? And then as you kind of map crypto out over the next years, how do you think it develops from maybe what was historically a really speculative market to one that's maybe more utility-driven? Jonathan Assia: Sure. So first, I remain very, very bullish and confident on the intersection combination between extremely large TAMs. One is younger, the rise of retail investors, younger audiences, Gen Y and now Gen Z coming into the markets with expectation over the next 20 years of more than $100 trillion moving to those younger generations. And then on the back end, what we're seeing, which is the tokenization of real-world assets and moving finance on-chain, which is another at least $100 trillion move on the back end. So we're seeing 2 tectonic shifts in the entire financial services industry where we're really just in the infancy. What we're seeing in 2026 is a lot of these things connect, our ability to tokenize assets on-chain, to be able to see SpaceX trading on-chain, SpaceX derivatives trading on-chain, SpaceX launching 24/7 in the first day of trading 24/7 unlocked in etoro globally, coming very soon, I believe, to perpetual futures market in the U.S. So what we're seeing is a lot of those building blocks that people in crypto have been talking about since 2013 about the tokenization of real-world assets and writing about it happening right now in 2026. And again, with the U.S. administration being very bullish on moving finance on-chain. So from a tech perspective and an industry perspective, I believe etoro is positioned in a very unique way that is the intersection of traditional finance or capital markets and digital asset markets. On the other hand, you have prices, right? So prices of crypto markets and adoption of blockchain and crypto technology do not always go hand-to-hand. What we actually usually see is a lot of the innovation builds more in the bearish markets of the cycles. I have to say this is our fourth cycle in etoro, from 2013, a peak in October to the drawdown of '14, from the '17 peak in October to the drawdown in '18, then '21, '22. The cycles look remarkably the same where you have the peak post halving, then you have a correction, then you have sort of a beginning of a new rally. We remain very confident and bullish on future of Bitcoin as digital gold moving forward. I believe this cycle will eventually look like previous cycles in the past. And every cycle, we've seen also a lot of new innovation coming into the markets during those more, I'd say, crypto winter periods. Devin Ryan: I appreciate all that color. And then as a follow-up, just want to maybe also thought exercise on kind of an IPO market reopening and implications on etoro. Obviously, SpaceX, you guys were involved there to a degree. And so love to just think about if we're on the front end of a bigger IPO cycle, what did you learn from SpaceX around customer interest? And what did you see with customer trading around that event? And then also other kind of ancillary revenue streams like securities lending, like how meaningful could that be for etoro if we go into, kind of, a lot of these IPOs over the next year actually do come? And then the other connected piece is I know TradeZero has really, as you mentioned, kind of patents around sec lending and that's a big part. Did they participate at all in the SpaceX, kind of, activity? And is that an opportunity for etoro with TradeZero as well? Jonathan Assia: Sure. So first of all, the SpaceX IPO on its own was an amazing event, largest IPO ever. On etoro, we had over 200,000 customers that traded over $1.7 billion of volumes in SpaceX shares and derivatives. We've seen, and again, connecting this to the opportunity, so first of all, big IPOs, so the same as in etoro, every time there's something interesting in the market, we're seeing significant interest around it, whether it was Dogecoin in 2021 with Elon Musk went on Saturday Night Live or SpaceX IPO in Q2, that was actually a significant driver of new funded accounts in Q2. So every large-scale IPO is driving both client activity and new funded accounts. I think the unique part which we've learned with the SpaceX IPO is the fact that you can actually launch the IPO price prior to the IPO. That was a great product and innovative product that enabled us and our customers to basically speculate on the price of where the IPO is going to start. And it was also our first retail distribution of an IPO in the U.K. We do expect that to, by the way, grow. So this was a very unique retail distribution where our retail clients received somewhere between 60% to 80% of the retail demand. We hope to see that trend continues where more of the large companies actually allocate more to retail investors, obviously, keen to see how both hopefully Anthropic and OpenAI are rumored to IPO this year. And on smaller scale, of course, we've seen many more IPOs come to the market. Each of those actually have a marketing campaign, and we're launching them on etoro, and we're working directly, of course, with issuers as well. So some of the IPOs like Lime and others were successful launches in the U.S., and we'll continue to invest to build that infrastructure for more offerings in etoro. On TradeZero, just to note, still early days to talk about how, I'd say, IPO market plus sec lending works together hand-in-hand. Of course, more tech companies, more volatility in tech companies coming into the market means also more interest potentially both in lending and in short. Operator: Our next question comes from the line of Chris Allen with KBW. Christopher Allen: I was wondering if you could dig in a little bit just on the July trends, which I think is how your stock is reacting this morning. Maybe give us some color on ECC, the pullback in activity. Is that just primarily driven in equities? And then I'd also love to hear just on interest-earning assets, the pullback there? And maybe color during the quarter, we saw the yield go up. Was that increased margin lending, that benefit there? Just how margin lending trending is going right now? Jonathan Assia: Sure. So I'll cover sort of more macro markets, product, and let Meron touch the numbers. Macro, what we've seen is 2 things in July. One is commodities was very, very active in Q4 and Q1. I think we've seen commodities volatility generally go down, both on oil as well as precious metals. That lowered the number of active traders and trading activity in commodities Q2 versus Q1 and Q4. In Q2, we've seen very significant activity with volatility and active trading across equities, actually mostly across stock trading in Q2, which was very active. I think July both had seasonality impact into it as well as a correction into the more popular stocks in etoro. So what we see many times in stocks is when the markets correct down, customers basically take a bit of a breather and then start buying the [ dip ]. So I do believe we'll see more of that now that we're correcting back upwards after July's, sort of, semiconductor correction in the market. And with that, I'll let Meron comment a bit about the numbers. Meron Shani: Sure. I'll just add on top of that, that we've already seen some improvements coming up in the first 10 days of August to date. So that's a good sign that July might have been the bottom, as Yoni mentioned before. On your question on IEA, similar to the trend that Yoni mentioned, we've also seen customers scaling back some of their margin book. So we definitely hope that we'll see that coming up in the next few weeks as they return to the market. But in general, also adding on top of what Yoni said, like we don't look at the business on a month-by-month basis. We look at the, like, the horizon, we look at a 12-month basis. You can see the numbers year-to-date or last 12 months, we've delivered significant growth in all different KPIs. So 1 month that we see that is coming every year is not something that concerns us on how we manage the business on a day-to-day basis. Jonathan Assia: I'll add on the margin one more thing is the launch of buying power. So we did launch the ability for customers to actually convert their cash equity positions into buying power to actually increase margin capabilities on etoro. We started launching this to the premium accounts on etoro as well as launching very soon crypto buying power. So customers can actually bring in their crypto and crypto potentially exchanges that don't have diversification of assets, bring it into etoro, receive basically buying power to be able to then buy stocks and diversify their portfolio. So I do expect new product offers, both on buying power and on margin and with, by the way, the capabilities of bringing that also into the U.S. market with the completion of the acquisition of TradeZero, will over time increase our margin net open position and therefore, also IEA on etoro. Operator: Our next question comes from the line of Brian Bedell with Deutsche Bank. Brian Bedell: Maybe just -- good to see the RIA license in the U.S. And maybe, Yoni, if you could just comment on your expectation for that as an accelerant for Smart Portfolios. But maybe even more importantly, the launch of copy trading in the U.S. To what extent -- I know copy trading is already existing in the U.S., but I believe the pro traders in the U.S., if I'm not mistaken, can't be compensated just yet because of that RIA license. So does this enable that? And then if not, then what other steps do you need to take to get to, like, a full-fledged copy trading platform in the U.S., both from investors being able to copy trade and pros being able to be compensated? Jonathan Assia: Sure. So RIA license does unlock in H2 our ability to launch Smart Portfolios, which, by the way, had an amazing momentum outside the U.S. during H1 with record of copy money in both the Smart Portfolios and to PIs. We continue to work on additional products which will enable U.S. customers to copy both in the U.S. customers and outside the U.S. customers and Smart Portfolios. In relation to the Pro Investor program in the U.S., we do believe the ability of us integrating into the RIA platform and putting all of the required regulatory requirements from a technology and technical perspective will enable us over time to also offer compensation in the U.S. for RIAs. I would say that it's really about building that marketplace, building both sort of the buyer demand and the sellers' demand of an RIA marketplace. We do believe, by the way, globally, that market of RIAs -- which, by the way, in different markets is called different names, has the same challenge, by the way, of the, sort of, traditional markets where you have younger audience who have very different expectations. We see the same with RIAs and basically younger people looking at the etoro platform as an opportunity to become an RIA, to become a financial adviser in Europe as well and using etoro as their platform and their digital distribution channel to build basically their online presence, their own applications, bringing in their innovation. We're seeing a lot of licensed activities of financial advisers right now outside the U.S. actually building apps on the etoro platform, and we believe that will translate into the RIA market over time here in the U.S. as well. Brian Bedell: Yes. That's great. And then maybe that's a great segue to my second part of my question, which would be to what extent can copy trading be accelerated by AI usage? So in other words, can Pro Investors develop their own AI technology and, therefore, copy traders be able to leverage that expertise in AI trading from those Pro Investors? And then I guess, how would that also -- can that also be accelerated with the TradeZero acquisition? Jonathan Assia: That's a great question. One of the areas I'm most passionate about is quantitative trading and how you can unlock with AI the abilities of more sophisticated trading capabilities. So internally in etoro, as we launch our momentum strategies and long/short strategies outside the U.S., these all use AI to basically create hedge fund-like strategies, basically market-neutral strategies, alpha strategies. We've been actually working with quant pro traders in etoro and building pods. We launched 5 pods. Each pod is actually somebody coming from finance and somebody coming from physics or computer sciences, and they've launched basically these new pods. So it's somewhere in between a Smart Portfolio that we're developing and a popular investor that can be copied on etoro. We paired them up and gave them quantitative tools. And quantitative tools include quantitative skills that actually our team are building, quantitative data sets that our teams are building. So basically, as many things in etoro where we're building our capabilities first, same way that we started trading Bitcoin in 2011, 2 years before we were actually launching it to customers, we've built a lot of expertise now in using AI for quantitative trading. We started opening this to our Pro Investors with actually having quant courses similar to the ways we actually promoted value investing to investors 4, 5 years ago. Now we believe that the tools that our Pro Investors have, with AI Studio, with APIs, with MCPs connected to our APIs and, of course, the capabilities of AI to run through large data sets and large context and create trading strategies, significantly improve the abilities of our Pro Investors to actually create more sophisticated, more quantitative and, by the way, also more active trading strategies over time. The TradeZero acquisition unlocks that for us in the U.S. with short and leverage trading alongside the RIA license. So from things I'm looking at internally, which is a lot of our Alpha Portfolios, both existing ones that launched, but even more exciting for me are the 21s that right now are in beta running on signals, we accelerated significantly our internal ability of our quant team to build those strategies, and we're building these tools and exposing them to our traders as well. And again, a part of our focus on the more active trader segment and pro trader segment, I believe that's a very large untapped opportunity, both globally and here in the U.S. Operator: Our last question comes from the line of Alex Kramm with UBS. Alex Kramm: Just wanted to come back to TradeZero, a couple of specific ones. First, can you talk about roughly how much U.S. options is for these guys and how that changes or drives your U.S. options strategy in general? I think you're still pretty under-indexed there. Jonathan Assia: Yes. So they are trading in options in the U.S., I don't have in front of me exactly the data. And we have been integrating and working also with their options APIs. I do believe this will significantly enable us to grow our active trader segment here in the U.S., and active traders, of course, are trading also more complex products such as options and futures in the U.S. So I firmly believe integrating TradeZero capabilities, both globally and specifically here in the U.S. in the core etoro platform and on the TradeZero platform, will enable us to scale significantly derivative trading and more complex products attachment here in the U.S. Alex Kramm: Right. Good. And secondly, I know you said limited financial information so far, but maybe as you get closer, but just on the cost side, can you give us a rough idea about the fixed costs that they have and to what degree cost synergies are an opportunity here? And if you don't want to give specifics, maybe just talk more holistically because previously, a lot of these deals were about taking out costs, but you're kind of earlier days in the U.S. So just wondering, is this -- is there even a cost opportunity? Or is this actually something where you're going to be growing the expenses significantly from here? Jonathan Assia: So again, I'll cover strategically. We bought a profitable company. I think this deal over time is going to be accretive. $80 million revenues. When we go from signing to closing, as I mentioned before, we, of course, will consolidate numbers and share more data. We do not expect to grow expenses. I think we are looking at this opportunity as basically building a significant franchise here in the U.S. that also, by the way, is in the U.S. and in North America, in Canada, with capabilities of a global Pro offering as well. Of course, as in any deal, we'll also explore over time cost synergies, but very much focused, first and foremost, on revenue synergies and scaling our business, both here in the U.S. and the pro trader segment globally. Anything to add? Meron Shani: We'll share more details post-closing about our expectation as well. Operator: Thank you. I would now like to hand the call back over to Daniel Amir for closing remarks. Daniel Amir: Great. Thank you for attending the earnings call today. We look forward to seeing you at one of our upcoming investor conferences that you can see on our events page during the quarter. And thank you, and have a great day. Operator: This concludes today's conference. Thank you for your participation. You may now disconnect. Before you buy stock in eToro Group, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and eToro Group wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,970!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,040!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 18, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. eToro (ETOR) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by the platform's multi-asset diversification, allowing users to seamlessly rotate capital from crypto and commodities into equities as market conditions shifted. Management attributes the 18% year-over-year growth in funded accounts to increased marketing investment and improved user retention strategies. The launch of the new AI-powered app and 'Tori' agent represents a strategic pivot toward proactive, personalized investing rather than reactive user search. The acquisition of TradeZero is framed as a critical infrastructure play, providing eToro with proprietary broker-dealer capabilities and a faster path to launching advanced products in the U.S. and Canada. Wealth management momentum was highlighted by a 15x year-over-year increase in AUM for savings products, validating the strategy to build a full-service financial super-app. Management views AI, crypto, and social investing not as separate trends, but as a single evolution toward making global markets accessible through technology. The TradeZero acquisition is expected to close in the first half of 2027 and is anticipated to be adjusted EPS-accretive in its first full year post-completion. Management expects Q3 adjusted OpEx to be slightly higher than Q2, driven by continued investment in growth activities and R&D. The U.S. strategy focuses on bringing global capabilities like leverage trading, shorting, and Smart Portfolios to the domestic market following the RIA license and TradeZero integration. Future growth assumptions rely on the 'unlock' of new product funnels, specifically expanding the savings offering and launching prediction markets in the U.S. Management remains bullish on the long-term cyclical recovery of crypto, citing the intersection of younger generation wealth transfers and the tokenization of real-world assets. Crypto net contribution included a $2 million negative valuation impact related to corporate crypto holdings, reflecting market volatility. July monthly KPIs showed a 5% year-over-year decline in Assets Under Administration (AUA), which management explicitly attributed to a decline in crypto pricing. The company repurchased approximately 2.3 million shares for $87 million in Q2 as part of its ongoing capital allocation strategy. The TradeZero deal includes a total consideration of up to $230 million in a mix of cash and stock, targeting a highly engaged active trader community. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. TradeZero provides essential U.S. infrastructure including self-clearing, shorting capabilities, and patents that are unique to their technology. The deal allows eToro to attract a more sophisticated, active trader segment that requires professional-grade tools and APIs. Early adoption is driven by a small group of sophisticated users trading in very high volumes compared to the average user. The platform now supports autonomous trading via connectors for Grok and Claude, allowing AI agents to trade within user-defined risk parameters. The RIA license is the key to launching Smart Portfolios in the U.S. during the second half of the year. Management intends to build a marketplace where U.S. Pro Investors can eventually be compensated, similar to their global model. Management noted a seasonal breather in July compounded by a correction in popular semiconductor stocks, but observed improvements in the first 10 days of August. The decline in interest-earning assets in July was linked to customers scaling back their margin books during the market correction.

eToro Group Ltd. (ETOR) came out with quarterly earnings of $0.68 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.56 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.48%. A quarter ago, it was expected that this company would post earnings of $0.65 per share when it actually produced earnings of $0.91, delivering a surprise of +40%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. eToro Group Ltd., which belongs to the Zacks Insurance - Brokerage industry, posted revenues of $229 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.78%. This compares to year-ago revenues of $209.63 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. eToro Group Ltd. shares have lost about 3.2% since the beginning of the year versus the S&P 500's gain of 13.3%. While eToro Group Ltd. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for eToro Group Ltd. was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.58 on $232 million in revenues for the coming quarter and $2.81 on $990.5 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Brokerage is currently in the top 31% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Oxbridge Re Holdings Limited (OXBR), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 13. This company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +116%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Oxbridge Re Holdings Limited's revenues are expected to be $1.1 million, up 66.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report eToro Group Ltd. (ETOR) : Free Stock Analysis Report Oxbridge Re Holdings Limited (OXBR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

WhiteHorse Finance (WHF) came out with quarterly earnings of $0.22 per share, missing the Zacks Consensus Estimate of $0.25 per share. This compares to earnings of $0.28 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -12.00%. A quarter ago, it was expected that this lender to small companies would post earnings of $0.28 per share when it actually produced earnings of $0.26, delivering a surprise of -7.14%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. WhiteHorse, which belongs to the Zacks Financial - SBIC & Commercial Industry industry, posted revenues of $14.37 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 5.5%. This compares to year-ago revenues of $18.84 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. WhiteHorse shares have lost about 2.5% since the beginning of the year versus the S&P 500's gain of 13.3%. While WhiteHorse has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for WhiteHorse was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.25 on $15.33 million in revenues for the coming quarter and $1.00 on $61.88 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Financial - SBIC & Commercial Industry is currently in the bottom 27% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the broader Zacks Finance sector, eToro Group Ltd. (ETOR), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This company is expected to post quarterly earnings of $0.61 per share in its upcoming report, which represents a year-over-year change of +8.9%. The consensus EPS estimate for the quarter has been revised 17.4% higher over the last 30 days to the current level. eToro Group Ltd.'s revenues are expected to be $225 million, up 7.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report WhiteHorse Finance, Inc. (WHF) : Free Stock Analysis Report eToro Group Ltd. (ETOR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Net Contribution: Increased 9% year-over-year to $229 million. Adjusted EBITDA: Grew 9% year-over-year to $78 million, with a margin of 34%. Assets Under Administration (AUA): Grew 10% year-over-year to $19 billion. Funded Accounts: Increased 18% year-over-year to 4.28 million. Net Trading Contribution (Capital Markets): Grew 25% year-over-year to $142 million, driven by increased user engagement in equities, commodities, and currencies. Net Trading Contribution (Crypto): $11 million, reflecting lower trading activity and a $2 million negative valuation impact on corporate crypto holdings. Net Interest Income: Contributed $49 million, up 7% year-over-year. eToro Money Contribution: Grew 44% year-over-year to $26 million. Adjusted Operating Expenses: $151 million, up 1% quarter-over-quarter. Adjusted Diluted EPS: $0.68, compared to $0.56 in Q2 2025. Cash and Equivalents: Ended the quarter with $1.2 billion in cash equivalents and short-term investments. Cash from Operating Activities: Generated $39 million during the quarter. Share Repurchases: Repurchased approximately 2.3 million shares for about $87 million. TradeZero Acquisition: Announced planned acquisition for up to $230 million in cash and stock; TradeZero generated approximately $80 million in revenues in the last 12 months with more than 80% gross margins in Q2 2026. Warning! GuruFocus has detected 3 Warning Sign with ETOR. Is ETOR fairly valued? Test your thesis with our free DCF calculator. Release Date: August 11, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Net contribution increased 9% year-over-year to $229 million, with adjusted EBITDA up 9% to $78 million, demonstrating strong financial performance. Funded accounts grew 18% year-over-year to 4.28 million, driven by marketing investment and improved user retention. The planned acquisition of TradeZero is expected to be strategically and financially attractive, with $80 million in revenues and over 80% gross margins, and is anticipated to be accretive to adjusted EPS in the first full year post-completion. The launch of the new AI-powered app and eToro Edge platform, along with agent portfolios and sub-accounts, positions the company for future growth and enhanced user engagement. Savings offering AUM grew 15 times year-over-year, and eToro Money card issuance increased over 30% quarter-over-quarter, indicating strong momentum in wealth management and neobanking segments. Crypto net trading contribution declined year-over-year to $11 million, reflecting lower trading activity and a shift of users towards equities, with a $2 million negative valuation impact on corporate crypto holdings. Assets under administration in July totaled $18.5 billion, down 5% year-over-year due to a decline in crypto pricing. July capital markets trading activity was flat year-over-year, with a slowdown in commodities and a correction in popular stocks, leading to a temporary reduction in user activity. Adjusted OpEx is expected to be slightly higher in Q3 due to continued investment in growth activities, including marketing and R&D. The TradeZero acquisition, while promising, involves integration risks and will not close until the first half of 2027, with limited financial details disclosed at this stage. Q: Can you provide more details on the strategic rationale behind the TradeZero acquisition, including the incremental capabilities and products you are eyeing?A: Yoni Assia (CEO) stated that TradeZero brings a great team based in New York and a strong focus on scaling eToro's offering in the US. The acquisition enables features popular globally, such as leverage trading, margin trading, futures, and shorting capabilities, which are unique to TradeZero's technology and patents. The goal is to combine eToro's global capabilities with TradeZero's self-clearing infrastructure to attract a more sophisticated, active trader audience that can use APIs and AI to trade across asset classes. Q: How has progress with your agentic trading and agent portfolios progressed? Can you disclose client assets or number of accounts, and how does monetization and activity differ from your average account?A: Yoni Assia (CEO) noted that early adoption shows a relatively small number of customers trading in very high volumes, indicating more sophisticated users. eToro is simplifying the product by launching official Grok and Claude connectors, allowing users to create agent portfolios directly from these AI platforms. The company is seeing more 24/7 trading activity, including over weekends, and expects this trend to accelerate. The long-short and alpha portfolios, which are based on agentic and quantitative trading, have been performing well. Q: Do you have plans to launch an internal native option for AI trading, and can clients connect via API or MCP? Is the trading semi or fully autonomous?A: Yoni Assia (CEO) confirmed that eToro has MCP trading enabled, allowing users to connect via builders.etoro.com. Users can connect their Grok or Claude accounts to authorize autonomous trading, with the ability to define permissions (e.g., read-only or specific portfolio limits). The system is fully automated, but users retain control over the agent's parameters. Regarding options, eToro has not yet launched API trading for options, but the TradeZero acquisition provides options APIs that could be integrated into the global offering soon. Q: Can you update us on the broader U.S. growth strategy and whether you are contemplating additional acquisitions in the region?A: Yoni Assia (CEO) stated that the TradeZero acquisition provides a significant team and infrastructure in the US, and eToro recently received its RIA license to launch smart portfolios. The core strategy is to launch all overseas products in the US, including futures, leverage trading, shorting, and copy trading, to increase lifetime value and scale marketing. eToro remains open to additional acquisition opportunities both in the US and globally. Q: Can you provide any additional KPIs or metrics around the TradeZero deal, such as number of customers or AUA base?A: Yoni Assia (CEO) indicated that eToro will provide more detailed metrics closer to or post-closing, as they consolidate the numbers and matrices of eToro and TradeZero. Q: Given the recent pressure in crypto, can you provide perspective on the cyclical versus structural outlook and how you see crypto developing from a speculative market to a utility-driven one?A: Yoni Assia (CEO) remains bullish on the intersection of large TAMs: the rise of younger retail investors and the tokenization of real-world assets moving finance on-chain. He noted that 2026 is seeing these trends connect, with examples like SpaceX trading on-chain and 24/7 markets. While crypto prices are cyclical, eToro is in its fourth cycle, and innovation often builds during bearish periods. He remains confident in Bitcoin as digital gold and expects the current cycle to follow historical patterns. Q: What did you learn from the SpaceX IPO regarding customer interest, and how meaningful could ancillary revenue streams like securities lending be for eToro?A: Yoni Assia (CEO) highlighted that the SpaceX IPO was a major event, with over 200,000 customers trading over $1.7 billion in volumes. It was a significant driver of new funded accounts in Q2. The unique aspect was launching the IPO price prior to the IPO and the first retail distribution in the UK, where retail clients received 60-80% of retail demand. eToro expects more large IPOs, like Anthropic and OpenAI, to drive activity. On securities lending, TradeZero's capabilities could be leveraged, especially with more tech company volatility. Q: Can you dig into the July trends, including the pullback in activity and the impact on interest-earning assets and margin lending?A: Yoni Assia (CEO) explained that July saw lower commodities volatility, reducing active traders, and a correction in popular stocks, causing customers to take a breather before buying the dip. Meron Shani (CFO) added that there has been some improvement in the first 10 days of August, suggesting July may have been the bottom. Customers also scaled back their margin book, but eToro looks at the business on a 12-month basis, and year-to-date KPIs show significant growth. Q: Can you comment on the RIA license in the U.S. and its impact on smart portfolios and copy trading, including the ability for pro traders to be compensated?A: Yoni Assia (CEO) stated that the RIA license unlocks the ability to launch smart portfolios, which have seen strong momentum outside the US. For the pro-investor program in the US, integrating into the RIA platform will enable compensation for RIAs over time. eToro is building a marketplace for RIAs, similar to trends in Europe, where younger people are using the platform to become financial advisors and build their own applications. Q: To what extent can copy trading be accelerated by AI usage, and how can pro investors develop their own AI technology for copy traders to leverage?A: Yoni Assia (CEO) expressed passion for quantitative trading and AI. eToro has launched momentum and long-short strategies using AI, and has built "pods" pairing finance and computer science experts to create quantitative strategies. The company is opening these tools to pro investors through AI studios, APIs, and MCPs, enabling them to create more sophisticated trading strategies. The TradeZero acquisition unlocks short and leveraged trading in the US, accelerating this opportunity. Q: Can you talk about how much U.S. options trading is for TradeZero and how that drives your U.S. options strategy?A: For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in eToro Group Ltd.? Here are five stocks we like better. Q2 financial results improved: Net contribution and adjusted EBITDA each rose 9% year over year to $229 million and $78 million, respectively, while adjusted EPS increased to $0.68. Funded accounts grew 18% to 4.28 million and assets under administration surpassed $19 billion. Customer activity shifted toward equities: Capital-markets trading contribution rose 25% to $142 million and trades increased 64%, while crypto contribution fell to $11 million amid lower crypto activity and a $2 million valuation impact. eToro is expanding its U.S. and technology offerings: The company plans to acquire TradeZero for up to $231 million, targeting a first-half 2027 closing, and continues investing in AI tools, active-trading products, wealth management and digital-asset services. How Did Peter Thiel-Backed Crypto Exchange Bullish's IPO Go? eToro Group (NASDAQ:ETOR) reported higher second-quarter net contribution and adjusted EBITDA as customer activity shifted toward equities, while the trading and investing platform also announced plans to acquire U.S. broker-dealer TradeZero. Net contribution rose 9% year over year to $229 million in the second quarter of 2026, while adjusted EBITDA increased 9% to $78 million. Adjusted EBITDA margin was 34%, unchanged from the prior-year period. Adjusted diluted earnings per share were $0.68, compared with $0.56 a year earlier. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat IPO Momentum Returns: 3 Stocks Rising After CoreWeave’s Surge Chief Executive Officer Yoni Assia said the period underscored the benefits of eToro’s multi-asset platform as users moved between crypto, commodities and equities in response to changing market conditions. “Regardless of where market opportunities emerge, our users can seamlessly move across asset class within a single platform,” Assia said, adding that the company believes this supports engagement, retention and business performance. → 3 Dividend Champion Utilities for a Market That Can't Sit Still Funded accounts increased 18% year over year to 4.28 million during the quarter, supported by investments in customer acquisition and improved retention. Assets under administration rose 10% to more than $19 billion, which the company attributed to continued customer inflows. Chief Financial Officer Meron Shani said net trading contribution from capital markets—including equities, commodities and currencies—grew 25% year over year to $142 million. The number of trades increased 64%, driven by equity activity and continued engagement in copy trading. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Crypto net trading contribution totaled $11 million, reflecting lower crypto trading activity and a migration by users toward equities, Shani said. The figure also included a $2 million negative valuation impact related to eToro’s corporate crypto holdings, which had a $30 million balance at the end of the quarter. Net interest income increased 7% year over year to $49 million, aided by a 12% increase in higher-interest-earning assets resulting from higher customer cash deposits and corporate cash. eToro Money’s contribution grew 44% to $26 million, as total money transfers increased 92% from a year earlier. Adjusted operating expenses were $151 million, up 1% sequentially. Sales and marketing expense rose by $8 million as eToro continued to invest in customer acquisition, partly offset by lower research and development and general and administrative expenses. Adjusted sales and marketing expense was $68 million, or 29% of net contribution. The company ended the quarter with $1.2 billion in cash equivalents and short-term investments and generated $39 million in operating cash flow. It repurchased about 2.3 million shares for approximately $87 million under its share repurchase program. eToro said it plans to acquire TradeZero for up to $231 million in cash and stock, with closing expected in the first half of 2027. The company said TradeZero generated approximately $80 million in revenue over the last 12 months and posted gross margins above 80% in the second quarter. Assia said the acquisition is intended to bolster eToro’s U.S. presence and provide access to Canada, while adding a broker-dealer infrastructure, proprietary trading platforms and tools for active traders. TradeZero’s capabilities include futures, margin trading and short-selling technology, according to Assia. Shani said eToro expects the transaction to be adjusted-EPS accretive in the first full year after completion. The company did not provide additional customer, asset or cost information for TradeZero, saying it expects to disclose more details closer to or after closing. Assia said eToro remains interested in additional acquisition opportunities in the U.S. and internationally, though he characterized TradeZero as a significant step toward expanding the company’s American product lineup. During the quarter, eToro continued rolling out products built around artificial intelligence and active trading. The company introduced eToro Edge, a web-based platform for active traders, and unveiled a redesigned AI-focused application featuring Tori, its AI agent. The eToro App Store now includes more than 75 applications from developers, partners and professional investors. The company also launched Agent Portfolios, which allow customers to connect AI agents to designated portfolios while setting their own objectives, capital allocations and risk parameters. In response to an analyst question, Assia said early Agent Portfolio adoption has come primarily from sophisticated users, who are employing AI tools to build automated strategies. He said customers can set permissions limiting agents to read-only access or to trading within specified agent portfolios or sub-portfolios. eToro also launched sub-accounts to help users separate investments by goals such as education, home purchases or retirement. In wealth management, Assia said assets under management in the company’s savings offering grew 15-fold year over year. In neobanking and digital assets, the company launched eToro Work, which is designed to let employees invest from their paychecks. It also announced the acquisition of crypto wallet provider Zengo, a strategic investment in on-chain perpetual futures platform Extended, and its role as a founding partner of Open USD. The number of eToro Money cards issued in Europe rose more than 30% sequentially. For July, funded accounts rose 18% year over year to 4.32 million. Assets under administration totaled $18.5 billion, down 5% from a year earlier due to lower crypto prices. Capital-markets trading activity was flat year over year, which management said was consistent with seasonal patterns. Assia said July also reflected lower commodities activity and a correction in some popular stocks, while Shani said the company had seen improvement during the first 10 days of August. Customers also reduced some margin positions during the period, Shani said. eToro expects adjusted operating expenses in the third quarter to be slightly above the second-quarter level as it continues investing in growth, including marketing and a modest increase in research and development spending. eToro Group Ltd. (NASDAQ: ETOR) is a global multi-asset brokerage company known for its social trading platform. The company enables individual and institutional investors to trade and invest in a broad range of financial instruments, including stocks, exchange-traded funds (ETFs), commodities, indices, forex, and cryptocurrencies. eToro’s platform integrates a user-friendly interface with advanced trading tools, catering to both novice and experienced market participants. A distinguishing feature of eToro’s offering is its CopyTrader™ functionality, which allows users to replicate the trades of selected investors on the platform. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "eToro Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Wall Street expects a year-over-year increase in earnings on higher revenues when eToro Group Ltd. (ETOR) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 11, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.61 per share in its upcoming report, which represents a year-over-year change of +8.9%. Revenues are expected to be $225 million, up 7.3% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 17.39% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For eToro Group Ltd., the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.14%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that eToro Group Ltd. will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that eToro Group Ltd. would post earnings of $0.65 per share when it actually produced earnings of $0.91, delivering a surprise of +40.00%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. eToro Group Ltd. appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report eToro Group Ltd. (ETOR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Willis Towers Watson (WTW) came out with quarterly earnings of $3.35 per share, beating the Zacks Consensus Estimate of $3.13 per share. This compares to earnings of $2.86 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.03%. A quarter ago, it was expected that this advisory, broking and solutions company would post earnings of $3.59 per share when it actually produced earnings of $3.72, delivering a surprise of +3.62%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Willis Towers Watson, which belongs to the Zacks Insurance - Brokerage industry, posted revenues of $2.47 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.56%. This compares to year-ago revenues of $2.26 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Willis Towers Watson shares have lost about 3.9% since the beginning of the year versus the S&P 500's gain of 6.9%. While Willis Towers Watson has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Willis Towers Watson was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.57 on $2.49 billion in revenues for the coming quarter and $19.53 on $10.49 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Insurance - Brokerage is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, eToro Group Ltd. (ETOR), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This company is expected to post quarterly earnings of $0.61 per share in its upcoming report, which represents a year-over-year change of +8.9%. The consensus EPS estimate for the quarter has been revised 17.4% higher over the last 30 days to the current level. eToro Group Ltd.'s revenues are expected to be $225 million, up 7.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Willis Towers Watson Public Limited Company (WTW) : Free Stock Analysis Report eToro Group Ltd. (ETOR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering eToro Group Ltd. (ETOR), which belongs to the Zacks Insurance - Brokerage industry. When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 24.62%, on average, in the last two quarters. For the most recent quarter, eToro Group Ltd. was expected to post earnings of $0.65 per share, but it reported $0.91 per share instead, representing a surprise of 40.00%. For the previous quarter, the consensus estimate was $0.65 per share, while it actually produced $0.71 per share, a surprise of 9.23%. With this earnings history in mind, recent estimates have been moving higher for eToro Group Ltd.. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank. Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. eToro Group Ltd. has an Earnings ESP of +1.44% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 11, 2026. With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss. Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate. Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report eToro Group Ltd. (ETOR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research