ETOR

Hi, my name is Daniel Amir, Head of Investor Relations. This webcast is being recorded and will be available for replay in the investor section of eToro's website. Our earnings press release, investor presentation, and April 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 question previously submitted by eToro's retail shareholders. 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 risk, uncertainties, and assumptions.

You can find more information about these risks and uncertainties in the press release that we issued today, and in the Risk Factors section of our filings at sec.gov. Actual results may differ, and we take no obligation to revise or update any forward-looking statements. 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.

Thank you, Daniel, and thank you to everyone joining us today. Welcome to eToro's first quarter 2026 earnings call. After Meron and I conclude our prepared remarks, we will open the call for questions. This was a very strong quarter and a very strong start to 2026. Net Contribution and Adjusted EBITDA were both record as a public company. Net Contribution increased by 19% year-over-year to $258 million, while Adjusted EBITDA grew 35% to $109 million. This marks our fourth consecutive strong quarter since becoming a public listing. Just as importantly, the quarter demonstrates the durability of our model and a confirmation of our strategy as trading continued to shift from crypto to commodities and our diversified offering kept users engaged. This highlights our ability to sell across market environments and is a core structure advantage.

We also saw meaningful acceleration across our key performance indicators. Funded accounts grew 12% year-over-year to over 4 million, representing our fastest organic growth in over 1 year, driven by increased strategic marketing investment and improved retention efforts. Momentum carried into April, with funded accounts growing 13% year-over-year. Assets under administration reached $17 billion, up 15% year-over-year, driven by strong customer inflows. We are a highly diversified global financial services company. We're building a global platform for investing, built around the idea that everyone should have access to the world's financial markets in a simple and transparent way. Today, users can invest across almost every major asset classes, from stocks, indices, commodities, currencies, crypto assets, tokenized assets, and emerging market opportunities like prediction markets. Innovation remained at the core of our strategy.

We continue to expand our platform with new products and technologies, including AI-powered investing experiences, 24/7 trading capabilities, and on-chain financial infrastructure, while continue to strengthen our traditional investment offering. We believe these initiatives position us well to capture the long-term evolution of global investing and wealth creation. Six months ago, we made AI a company-wide mandate across every function in eToro. We didn't just adopt tools, we rethought how we operate. Today, every function inside eToro, research, engineering, product development, and marketing, is supported by AI agents that operate against our infrastructure, continuously upgrade themselves as frontier models improve. The impact is significant. We're already seeing significant productivity gains in engineering with more to come, and similar acceleration is extending across the rest of the organization. Work that historically took quarters now ships in a fraction of the time.

Capabilities that used to require deep technical expertise are becoming accessible across the business. We believe 2026 is the year of agents, and eToro is among the early adopters of this shift in our industry. This is an engine behind a significantly faster product roadmap. As we deliver against our mission, we have remained focused on execute on our four strategic pillars: trading, investing, wealth management, and neobanking. Allow me to share a few highlights across each of these areas. In trading, we saw incredibly strong growth in commodities, which represented 60% of trading commission in the first quarter, with volumes increasing nearly 4-fold year-over-year. This reflects both market conditions as well as the strength of our multi-asset model, which continues to drive cross-asset engagement. Over the past 6 months, users who initially traded crypto or equities accounted for most of the commodities trading volume.

That is the multi-asset model in action. It is how we deepen user engagement over time. The strength and resilience of eToro's business model are anchored in our proven ability to sell across a diversified multi-asset platform, a pattern we've successfully executed through both crypto rallies and periods of elevated activity in traditional capital markets. Our 24/5 trading offering launched last year. It is being widely used. It underscores the global nature of our user base. This year, we took the next step. We rolled out 24/7 trading across multiple asset classes. eToro users can now trade select commodities, single stocks, and indices around the clock with more to come. We see this as an evolution in capital markets. Traditional markets are starting to look like crypto markets. Users want to trade on their own schedule. We also continue to expand our offering.

With the addition this quarter of Japanese equities, eToro users can now trade equities from 26 of the world's leading stock exchanges. In the U.S., we expanded our crypto offering with the launch of crypto trading for users in New York, the epicenter of the country's financial markets, following the successful activation of our BitLicense and Money Transmitter License. Turning to investing, copy trading remains a core differentiator for eToro, as we're the only company offering automated agentic trading. This quarter, copy trading reached an all-time high driven by rising demand to copy, pro investors were actively reacting to volatile market events. Copy trading is widely used by our users, reinforcing its role as a cornerstone of our social investing model. As an AI-first company, AI-powered investing sits at the core center of our innovation strategy.

We're entering a new era of investing where AI is reshaping how individuals access markets, make decisions, and build wealth. At eToro, we see AI as a force that levels the playing field, giving every investor access to capabilities once reserved only for institutions. Our vision is to equip each user with their own team of AI agent, tools that analyze the markets, generate insights, and share personalized analysis while enabling them to build, share, and scale strategies within a global collaborative investing ecosystem. We're extending the same agent architecture we have built internally directly to our users by putting institutional-grade capabilities into the hands of every retail investor on eToro, designed to seamlessly integrate with the community they already trust to learn from and engage with. Ultimately, AI is accelerating a long-term trend of making investing more accessible, more social, and more personalized. The Internet democratized information.

Blockchain democratized value. AI is now democratizing financial expertise. As finance and technology continue to converge, it is becoming the primary interface between users and the markets. AI will help millions of people participate in the markets with greater confidence, better tools, and a stronger connection to both data and community. The introduction of Agent Portfolios is also a meaningful step on that journey. Agent Portfolios let users allocate capital to AI-driven strategies inside a dedicated environment in their eToro account. Through Tori, our AI investing agent and conversationalist interface, users define the parameters, and the AI agents run the portfolio. They get exposure to intelligent portfolio management in a controlled and transparent way while keeping full control over their broader investments.

As part of our AI efforts, we also recently expanded our partnership with xAI by embedding real-time X intelligence and market sentiment powered by the frontier Grok 4.2 model directly into the investment workflows of Tori. As more activity shifts toward automated AI-driven strategies, we expect increased engagement, trading activity, and volume across the platform. Building on this, we have launched the eToro App Store, a marketplace for trading and analytics applications directly within the eToro ecosystem. We've also introduced a builders portal, providing partners with access to APIs, tools, and development resources. Some of the apps developed include AI Trading and AI Trading Cockpit, a trading hub, a Bloomberg-style terminal for traders. Price Point turns web page into trading signal, and POTUS turns politicians' and influencers' comments into trading signals.

Together with Agent Portfolios, the eToro App Store and our builders portal create a foundation for a new builders economy, enabling the creation and distribution of applications to millions of users, including no-code AI-powered tools. Developers, quantitative strategists, and everyday users can now access, create, share, and scale financial applications across our global platform. Over time, we expect a broad set of applications to be built on top of eToro, further expanding the capabilities of our ecosystem and fostering a more engaged, loyal user base. In wealth management, the continued adoption of our club subscription gave us the runway to introduce an upgraded plan, giving users access to first-class benefits of our premium tier for a monthly or annual recurring fee. More users can now get enhanced rewards, professional tools, and premium experiences, which we believe drives deeper engagement and higher user satisfaction.

Our cash ISA offering in the U.K. also had a record quarter. ISA AUA grew 15 times compared to the same period last year, with underlying market opportunity exceeding $1 trillion. We're now using that playbook to push deeper into localized savings products across other key markets. In neo banking, eToro Money delivered a record quarter. We continue to invest in localization and in regional expansion, enhancing the user experience and supporting long-term growth. We've seen strong adoption to the eToro Money card, available today in Europe and the U.K., and will continue to expand the benefits associated with that card. In the 1st quarter, the number of cards issued more than doubled quarter-over-quarter. Finally, last month, we announced the acquisition of ZenGo, a leading self-custodial crypto wallet provider, marking an important step in advancing our long-term crypto strategy.

At eToro, we have long believed that blockchain technology and digital assets will play a central role in the future of finance. Crypto is revolutionary because it reduces friction in financial services, gives individuals and companies true ownership of their assets, and expands access to a more inclusive global economy. As one of the first crypto companies to offer crypto back in 2013, we've been pioneers in the blockchain technology. Having experienced many crypto cycles, we believe that crypto downtimes are the time to build, and this acquisition reflects that long-term commitment and approach. ZenGo combines naturally with eToro. Our global multi-asset platform and distribution, together with their secure self-custodial wallet technology, gives users direct control over their digital assets while staying seamlessly connected to on-chain infrastructure.

This transaction enhances our digital asset capabilities and accelerates our strategy to bridge traditional investing with decentralized financing, unlocking new opportunities across tokenized assets, prediction markets, and perpetual futures. Globally, we now offer over 200 crypto assets on eToro and access now to thousands of more on ZenGo, including tokenized stocks. Importantly, our crypto efforts are not dependent on short-term market conditions. We are seeking to position eToro to lead the transition to on-chain financial world. To wrap up, we've delivered strong financial results, grown funded accounts ahead of the market, and continue to drive product innovation, particularly in AI. At the same time, we continue to thoughtfully pursue strategic initiatives, including expansion through acquisitions and our share repurchase program. Our focus remains firmly on creating long-term value, and we believe our strong start to the year reflects our unwavering commitment to that objective.

With that, I'll hand it over to Meron Shani.

Thank you, Yoni. As Yoni mentioned, we're very pleased with our first quarter results, which demonstrate our continued momentum as well as the durability of our diversified business model. First quarter net contribution grew 19% year-over-year to $258 million, and adjusted EBITDA grew 35% year-over-year to $109 million. In line with our focus on diversified, profitable revenue growth, our adjusted EBITDA margin was 42%, compared to 37% a year ago. These very strong margin results were due to higher net contribution in the quarter. Our KPIs reflect strong momentum in the first quarter, with AUA increasing 15% year-over-year to $17 billion and funded accounts growing 12% year-over-year to 4.02 million. These positive trends continued into April, which I will discuss in more detail shortly.

Growth was driven by strong user acquisition and retention, supported by continued investment in marketing initiatives. Let's take a closer look at our first quarter financials by business lines compared to a year-over-year ago. Our net trending contribution from capital markets grew 71% year-over-year to a record $166 million, supported by increased engagement of our customers and crypto traders shifting to trading capital markets, with commodities being particularly strong. As Yoni mentioned, in Q1, commodities accounted for 60% of our trading commissions. The 90% rise in the number of trades during the quarter was primarily driven by strong market activity in commodities and record inflows into copy trading as pro investors reacted to evolving market conditions in the first quarter. This performance reflects growing user engagement and the strength of our multi-asset business model.

Additionally, the growth of our business is reflected in the steady increase in total invested amount over time. This growth has been driven by the expansion of our capital markets business and the continued shift of crypto customers towards broader investment products amid crypto market cyclicality. Net trading contribution from crypto was $13 million, with a year-over-year decline driven primarily by lower trading activity and customers shifting to trade commodities. As we have seen in prior crypto cycles, these periods of volatility are expected, and our diversified business model has demonstrated resilience across microcycles. Our crypto net contribution includes a $5 million negative valuation impact of our corporate crypto holdings, resulting in a balance of $14 million at the end of the quarter. Net interest income contributed $48 million, down 5% year-over-year, largely driven by lower interest rate environment and user de-leveraging amid market volatility.

The decline was partially offset by a 13% increase in higher interest earning assets as a result of an increase in user cash deposits, staking, and corporate cash. eToro Money's contribution grew 32% year-over-year to a record $29 million, driven by a 70% year-over-year increase in total money transfers as we continue to experience increased deposits and user activity. In the first quarter, adjusted OpEx was $150 million, up 7% quarter-on-quarter, driven by $12 million increase in customer acquisition costs. Our adjusted selling and marketing expenses for the quarter was $58 million, or 22% of net contribution.

As discussed last quarter, given the strength of our cohort returns and our objective to accelerate growth in 2026, we plan to increase our sales and marketing investment from 21% last year, scaling gradually to 25% of net contribution this year. Adjusted R&D, G&A, and operating expenses for the quarter were $38 million and $54 million respectively. Our adjusted diluted EPS for the quarter was $0.91 compared to $0.77 in the first quarter of 2025. Moving to our balance sheet, we ended the quarter with $1.3 billion in cash equivalents, and short-term investments, and generated $104 million of cash from operating activities during the quarter. In the first quarter, we repurchased approximately 3.3 million shares with an aggregate of $103 million in accordance with our previously announced share repurchase program.

Now, let me share a few comments on the second quarter trends. As part of our quarterly results today, we also released our April monthly KPIs. April has continued on a positive trajectory, with the business momentum carrying through from Q1. Our capital markets business followed the same year-over-year pattern as Q1, with significant growth in total trades led by equities and commodities, with a higher than average revenue per trade. We have seen the multi-asset strength yet again, when 40% of the customers who traded commodities in Q1 also traded stocks or crypto in April. In April, KPIs accelerated. AUA reached $18.7 billion, up 90% year-over-year, and funded accounts grew to 4.07 million, up 13% year-over-year.

These KPIs reflect the strength of our multi-asset platform and a confirmation of our strategy, even against the backdrop of the current crypto market cycle. To summarize, we are very pleased with our strong first quarter performance and positive momentum year to date. We believe we're well-positioned to capture new opportunities, drive sustainable growth, and further strengthen eToro's leadership at the forefront of trading and investing while delivering meaningful value to shareholders. With that, Daniel, let's move to Q&A.

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 Yoni. Following ZenGo's acquisition, can you elaborate on eToro's crypto strategy?

We've always been very big believers in crypto, in blockchain, and in Bitcoin, starting with launching Bitcoin back in 2013. While actually starting the company as a TradFi company. We were always a regulated financial institution, starting from our regulated activities and then adding to our brokerage activities crypto over time, where we support now more than 200 crypto assets. Over the last five years, roughly, we've seen an inflection in DeFi technologies in customers, mostly Gen Z-ers, so even younger audiences that are crypto native and are basically managing their entire financials on chain.

ZenGo accelerates our path to have a crypto-native offering where our customers can hold their own crypto on-chain, transact across now thousands of coins and hundreds of different blockchains, introducing products like on-chain swaps, yield, prediction markets, and perpetuals over time, and any other new innovation coming into the DeFi world. ZenGo accelerates our path into DeFi and on-chain capital.

Thank you, Yoni. We'll now open it up to questions from our institutional analysts. Operator, go ahead.

Thank you. Our first question comes from the line of Daniel Fannon of Jefferies. Your line is open, Dan.

Thanks. Good morning. Wanted to just follow up on the kinda current environment. The April updates, you know, seeing still very good activity in the mix skewed more towards commodities. Could maybe talk about the capture rates that you're seeing, as well as we start 2Q. Also just the sustainability of the move to commodities versus crypto, and whether you think, or any stats that you could share around, you know, number of products being traded, or thinking about the structural change towards commodities that might be more sustainable versus temporary.

Sure. As we've always said, there's always something interesting happening in the markets. During both Q4 and Q1, that something interesting was really around first precious metals, then oil, then going back to precious metals. The strength of the eToro platform has always been the ability to offer our customers a multi-asset offering, where with a click of a button they can shift between crypto, commodities to stocks. Right now we're seeing more volatility, all-time high in stocks, still heightened volatility in commodities. As we look at the different markets, usually crypto is very directional. We're in crypto, and we're starting to see that shift back up. When crypto is going higher, especially when it reaches all-time high, we'll see record activities in crypto, and we've seen that historically in the last four waves of crypto.

Stocks, we actually see more heightened activity where, when the markets drop. When there's significant volatility, we see actually customers buying the dip consistently. We've seen it through tariffs, we've seen it through Q4. Every time there is significant volatility downturn, we see increased customer activity, and then they basically accumulate as markets go up and reach all-times high. In commodities, it's really about volatility. The heightened volatility across different types of assets. By the way, we're seeing interesting things in food commodities now like corn and cacao. The heightened volatility impacts almost directly the same day, the increased activity of customers. In relation to what should we expect in the rest of the quarter, it's really up to the markets.

What we are seeing right now is, again, increased volatility still in the commodities market, and starting to see the rise of crypto, which we expect to see higher by the end of the year. In relation to some of the numbers and KPIs we shared on April, maybe Meron can add some more.

Sure. We also added some color about the fact that we expect our revenue per trade to be just slightly above the range, which is the $0.60-$0.75 that we normally communicate to the market. That continued the trend also from previous quarter. In terms of the rest of the KPIs, we do see the strength and we do see the effectiveness of our business model where customers are trading and navigating from one asset to another. Customers who traded commodities in Q1, we saw a lot of them already switching back to equities or to crypto as well.

Thank you. That's helpful. Just as a follow-up, as you think about the account growth that's picked up a bit, any shift in geography or areas of contribution that maybe is a bit more outsized, more recently than previous periods?

We haven't seen any significant growth in a specific region. We are spread all over the world as you guys are aware, and our efforts are globally. Into the future, we do have some markets that we expect to grow faster, being Singapore or being U.S., and some other markets where we are trying to integrate as well.

Thanks for taking my questions.

Thanks, Dan.

Thank you. Our next question comes from the line of Devin Ryan of Citizens JMP. Please go ahead, Devin.

Great. Thanks so much for taking the questions. First one just on the Agent Portfolios and kind of the opportunity there. Obviously, investors can have more tools and access. Do you have any early evidence about, you know, how customers can perform? You know, the customer outcomes being better using these agentic tools. Obviously, that's gonna be important to adoption. Just also the kind of the multiplier that you expect on transaction activity. You know, clearly would expect to be many times more than kind of the average trader. Kind of what do you expect on, you know, the transactions per account using those as well? Thanks.

Sure. You know, I've been a, I'd call it amateur quant trader since I was about 16, so I love algo trading. Historically, anything that revolves around building software to automatically trade the market has been a very complex process that required a lot of resources. When you think of the capabilities today of AI that are in the hands of hundreds of millions of people, AI really levels the playing field for people to actually trade algorithmically. What we're seeing right now is we have about published 45 apps to the App Store, and we see that the majority of them include actually agentic trading capabilities.

With that, we're seeing a significant increase in the velocity of the trading behavior velocity of our customers as they're starting to use more and more of these tools to manage some or their entire portfolio. I believe that over time, we're going to see retail investors as a whole use more agentic tools to optimize their portfolios over time, and I'm a very big believer that that significantly improves their alpha. Retail customers actually were very good at finding beta and investing in the markets over time, and beta of retail actually was quite good, whether it's crypto or tech stocks over the past five years. I think agentic tools enable retail investors to actually also participate and find alpha in a much more meaningful way.

Okay. Thanks, Yoni. Just follow up here just on the balance sheet, obviously, continue to be an incredibly strong position with over a third of the market cap in cash in investments today. You just did the ZenGo deal. Can you talk about just the optionality that you have right now and kinda how you're thinking about deploying cash toward more buybacks versus what does the acquisition pipeline look like, and are there actionable things to do there that are accretive? We're just seeing like you have a lot of optionality to drive accretion with that excess cash. Thanks.

First of all, we announced 2 acquisitions over just the last 2 weeks. We also announced B2C acquisition, which is one of the 2 regulated exchanges of crypto in Israel. We have a very strong M&A pipeline. We've been in the business soon 20 years. We know hundreds of companies in this space, we actually do believe that the fact that currently crypto is in a downturn provides us the opportunity to find significant and accretive M&A opportunities in 2026. We have a very good pipeline. That's why we keep the optionality. In parallel, as we said in the past, we believe in Buybacks as a company, and we'll continue to explore that in relation, of course, to the company's cash flow.

Great. Thank you.

Our next question comes from a line of Joseph Vafi of Canaccord Genuity. Please go ahead, Joseph.

Hey, guys. Good morning. Great results here. Congratulations. Just wanted to drill down a little more on the pivot in trading volume from crypto over to commodities and equities. Just, you know, the mechanics there. You know, to a certain degree, if a user signs up to trade crypto, they may not be a commodity trader. They may not know much about commodities. Are they following CopyTraders? Is there incentives or education you're providing? You know, how are these investors finding this other asset class in such a big way? Then I'll have a quick follow-up.

We're very focused on market education and retail investor education. We have the eToro Academy, which continuously adds more and more information. Now we added also the layer of shared intelligence and of Tori, the AI agent, that actually can cover what's happening in the markets and tell you about what's happening in the markets, where are things that are interesting, and actually assess your portfolio and tell you in relation to other people portfolios, where are the opportunities. We are very focused on making sure our customers understand both risk management and understand all of the options in eToro's ecosystem.

As we've seen in the IPO deck, which we're celebrating now 1 year too, the more products that our customers use, we see a significant increase both through the lifetime value of eToro, but more important to actually the net deposits over time and the size of the accounts of our customers. As our customers educate themselves more about the markets, we see them significantly adding more and more funds into the accounts. Just as an example, our long-short momentum Smart Portfolios accumulated a lot of assets during the last 9 months, and it actually brought people to educate themselves about long-short strategies. About 60% of customers that traded commodities in Q1 originally came to eToro to trade crypto or to trade equities.

We've always seen that, I'd say unification between people who came to trade crypto in eToro and learned about the stock markets, people who came to eToro to trade stocks and learned about crypto. I'd say the last 6 months where we had a lot of commodities trading in the news enabled a lot of our customers to dive into and learn more about commodities markets as well. In addition, we've launched, which is a very unique product, 24/7 trading on commodities and now selected stocks as well.

Life, congratulations on that.

Sure

What does that mean for the business, moving forward strategically and, you know, the U.S. business? Was that, you know, a key thing to acquire before a bigger push, you know, maybe broader product set, et cetera? Just updated thoughts there. Thank you.

What we're seeing internally is a much more accelerated product delivery, utilizing AI in the company. Just as an example, we have today both product managers launching directly to the App Store without engineering, as well as internally, operations teams that are building internal tools and launching them to an internal app store. That accelerated product roadmap enables us to bring more products to more regions faster. In the U.S. of course, futures or commodities is CFTC NFA-regulated. We are looking at enabling our customers to trade commodities in the U.S. in the next 6 to 9 months as well.

Definitely our capabilities of delivering faster on product globally in all of the regions, where we operate will enable us to bring more products to our customers across the globe, which we believe will increase significantly lifetime value, and the deposits of customers as well.

Thank you. Our next question comes from the line of Edward Engel of Compass Point. Please go ahead, Edward.

Hi. Thanks for taking my question. I want to dig a little bit more into the Agent Portfolios. Have these been rolled out across most of your key markets today? I guess for the users that you are seeing implementing these strategies, is there any color you can give on the impact to trading volumes, for these users?

Sure. First of all, it's relatively early days. I'd say I think it's been about 3 weeks since we launched it. We've seen north of 500,000 trades so far. Early days of Agent Portfolios, small amount of customers with a lot of trades. If you look at the ratio of number of trades per customer, per Agent Portfolio, we see a significant increase. Customers are actually using their agents, whether it's a Tori internal agent or external agents, anywhere from OpenAI, Claude. We just, we're on the eToro App Store of Cursor as well, which is rumored to be acquired by xAI, which is a partner of ours on Tori with Grok 4.2.

I believe that over time we'll see significant adoption of customers with Agent Portfolios, these are still early days, that will significantly increase trading velocity of customers.

Great. Thanks. I recall the take rate on copy trading is often lower than standalone trading. I was wondering for the take rate on agentic trading, is it similar to copy trading or is it similar to typical trading?

It's more similar to copy trading. We see higher velocity in smaller size right now. A big part of the Agent Portfolio rollout was our understanding that customers don't want to connect AI or their AI agent, whether it's internal or third party, to their entire portfolio, because, you know, people still need to trust AI and their strategies, which is why when you create an Agent Portfolio, if you have a $50,000 account in eToro, you basically tell the agent, "Take $5,000." It actually operates on the same model of copy trading and Smart Portfolios, which is why it enabled us to run faster. It actually creates a personalized Smart Portfolios for you, and then you connect your agent to define the strategy of that Agent Portfolio.

Once we launched that Agent Portfolio, it actually increased significantly the usage of the eToro APIs that we launched about 6 months ago. Again, retail investors with AI suddenly have capabilities to run algorithms very easily, but they were still afraid or concerned to connect that to their entire account. We use the same technology of Smart Portfolios and CopyTrader to enable Agent Portfolio through APIs. That means it's a part of their portfolio, which is why also trades are smaller than managed by AI, which is why velocity is higher.

That's great color. Thank you.

Thank you. Our next question comes from the line of James Yaro of Goldman Sachs. Please go ahead, James.

Hi, all. Morning. Divyam here on behalf of James Yaro. My first question is that you touched upon the rationale for the ZenGo acquisition. I wanted to ask if having self-custodial wallet capabilities allow you to facilitate CopyTrader in the U.S.?

CopyTrader in the U.S. is actually under our regulated broker-dealer in the U.S. and MSB. It operates for copy trading on the CeFi part or the TradFi part. On DeFi, we haven't yet went into the details of copy trading. We are looking at agentic trading into the DeFi part of eToro and soon are going to launch something very similar to Agent Portfolio, which is called Agent Wallet, where you can actually create now a DeFi wallet and use AI to algorithmically trade DeFi markets as well. We are looking at parts of automated trading into DeFi markets. Copy trading and how it is being done, and who do you copy in the DeFi wallet of ZenGo is something we started exploring, but don't have a direct roadmap.

Thank you for the context. That's helpful. As a quick follow-up, could you update us on the status of CopyTrader in the U.S.? Where are you in the rollout and the regulatory considerations at this point?

Sure. We are in process of getting the RIA license to enable the Smart Portfolios in the U.S. CopyTrader is in limited rollout right now, is in process with discussions with the regulators. We do expect both to be in complete rollout in H2.

Thank you. That is helpful.

Thank you. Our next question comes from the line of James Friedman of Susquehanna. Please go ahead, James.

Good morning, good evening. Yoni, could you share your early impressions regarding 24/5 and 24/7 trading? How much can you see this adding to your volume?

24/5 added significant amount of volume, about 30% of volume in stocks shifted to after market hours. I'm not sure whether we have the how much was it additive versus a substitute volumes. Do we have that number?

No, we haven't shared that number.

We haven't shared that number. We did add to volumes. I'm not sure how much of the 30% again is additive versus substitute. 24/7, still relatively early days. I do believe that over time, again, we saw this in crypto, so I remember these dialogues in 2017, because we came from TradFi to crypto. We had these dialogues around do we open over the weekend trading? That's how we called it back then. In crypto, obviously that required for us to set up the trading room, the NOC, the network monitoring room, as well as everything had to shift to 24/7 for crypto back then. We've seen roughly 10%-20% of additional volume to crypto.

In crypto rallies, in some cases, we saw Saturday and Sunday trading activity which actually surpass the activity on regular days, right? Again, it all comes down to volatility and the volatility of those assets over the weekend. Right now it's early days for 24/7. The market formation, price formation is actually coming from, in some cases, the crypto markets which operate always 24/7. I do believe over time, again, that adds both customers expectations coming from crypto. We saw a lot of people who don't understand why aren't markets opened during the weekend. I expect that to be at least 10%-20% of volumes over time.

What's your high level perspective on marketing? Is this summer or winter or spring? Is that 1% sequential that we had talked about, last quarter still a good way to think about it? Thank you.

You refer to the margin in terms of the net contribution. As we discussed last quarter as well, we are planning to grow marketing out of net contribution to 25% by the end of the year. We do expect to do it gradually. However, we also, you know, looking at market opportunities and taking advantages of different events that are coming. When markets are high, then we have like the summer also in terms of customer acquisition. We do have the ability to scale up very quickly and scale down as well. We do expect that to gradually grow. Again, as Yoni mentioned also, depending on the events in the market.

It's, again, when we operate globally across the globe, 24/7, across all markets, 26 now stock exchanges, commodities, currencies, crypto, there's always summer somewhere. Might be winter-ish in crypto, but it's summer in commodities, and it's summer in AI stocks. We saw increased volatility and activity now in a lot of the AI-driven stocks, you know, from the obvious ones, like Nvidia to the hopefully expectation of xAI coming post IPO into the platform to a 4,000% suddenly increase in SanDisk and other AI related stocks. As a reminder, we always look at the daily activity of our customers to see what is happening, what is interesting for retail investors, we take those insights and actually promote them on social media, on digital channels.

We have the insights of millions of customers trading millions of trades every day. We take those insights and actually translate them with AI directly to all of the ad platforms and social media channels of eToro, accelerating basically, that impact and market education about where is summer right now.

Thank you both.

Thank you. Our next question comes from the line of Brian Bedell of Deutsche Bank. Your line is open, Brian.

Great. Thanks. Good morning, guys. Thanks for taking the question. Maybe if you could talk a little bit more about ZenGo in terms of your expectations on, you know, maybe it's early, but any expectations on revenue contribution. Probably more importantly just that 2 million user base that you're acquiring. Your views on, yeah, on, you know, on converting those users to funded accounts. Any color on expectations of trading growth from that business?

Sure. I think it's still early days. We just closed the deal. Again, the hypothesis there is that customers, which we've seen in eToro, that crypto-native customers want to trade also stocks, and that our customers will want to trade also assets on ZenGo. We are seeing convergence because you can actually trade now tokenized stocks in ZenGo. You can obviously trade crypto, the 200 coins today on eToro, but now suddenly thousands on ZenGo. There's a process here of both integrating the platforms. I would say that over time, what it increases is our market share in crypto.

We're now building the entire suite of products to compete on crypto on the entire product categories across the globe, and that will over time increase our crypto market share in all of the different markets where we operate. I see this as an opportunity to actually scale up product category coverage across DeFi and TradFi, which enables our customers to basically stay in eToro, trade all of the crypto that they want on eToro, and all of the products that they want, whether it's DeFi or TradFi, within the eToro ecosystem.

Okay, great. That's great color. Maybe just any update on prediction markets, in terms of your development of connectivity to prediction markets and how you're seeing the customer demand for that at eToro.

Again, early days for us with the ZenGo acquisition. We do plan to launch prediction markets in ZenGo over time in the applicable markets, and we are also working on building prediction markets for our U.S. customers with NFA-regulated introducing broker. We're looking at a lot of the new products. We're now looking at both TradFi and DeFi for the right applicable markets with the right licenses.

Great. Great. Thank you very much.

Thank you. Our next question comes from the line of John Todaro of Needham. Please go ahead, John.

Hey, guys. Thanks for taking my question. Congrats on the results here. I guess just first on, you know, there's a number of big IPOs coming up. We've seen a push from these companies to get more retail allocation. Just wondering on the overall strategy there, and how you guys see that opportunity set playing out over a longer time.

Sure. First of all, we're actually looking now at potentially launching prices on secondary markets to our customers around these IPOs. We've been talking to the companies who we work with as well to see how can we get potential IPO location. There has been also an interesting shift potentially in regulation in Europe and the U.K. specifically around enabling U.S. IPOs to launch overseas, which is an interesting development. We know from the past when there's hot IPO season, we launch it on the same day of trading, and that's quite popular. We are looking at enabling actually participation in the IPOs.

Again, some of them are expected to be very significant IPOs that we are seeing our customers already gaining interest, whether it's the SpaceX AI, Anthropic, and potentially OpenAI IPOs.

That's great to hear, Yoni. I guess just turning to crypto, you talked about there just needs to be some of that directionality movement, in order to get customers more engaged. Is there just kind of other catalysts you see driving that too, whether that's CLARITY Act here in the U.S., just adoption of tokenized real-world assets? Anything there that you can point to that maybe drives some of that momentum?

Sure. I think first of all, you know, markets have their cycles in crypto. We do believe that we're gonna see. Again, I'm personally very bullish on crypto markets in the future, especially when we're seeing capital markets moving on-chain, I'd say systematically, right? When you think of the dialogues that the DTCC is having now, and when you hear the SEC chair, CFTC chair pushing basically the market infrastructure players to move on-chain, that's a very significant catalyst into crypto markets. The same way that stablecoins accelerate the adoption of crypto across the globe, I think tokenized assets, whether it's stocks, treasuries, money market funds, private equity, private credit, all of that moving on-chain will continue to accelerate crypto as a whole. Basically, crypto and digital assets are going to converge.

Our view is this is a transition of $100 trillion over the next 10-15 years moving on-chain and potentially happening much, much faster if DTCC converges what is now early days into a full rollout. I think those are very, very strong momentums within the crypto industry. CLARITY Act is another one. I think it's, by the way, beautifully marketed as exactly what it is, CLARITY Act. It provides clarity on the regulation of crypto markets and digital asset markets. Right now, when you look at DeFi and TradFi, you're seeing those sort of parallel worlds, and in many cases, in many jurisdictions, you don't necessarily have that bridge between a DeFi and TradFi. You don't have clarity on the various regulations in DeFi.

I think once there are better rules, regulations, clarity coming from regulators, not only in the U.S., but globally, that will increase adoption of crypto markets, and prices will follow that.

Great. Thanks for all that, and congrats again on the quarter, guys.

Thank you.

Thank you.

Thank you. Once again, to ask a question, please press star one one on your telephone. Again, that's star one one to ask a question. Our next question comes from the line One moment. Next question comes from the line of Dan Dolev of Mizuho. Your line is open, Dan.

Hi, Dan.

Hey, guys. Thanks for squeezing me in here. I appreciate it. Great results, as expected. I wanted to ask you, Yoni and Meron, like, the user growth has been phenomenal and continued into April. Can you maybe talk about your new strategic user acquisition strategy and, you know, to the extent that you feel comfortable talking about it? Again, congrats.

We've been utilizing more and more, actually AI, in marketing activities, leading to more, I'd say, micro segments, both on retention and on acquisition. What in the past would have taken us, you know, 4 or 5 weeks to create a specific campaign to, let's say, a target audience in Germany, is now shortening to a point of, like, we're able to create a landing page marketing assets, multiple times a day and also distribute it across the company. In the past, our, you know, a region like Germany or Australia, if they needed a campaign, they needed to sort of open a ticket, go to marketing. Marketing had to build the campaign.

They had to then go to engineering to set up the website, and landing pages, then for someone to hook up everything for tracking. Today, it's a click of a button basically for people in the different places, and that's accelerating. We moved, I'd say, from 5 campaigns a month to potentially now 20-50, and we expect that to potentially accelerate to 100 a day, and that's both for retention and for acquisition. We can now, using AI, find these micro segments within the eToro ecosystem, which is who are the people? Things that, in the past companies like Meta, Facebook did, which is called custom audiences, right? You're looking for people who are similar to the people who already bought a specific product.

We're able to do that internally and searching for the audiences that we believe the right marketing message is relevant to. The ability to create those campaigns with AI is truly magnificent. We're even testing right now with our pro investors who are with me in various groups. We're actually testing the ability of our pro investors using our AI and our brand to create their own landing pages. With a click of a button, they create a landing page, and that landing page is then connected to our AI that can manage Facebook, Taboola, X, LinkedIn.

What we're building for our internal teams in eToro to be able to run faster, better micro segments on both acquisition, and retention, and much faster campaign creation and management is something that we're actually looking to give the 5,000 people that are in the pro investor program, and I do believe that will continue acceleration of funded accounts over time.

Great, guys, and congrats again on excellent quarters.

Thank you. I would now like to turn the conference back to Daniel Amir for closing remarks. Sir?

Thank you. Thank you all for attending our earnings call today. We're looking forward to seeing you at our upcoming investor conferences during the quarter. Thanks, and, have a great day.

This concludes today's conference call. Thank you for participating. You may now disconnect.

Thank you, everyone.

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 January monthly spreadsheet, is now available on our website at investors.etoro.com. Today, I'm joined by Joni Assia, our CEO; and by Meron Shani, our CFO. [Operator Instructions] 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 the Risk Factors section of 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 Joni.

Thank you, Daniel, and thank you, everyone, joining us here today. Welcome to our fourth quarter 2025 earnings call. After Meron and I finish our prepared remarks, we'll open the call for questions. 2025 was a defining year for eToro. We became a publicly traded company on NASDAQ. We accelerated innovation and AI adoption across our platform, broadened and localized our product offering and expanded our presence in key markets such as the U.S., while continuing to strengthen our global footprint. More importantly, we made amazing progress towards the financial super app we're building, all while delivering growth across our primary KPIs. We're operating at a pivotal moment for financial services. AI is advancing at an unprecedented pace, reshaping how people access information, make decisions and interact with markets. At the same time, financial services are continuing to move on chain, enabling a more continuous, transparent and borderless global market infrastructure. Along these technological shifts, we're seeing a structural increase in retail participation in markets across the globe and the largest generational transfer of wealth in history. Together, these forces are driving demand for a seamless digital first investing experience that is more personalized, more intuitive and available at all times. At eToro, we're at the forefront of this evolving financial landscape, using technology and community to power our users to become better, more confident and more engaged investors. Our focus is on expanding access to global markets, moving towards 24/7 trading, bringing financial assets on chain. Broadening our crypto and decentralized finance offering, while continuing to provide the full suite of investing in savings products in traditional markets, enabling partners to build and trade through our eToro APIs and interact with the eToro apps, leveraging AI to help users make smarter investment decisions. All of this is delivered through a simple and transparent investing experience in line with our mission to democratize investing and give anyone anywhere the tools they need to grow their knowledge and wealth. While we're proud of the progress we've made, we see a significant opportunity ahead. We are confident in our ability to capture this opportunity for the benefit of our shareholders, users and partners. Turning to our results. We delivered a strong fourth quarter that reflects continued momentum and the strength of eToro's diversified offering. For the year, net contribution increased 10% to $868 million and rose 6% sequentially in the fourth quarter to $227 million. Adjusted EBITDA grew 4% year-over-year to $370 million and 11% quarter-over-quarter to $87 million, delivering a 38% adjusted EBITDA margin in the quarter. We achieved these results despite the current crypto market environment, underscoring the strength of our multi-asset model and the benefits of our global diversification across geographies and asset classes. We first offered crypto trading on eToro in 2013, and since then, we've been through several crypto market cycles. We've seen people right off crypto, we've kept building. Over time, we have built a truly global multi-asset platform, spanning crypto, equities, commodities and currencies. That breadth allows us to adapt as market activity shifts and to perform in any market condition. In 2025, we continue to execute across our four product pillars: Trading, investing, wealth management and neobanking. In trading, our focus remains on expanding product reach, flexibility and global market coverage. Since 24/5 equity trading, we've seen very strong adoption, reinforcing our belief that investors around the world want the ability to engage with the markets on their own time and terms. We now offer 24/5 trading across all S&P 500 and NASDAQ 100 stocks, which has contributed to a doubling of our total stock trading volume over the past two years. We continue to listen closely to our active traders across 75 different markets as we accelerate toward 24/7 trading and expanded margin capabilities. This quarter, we're introducing a round-the-clock access to a selection of popular assets with plans to expand 24/7 trading across additional asset classes. We're already seeing traditional capital markets begin to follow the always-on 24/7 model pioneered by crypto. In Q4, we surpassed 150 supported crypto assets with plans to expand to more than 300 in the near term. In the U.S., we significantly broadened our crypto offering in 2025 to over 100 crypto coins, adding a wide range of new assets and enhancing our staking capabilities. These milestones mark an important progress in our localization strategy and broader asset expansion. By the end of 2026, we plan to support over 100,000 tradable assets across equities and crypto. In investing, we continue to broaden access to global markets. In 2025, we expanded coverage to include Hong Kong, Nordic and Middle East stock exchanges. And today, we provide access to 25 exchanges from across the world in over 12,000 assets on the platform. It was also a year of continued innovation in smart portfolios with a focus on localization, partnerships and alpha. This quarter, we launched two new smart portfolios in partnership with Amundi, Europe's largest wealth manager. These portfolios provide access to professionally managed strategies to combine broad market exposure with forward-looking investment themes available in local currencies. At the same time, our pro investor community continued to expand, growing from about 3,200 at the end of 2024 to now over 5,000, reflecting strong momentum in copy trading and community-driven investing. This caps a year in which we also introduced our Alpha Portfolios, our AI-powered quantitative strategies and established new partnership with Franklin Templeton, BlackRock and WisdomTree. Today, we have more than 127 smart portfolios in our platform. In Q4, we also expanded our stock lending program in the U.K. and margin trading in Europe, enabling users to earn additional buying power and yield on their equity holdings, thereby enhancing passive income opportunities. In Wealth Management, adoption of our long-term tax advantages savings solutions continue to accelerate, expanding our presence across trillion-dollar addressable markets in Australia, U.K. and France. In the U.K., we strengthened our ISA proposition with assets under administration in Q4, increasing sevenfold year-over-year. In France, we launched new savings products extending our reach into another large and structurally attractive tax-advantaged investment market. Together, these markets represent a multitrillion dollar long-term opportunity. As we look ahead, we remain focused on further localizing and scaling our wealth offering to capture that opportunity. Turning to neobanking. Momentum continues to build with Toro money, which is now fully integrated into the core platform delivering seamless end-to-end money management experience. The past year was a breakthrough year for eToro Money with multiple product launches driving a 29% year-over-year increase in total money transfers. We also expanded our debit card footprint. In this past quarter, we saw a 650% increase from Q4 2024 to Q4 2025 in transaction volume. We are rolling out our noncustodial crypto wallet, which bridges traditional finance and decentralized finance, enabling users to hold stake and transfer crypto as well as accessing the centralized finance markets such as swaps of 100,000 different assets. As we discussed in our last earning calls, we see a consistent set of themes driving eToro's continued growth and supporting the democratization of investing. These themes continue to guide our strategy as we move on to 2026. Firstly, innovation. As I mentioned at the start, we had a pivotal moment for financial services with advance of AI and the move on chain progressing at rates we could not have anticipated a few years ago. Innovation has always been at the core of Toro. From the beginning, our goal has been to use technology to remove barriers, simplify investing and give individuals access to opportunities that were previously reserved for institutions. That philosophy hasn't changed. What has changed is the scale of the opportunity and the power of the tools now available to us. We're committed to staying at the forefront of this revolution. We're now an AI-first company. We're embedding AI across our business to accelerate product development to improve efficiency and enhance how we operate at scale. AI is becoming a core part of our operating model, helping our teams to move faster and focus on delivering the most impact. Processes that historically took months or even years are not achievable in a matter of days, if not hours. We're building now our eToro super app 100% with AI. All of the eToro apps are developed 100% by AI, but it's not just the code rather the entire way how we operate and plan. AI means we can move 10x faster. It is accelerating our growth, enabling us to innovate more rapidly without a corresponding increase in complexity or headcount. AI is now core to the eToro experience. It enables us to deliver smarter tools and more personalized insights at scale. [ TorE, ] our AI analyst, continues to evolve as new AI models come online, becoming an increasingly powerful companion for investors. Across the platform, AI helps users interpret market dynamics as per value performance and risk and ultimately make better investment decisions. Through our public APIs and a suite of AI-powered tools, users and partners can build, share and scale strategies and apps creating a growing ecosystem. We are launching apps as part of our new upcoming launch of our app store, which will bring enforced capabilities into a retail trading experience. eToro apps will include additional AI tools like BASE-44, an open claw, and we already have nearly 1,000 apps in the pipeline. In parallel, we're actively building as finance moves increasingly on chain. With a long history in [ cryptoentoconization, ] eToro is already part of this transition. Our holistic crypt offering positions us to continue bridging digital assets and traditional markets, supporting the evolution from crypto trading today to tokenized markets and new forms of fontal participation over time. To be clear, this is not about or dependent on the spot price of crypto assets at any given point in the cycle. This is about building a platform that is poised to lead the inevitable shift to on chain market infrastructure. This will unlock for our users new types of tokenized real-world assets already in 2026, such as tokenized private markets and real estate. Our noncustodial wallet is the gateway to Web 3. Over time, the wallet will expand to support tokenized assets, swaps, lending, prediction markets and perpetual where applicable. Throughout the year, we plan to roll out a broad range of new products across these areas. Taken together, these innovations are about empowering smarter investing. It's about leading the next evolution of investing, opening the global markets, connecting people to better tools and insights enabling everyone anywhere to participate in a simple and transparent way. Secondly, global expansion. Our global footprint continues to be a key differentiator, and we remain focused on strengthening that advantage. We will continue to expand our product offering in existing regions while selectively entering new markets. By combining a global platform with a localized user experience, we're able to grow in markets where we're still early, while deepening engagement and increasing our share of wallet in more established regions. To this point, in 2025, we saw an 80% year-over-year trading volume in non-U.S. stock activity. In Asia, establishing Singapore as a regional hub last year provides a strong foundation to produce more investors to eToro from the region. We expect to introduce additional products and increase targeted marketing activity as the year progresses. In Europe, where we already have a meaningful scale, our focus is on deepening relationships with existing users and increasing share of wallet. We continue to enhance our localized offering, particularly in savings and long-term investing as we work to capture a greater share of wallet across our core European markets. In the U.S., the world's largest retail investing market, we are in the process of bringing the fully to experience to the U.S. As a global pioneer in social investing, we have spent more than a decade building community-driven tools such as copy trader, which enables investors to learn and invest alongside the smarter investors. Furthermore, we plan to roll out additional crypto products and smart portfolios to drive engagement and momentum over the coming quarters. More broadly, we continue to evaluate new market opportunities, prioritizing regions with strong financial literacy, digital adoption and sustained demand for trading and investing. Thirdly, macro trends. We continue to align with powerful long-term market trends that are reshaping global investing. We are at the early stages of the largest wealth transfer in history with more than $120 trillion expected to move to younger generations over the next 20 years. These investors are digital first, more self-directed and more engaged with equities and crypto than any generation before them. This shift aligns directly with our platform and positions eToro to support how the next generation builds and manages it well. At the same time, our global footprint provides meaningful exposure to structurally underpenetrated retail investing markets. In the United States, around 60% of households have some exposure to equities while in Europe, retail participation remained significantly lower with brokerage account penetration still in the single digits in some markets. This gap highlights the long-term opportunity ahead and reinforces why we believe eToro is well positioned to lead the next phase of global retail investing growth. To summarize, we delivered resilient net contribution and strong adjusted EBITDA performance in 2025 and in the fourth quarter, we continued to see positive KPI trends in January, largely driven by strength in commodity trading activity, demonstrating the strength of our diversified multi-asset model. Looking ahead to 2026, we're confident that our strategy continuing to leverage technology to innovate, expanding globally and aligning with long-term macro trends position us to capture significant opportunities. We see 2026 as a year of accelerated momentum growth. We're uniquely positioned as both native crypto company and a global equities trading platform and believe we're building a strong foundation for long-term sustainable value creation for our shareholders, users and partners. With that, I'll now turn the call over to Meron to walk us through the financial results.

Thank you, Joni. Fourth quarter net contribution was $227 million, a 6% sequential increase demonstrating the continued momentum and durability of our diversified business model. Adjusted EBITDA was $87 million, an 11% improvement quarter-over-quarter, reflecting strong execution and disciplined cost management. The year-over-year adjusted EBITDA decline was impacted by the crypto tailwind and unique market conditions that follow the previous year's U.S. presidential elections. In line with our focus on diversified profitable revenue growth, our adjusted EBITDA margin was 38%. AUA for the quarter increased 11% year-over-year to $18.5 billion. The increase was driven by record net deposits and improving customer retention metrics. Our funded accounts grew 9% year-over-year to 3.81 million. This growth reflects the strength of our multi-asset business model and our disciplined data-driven marketing approach. Let's take a closer look at the fourth quarter financials by business lines compared to a year ago. Net rating contribution from capital markets, including equities, commodities and currencies, increased 43% year-over-year to $116 million driven by investor rotation between crypto and traditional asset classes with particularly strong performance in commodities. This pattern is consistent with historical behavior and highlights the strength of our diversified multi-asset platform. In contrast, net trading contribution from crypto declined 72% year-over-year to $26 million due to the crypto tailwinds in the fourth quarter of 2024 that I had mentioned before. The decline was primarily driven by lower investor demand per trade and softer trading activity, particularly in November and December. As we have seen in prior crypto cycles, these periods of volatility are expected and our diversified business model continues to demonstrate resilience across market conditions. Net interest income contributed $59 million, up 18% year-over-year, largely driven by a 29% increase in higher interest-earning assets due to an increase in customers' cash deposits customers' margin book, staking and corporate cash. This growth was achieved despite a moderating interest rate environment, reflecting the strength of our balanced growth. eToro money's contribution declined 6% year-over-year to $23 million, largely driven by higher year-over-year cash redemption in crypto in 2024 due to market conditions we had mentioned before. In the fourth quarter, adjusted OpEx was in line with our expectations at $140 million. Our adjusted selling and marketing expense was $46 million or 20% of net contribution. Our marketing strategy continues to generate strong and disciplined returns with shorter payback periods, delivering ROI within the same year and cohorts driving sustained commission growth over time. Notably, our 2024 cohort has already achieved a 1.8x return on investment, while our 2020 cohort has delivered 5.6% return on investment, demonstrating the durability of our model. Importantly, we continue to see cohorts generating meaningful revenue even after 8 years underscoring the long-term lifetime value of our customers. Given the strength of our cohort returns and our objective to accelerate growth in 2026, we plan to increase our sales and marketing investment from 21%, scaling gradually to 25% of net contribution. Importantly, this spend remains highly flexible and can be adjusted based on market conditions and performance. We are making this decision from a position of confidence as the ROI profile supports incremental investment, and we expect this increased spend to drive accelerated growth across our key KPIs in the year ahead. Adjusted R&D and G&A and operating expenses were $37 million and $57 million, respectively. Our adjusted diluted EPS for the quarter was $0.71 compared to $0.79 in the fourth quarter of 2024. Moving to our balance sheet. We ended the quarter with $1.3 billion in cash, cash equivalents and short-term investments and generated $42 million in free cash flow from operations. Furthermore, we do not have any material exposure to crypto or commodities on the balance sheet. In the fourth quarter, we repurchased 1.5 million shares with $59.5 million pursuant to our previously communicated share repurchase program. Lastly, alongside today's earnings release, we announced an additional $100 million authorization under our share repurchase program, increasing total authorization to $250 million. To date, we have deployed $100 million under the program. This reflects our confidence in the long-term outlook and our commitment to driving shareholder value. Given our strong cash generation and balance sheet, we have the flexibility to continue executing buybacks, while also evaluating selective M&A opportunities to support disciplined inorganic growth. Now let me share a few comments on our first quarter trends. As part of our quarterly results today, we also released our January monthly KPIs. The month of January saw improved KPIs versus November and December. Our Capital Markets business saw significant year-over-year growth in both total number of trades and invested amount per trade. This was largely driven by equities and commodities. Both our AUA at $18.4 billion and funded accounts at $3.85 million were up year-over-year. These solid KPIs are a testament to our multi-asset strategy support of strong results despite a soft crypto pricing environment. To summarize, we are excited to start the year with solid January KPIs and are looking forward to driving meaningful profitable revenue growth in 2026. With that, Daniel, let's move to Q&A.

Thank you, Meron. So the first question comes from our list of questions that we have been pre-submitted by our retail investors. This question is for Joni. Joni, so how has eToro manage the current volatility in commodities?

So we're very excited to see a lot of engagement and very high volumes the highest volumes we've seen actually are in October last year and now January as well as gold rise to $5,500 and then seen significant volatility, and we've seen significant engagement of our customers and high trading volumes in commodities both in October and in January this year.

Thank you, Joni. Operator, we'll now open the queue for questions from our institution analysts.

[Operator Instructions] Our first question comes from Dan Fannon with Jefferies.

I was hoping you could just provide a bit more context on the current crypto market backdrop, and how this compares to maybe other downturns? And then in that, how you guys are potentially operating differently this time versus previous periods?

Sure. So first, this is our first crypto cycle. We've seen these crypto cycles in the past as well. We remain extremely bullish on crypto, on Bitcoin's future as well as other leading blockchains as well as what we're seeing is the friendliest administration and regulatory environment towards crypto innovation and towards tokenization and capital markets moving on chain. We have seen in the past the volatility or corrections happening in crypto markets. They are correction. So as a volatile asset class corrections that are sort of more significant or have a higher amplitude usually than capital markets. And in the past, what we've done, as always, is shifted focus. When we see less interest in crypto, we shift the focus from a marketing perspective to basically equities to commodities, which we're seeing very high engagement levels on. And we keep on building constantly new products in crypto. So we've actually developed a very significant crypto road map with our noncustodial wallets with new products coming into crypto, and we have no doubt that we'll see more and more engagement, especially by the way, of younger crypto-native generations into crypto despite the price of Bitcoin right now at lower than Q4 2025.

Great. And just as a follow-up, you mentioned marketing -- sales and marketing going from 21% to 25% as a result of what you see as opportunity. Can you talk the time period for which you expect that to occur. And then more broadly, just about the expense outlook for 2026 would be helpful.

Sure, Meron?

Yes, sure. So we expect to grow gradually. So in Q1, we -- you should not expect to see 25%. We are looking to grow there, looking at the right opportunities, but conceptually, as we've seen great results in the history also as we shared on the slides that are the investor deck as well we have the ability to scale up. So we're going to look into new opportunities in new markets. We've already seen some early signs in the U.S. that the marketing is working. So we're looking to expand over there. We're looking to expand in the new regions as well that we launch, where it is Singapore that we launched last year or it is UAE, we launched a few years back. We're seeing some great results. So we are happy to scale there. So it will not happen necessarily in Q1, but gradually throughout the year, we will get to 25%. And if we see opportunities, we have the right flexibility in the model to be able to scale even further than 25%.

Our next question comes from Devin Ryan with Citizens Bank.

Question on AI. Obviously, a lot of talk on the call here, good to hear that you guys are ahead of the curve. As we think about AI being further integrated into the model and even kind of the next kind of iteration with genetic AI. When we think about that combined with more trading on chain, instant settlement 24/7, what does that mean for the outlook for trading at eToro over time? Like should we see a step function here with kind of integration of those two themes.

Well, in the medium term, I definitely believe this is a significant step function with advancements in AI, whether it's things like open clot, the new models, our APIs, the launch now of the app store, which actually all cater to more sophisticated investors and more sophisticated in automating trading strategies. I do believe over time, we'll see a significant uplift in the algorithmic or the automated trading activity on eToro, moving basically from click to trade to many of our customers using automated strategies over time, and that will lift significantly over time, trading volumes and trading clicks.

Okay, great. And then a quick follow-up here to Dan's question. Just on the increased marketing. What does that mean for the equation for kind of new account additions? How should we think about account growth over the next couple of years here? And should we think about the same [ CAC ] math? Or is it going towards something else?

So [ CAC ] math, I believe, is very similar. That's basically how we've always managed our increase in scale of marketing is over roughly 3.5% to 4.5% expected ROI of [ CAC 2 ] LTV. We are expecting double-digit account growth, and that's also where we see opportunities right now to scale up marketing activities to basically scale up account growth over time.

Our next question comes from Alex Kramm with UBS.

Also just another follow-up from Dan's question. I don't think you answered the other expense outlook. So maybe talk a little bit about the pace of G&A and R&D expansion that you're expecting for 2026.

Meron?

Thank you. Yes, so while we don't publish any guidance with regards to our operating expenses, besides marketing. We do expect our G&A and R&D to be roughly at the levels where we are these days maybe with a few minor percentages of growth. We don't expect any significant growth over there and any growth over there we have the levers to generate more efficiencies also within the existing cost base.

I would just comment on -- yes, that in my view what we're seeing in AI internally is significant opportunities of scaling the business without scaling expenses over time. We did do about a month ago, an adjustment to headcount as well. And I believe as we're using more and more AI, we will be able to scale the business significantly over time without the need to basically increase adjusted cost basis.

Okay, great. And then maybe just secondly, I don't think you proactively addressed M&A unless I missed it, but that was a big part of the story to go public. Obviously, your currency, meaning your stock has not been favorable. So maybe that hasn't helped. But just wondering what your appetite is. You talked about global expansion. We haven't seen much yet. So maybe talk about what we should be expecting in 2026, and what the target companies are saying in terms of purchase prices, et cetera?

Sure. So first of all, we do expect to see several M&A deals in 2026. We have been in active discussions with several target companies over the last 6 months since the IPO, I would say we have a high appetite for M&A, but we want to make sure we're selective and find the right accretive opportunities. And I think also, right now, we do see opportunities both in the crypto space, both in the U.S. but also globally as well as in the new brokerage and wealth management space. So we've been in this space for a long while for 18 years. We know a lot of the great founders, great teams, great companies, and we are looking for the right teams and the right opportunities to join eToro in scaling 10 and 20x. Anything to add there?

You covered it.

And I think, obviously, we have a significant balance sheet. We have our revolver as well. So we feel comfortable in looking at sizable deals. But again, at the right price and being accretive.

Our next question comes from Dan Dolev with Mizuho.

Great results here, really, really strong across the board, congrats. I have a question and then a quick follow-up. So just really quickly, Joni and Meron, on the crypto take rates obviously down and you spoke to some of that? Like how should we think about this for the rest of the year? And then I have a follow-up.

Yes, so there was a slight decline in the take rate in Q4. We had a small exposure on the balance sheet, which is less than $20 million, but caused the take rate to a decline from the usual 1% to 0.7%. So it's really immaterial going forward, and we don't expect that to deviate much from the usual 1% that we have delivered so far.

Okay, great. And then maybe as a follow-up, the -- can you talk a little bit about your app store and app strategy, that would be really, really helpful.

Sure. I think we've been early to realize that our community of pro investors are people that are super passionate about capital markets and wanted more advanced tools. And that coincides with the ability of AI to actually write amazing software. So we started with BACE 44 since then acquired by Wix and basically enabled our pro investors. Now there are almost or about 1,000 apps developed by 800 of our popular investors from the pro investor program and they're developing really amazing tools. And those tools basically reflect sort of how a smart investor looks at the market. We started publishing these apps this week, and we'll be embedding them inside the app. So think about sort of scaling up significantly. eToro's ability to innovate towards the rest of the users and building a subscription model on top of that. So just as an example, we've had somebody build basically tighten invest where you can actually talk to the grated investors of all times about what's in your portfolio, and what's the recommendation around your portfolio. So we could actually get their views from their personalities. And we've seen many, many amazing innovations from people building their own Chief Investment room with risk management and geopolitical risk to people who are actually building add-ons, which are quite cool, like swapping assets on the eToro platform. So we expect a lot of these apps to be useful, not only to the pro investors building them, but actually to the rest of the eToro community, expanding significantly or accelerating product innovation scale to our customers. And I'd say that we've seen another step function just over the last two weeks with OPUS 4.6 with [ Open Clone. ] Suddenly, we've seen a lot of our customers actually using [ Open Clone ] on top of eToro's APIs and MCPs, which are the AI-based APIs. And again, unleashing another wave of creativity from our Pro investors who've been with us, 65% of them, more than 5 years, all of them passionate about capital markets and building very, very cool things for themselves and then being able to share them and monetize them with the rest of the eToro customers.

Our next question comes from Brian Bedell with Deutsche Bank.

Maybe just shifting back to the U.S. strategy, if you could just update us on the customer traction. I think you were at 300,000 customers in the -- around 300,000 customers in the U.S., and how that's going? And especially on the copy trading side, you've ruled that out. I think you said you've gotten pretty good reception so far. Any numbers you could share on that? And then related to that -- both on the pro investor side and also the appetite for those in the U.S. that want a CopyTrader from investors. And then any update on the plan for the U.S. pro investors to be paid, I think you have to get the fiduciary license, but I think you had a couple of different routes for that.

Sure. So we've been very active since the IPO on expanding eToro's U.S. product launches and product road map. Since then, we've launched CopyTrader. We plan to launch in H1 this year smart portfolios, which is based on our RIA license, which is in process. We're looking at prediction markets as well for the U.S. We've seen a significant uptake as we started scaling some of the marketing activities from Q4 to Q1. So we are seeing a significant uptick to something that's still early stages of the U.S. business, but we're very excited about continuing to launch all of eToro's global product road map here in the U.S. I do believe that now with being able to accelerate product development, we'll be able to actually launch more of our products than we expected originally in 2026 here in the U.S. And we're making sure we are, I'd say, selective in how we scale our marketing budget. Here in the U.S., we want to see [ CAC ] to LTV while not at the same levels as globally. We want to see that ratio between [ CAC ] to LTV increase. We've seen the best ratio we've seen to date last year, especially by the way, moving forward into the year. And that basically gives us the ability to continue scale up marketing activity and then funded accounts, where we believe product engagement will then follow as well.

SP-30 Okay. And then just timing of when you think you'll have the fiduciary license in the U.S. And then you mentioned prediction markets as well, just any timing on rollout of prediction markets for U.S. customers this year.

So as everything in product, we are working on the RA license. We hope to be able to launch the smart portfolios product, which will be based on the RA license in H1 this year. We are in active discussions on the launch of prediction markets, which, of course, requires an additional regulated entity here in the U.S., which is NFA regulated. So we believe that will be probably later in the year towards Q3, Q4.

Our next question comes from Brett Knoblauch with Cantor Fitzgerald.

Congrats on the quarter. Just maybe on the split between kind of where you're spending marketing dollars for the year on maybe U.S. and ex U.S.? And I know when you guys IP, maybe disclose some kind of market share statistics on different key countries. Do you have an update to that? Or just maybe qualitatively on kind of where share has progressed throughout 2025 and maybe expectations for 2026?

Sure. So first of all, when you look at the size of marketing budget, it's a significant marketing budget globally. The U.S. is still a small part of it. And if we scale, let's say, 25%, 30% over the year roughly in 2025, we basically select where to scale more based usually on the [ CAC ] to LTV ratio, which we see higher right now in other markets where we have a more developed product in those markets. We have scaled the percentage higher in the U.S. in 2025 versus the rest, and we expect that percentage increase in 2026 to be higher as well, but not extremely high as to sort of bridge the entire gap from the U.S. to our more mature markets. So what is a part of scale up? Anything to add on that, Meron?

No, we are looking carefully, obviously, at the ROI against each of the investments very closely and scaling up as we scale in the market in the U.S. will continue to scale by high percentages, as you mentioned, Joni. We'll continue to do that this year and next year as we've seen some good results, but it's still not as a material number to quote compared to the entire budget globally.

Our next question comes from Ed Engel with Compass Point.

It looks like there was a nice rebound in the revenue per trade within the ECT segment in the fourth quarter. Was that uptick driven just by mix of commodities versus equities trading? Just maybe a bit more tilted to commodities? And then is it fair to assume, as I think about January, was revenue per trade likely remain elevated just alongside the string in the commodities?

So both Q4 and January, we've seen significant commodities activity, gold and silver, very popular as obviously we've seen unprecedented volatility and price of both gold and silver. We also now are expanding the 24/7, which we believe will continue to expand activity in commodities as a very unique new product to trade alongside crypto assets on the platform, 24/7. Regarding the net contribution per trade, I don't think we can still comment on...

Yes, I'll comment my usual comment like when you look at our revenue per trade on ECC, you should always count at the range of $0.60 to $0.75 per trade. That's how we always look into it. And in the long term, this is where it's converged normally. It is impacted by the higher commodities part of the mix. Also on the other side, we have higher contribution. We've seen tremendous volumes coming on our copy product, which is our USP, that drives the revenue per trade to be slightly lower as part of the mix. But overall, as you should look into it is almost the $0.60 to $0.75 per trade.

It's actually very interesting because we're seeing something that we haven't seen before, which is crypto-native customers or people who came into too add to trade crypto, and treated mostly crypto suddenly trading commodities. So I do think there's somewhat of a convergence or a shift from crypto, which now has lower volatility to now basically gold, silver and other commodities that have higher volatility. And that's a unique part of eToro also because when people trade only crypto at only crypto companies versus in eToro, where they can now trade equities and commodities as well, what we see over time is that customers that actually trade multiple asset classes onto are more active, more engaged, higher lifetime and higher lifetime value on the eToro platform.

SP-39 Great. And then, I guess, just from our point of view, I mean, it seems like there's a pretty big divergence between just underlying strength of the business and then the stock price, has the Board considered any other ways to kind of unlock value beyond the stock buyback? I know you've been public the last in a year, but I mean is there any other types of strategic alternatives that have been considered?

So I think, first of all, from a corporate strategy point of view, as we discussed before, we do believe in buybacks, and we do believe we'll see M&A opportunities manifest this year. So that's more on corporate strategy. I think from a business perspective and product strategy, very focused on AI-first unleashing AI to our customers to increase product velocity and making sure that we also expand our entire product offering in crypto as well as increase the margin capabilities. So we've launched margin trading now in Europe alongside futures in the U.K., so enabling our customers to trade also more on exchange. On exchange leveraged products, which obviously will increase velocity as well. So I think -- all in all, that's the strategy we believe that providing great service, great product and accelerating our product [indiscernible] and innovation to our customers and scaling up, as we mentioned before, also marketing activities to bring on new more funded accounts that will eventually lead to a larger base of funded accounts that drive activity, increased revenues, profitability over time, and the stock will follow.

Our next question comes from Craig Siegenthaler with BofA.

I hope everyone is doing well. So we have a follow-up on M&A on some of your previous comments. But I'm curious on your desire to expand to new geographies versus focusing on keeping your leading share in the Continental Europe. So why not in Europe, deepen your moats keep taking share versus the legacy brokers and banks, build on your first-mover advantage and hold off on expanding in new markets where you're probably going to be subscale for some time or at least until the eToro stock valuation improves, so then the M&A math becomes more attractive.

Sure. So first of all, the M&As we're looking at to expand regionally are not sort of, I'd say, significant in scale or we expect them to potentially impact EBITDA margin. So we are looking at this very selective. We're very focused on, first and foremost, to deepen the existing eToro product in the existing both mature markets such as Europe, U.K., Australia as well as new markets, which we've already unlocked, which is Singapore and Asia and of course, the U.S. So we're not looking to dilute attention from our existing markets. But as we said, looking at selective opportunities if they arise, and create for us basically a local moat, which is a regulated activity where we believe, if we bring our products to that market we can actually scale our business relatively easy without increase the cost base. I think that's an interesting opportunity, especially as I do believe that now AI is actually accelerating the gap between traditional banks and insurance companies and eToro's product offering.

Great. My follow-up is just on promotions. I know you have a bunch out there, but I want to make sure I'm not missing anything, but on the debit card, I believe there's a 4% bank option, but not on anything. So maybe help us with that one. And then also, I think, crypto deposits in the U.S. there's like a sliding scale, but you deposit more than $5,000 of crypto you get $500 initially. And in Europe and parts of Asia, you have something similar on a stock basis. But do you mind summarizing kind of what you have live out there today on the promotional front?

Sure. So I won't go into all of the details because we do operate in 12 different regions. Each of them have their own incentive plans. But the same way that we're looking at [ CAC ] to LTV on the acquisition front, where you mentioned some of those, which is basically providing an incentive to open an account and deposit. We also provide incentives on product engagement. So we do an analysis. And when we find out that, as an example, a customer in the U.K. if they deposit and bringing transfer their ISA, which is the equivalent of IRA roughly into eToro, is it increases significantly over time, their lifetime value. So we calculate basically the same on existing customers on what's the cost of promoting a new product, what is the LTV added to that customer if they actually use that promotion over time. Is that profitable? And if it's profitable, how basically do we move the needle and scale up product engagement using incentives. And in different markets, we have different products and different incentive strategies. Do you want to add anything into that from the breakdown of the financials.

No, the numbers are insignificant at this stage to quote it out and in general.

Yes, it's still a small part out of the total marketing budget. When it does become significant, we'll break it down.

Yes, it's definitely part of our strategy to make sure that we increase customer acquisition. We decreased the churn of customers by combining those acquisition campaigns and incentivized campaigns also for CRM purposes.

Our next question comes from Joseph Vafi with Canaccord.

Great results here for Q4. Just maybe we double-click on the noncustodial wallet rollout the strategy there and maybe intersection with some of the sales and marketing spend?

Sure. We're taking more of a product-first approach to crypto-native into the noncustodial wallet. So we -- and by the way, that is generally true. We, first and foremost, promote always sort of the eToro platform of equities, of crypto of commodities. So that's the forefront and the window, including, of course, CopyTrader and Smart portfolio. And then as we add more products, for example, the card program or now the noncustodial wallet, we use these products to basically offer them to existing customers. So we don't expect our crypto wallet to increase in any way the marketing activities of eToro. I'd say also it's a bit of a different target audience. So what we are seeing is that more of the crypto native younger audiences, actually, I'd say, Gen Zeders are much more active on noncustodial and in crypto wallets. The equivalent, of course, is Metamask and wallets where basically people actually have their custody in crypto. It, by definition, means it's a higher-risk product because the responsibility on custody sits with the customers but it actually unlocks a lot of products that are very hard to unlock and Tread.fi. So just as an example, Solana has now 1 million tokens. It's very hard to unlock 1 million tokens in Tread.fi, But when you look at the noncustodial wallet, you'll be able to actually swap into hundreds of thousands of assets that are out there, and we do see that interest coming from a younger audience that has a higher, I'd say, risk appetite and also is more SEFI on what does it mean to be a crypto-native to move between chains to swap between chains to look at opportunities that some of them are mind boggling, like 40,000 new coins launched on Solana and thousands of coins launched on other blockchains as well. So these opportunities are out there, not only for the U.S. market, but outside the U.S. as well. And we want to make sure that our younger audience can that within the eToro framework.

Great. And then Meron, I know you quickly mentioned that net retention was was pretty good in the quarter. Is there anything to call out on that?

No, it's part of our strategy to always look at the funded accounts and see how we can grow there from acquisitions. So adding customers and on the other side is making sure that our churn rates are getting lower and lower. We deploy different strategies into that. We've seen great results. on that, that support us into our plans into the future of growing the marketing spend into 25% gradually throughout the year and making sure that we have and that we achieved a double-digit growth of funded accounts on a constant basis.

Our next question comes from Bill Katz with TD Cowen.

This is Robin Holly on for Bill Katz. I wanted to ask a question on the ROI on the cohorts. Could you unpack what is driving the faster payback period for the newer cohorts, specifically the 2025 ones. It looks like the payback periods are accelerating. Is this more -- are the customers more engaged, or is it something on the marketing side?

So we are constantly evolving marketing strategy being more active in identifying both opportunities also looking at the higher LTV or the higher payback period cohorts we've seen in 2025, a 23% year-over-year increase on what is the first time deposit average amount of customers. So when you look at online marketing can actually target and see what campaign to which product brings better customers, the deposit more and generate revenues more. And then, of course, we always want to balance that across what's happening in the markets. Anything to add to that?

Yes. I would say that our -- call it, the marketing machine is very flexible in a way to identify different trends. So when there is a trend in the gold or silver, we can very quickly turn the machine to into what's really interesting in the market. So have better results coming there. And if the customers are coming with the intent because they are looking for gold, and that really helps us improve the ROIs and the year return as well.

Basically, the direct correlation between volatility in a specific market where gold silver indices usually are -- it doesn't matter where the price direction is volatility increases significantly initial LTV and therefore, payback period. And the same happens in crypto, where there's a significant crypto rally. We're seeing basically customers that come in to eToro much more engaged better cohorts.

Our next question comes from James Yaro with Goldman Sachs.

Some of your competitors are building similar products to cope trader, which clearly reflects the success that you've had in building this product over time. What does the landscape look like today for Copy trader in your view? And what can you do to stay ahead of these competitors, some of which are quite scaled?

So first of all, we are seeing and have seen over the past 19 years, a lot of the competitive landscape talking about social trading. So far, we haven't seen anybody actually executing on it. So that's one. Second is, we have a significant moat, which is customers that have been on eToro for the past 5 years, 10 years with very, very solid track record that have their basically AUC already on eToro. So if you look at our top two investors on eToro, the first one has more than 30,000 people copying him more than $300 million of assets under copy, the second one, $200 million, both by the way, have a track record of, if I remember correctly, over 29% over a tenure of 6 years and 12 years, respectively. So that moat is a time-based mode. Nobody replaces Warren Buffet that fast and nobody replaces 10- and 12-year 10-year on eToro, I do think, of course, we've innovated and created a category that will eventually change a lot of how people think of general portfolio management in the RIA industry. And we'll see younger audiences. There's a big app, by the way, across the world that financial intermediaries are getting older and that younger audiences are not looking for their advice. And I do believe that our product category as a category will significantly scale in the moat that we have is the track record of those customers and again, bringing them new tools now where they can actually build their apps. They can monetize them eventually in a subscription model in eToro, to basically -- and we already have significant communities of customers, so popular investors in France are actually meeting our customers in France, popular investors, again, Germany and Australia and the U.K. And that is something that the competitive landscape doesn't have.

Excellent. Very clear. You touched on prediction markets already. Given the vast majority of your customers are outside the U.S., could you touch on whether you see a prediction market opportunity for your non-U.S. customers?

So it does seem like prediction markets right now, at least from our analysis is very much U.S. the on-chain regulated one -- sorry, the off-chain, the regulated prediction markets is very much a U.S.-led business and very high interest in the U.S., which is why from a regulated perspective, we're looking at the U.S., a lot of the activity outside the U.S. actually sits more with crypto-native customers. So again, those younger audiences that are crypto native, that know how to move their crypto and basically trade directly on chain. So I'd say that's roughly what we're seeing U.S. with the regulated infrastructure to offer production markets, where it's an NFA, CFTC regulated activity towards which we'll build in the U.S. and globally more of an on-chain activities of prediction markets happening in basically noncustodial wallets.

And our next question comes from John Todaro with Needham & Company.

Congrats on the strong quarter. I guess first one, just as it relates to crypto regulation and in particular, the Clarity Act. Is there just kind of anything in the current iteration of the bill, where maybe you would like to see adjusted -- just kind of any additional thoughts there we've been getting from some of your peers.

We usually try not to comment on sort of regulations and sort of where they are in the process as we are regulated in many places under different regulators across the globe. We do believe that clarity in regulation helps significantly in industry to mature. We've seen that in Europe with Mika. We've seen it already, I'd say, in the environment right now here in the U.S. And the biggest driver, by the way, what is going to drive, in our view, is the path towards new types of asset classes moving on chain. So the more clarity, there is in an industry, and we're seeing in Europe now banks, insurance companies, private equity firms, basically tokenizing different types of assets to be able to distribute them into that new audience. So as we'll see clarity in regulation here, in the U.S., we believe we'll see also more opportunities to bring in more new products to our customers. And we've seen the largest wealth managers in the world already working today with eToro, whether it's BlackRock Flink, Templeton, WisdomTree now, Amundi as well ARC. So we are seeing the interest of basically the large financial institutions, asset managers that are issuing new products, and they want to deliver those products into a global audience and into a younger audience, very early days of that, but there is no doubt that more clarity and regulation will expand that.

Great. That's very helpful. And then just kind of going back to prediction market. It sounds like from your prior comments that you guys would still look to work with a partner like a causal market, whether in the U.S. or outside the U.S. Is there an avenue where you could kind of go at this alone though and offer something more direct?

We're currently looking at the industry. I think the industry is evolving very fast, both in predictions and in per different regulatory environments across both categories. We do believe that working with partners, and there's now an emerging by the way, new type of what's called a prediction aggregator. So you can actually use aggregators to find the best prices on predictions, for example, the same with perps. So we are looking in that space right now to partner versus to build the entire stack on our own.

And that's all the time we have for questions. I'd like to turn the call back over to Daniel Amir for closing remarks.

Yes. Thank you for attending the call today. And we're looking forward to seeing you at the upcoming investor conference during the quarter. You're welcome to follow up with me directly. Thank you, and have a great day.

Thank you for your participation.