EToro reported a 37% jump in Q1 net income as booming commodities trading offset weaker crypto activity.
Crypto News
EToro posted first-quarter net income of $82 million on May 12, up 37% from $60 million in the same period a year earlier, driven by a surge in #commodities trading that offset a pullback in crypto activity. Adjusted EBITDA climbed 35% to $109 million, while net contribution grew 19% to $258 million.
Commodities trading accounted for roughly 60% of trading commissions during the quarter, with volumes rising nearly fourfold year-over-year. The company also expanded its equities offering by adding Japanese stocks, bringing total exchange coverage to 26, and activated its BitLicense to begin crypto trading in New York.
Funded accounts grew 12% to 4.02 million, and assets under administration rose 15% to $17 billion as of March 31. The company held $1.3 billion in cash, cash equivalents, and short-term investments at the end of the quarter.
Separate April data released alongside the earnings showed #crypto trade volumes fell 32% year-over-year to 2 million trades. The invested amount per trade dropped 22% to $207.
On the product side, eToro launched an AI-powered Agent Portfolios feature and expanded its partnership with xAI, embedding Grok 4.2-powered market sentiment into Tori, its AI investing agent. The company also closed its acquisition of Zengo, a self-custodial crypto wallet provider, on April 30.
CEO Yoni Assia said the Zengo acquisition advances eToro's strategy of bridging traditional #finance with on-chain infrastructure. Assets under administration climbed further to $18.7 billion in April, up 19% year-over-year, while total money transfers for the month reached $1.4 billion, a 53% increase.
The broader crypto exchange landscape also saw weaker results in Q1. #Coinbase reported a net loss of $394.1 million for the quarter, swinging from a $65.6 million profit a year earlier, with transaction revenue down 40% and subscription and services revenue down 13.5%. Total crypto market cap and trading volume were both down more than 20% quarter-over-quarter.
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