ETORNASDAQThe short version
eToro Group Ltd.
eToro is a founder-controlled, multi-asset investing and copy-trading platform, listed on Nasdaq in May 2025. It earns from retail trading spreads and interest on client cash, and trades about a third below its IPO price.
eToro came public at $52 in May 2025. Over the past four months the shares traded near $29 in late March, ran to about $42 by late May, and eased to $35.67 by July 31 — still roughly a third below the offer.
Mkt cap $3.4BP/E FY27E 10.7×
$35.67
Share price (Jul 31)
$868M
Net Contribution FY2025
3.81M
Funded accounts
$216M
Net income FY2025
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Snapshot
eToro Group Ltd. in numbers
Price
$35.67as of 2026-07-31
Mkt cap
$3.4B
| Year to Dec (USD) | 2023 | 2024 | 2025 | 2026E | 2027E | 2028E |
|---|---|---|---|---|---|---|
| Sales | 3.9B | 12.6B | 13.8B | 968.2M | 1.1B | 1.1B |
| EBITDA | 59.1M | 281.6M | 285.1M | 359.2M | 426.0M | 480.5M |
| EBIT | 46.8M | 270.3M | 272.3M | 322.7M | 376.0M | 423.3M |
| EBIT margin | 1.2% | 2.1% | 2.0% | 33.3% | 35.2% | 37.5% |
| EPS | 0.19 | 2.35 | 2.27 | 2.84 | 3.35 | 3.88 |
| P/E | 191.5× | 15.2× | 15.7× | 12.5× | 10.7× | 9.2× |
| FCF yield | 3.3% | 7.8% | 9.2% | 7.2% | 11.8% | – |
Consensus: S&P Capital IQ (CapIQ) · as of 2026-08-01Derived from run data; ratios use the latest price.
IThe business
How it earns
A $13.8bn revenue line is a pass-through; $868m is what eToro actually keeps.
Net Contribution by source, FY2025 ($868M)
Equities, commodities, FX$400M46%
Net interest$217M25%
Crypto trading$155M18%
eToro Money$84M10%
Subscriptions$12M1%
Reported revenue was $13.8bn — almost all crypto notional that flows straight back out as cost. Net Contribution is what stays.
- Read the net line, not the gross. eToro books the full value of each crypto trade as revenue and nets an almost identical cost right below it; crypto is about 94% of gross revenue but roughly a fifth of Net Contribution.
- Five sources, not one. Trading spreads on equities, commodities and currencies are the largest and steadiest line; interest on client and corporate cash is the second; crypto is the swing factor.
- The label misleads. On gross revenue eToro looks like a crypto exchange; on Net Contribution it looks like a diversified retail broker with a crypto business inside it.
Who pays
A mid-market platform: 3.8 million funded accounts, about $228 earned from each.
Per-account economics and engagement, FY2025
3.81M
Funded accounts
~$228
Net Contribution per account
4x/day
Average logins
53%
Hold 2+ asset classes
- Mass-market, moderate yield. The median user is 37, and eToro monetizes each account at about $228 a year — above Robinhood's $171, far below the $1,400-plus the leveraged CFD brokers extract from a smaller, more active base.
- Engagement is the differentiator. The average user logs in about four times a day for roughly twelve minutes, and more than half hold more than one asset class — unusual stickiness for a brokerage.
- Growth is account-led. The base compounds in the high single digits; 2025's growth came from adding accounts, not from squeezing more out of each.
The field
Largest of the CFD-style brokers, a minnow beside Robinhood and Coinbase.
Retail trading platforms, FY2025
| Company | Model | Net rev / NC ($M) | Accounts (m) |
|---|---|---|---|
| eToro | Multi-asset + social | 868 | 3.8 |
| Robinhood | US multi-asset | 4,473 | 27.0 |
| Coinbase | Crypto exchange | 7,181 | 9.2* |
| Interactive Brokers | Global brokerage | 6,205 | 4.4 |
| IG Group | CFD / spread-bet | 1,442 | 0.82 |
| CMC Markets | CFD + investing | 483 | 0.34 |
Account definitions differ by company. *Coinbase figure is monthly transacting users, not an account stock.
- Leader of its own peer set. Against the principal-based CFD brokers it most resembles — IG, CMC, Plus500 — eToro is the largest by client base and its Net Contribution exceeds each.
- The moat is social and multi-asset. Patented CopyTrader lets users mirror over 4,750 vetted investors across stocks, crypto and commodities; no large rival runs a comparable copy-trading network.
- But the walls are thin. Switching costs are low, the US market stays largely closed to its products, and the tailwinds it cites lift every rival — a defensible niche, not a fortress.
IIThe record
The record
Two years took eToro from a $215m loss to a $216m profit.
Net income / (loss) ($M)
Net Contribution grew from $557M to $868M over the same span; operating leverage turned the loss into profit.
- Highly geared earnings. On $557M of Net Contribution in 2023 the company kept $15M; on $868M in 2025 it kept $216M. Most incremental Net Contribution drops to the bottom line — the good news up-cycle, the warning down-cycle.
- The 2022 loss is the memory. The same platform lost $215M the year crypto markets collapsed — proof this earnings stream can not merely slow but reverse.
- Asset-light leverage. Operating costs grew 16% while Net Contribution grew 56% across the two years, carrying pre-tax profit from $28M to $253M.
Margins
Margins inflected in 2024; 2025's earnings leaned partly on a lower tax rate.
Margins on Net Contribution (%)
The step-up landed in 2024. In 2025 pre-tax profit rose only $8M and reported net income grew on a tax rate that fell from 21.7% to 14.9%.
- The gearing already happened. The bulk of the margin expansion came in 2024; 2025 added Net Contribution but spent most of it on marketing and research, so pre-tax profit barely moved.
- Cleaner earnings underneath. Share-based pay — the largest add-back — fell from $66M in 2023 to $16M in 2025, so Adjusted EBITDA now sits only about $100M above net income.
- The tax rate is not a base. The 14.9% effective rate flattered reported growth and is not one to extrapolate — a skeptic's first caution on 2025.
Cash
Profit converts to cash on a debt-free balance sheet holding $1.28bn.
Cash generation and balance sheet, FY2025
$313M
Free cash flow
1.4x
Cash conversion (FCF / net income)
$1.28B
Cash + short-term investments
$0
Financial debt
- Cash beats reported profit. Free cash flow of $313M was about 1.4 times net income, on roughly $5M a year of capex — an asset-light model once the trading engine is built.
- A fortress, not a leveraged broker. Against no debt, eToro holds $1.28bn of liquid assets and about $1.39bn of equity; a $250M revolver signed in 2025 is undrawn.
- Return has started. The board authorized $150M of buybacks in 2025, expanded to $250M in February 2026 — repurchasing below the $52 IPO price.
IIIThe story now
Durability
A record quarter with crypto nearly silent.
Where the money comes from: non-crypto base vs crypto ($M)
In Q1 2026 eToro set a record $258M of Net Contribution with crypto near $13M, as capital-markets trading rose 71% to $166M.
- eToro's 2025 Net Contribution growth came entirely from its non-crypto base of $713 million even as crypto-trading contribution fell to $155 million, and by Q1 2026 it set a record $258 million of Net Contribution with crypto down to about $13 million because capital-markets contribution rose 71% to a record $166 million.
- Rotation, not immunity. The counter sits in the same quarter: net interest also fell about 5%, and management calls the commodity volatility that carried the record "really up to the markets." A quarter with every asset class quiet at once is still untested.
- Sized against the floor. A full activity-and-rate reversion takes Net Contribution to roughly $662M and net income near $65M — lower than 2025, but still profitable and free-cash-flow positive.
The other side
What could make 2025 a peak rather than a base.
The case that 2025 is a cycle high
| Concern | What the record shows |
|---|---|
| Pre-tax plateau | 2025 pre-tax profit rose just $8M, from $246M to $253M |
| Tax tailwind | Net income grew on a tax rate that fell from 21.7% to 14.9% |
| Rate-sensitive interest | Net interest is $217M; each 100bps of cuts trims ~$26M of net income |
| One down quarter | Q4 2025 Net Contribution fell 10% against a crypto-boosted year earlier |
| Rising acquisition cost | Sales and marketing is scaling from 21% toward 25% of Net Contribution |
- The durable base carries its own cycle. A quarter of Net Contribution is net interest that rises and falls with short-term rates, so the "durable" line is not fully insulated from a downturn.
- Growth is being bought. Faster account adds come with a rising acquisition bill that will show in the operating-leverage math if Net Contribution per account does not keep pace.
- What would decide it. A quarter where Net Contribution falls even though volatility is elevated somewhere would signal the multi-asset capture is slipping.
Momentum
Account growth is speeding up — the fastest in over a year.
Funded accounts (millions, quarter-end)
Q1 2026 added roughly 210,000 accounts, up 12% year over year; the 4Q24 step includes about 0.2M from the Spaceship acquisition.
- The freshest quarter is the strongest. Net Contribution rose 19% to a record $258M, net income 37% to $82M, and diluted EPS 25% to $0.86 — the operating leverage consensus is counting on, appearing live.
- Buyback added to the per-share momentum. eToro repurchased about 3.3 million shares for $103M in the quarter, more than its entire 2025 repurchase to that point.
- Assets deepen faster than accounts. Assets under administration reached $18.5bn, feeding the net-interest line — though the take rate on those balances is compressing, not expanding.
IVThe price
The floor
A third of the price is net cash; the operating business trades near 8x.
What the price implies
$1.28B
Net cash, no debt
$13.41
Net cash per share
38%
of the share price
~7.8x
EV / 2026E earnings
- eToro's $1,275 million net-cash floor is ~38% of its $3.4 billion market value and leaves the operating business at an enterprise value near $2.1 billion, ~7.8x consensus 2026 earnings — but $348 million of that cash is regulatory capital ring-fenced in one Cyprus subsidiary ($160 million a hard floor) that cannot be upstreamed without regulator approval, and that entity is one of about fifteen.
- The offset sits in the same figures. eToro stays unlevered with zero debt, and the Cyprus surplus held above its requirement is itself a solvency strength — the ring-fence trims returnable headroom, not the near-zero-bankruptcy read.
- Freely deployable is smaller. About $928M sits outside the Cyprus entity, and other licensed brokers hold their own required capital — consistent with a buyback sized to roughly one year of free cash flow rather than the whole pile.
Scenarios
Base and upside price it at 11-13x; the downside cushion is cash, not a cheap multiple.
Scenarios at today's price ($35.67)
| Scenario | Net income ($M) | EPS | P/E |
|---|---|---|---|
| Downside (activity + rate reversion) | 65 | $0.68 | 52x |
| Base (2026 consensus) | 270 | $2.84 | 12.6x |
| Upside (2027 consensus) | 319 | $3.35 | 10.6x |
In the downside the business stays profitable and free-cash-flow positive; the protection is the net-cash floor, not a low multiple on depressed earnings.
- An undemanding base. On consensus, eToro trades at 12.6x 2026 and 10.6x 2027 earnings — modest for a debt-free platform still growing accounts and monetization.
- The downside is not a cheap trough. At roughly $65M of net income the same price is about 52x earnings; the margin of safety is the $13.41 of net cash per share and the fact the business keeps earning.
- Balance-sheet-led, not multiple-led. That distinction is the whole point for a margin-of-safety buyer: the floor lives in the cash, not in a depressed multiple on normalized profit.
What you pay
Below its IPO price, and below the street's target.
Where the price sits
IPO price (May 2025)
$52.00
Analyst mean target
$56.93
Fifteen analysts: 8 buy, 2 outperform, 5 hold, none rating it a sell.
- Priced for a slowdown, not a collapse. The $57 mean target sits about 60% above the quote, with no sell ratings against ten positive ones.
- Aligned insiders keep buying. A founder-controlled board, whose executives hold roughly $220M of in-the-money options, has been repurchasing stock below the $52 IPO price.
- What you weigh. A net-cash, through-cycle-profitable franchise at a single-digit operating multiple — against the risk that 2025 was a cycle high.
What to watch
Net-cash and founder-run at a single-digit multiple: durable if rotation holds, a cycle high if every market goes quiet.
- 01Crypto trading contribution below about $40M for two straight quarters, signaling reversion toward the 2023 base
- 02Each 100bps of rate cuts trimming roughly $26M of net income as the net-interest line rolls down
- 03Organic funded-account adds stalling below about 0.3 million a year
- 04A forced CFD or crypto product or geography restriction in a major market shrinking the Net Contribution base
This distills a guided study built chapter by chapter, from what eToro is to what the market asks you to pay.
Compiled from the full report · 2026-08-01 · For information, not investment advice.