Unit Economics

Unit Economics

Beneath a reported Net Contribution of $868 million sits a business of 3.81 million funded accounts, each monetized at roughly $228 a year [1]. That per-account figure jumped about 24% in 2024, then held flat in 2025. The flat headline hides a mix shift: durable per-account monetization — trading spreads, net interest, banking — kept climbing while crypto reverted from its 2024 peak. 2025's growth was account-led, not monetization-led — a different, and more repeatable, source than the one that drove the 2024 step-up.

This chapter takes the durability question (Financials and Estimates) down to the account level: how many users pay, how much each pays, where that payment comes from, and what it costs to add the next one.

The funnel: a slow, steady account base

Funded accounts — users who have passed onboarding, deposited, traded, and hold a positive balance — are the population eToro monetizes [2]. That base has grown steadily but slowly: from 3.04 million at the end of 2023 to 3.48 million in 2024 and 3.81 million in 2025 [3].

Source: FY2025 Annual Report (Form 20-F), Key Performance Metrics — Funded Accounts [4].

Net additions run at roughly 0.2 to 0.4 million a year: about 0.2 million in 2023, 0.4 million in 2024, and over 0.3 million in 2025 [5]. Part of the 2024 figure was bought, not built: the November 2024 acquisition of the Australian app Spaceship added about 0.2 million accounts, visible as the one-quarter jump from 3.21 million to 3.48 million [6]. Stripping that out, organic net adds sit near 0.2 million in 2024 and improve to over 0.3 million in 2025 — an organic acceleration, but off a base that is compounding in the high single digits, not doubling. Management is candid that inorganic growth "is unpredictable" and that no acquired accounts were added in 2023 [7]. The account-growth channel is real but low-geared; the growth in Net Contribution has to come mostly from monetizing the accounts already there.

Monetization per account: the durable line rises as crypto reverts

Dividing Net Contribution by year-end funded accounts gives a monetization-per-account figure that rose 24% in 2024 and then went flat in 2025. Split into its durable base (equities/commodities/currencies spreads, net interest, eToro Money banking, subscriptions) and its crypto-trading swing, the flat headline resolves into two opposite moves.

Source: derived from Net Contribution components and year-end Funded Accounts, FY2025 Annual Report (Form 20-F) [8]; [9].

Durable monetization per account climbed each year — roughly $165, $171, then $187 — a cumulative 13% gain driven by the net-interest line and steady trading spreads. Crypto monetization per account spiked from about $18 in 2023 to $55 in 2024, then fell back to $41 in 2025 as the post-election crypto rally faded [10]. The plateau in the total is a coincidence of timing, not a stall in the business: the part eToro can most rely on kept rising, and the part it can least control gave back a chunk of a one-off peak.

That reframes the 2024-versus-2025 growth story. In 2024, Net Contribution grew 42%: accounts rose about 15% and monetization per account about 24%, so the year was monetization-led — and much of that lift was crypto and the first full year of higher rates [11]. In 2025, Net Contribution grew 10%: accounts rose about 9.5% and monetization per account under 1%, so the year was almost entirely account-led [12]. For a reader weighing whether 2025 is a cycle high, the useful distinction is that the two growth drivers are not equally repeatable: crypto-led per-account gains are not, an account base compounding at 9% is more so, and the durable per-account rise of low-double-digit percentages over two years is the quietest and most repeatable of the three.

Per-trade economics: one line mean-reverts, the other swings

Underneath the trading contribution sits a per-trade take rate that behaves very differently across the two asset groups. Users executed 594 million trades in 2025, up from 571 million in 2024 and 446 million in 2023; of these, 537 million were in equities, commodities and currencies and 57 million in cryptoassets [13].

Source: FY2025 Annual Report (Form 20-F), Trades and Net Trading Contribution per Trade [14].

The traditional book earns a remarkably stable $0.54 to $0.94 per trade across twelve quarters, with no discernible trend — its contribution grows through trade volume, not price [15]. Equities/commodities/currencies trading contribution rose from $306 million to $400 million over two years on roughly matching trade-count growth [16]. Crypto per-trade economics are the volatile input: $1.14 to $4.13 per trade, spiking to $4.13 in the fourth quarter of 2024 and $3.47 in the third quarter of 2025, because crypto spreads widen with the relative illiquidity of the asset being traded [17]. Crypto's share of trading commission moved from 17% in 2023 to 38% in 2024 and back to 29% in 2025, and it was 38% of all Net Contribution in the single quarter after the U.S. election before equities took 54% of Net Contribution in the tariff-driven second quarter of 2025 [18]; [19]. The multi-asset mix does work as a hedge — but the swing factor in the take rate is the same crypto line that swings everything else.

The balance-sheet engine: assets deepen, take rate compresses

The most durable part of the model is monetization of user balances. Assets under administration — cash and holdings in funded accounts — nearly doubled to $16.6 billion in 2024 and reached $18.5 billion in 2025, from $9.6 billion in 2023 [20]. Interest-earning assets rose to $7.2 billion [21] and total money transfers to $11.6 billion [22]. Those balances feed a net-interest contribution that grew from $144 million to $217 million over the period [23].

Source: FY2025 Annual Report (Form 20-F), Growing our User Base and Expanding our Relationship with Existing Users; take rate derived [24]; [25].

Two readings sit inside this table. The bullish one: the platform is accumulating assets faster than accounts, which is exactly the "deepen the relationship" flywheel management describes, and over 20% of new funded accounts in 2025 were users who had registered in 2024 or earlier — delayed conversions, not fresh acquisition [26]. The cautious one: Net Contribution as a share of assets under administration compressed from 5.8% to 4.7%. As balances grow, eToro monetizes each incremental dollar less intensively — partly mix (net interest is a thinner take than crypto spreads), partly the rate-sensitivity of that interest line. The deepening is genuine; the take rate on it is not expanding.

What it costs to fill the funnel

Selling and marketing rose to $209 million in 2025, up 17%, after a 19% rise to $178 million in 2024 [27]. Research and development reached $151 million, or 17.4% of Net Contribution [28].

Source: FY2025 Annual Report (Form 20-F), Selling and Marketing and Research and Development, as % of Net Contribution [29]; [30].

Marketing intensity fell in 2024 as the crypto-inflated Net Contribution swelled the denominator, then rose back to 24.1% of Net Contribution in 2025 — spend grew 17% while Net Contribution grew 10% and net account adds slipped from 0.4 million to 0.3 million [31]. On a headline basis, then, 2025 marketing bought fewer net accounts per dollar; adjusting for the ~0.2 million of Spaceship accounts inside 2024's figure, organic acquisition cost per net account improved modestly. Both readings are defensible, and the filing does not disclose acquisition cost, payback, or churn directly, so this is bounded rather than precise. The clearest fact is that Net Contribution growth is not coming from marketing leverage: the platform is spending a steady-to-rising share of contribution to hold its acquisition pace.

CopyTrader: engaged users, concentrated copy assets

eToro's differentiator is engagement, and the engagement numbers are genuinely high: the average user logs in about four times a day for roughly twelve minutes, 53% of funded accounts hold more than one asset class, and 92% of users made an equity, crypto or copy trade as their first action in 2025 [32].

Source: FY2025 Annual Report (Form 20-F), Our Users and Engagement [33].

The social layer that drives that engagement is concentrated in a strikingly small group. eToro had over 4,750 members of its Pro Investor program at the end of 2025, but only 17 of them held more than $10 million in Assets Under Copy and 125 held more than $1 million [34].

Source: FY2025 Annual Report (Form 20-F), Pro Investor Program; the $1M–$10M and under-$1M bands are derived from the disclosed 17 over $10M and 125 over $1M [35].

Copy assets concentrate in a handful of star investors — a design that makes the network engaging and cheap to run, but also means a small number of departures or performance blow-ups could dent the feature that distinguishes eToro. The moat's genuine depth is not disclosable from the filing: eToro does not report total Assets Under Copy, the share of Net Contribution that rides on copied trades, or Pro Investor churn, and it flags that some users have "misused the Pro Investor program by fraudulently copying each other's positions" to inflate fees [36]. What the filing does show is reach: 84% of copiers copy an investor in a different country [37].

What this means for the forward case

The unit economics say the 2026 consensus for Net Contribution near $968 million (Financials and Estimates) does not need another crypto year. Roughly 9% account growth plus a continued mid-single-digit climb in durable per-account monetization would carry most of the way there, with crypto as upside rather than the load-bearing assumption. The first quarter of 2026 is consistent with that: funded accounts reached 4.02 million, up 12% year-on-year, an acceleration in the account line [38].

The main risk to that read is that the durable base is not fully insulated: the net-interest line that carried per-account monetization in 2024–2025 falls with rate cuts, and the take rate on a still-growing asset base is compressing, not expanding. What would settle it is watchable in each quarterly release — the funded-account run-rate against the ~0.3 million annual pace, durable (ex-crypto) Net Contribution per account, and selling-and-marketing as a share of Net Contribution against the 24% it printed in 2025. If durable per-account monetization keeps grinding higher while account adds hold, the 2025 profit looks like a base; if the durable line flattens as crypto normalizes, 2025 looks closer to a peak.