eToro gained 660,000 new clients and is preparing a quarter-billion-dollar share buyback
The popular investment app now has 4.39 million clients with money deposited and $1.2 billion in its coffers. Stock trading brought in a fifth more, and management decided to return some of the money to shareholders.
Key points
eToro gained 660,000 new clients over the year and now has 4.39 million.
It holds $1.2 billion in its coffers, roughly two-thirds of its market value.
It will now buy back its own shares for a quarter of a billion dollars, because it considers them undervalued.
The eToro app $ETOR is on the phones of plenty of Czech investors. Less well known is that the company itself has been listed on the Nasdaq since last May, and therefore has to show how it is doing every quarter. Tuesday's third-quarter figures brought several points worth noting.
The main one is that the number of people on the platform continues to grow rapidly. In its third-quarter earnings report, the company says the number of accounts with money deposited rose 18 % year over year to 4.39 million. That means it added around 660,000 over the year, and growth continued in October, reaching 4.42 million.
The board also approved a share buyback of up to $250 million.
Stocks, commodities and currencies are driving the company forward
For a long time, eToro was seen mainly as a place to trade cryptocurrencies. The latest figures show that this is changing. Trading in stocks, commodities and currencies - everything outside crypto - brought the company 21 % more year over year.
“Net contribution from capital markets grew 21 % year over year, while cryptocurrency activity recovered compared with the previous quarter.”
Meron Shani, eToro's Chief Financial Officer
This is important news for shareholders. Cryptocurrency trading is unpredictable - one time there's a lot of it, the next there's hardly any. The greater the share of revenue that comes from traditional markets, the more stable the company is.
Weaker interest in crypto was precisely what weighed on the overall third-quarter figures. Net contribution - what the company keeps from clients' trades after direct costs are deducted - fell 13 % to $186 million, and net income came to $15 million, compared with $57 million last year. The shares responded by falling around 6 % before the US market opened.
But over the first three quarters combined, eToro earned $151 million, slightly more than in the same period last year. So it was mainly the summer period that was weaker, not the whole year.
Metric | Q3 2026 | Q3 2025 |
|---|---|---|
Accounts with money deposited | 4.39 million | 3.73 million |
Client assets under management | $20.8 billion | $20.8 billion |
Net contribution | $186 million | $215 million |
Net income | $15 million | $57 million |
Net income for the first three quarters | $151 million | $147 million |
Full coffers and money returned to shareholders
At the end of September, eToro held around $1.2 billion in cash and short-term investments. For perspective: after the market closed on Monday, the entire company was worth around $1.85 billion. Its cash therefore amounts to roughly two-thirds of its market value.
That kind of cushion gives management a free hand. At the current price, the new buyback of up to $250 million represents around 13 % of all shares. When a company buys back its shares, each remaining share represents a larger portion of its profit. Management openly states in its report that, in its view, the current share price does not reflect the company's true value.
Most analysts see it similarly. Of the fifteen who cover the company, ten recommend buying the shares, and the average target price was around $43 ahead of the results. On Monday, the shares closed at $23.32.
Four acquisitions in a single year
eToro is also using its money to expand. In August, it announced the acquisition of US broker TradeZero, which is expected to help it in the world's largest stock market. Last week, it then reached a deal to buy Argentina's LB Finanzas app, which is set to become its base for all of Latin America.
This is already its fourth acquisition this year. In the spring, the company also bought crypto wallet Zengo and Israeli crypto exchange Bit2C.
Meanwhile, the platform is also expanding into everyday banking. It is issuing an increasing number of payment cards in Europe and preparing local payment services. 24/7 trading has been expanded to additional assets.
An AI assistant that trades for you
But the biggest news of the quarter is a completely new app.
“This quarter, we launched a new eToro app, built from the ground up on artificial intelligence.”
Yoni Assia, eToro's Co-Founder and CEO
In practice, this means clients can connect their own AI assistant to their account, such as Claude, ChatGPT or Grok, and let it trade within limits they set themselves. Interest is high. The number of users trading this way increased by 250 % in a single quarter.
The service that made eToro famous is also growing: copying the portfolios of more experienced investors. Assets under management in this service reached $2.4 billion. For active traders, the company launched a new Edge platform with advanced charts and analytical tools.
October's figures show that clients are still trading less than they were last autumn. But the number of accounts continues to grow, giving the company an ever-broader base of people who may return to trading once market sentiment improves.
eToro therefore emerges from its results as a company that is growing its client base, reducing its dependence on crypto, has a billion-dollar reserve and is willing to share it with shareholders. When trading activity returns, it will have plenty of clients to serve.
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