eToro (ETOR.US) Q2 crypto lost 7.2 million, and the acquisition of TradeZero shares still fell

According to Woofun AI, eToro (ETOR.US) released its second-quarter earnings report. Although overall profit exceeded expectations, huge losses in the cryptocurrency business compounded the announcement of the acquisition of TradeZero, which led to a sharp drop in stock prices.

According to data compiled by Woofun AI, the crypto business lost $7.2 million in the second quarter of 2026, a 120% reversal from the previous year's profit of $37.7 million. Revenue fell 29% from $1.91 billion to $1.35 billion, at the same cost of $1.35 billion. The number of transactions in July was 1.4 million, down 73% year over year, and the average amount was $182, down 50%. The company is developing an on-chain perpetual contract product, and a cryptocurrency purchase feature is coming soon.

The stock trading business drove a year-on-year increase of 9% to US$229 million in net income and an increase of 18% to 4.28 million funded accounts. Adjusted diluted earnings of $0.68 per share were higher than analysts' estimates of $0.61.

However, the stock price still fell 11% and fell by more than 12% after the market, and the trading price was around $29.80. The company announced the acquisition of US brokerage firm TradeZero for up to $231 million in cash and shares, which is expected to be completed in the first half of 2027 with regulatory authorization. TradeZero provides commission-free US stock and options trading services and shorting tools. As of June, revenue was approximately US$80 million. This is eTor.US (ETOR.US)'s third acquisition agreement this year.

The acquisition is mainly viewed as an integrated action in the US brokerage and distribution business, and neither party has disclosed plans involving cryptocurrency, blockchain, or tokenization. Against the backdrop of significant deceleration in the crypto market activity, eToro (ETOR.US) is hedging single-track risks through traditional brokerage business expansion, and it remains to be seen whether its integration actions can effectively boost valuations.