eToro has agreed to acquire U.S.-focused online broker TradeZero for up to $231 million in cash and newly issued shares, expanding its infrastructure for active traders in the United States. The transaction was announced alongside eToro’s second-quarter results and is expected to close during the first half of 2027, subject to regulatory approvals and other customary conditions. The deal gives eToro a faster route to expanding its U.S. brokerage capabilities while its crypto business faces sharply lower trading activity.
TradeZero operates broker-dealer businesses across the United States, Canada and international markets and offers specialized technology for active equity and options traders. It generated approximately $80 million in revenue during the 12 months ended June 30, with an 81% gross margin. eToro expects the acquisition to be accretive to adjusted earnings per share during its first year after completion, although that remains a forward-looking projection.
Crypto Revenue Falls as Equity Trading Strengthens
eToro’s reported revenue from cryptoassets fell to $1.35 billion in Q2 2026 from $1.91 billion a year earlier, a decline of roughly 30%. That gross revenue figure should be read alongside $1.35 billion in cryptoasset cost of revenue. Separately, eToro recorded $19.7 million in net trading income from cryptoasset derivatives. The $19.7 million figure is derivatives trading income, not the company’s total crypto net contribution.
More recent activity indicators show an even steeper contraction in customer crypto trading. During July, eToro users executed 1.4 million crypto trades, down 73% year over year, while the average amount invested per trade fell 50% to $182. The data points to materially weaker retail crypto engagement even as eToro continues investing in digital-asset infrastructure.
Traditional markets provided a stronger counterweight. Net trading income from equities, commodities and currencies increased to $141.6 million from $114 million a year earlier. Overall net contribution rose 9% to $229 million, while GAAP net income climbed 77% to $53.5 million. The quarter demonstrates the value of eToro’s multi-asset model as weaker crypto activity was offset by stronger performance elsewhere on the platform.
CFO Meron Shani also highlighted cross-asset behavior among users. More than 60% of customers who traded commodities between Q4 2025 and Q1 2026 subsequently traded equities during Q2, and nearly nine in ten of that group had also traded crypto on eToro. The overlap suggests eToro’s customer base moves between asset classes rather than remaining confined to a single market segment.
TradeZero Deepens eToro’s U.S. Brokerage Push
The acquisition consideration consists of cash and up to 2.5 million newly issued eToro Class A shares, subject to customary adjustments. TradeZero brings broker-dealer infrastructure and trading technology focused particularly on active traders and short selling. The acquisition broadens eToro’s U.S. capabilities at a time when its growth strategy increasingly spans traditional markets, crypto, wealth management and banking services.
eToro has continued investing in crypto despite the activity decline. During Q2 it completed acquisitions including self-custody wallet provider Zengo, while European issuance of its eToro Money card increased more than 30% quarter over quarter. The TradeZero transaction therefore looks more like diversification of eToro’s platform than a retreat from digital assets.
The key contrast is between weakening crypto engagement and improving company-wide profitability. TradeZero could add another revenue stream and accelerate U.S. expansion, but completion still depends on regulatory approvals. eToro is using acquisitions to widen its business mix while demonstrating that its financial performance no longer depends exclusively on the intensity of cryptocurrency trading.
