eToro processed 1.4M crypto transactions in July, down 73% YoY. Stock commissions now 60% of total. Q2 net profit rose 77% but ETOR fell 5-8%.
Alpha Score of 40 reflects weak overall profile with moderate momentum, poor value, moderate quality, moderate sentiment.
eToro processed 1.4 million crypto transactions in July, a 73% decline from a year earlier. The slide in volume pushed the platform's crypto revenue down to $1.34 billion in the second quarter from $1.9 billion, the company said in its quarterly report. Direct costs tied to crypto revenue rose to $1.35 billion, leaving a net profit of $19.7 million in the segment, down from $27 million a year ago.
Overall revenue fell to $1.59 billion from $2 billion. But the shift in business mix was stark. Stock commissions now account for 60% of total commissions, up from 25% at the end of 2024. Stock and commodity trading generated a net profit of $141 million over the period. That helped lift GAAP net profit 77% to $53.4 million. Adjusted EBITDA rose 9% to $78.1 million.
Available cash stood at $1.2 billion, with assets under management at $19.2 billion. The balance sheet is not under pressure. Yet ETOR stock fell 5% to 8% on August 11, stabilizing around $31.20. Investors appeared to focus on the revenue concentration risk rather than the profit improvement.
eToro made two acquisitions in the quarter. It bought TradeZero, a U.S. broker generating $80 million in annual revenue, giving direct access to the American stock market. It also acquired Zengo, a non-custodial wallet provider, a bet on crypto infrastructure even as transaction volumes contracted.
The pivot to stocks is a hedge against the platform's dependence on crypto cycles. When crypto volumes rise, eToro benefits. When they evaporate, revenue drops sharply. The multi-asset model holds for now, but the identity shift is real: a platform built on social trading and crypto must now convince users drawn by Bitcoin to stay for equity ETFs.
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