eToro buys TradeZero as Q2 crypto revenue falls 30% to $1.34B. The deal, expected to close H1 2026, would be accretive. Shares down 5% pre-market.
eToro plans to acquire the US online brokerage TradeZero, the company said Tuesday, as it reported a 30% drop in crypto-related revenue from the second quarter of 2025.
The Nasdaq-listed platform posted $1.59 billion in total revenue for Q2 2026, down from $2 billion a year earlier. Of that, $1.34 billion came from crypto assets, compared with $1.9 billion in the same period of 2025. Crypto-related cost of revenue ran to $1.35 billion, leaving $19.7 million in net income from the digital-asset business. Total net income was $53.4 million.
Equities and commodities trading generated $141 million in net income.
“More than 60% of users who traded commodities during Q4 2025 to Q1 2026 subsequently traded equities in Q2 2026, and nearly nine in ten of those users have also traded crypto on eToro,” said Meron Shani, the company’s chief financial officer.
Total cryptocurrency trades in July fell to 1.4 million, a 73% decline from the prior year. Invested amount also dropped 50%.
The TradeZero acquisition is part of eToro’s push to become a multi-asset platform. In April, it announced plans to buy the self-custodial wallet provider Zengo. TradeZero generated about $80 million in revenue with 81% gross margins in the 12 months ended June 30, 2026. eToro expects the deal to be accretive to adjusted earnings per share in the first year after closing, which is targeted for the first half of 2026.
ETOR shares were down more than 5% in pre-market trading Tuesday, extending Monday’s decline.
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