eToro reported on Tuesday (11) that its users executed 1.4 million crypto asset trades in July, a volume 73% lower year over year. The average amount invested per trade fell 50% to US$ 182. In the same statement, the company announced an agreement to acquire TradeZero, a US brokerage focused on active stock investors, for up to US$ 231 million.
In the second quarter, eToro's net contribution rose 9% to US$ 229 million, and accounting net income (GAAP) advanced 77% to US$ 53 million. The company attributed the performance to stronger stock trading, which helped offset the weaker contribution from the crypto sector, and also cited unquantified growth in its CopyTrading tool.
Regarding the crypto asset segment in the second quarter, gross revenue totaled US$ 1.346 billion, with costs of US$ 1.354 billion and net revenue from crypto derivatives of US$ 19.7 million. Excluding blockchain and staking rewards, the estimated net contribution was approximately US$ 12.5 million, before operating expenses. The figure should not be interpreted as segment profit.
Agreement with TradeZero
TradeZero generated revenue of about US$ 80 million in the 12 months ended June 30 and posted an 81% gross margin in the second quarter, according to eToro. Under the contract, the buyer will pay in cash and issue up to 2.5 million new Class A shares, with the total value subject to adjustments.
eToro says TradeZero offers a faster path to launch new products in the United States, with brokerage infrastructure, proprietary tools and a community of stock traders. The transaction is expected to close in the first half of 2027, subject to regulatory approvals and customary conditions. The company expects the deal to add to adjusted earnings per share in the first year after closing.
In April, eToro had already announced an agreement to buy Zengo, a provider of crypto wallets, focused on self-custody and on-chain features. The company ended June with US$ 1.2 billion in cash, cash equivalents and short-term investments.
The statement does not establish that the drop in crypto volume motivated the TradeZero acquisition. The operation is described as an expansion of the company's profitable multi-asset base and, if completed, could reduce reliance on a single asset class.
