eToro reported third-quarter net income of $15 million, down 74% from $57 million a year earlier, as crypto trading activity slowed sharply, the Nasdaq-listed brokerage said Tuesday.
Earnings details
GAAP net income fell to $15 million from $57 million in the same quarter last year. Diluted earnings per share dropped to $0.14 from $0.53.
Net contribution, which the company uses to track revenue after certain trading-related costs, declined 13% to $186 million from $215 million a year prior. eToro attributed the decline mainly to lower crypto trading.
Adjusted EBITDA fell 56% to $34 million, down from $78 million in the year-ago quarter.
User growth continues
Despite the profit decline, eToro’s customer base expanded. Funded accounts rose 18% year over year to 4.39 million, while assets under administration held steady at $20.8 billion.
Early fourth-quarter data did not indicate a recovery in trading activity. Crypto trades on the platform in October fell 62% year over year to 2 million.
Buyback and AI app
eToro’s board authorized a share repurchase program of up to $250 million. The company also launched an AI-focused trading app during the quarter.
Concentration risk
The results highlight concentration risk for eToro, which offers stocks alongside crypto but pinned the bulk of its revenue decline on reduced crypto activity. The 62% drop in October crypto trades is a key metric to watch.
Funded accounts grew 18% and assets under administration remained stable at $20.8 billion, suggesting customers are not fleeing. The $250 million buyback authorization signals management confidence, but it is a ceiling, not a commitment.
