eToro to Acquire TradeZero for Up to $231 Million as Crypto Revenue Slides
eToro is buying TradeZero for up to $231 million as equities, not crypto, drive its Q2 growth and crypto revenue falls roughly 30% year-over-year.
eToro Group (NASDAQ: ETOR) is buying TradeZero. The deal: up to $231 million for a U.S. brokerage built for active traders. The timing is telling. Crypto revenue at eToro fell roughly 30% year-over-year in the second quarter.
ETOR stock slid 7.81% to $31.35 after a pre-market pop, per Yahoo Finance.
The acquisition pairs cash with up to 2.5 million newly issued Class A common shares, according to The Block. Closing is expected in the first half of 2027, pending regulatory approvals. The exact split between cash and stock was not disclosed. Nor were the specific approvals required.
TradeZero, founded in 2015, generated about $80 million in revenue over the trailing 12 months ended June 30. Gross margins: 81%. Net income was not disclosed.
What does eToro get? A broker-dealer license. Proprietary trading tools. Short-selling capability its U.S. arm currently lacks. TradeZero CEO Daniel Pipitone said the brokerage comes with its broker-dealer infrastructure as well as an active trading base. The deal is projected to be accretive to adjusted EPS in its first full year.
“Today’s announcement is an important step in building our U.S. business,” eToro CEO Yoni Assia said in a statement. “TradeZero has built a successful franchise, with differentiated technology, broker-dealer infrastructure and a highly engaged trading community. This combination gives us a faster path to launching new products for U.S. customers and strengthens our offering.”
The numbers behind the deal tell a split story. Equities, not crypto, carried eToro’s Q2 growth. Net contribution rose 9% year-over-year to $229 million, driven mainly by stronger equities trading. GAAP net income jumped 77% to $53 million. Adjusted net income increased 17% to $63 million. Adjusted EBITDA climbed 9% to $78 million.
Crypto told a different story. Revenue fell about 30% versus the same period last year, Cointelegraph reported. July crypto trades were down 73% year-over-year. Crypto contributions shrank to just 5% of total net trading profit in the first quarter.
This was a step down from eToro’s strongest quarter as a public company. Q1 2026 net contribution hit $258 million. Adjusted EBITDA: $109 million. Net income: $82 million, buoyed by commodities trading. Funded accounts grew 18% year-over-year to 4.28 million in Q2. Assets under administration reached $19.2 billion, up 10%. Cash and short-term investments sat at $1.2 billion.
The TradeZero deal is the latest in a string of acquisitions. Earlier in 2026, eToro bought crypto wallet provider Zengo for about $70 million and acquired Israel-based crypto exchange Bit2C. In July, it led a $12.5 million strategic round in Extended, an onchain perps exchange.
eToro has operated its registered U.S. broker-dealer, eToro USA Securities Inc., since 2020. Stock trading for U.S. customers launched in 2022. The company was the most recent BitLicense recipient to roll out crypto trading in New York, licensed by NYDFS in 2023 after holding off expanding for several years.
Assia framed the broader trajectory in expansive terms. “Technology continues to reshape how people invest and manage their money,” he said. “Throughout our history, etoro has embraced these shifts, from social investing to crypto, and today AI and on-chain finance represent the next chapter in that evolution.”
