EToro's users executed 1.4 million crypto trades in July, a 73% drop from a year earlier. The average amount per trade halved to $182. The numbers land as the retail broker moves to buy TradeZero, a US-focused brokerage, for up to $231 million.
July's crypto slump
The July volume figure is a sharp pullback from the same month last year. The average trade size of $182 is also down significantly. eToro didn't break out the prior-year average, but the halving is notable. The drop comes as the company shifts its focus toward a broader trading platform.
The TradeZero acquisition
EToro agreed to pay up to $231 million for TradeZero, a brokerage serving active stock traders. The consideration includes cash and up to 2.5 million new Class A shares. TradeZero generated roughly $80 million in revenue in the 12 months ended June 30 and recorded an 81% gross margin in Q2. The deal is expected to close in the first half of 2027, subject to regulatory approvals. eToro expects the transaction to add to adjusted earnings per share in the first year after completion.
Q2 results
In Q2, eToro's net contribution rose 9% to $229 million, and GAAP net income increased 77% to $53 million. The company reported $1.346 billion of second-quarter cryptoasset revenue (gross) and $1.354 billion in cost of revenue, leaving $19.7 million in net trading income from cryptoasset derivatives. That implies roughly $12.5 million in net trading contribution from cryptoassets. At June 30, eToro held $1.2 billion in cash, cash equivalents, and short-term investments.
Other moves
In April, eToro announced an agreement to acquire Zengo, a crypto wallet provider. Management also cited unquantified strength in CopyTrading. The TradeZero deal brings broker-dealer infrastructure, proprietary trading tools, and a community centered on active stock trading.
The TradeZero transaction still requires regulatory clearance and integration. eToro expects it to close in the first half of 2027.
