eToro profit falls 74% in Q3 as crypto trading volumes drop

Online trading platform eToro reported net income of $15 million for the third quarter, down 74 percent from a year earlier, as a steep fall in crypto trading cut into its earnings.

The company filed the results on 10 November 2026 with the US Securities and Exchange Commission. They cover the three months to 30 September. eToro trades on the Nasdaq under the ticker ETOR and sold shares to the public in May 2025, near the top of last year's crypto rally.

What the results show

Net income fell to $15 million from $57 million a year earlier. That is the 74 percent drop. Net contribution, the measure eToro treats as its core revenue, came in at $186 million, down 13 percent from $215 million in the same quarter of 2025. Adjusted earnings before interest, tax and other items fell 56 percent to $34 million. The profit line dropped faster than revenue because costs did not come down as quickly.

Revenue from crypto assets was $1.35 billion, down from $3.97 billion a year earlier. That is the clearest line in the quarter. The cost of earning that revenue was $1.29 billion, down from $3.89 billion. Both numbers shrank by about two thirds. What eToro keeps is the gap between them, and that gap narrowed. The company said lower crypto trading drove most of the fall in net contribution.

How eToro earns money from crypto

eToro does not charge a flat crypto commission. It earns a spread, the small difference between the price a customer pays and the price eToro pays in the market. More trades mean more spread. Fewer trades, less of it. The model works well when prices move and people trade often. It works against the company when the market goes quiet, which is what happened through the autumn.

Fewer trades, smaller tickets

Customers traded less, and they put in less each time. In October, eToro users made 2 million crypto trades, down 62 percent from October 2025. The average amount invested in each crypto trade fell 29 percent to $228. Across all assets, including stocks and commodities, trades reached 48.2 million for the month, down 22 percent from a year earlier. The average invested per trade there fell 49 percent to $184.

A weak stretch for crypto prices pulled trading down with it. Bitcoin had fallen hard through early November, and the wider market followed. Assets under administration slipped to $19.2 billion in October, a 6 percent fall from the year before. Interest-earning assets, the customer cash eToro holds and earns yield on, dropped 20 percent to $7.0 billion. Money transfers by customers came to $1.1 billion, down 21 percent.

The other side of the ledger

Not everything in the quarter fell. Funded accounts rose 18 percent from a year earlier to 4.39 million by the end of September, and ticked up again to 4.42 million in October. The company held assets under administration near $20.8 billion for the quarter. Its board approved a buyback of up to $250 million in shares.

Yoni Assia, eToro's co-founder and chief executive, said: "This quarter we launched the new eToro app, built from the ground up with AI at its core." Meron Shani, the chief financial officer, pointed to account growth and the buyback as signs the business was holding up. The capital markets arm, which covers stocks and other non-crypto trades, grew its contribution while crypto shrank.

A buyback and a new app do not replace trading income. The 74 percent profit drop came from the one thing eToro does not set: how much its users want to trade crypto. More accounts, fewer trades. That is the tension in the quarter.

A long way from last year

The sharpest comparison is with the same quarter in 2025. Crypto revenue then was $3.97 billion. This year it was $1.35 billion. Net income went from $57 million to $15 million. eToro listed its shares in May 2025, when crypto trading was running hot and its crypto revenue was near a peak. The business that came to market looks different one year on.

What is not clear

eToro did not say when it expects crypto activity to pick up. It gave no revenue forecast for the current quarter, and it did not split out how much of the crypto drop came from lower prices rather than fewer trades. The company also left the buyback's pace open, saying only that purchases depend on market conditions and liquidity. For a reader, the $250 million figure is a ceiling, not a promise.

What to watch

October already points the same way as the third quarter, with crypto trades down 62 percent year on year. The first question is whether that reverses as prices settle. A second is whether the $250 million buyback supports the share price. The one line still moving in eToro's favor is funded accounts, and the business now leans on it. Other crypto-linked firms reported soft third quarters too, a sign the slowdown reached across the sector.