ETOR Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Net Contribution: Increased by 9% year-over-year to $229 million.

Adjusted EBITDA: Grew by 9% to $78 million, maintaining a margin of 34%.

Funded Accounts: Rose 18% year-over-year to 4.28 million.

Assets Under Administration: Increased by 10% year-over-year to over $19 billion.

Net Trading Contribution: From capital markets (equities, commodities, currencies) rose 25% to $142 million; crypto contribution was $11 million, reflecting a decline due to lower trading activity.

Net Interest Income: Up 7% year-over-year to $49 million.

Adjusted EPS: Increased to $0.68 from $0.56 in Q2 2025.

Cash Position: Ended the quarter with $1.2 billion in cash and equivalents.

2Strategic Updates and Business Highlights

Acquisition of TradeZero: Announced planned acquisition for up to $230 million, expected to enhance U.S. presence and capabilities, including margin trading and futures.

Product Innovations: Launched new AI-driven app and etoro Edge platform for active traders, enhancing user engagement and personalization.

Wealth Management Growth: Significant growth in savings offerings, with AUM increasing 15x year-over-year.

Expansion of Investment Opportunities: Enabled pre-IPO trading for SpaceX, reflecting a broader strategy to increase access to unique investment opportunities.

Focus on AI and Agent Portfolios: Continued development of AI tools to enhance user experience and investment strategies.

3Forward Guidance and Outlook

Q3 Expectations: Anticipate slight increases in adjusted operating expenses due to continued investment in growth initiatives.

Long-term Strategy: Focus on expanding product offerings and user engagement, particularly in the U.S. market post-acquisition of TradeZero.

Market Positioning: Confident in the potential for growth in both traditional and digital asset markets, particularly with younger investors.

4Bad News, Challenges, or Points of Concern

Crypto Market Decline: Notable decline in crypto trading activity, reflecting cyclicality and market pressures, which could impact future revenues.

July Trends: Early indicators for July showed a decline in assets under administration and trading activity, raising concerns about seasonal impacts and potential headwinds.

Increased Expenses: While investments are aimed at growth, rising operational costs could pressure margins if not managed effectively.

5Notable Q&A Insights

Sustainability of Account Growth: Management expressed confidence in continued account growth driven by new product offerings and marketing strategies.

TradeZero Acquisition Rationale: Emphasis on enhancing U.S. capabilities and integrating unique trading features to attract more active traders.

AI and Copy Trading: Discussion on the potential for AI to enhance trading strategies and the future of copy trading in the U.S. market with the RIA license.

Market Cyclicality: Management acknowledged the cyclical nature of crypto markets and expressed optimism about future growth driven by technological advancements and market trends. Overall, ETOR reported solid financial results and strategic advancements, while also facing challenges related to market conditions and operational expenses. The company remains focused on leveraging technology and acquisitions to drive future growth.