Social trading platform eToro reported strong Q3 2025 results as crypto trading volumes surged on the back of its US expansion.
However, the high hedging costs of cryptocurrency derivatives nearly wiped out the sector’s profits. Overall net income increased 48% year over year to $57 million due to revenue diversification and the announcement of a $150 million share buyback.
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Virtual currency trading volume tripled compared to the previous year
eToro’s crypto-related revenue reached $3.97 billion in the third quarter, up from $1.4 billion in the year-ago quarter due to a sharp increase in retail activity. There were 5 million crypto transactions in October, an 84% increase year-on-year, with the average trade size increasing 52% to $320. In the US, newly funded accounts have already exceeded full-year 2024 levels after expanding supported cryptoassets from 3 to 110.
Cardano, Ethereum, and Solana staking was introduced, along with yield-bearing tokens. Despite the surge, cryptocurrency derivatives posted a net loss of more than $18 million due to hedging costs totaling $3.89 billion. This is approximately the same amount as revenue.
Overall financials show strong growth
Company-wide metrics remained strong. Net contribution increased 28% year over year to $215 million, and adjusted EBITDA increased 43% to $78 million. Assets under management (AUA) reached $20.8 billion, an increase of 76% year over year, and the number of depositing accounts reached 3.73 million (+16%). GAAP net income was $57 million.
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eToro launches AI-powered strategy tools, 24/7 trading on major US indices, and a premium subscription level (eToro Club). A $150 million share repurchase program ($50 million in accelerated buybacks) was also announced. Shares rose 8% in early trading following the Nov. 10 announcement.
Market reaction and outlook
Analysts viewed the results positively, noting that crypto trading volume exceeded expectations and maintained a “buy” rating. Community feedback on X highlighted a recovery in retail crypto demand and upcoming wallet features that support on-chain lending and prediction markets.
Tokenized stocks on Ethereum continue to be subject to regulatory oversight. CEO Yoni Asia emphasized, “We remain focused on executing our strategy across trading, investing, wealth management, and neobanking, while driving innovation in cryptocurrencies and AI.”
By achieving sustainable profit growth through disciplined cost management and diversification of revenue sources, eToro is well-positioned to capitalize on macro tailwinds to drive long-term shareholder value and continue to penetrate the U.S. market and accelerate expansion across Asia in 2026.
