eToro Group Ltd. (NASDAQ:ETOR) reported a decline in third-quarter 2026 earnings and net contribution, with adjusted earnings per share falling below analyst expectations as reduced cryptocurrency trading activity affected the online trading and investment platform’s financial performance.
The company reported adjusted earnings of $0.26 per share, compared with the analyst consensus estimate of $0.32. Adjusted net income declined 60% year-on-year to $24 million, while net contribution decreased 13% to $186 million.
eToro shares fell 6.39% in Tuesday’s premarket trading following the announcement.
Despite the decline in earnings, the company reported an 18% increase in funded accounts to 4.39 million and announced a $250 million share repurchase programme.
Third-Quarter Adjusted Earnings Fall Below Analyst Expectations
eToro reported adjusted earnings per share of $0.26 for the third quarter of 2026, missing the consensus estimate of $0.32 by $0.06.
Adjusted net income declined to $24 million, compared with $60 million in the corresponding period of 2025, representing a year-on-year decrease of 60%.
On a generally accepted accounting principles (GAAP) basis, diluted earnings per share fell to $0.14 from $0.53 a year earlier.
The company attributed part of the decline in its financial performance to lower cryptocurrency trading activity during the period.
The results reflected a reduction in earnings despite continued growth in the number of customers maintaining funded investment accounts.
Net Contribution Declines 13% to $186 Million
eToro reported third-quarter net contribution of $186 million, compared with $215 million in the corresponding period of 2025.
The decrease of $29 million represented a year-on-year decline of approximately 13%.
According to the company, reduced cryptocurrency trading activity was the primary factor behind the lower net contribution.
However, capital markets net contribution increased 21% compared with the previous year.
The increase in capital markets activity provided a partial offset to the decline associated with cryptocurrency trading.
eToro also reported that cryptocurrency activity recovered sequentially during the quarter, indicating an improvement compared with the preceding three-month period.
The company did not provide specific sequential cryptocurrency trading figures in the supplied announcement.
Funded Accounts Increase 18% to 4.39 Million
eToro reported continued growth in its customer base during the third quarter.
The number of funded accounts increased to 4.39 million, compared with 3.73 million in the third quarter of 2025.
The increase of approximately 660,000 accounts represented year-on-year growth of 18%.
Funded accounts measure the number of customer accounts holding deposited funds and provide an indication of the platform’s active customer base.
The growth occurred despite the decline in net contribution and adjusted earnings.
The figures indicate that customer account expansion did not translate into higher overall net contribution during the reporting period, partly reflecting the reduced cryptocurrency trading activity identified by the company.
Assets Under Administration Remain at $20.8 Billion
Assets under administration stood at $20.8 billion at the end of the third quarter, broadly unchanged from the corresponding period of 2025.
The figure represents the value of customer assets administered through the eToro platform.
While funded accounts increased by 18%, the total value of assets under administration remained stable year-on-year.
The difference between account growth and assets under administration reflects the company’s reported customer and asset metrics, although the supplied results did not provide a detailed breakdown of the factors affecting asset values.
The company continues to operate a platform providing access to a range of financial instruments, including equities and cryptocurrencies.
eToro Announces $250 Million Share Repurchase Programme
eToro announced a $250 million share repurchase programme as part of its capital allocation activities.
The programme provides for the company to purchase its own shares, subject to applicable conditions and execution decisions.
Share repurchases can reduce the number of outstanding shares, depending on the amount purchased and how the acquired shares are treated.
The announcement did not specify a detailed repurchase timetable or the number of shares expected to be acquired.
Chief Financial Officer Meron Shani commented on the company’s customer growth and financial position.
“We delivered continued growth in our user base, with funded accounts up 18% year-over-year to 4.39 million and assets under administration of $20.8 billion,” Shani said.
“Our strong balance sheet and cash generation allow us to continue investing selectively in the platform, pursue strategic opportunities and return capital to shareholders through the $250 million share repurchase program.”
The programme forms part of eToro’s approach to allocating capital between business investment, strategic transactions and shareholder returns.
Acquisition of LB Finanzas Supports Latin American Expansion
eToro also announced an agreement to acquire LB Finanzas, a digital investment and payments platform operating in Argentina.
The proposed acquisition is intended to expand eToro’s presence in Latin America.
The transaction would add a business focused on digital investment and payment services within the Argentine market.
The company did not disclose the acquisition price, expected completion date or anticipated financial contribution in the supplied announcement.
The agreement represents an additional element of eToro’s international expansion activities.
Completion and subsequent integration will determine the transaction’s contribution to the company’s regional operations.
Cash and Short-Term Investments Total $1.2 Billion
As of September 30, 2026, eToro held approximately $1.2 billion in cash, cash equivalents and short-term investments.
The balance provides financial resources for the company’s operating requirements, investment activities and capital allocation plans.
Management identified its balance sheet and cash generation as factors supporting continued investment in the platform, potential strategic opportunities and the announced share repurchase programme.
The company did not provide a detailed cash flow statement or additional balance sheet figures in the supplied announcement.
The reported liquidity position is relevant to eToro’s ability to fund its planned activities while managing changes in trading volumes and market conditions.
Outlook
eToro’s third-quarter results reflected lower earnings and net contribution, primarily associated with reduced cryptocurrency trading activity.
Adjusted net income declined 60% to $24 million, while adjusted earnings per share of $0.26 fell below the $0.32 analyst consensus estimate.
However, funded accounts increased 18% to 4.39 million, capital markets net contribution rose 21%, and cryptocurrency activity improved sequentially during the quarter.
The company also announced a $250 million share repurchase programme and an agreement to acquire Argentina-based LB Finanzas.
Future financial performance will depend on trading activity across its platform, customer engagement, market conditions and the execution of its capital allocation and expansion plans.