eToro to buy TradeZero as Q2 crypto revenue falls 30%

eToro announced plans to acquire US online broker TradeZero and disclosed second-quarter results showing a decline in revenue and trading activity. The acquisition is part of the company’s US expansion efforts. eToro reported total revenue of $1.59 billion for Q2, down from $2 billion in the same period a year earlier.

Crypto revenue for the quarter was $1.34 billion, about 30% lower than the $1.9 billion reported in Q2 2025. Crypto-related cost of revenue totaled $1.35 billion, leaving $19.7 million in net income from crypto assets. eToro reported total net income of $53.4 million for the quarter. Trading in equities and commodities generated $141 million in net income.

Trading activity on the platform declined: total cryptocurrency trades fell to 1.4 million in July, a 73% year-over-year decrease, and the amount invested in crypto on the platform dropped by roughly half.

eToro said TradeZero produced about $80 million of revenue with gross margins of 81% for the 12 months ended June 30, 2026. The company expects the acquisition to be accretive to adjusted earnings per share in the first year after closing, which it is targeting for the first half of 2026.

Shares of the Nasdaq-listed company fell more than 5% in pre-market trading after the results and the acquisition announcement.

In April, eToro disclosed plans to acquire self-custodial wallet provider Zengo as part of a broader effort to expand its digital-asset and multi-asset offerings.

Meron Shani, eToro’s chief financial officer, noted that more than 60% of users who traded commodities in Q4 2025 to Q1 2026 also traded equities in Q2 2026, and nearly nine in ten of those users had traded crypto on the platform.