eToro to buy TradeZero for up to $231 million as its crypto volumes keep shrinking

eToro Group (NASDAQ: ETOR) has agreed to acquire TradeZero, a U.S. online brokerage aimed at active traders, in a cash-and-stock deal valued at up to $231 million, according to a Tuesday announcement reported by The Block. The consideration includes cash plus up to 2.5 million newly issued Class A common shares. eToro expects the deal to close in the first half of 2027, pending regulatory approvals — an 18-month runway from signing.

TradeZero, founded in 2015, generated roughly $80 million in revenue at 81% gross margins over the trailing 12 months ended June 30, per the announcement. eToro projects the transaction will be accretive to adjusted earnings per share in its first full year; that is a company forecast, not a result. What eToro is buying is regulatory plumbing and a trading base: TradeZero CEO Daniel Pipitone cited the firm's broker-dealer license, infrastructure, proprietary tools and active traders. eToro has run its own registered broker-dealer, eToro USA Securities Inc., since 2020, and launched U.S. stock trading in 2022, per BrokerCheck records cited by The Block.

The deal landed with Q2 results. Net contribution rose 9% year-over-year to $229 million — driven, eToro said, mainly by equities. GAAP net income jumped 77% to $53 million; adjusted net income rose 17% to $63 million; adjusted EBITDA gained 9% to $78 million. Funded accounts grew 18% to 4.28 million and assets under administration reached $19.2 billion, up 10%. The company reported $1.2 billion in cash, equivalents and short-term investments.

Sequentially, every one of those profit lines went the other way: net contribution fell from $258 million in Q1, adjusted EBITDA from $109 million, net income from $82 million.

Key facts

• Deal value: up to $231 million, cash plus up to 2.5 million new Class A shares — eToro announcement, via The Block
• TradeZero: founded 2015; ~$80 million revenue, 81% gross margins, TTM to June 30 — eToro
• Expected close: H1 2027, subject to regulatory approvals — eToro
• Q2 net contribution $229 million (+9% YoY, down from $258 million in Q1); GAAP net income $53 million (+77% YoY, down from $82 million) — eToro
• Funded accounts 4.28 million (+18%); AUA $19.2 billion (+10%); cash and short-term investments $1.2 billion — eToro
• Crypto was 5% of net trading profit in Q1; total crypto trades in July fell 73% year-over-year — The Block
• ETOR down 7.81% to $31.35 after a pre-market pop — Yahoo Finance, via The Block

The real-world read

Every deal and earnings figure here originates with eToro's own announcement; there is no independent audit of the $80 million or the 81% margin in the public record yet. "Up to $231 million" is doing work — the split between cash and shares, and whatever conditions gate the "up to," weren't disclosed.

The framing is year-over-year growth. The quarter-over-quarter direction is down across net contribution, EBITDA and net income, and the release leads with the comparison that flatters. The market appears to have read the sequential line: shares fell 7.81% after opening higher.

Then there's the identity problem. eToro built its retail brand on crypto, and crypto contributed just 5% of net trading profit in Q1, with July trade counts down 73% year-over-year. eToro didn't disclose a Q2 crypto share. The company is buying an equities brokerage while its crypto flow shrinks — and simultaneously rolling out crypto trading in New York under a NYDFS BitLicense it has held since 2023 and sat on for years.

Opinion, and whose

• eToro CEO Yoni Assia called it "an important step in building our U.S. business" and said "AI and on-chain finance represent the next chapter" — the acquirer's framing.
• Pipitone's pitch for TradeZero's "differentiated technology" is the seller describing what he's selling.
• The EPS accretion projection is eToro's own forecast; nobody independent has modeled it.

Sources

• The Block (Daniel Kuhn), Aug. 11, 2026 — deal terms, TradeZero financials, Q2 results, executive quotes, crypto trade decline, ETOR price. The Block discloses that Foresight Ventures is its majority investor.
• eToro's Tuesday announcement and Q2 statement, as quoted by The Block — the primary source for all deal and earnings figures. Company-issued, interested-party material.
• Yahoo Finance, via The Block — share price.
• FINRA BrokerCheck, via The Block — eToro USA Securities registration history.

Not financial advice.