eToro Acquires TradeZero in Strategic Move to Expand Beyond Trading
On August 11, eToro Group Ltd. (NASDAQ:ETOR) reported second-quarter results showing a net contribution of $229 million and announced the acquisition of US broker-dealer TradeZero for up to $230 million in cash and stock. The deal is expected to close by mid-2027 and be accretive to adjusted earnings per share within its first full year. The company's capital markets segment saw a 25% increase in net trading contribution, while funded accounts grew 18% year over year to 4.28 million as of the end of Q2. eToro also reported $0.68 adjusted diluted earnings per share and ended the quarter with $1.2 billion in cash after repurchasing approximately $87 million worth of shares. However, crypto trading contribution dropped significantly to just $11 million due partly to a negative valuation impact on its own corporate holdings. Operating expenses rose slightly during Q2, and institutional ownership saw a modest decline.
Tickers: $ETOR