NEW YORK, Aug. 07, 2025 (GLOBE NEWSWIRE) -- eToro Group Ltd. ("eToro", or the "Company") (NASDAQ: ETOR), the trading and investing platform, announced today how the company is harnessing artificial intelligence to redefine social investing. Yoni Assia, eToro's Co-founder and CEO, commented: "There's been a lot of talk about how AI will reshape investing. It's not just speculation—it's already happening. At eToro, we're not waiting for the future to arrive. We're building it. "Market data in the palm of your ...

eToro (NASDAQ: ETOR ) is not a growth story. But that's probably what I like about it. The company has had its ups and downs, and now it's finally making a profit Hi, I'm Martin, I focus on maintaining a delta neutral portfolio. I want to be long/short at the same time and benefit from market volatility. I specialize in using options through which I enter and exit trades. I look for market opportunities primarily in small companies, and my search takes me into the waters of mid-sized companies as well. Seek ...

Group 1 - eToro Group plans to launch tokenized versions of U.S. listed stocks, allowing customers to trade stocks anytime [1] - The service may initially launch in Europe and will issue assets in the form of ERC20 tokens on the Ethereum blockchain [1] - Users will be able to trade 100 U.S. listed stocks and ETFs around the clock once the service is live [1] Group 2 - eToro's CEO Yoni Assia highlighted the significance of merging digital assets with traditional stock trading [1] - The company has been offering cryptocurrency services to U.S. users since 2019 and supports over 50 digital assets [1] - eToro has partnered with the Chicago Mercantile Exchange to provide spot quotes for futures, currently available in select European markets [1] Group 3 - Robinhood Markets Inc. announced a similar plan to offer tokenized U.S. securities to its European customers [2] - Regulatory scrutiny has arisen regarding Robinhood's tokenized offerings, particularly after a controversial promotion involving OpenAI [2] - OpenAI publicly distanced itself from Robinhood's promotion, clarifying that the tokens are not equity in OpenAI [2]

Core Insights - eToro is evolving its product offerings towards a tokenized future, emphasizing the potential of blockchain technology to facilitate significant wealth transfer through the tokenization of traditional assets [2][5][6] - The company plans to expand its trading hours from 24/5 to 24/7, allowing users to trade US-listed stocks and ETFs, as well as spot-quoted futures, enhancing flexibility and accessibility [3][4][7] Company Developments - eToro will introduce an initial list of 100 popular US-listed stocks and ETFs for 24/5 trading, aiming to empower users to trade in real-time [2][4] - The platform has launched spot-quoted futures in collaboration with CME Group, providing accessible-sized contracts and familiar pricing, currently available in select European markets [3][4] - The company has a history of involvement in tokenization, having launched tokenized gold and silver in 2019, and is now set to launch US-listed equities as ERC20 tokens on the Ethereum blockchain [5][6] Industry Context - New regulations, such as MiCA in Europe and the Genius Act in the US, are creating opportunities for the tokenization of real-world assets, which are legally backed and regulated [2][6] - The benefits of tokenization, including 24/7 transferability, are being recognized, with stable coins demonstrating these advantages [2][6]

Group 1 - Robinhood has significantly benefited from increased investor appetite for risk, leading to a more than 2x increase in its valuation amid sharp market volatility this year [1] - The rebound in equity markets and healthy crypto trading activity have contributed to the growth of the digital brokerage [1] - Gary Alexander, with extensive experience in technology and startups, has been a contributor to Seeking Alpha since 2017, providing insights into industry trends [1]

Company Overview - eToro Group Ltd. is a trading and investing platform founded in 2007, aiming to provide a simple and transparent way for everyone to trade and invest [3] - The platform has 40 million registered users from 75 countries, emphasizing the power of shared knowledge and collaborative investment [3] Upcoming Webinar - eToro will host a webinar titled 'eToro Unlocked: Trade Without Boundaries' on July 29, 2025, at 10 AM ET, showcasing the latest product evolutions and future updates [1] - The webinar will be led by eToro's Co-founder and CEO, Yoni Assia, who will share his vision and details of the product updates [2] Product Offering - eToro allows users to hold a variety of traditional and innovative assets, with options to trade directly, invest in portfolios, or copy other investors [3]

Core Points - eToro Group Ltd. will release its second quarter 2025 financial results on August 12, 2025, before the market opens [1] - A webcast will follow the results announcement at 8:30 AM ET / 5:30 AM PT, where analysts can ask live questions [1][2] - Shareholders can submit and upvote questions until July 31, 2025, and management will address selected questions during the webcast [3] Company Overview - eToro is a trading and investing platform founded in 2007, aiming to simplify and make trading accessible [4] - The platform has 40 million registered users across 75 countries, promoting a collaborative investment community [4] - Users can trade a variety of traditional and innovative assets, with options to trade directly, invest in portfolios, or copy other investors [4]

Core Viewpoint - eToro Group Ltd. has appointed Laura Unger and Lior Shemesh as new Board Members, both of whom will also join the Audit & Risk Committee, as the company aims to expand its operations globally, particularly in the U.S. [1][2] Group 1: Appointments and Expertise - Laura Unger brings extensive experience in regulatory governance and risk management, having served in various public and private sector roles, including as a former SEC Commissioner and Acting Chair [2][4] - Lior Shemesh has a strong background in financial strategy and operations for technology companies, currently serving as CFO of Wix and previously holding senior finance roles at other tech firms [6][8] Group 2: Company Vision and Goals - eToro aims to grow its presence worldwide, with a specific focus on expanding operations in the U.S. [2] - The company emphasizes its commitment to leveraging technology to empower individual investors, aligning with the expertise of its new board members [8] Group 3: Company Background - eToro was founded in 2007 and has grown to 40 million registered users across 75 countries, promoting a collaborative investment community [9]

Core Viewpoint - eToro Group Ltd. has successfully closed a new three-year $250 million senior unsecured revolving credit facility, enhancing its financial flexibility for long-term strategic growth [1][2][3] Financial Position - The credit facility remains undrawn at closing, indicating that eToro has no outstanding debt and maintains a strong liquidity position with over $736 million in cash, cash equivalents, and short-term investments as of March 31, 2025 [2][3] Strategic Growth - The facility is intended to support eToro's long-term strategic growth initiatives, reinforcing its robust liquidity profile and positioning the company for continued growth and expansion [2][3] Partnership and Arrangement - The credit facility was arranged by a consortium of banks including Citi, Bank Hapoalim, Bank Leumi, Deutsche Bank, Goldman Sachs, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and UBS [3] Company Overview - eToro is a trading and investing platform founded in 2007, with a vision of enabling simple and transparent trading and investing. The platform has 40 million registered users across 75 countries, promoting a collaborative investment community [4]

[First Quarter 2025 Financial and Business Highlights](index=1&type=section&id=First%20Quarter%202025%20Financial%20and%20Business%20Highlights) eToro reported strong Q1 2025 results with an 8% increase in net contribution to $217 million, alongside significant user and AUA growth despite increased marketing investments Q1 2025 Financial Highlights (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Contribution | $217 million | $201 million | +8% YoY | | Net Income (GAAP) | $60 million | $64 million | -6% YoY | | Adjusted EBITDA | $80 million | $87 million | -8% YoY | | Adjusted EBITDA Margin | 37% | 43% | -6 p.p. | | Funded Accounts | 3.58 million | 3.13 million | +14% YoY | | Assets under Administration | $14.8 billion | $12.2 billion | +21% YoY | | Cash & Equivalents | $736 million | - | - | - The company successfully completed its initial public listing in Q1 2025[3](index=3&type=chunk) - Increased investment in marketing and growth was made in response to favorable market conditions, impacting net income and Adjusted EBITDA[5](index=5&type=chunk)[8](index=8&type=chunk) - eToro is focusing on AI to reshape the investing landscape and accelerate the production of educational materials, now offering over 3,000 pieces of content in 11 languages[3](index=3&type=chunk)[11](index=11&type=chunk) - Key business developments in Q1 2025 include: **Trading** with launched futures in Europe, options in the UK, and expanded crypto offerings to over 130 tokens; **Investing** with added stocks from Abu Dhabi and Hong Kong exchanges and new Smart Portfolios; **Wealth Management** with a new self-directed UK ISA offering and recurring investments; and **Regulatory** achievements including a MiCA permit by CySec for crypto services across the EU and SOC 2 Type II compliance for crypto custody[9](index=9&type=chunk)[11](index=11&type=chunk) [Second Quarter 2025 Update](index=2&type=section&id=Second%20Quarter%202025%20Update) Positive business momentum continued into Q2 2025, with funded accounts reaching 3.61 million and Assets under Administration increasing to $16.9 billion by May 31 Key Metrics as of May 31, 2025 | Metric | Value | | :--- | :--- | | Funded Accounts | 3.61 million | | Assets under Administration | $16.9 billion | - Performance through May 31, 2025, reflects continued interest in trading and investing from retail investors in response to market events[11](index=11&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) The financial statements for Q1 2025 reflect a solid financial position with total assets growing to $1.26 billion and net cash from operating activities at $89.7 million [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets reached $1.26 billion, driven by increased cash and cash equivalents, with total equity growing to $894.7 million Balance Sheet Highlights | Account | March 31, 2025 (in thousands USD) | December 31, 2024 (in thousands USD) | | :--- | :--- | :--- | | Cash and cash equivalents | $660,060 | $575,395 | | Total Assets | $1,255,724 | $1,191,362 | | Total Liabilities | $361,059 | $358,987 | | Total Equity | $894,665 | $832,375 | [Condensed Consolidated Statements of Profit or Loss](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Profit%20or%20Loss) Q1 2025 total revenue and income increased to $3.76 billion, primarily from cryptoassets, while net income decreased to $60.0 million due to higher marketing expenses Q1 Income Statement Highlights | Account | Q1 2025 (in thousands USD) | Q1 2024 (in thousands USD) | | :--- | :--- | :--- | | Total revenue and income | $3,755,381 | $3,383,520 | | Selling and marketing | $61,222 | $37,342 | | Net income | $59,952 | $64,110 | | Diluted net income per share | $0.69 | $0.76 | [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 saw net cash from operating activities increase to $89.7 million, resulting in an $84.7 million rise in cash and cash equivalents, totaling $660.1 million Q1 Cash Flow Summary | Activity | Q1 2025 (in thousands USD) | Q1 2024 (in thousands USD) | | :--- | :--- | :--- | | Net cash provided by operating activities | $89,732 | $50,883 | | Net cash used in investing activities | ($11,579) | ($1,712) | | Net cash used in financing activities | ($867) | ($698) | | **Increase in cash and cash equivalents** | **$84,665** | **$44,894** | | **Cash and cash equivalents at end of period** | **$660,060** | **$433,228** | [Non-GAAP Financial Metrics and Key Performance Indicators](index=6&type=section&id=Non-GAAP%20Financial%20Metrics%20and%20Key%20Performance%20Indicators) This section reconciles GAAP net income to Adjusted EBITDA, which was $80.2 million for Q1 2025, and defines key performance indicators like AUA, Funded Accounts, and Net Contribution [Reconciliation of Non-GAAP Metrics](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Metrics) Adjusted EBITDA for Q1 2025 was $80.2 million, a decrease from Q1 2024, with reconciliation from GAAP Net Income including various non-cash and non-recurring adjustments Reconciliation of Net Income to Adjusted EBITDA | Line Item | Q1 2025 (in thousands USD) | Q1 2024 (in thousands USD) | | :--- | :--- | :--- | | **Net income** | **$59,952** | **$64,110** | | Taxes on income | $10,589 | $9,516 | | Share-base payment expense | $4,287 | $8,891 | | Depreciation, amortization, and impairment | $3,010 | $2,590 | | Other adjustments | $3,362 | $1,770 | | **Adjusted EBITDA** | **$80,194** | **$86,877** | [Definitions of Key Performance Indicators](index=7&type=section&id=Definitions%20of%20Key%20Performance%20Indicators) This section defines key business metrics including Assets under Administration (AUA), Funded Accounts, and Net Contribution, which are used to evaluate eToro's performance - **Assets under administration (AUA):** The total fair value of all assets held by users in their accounts, including cash and cryptoassets held in the eToro digital wallet[25](index=25&type=chunk) - **Funded Accounts:** Users who have completed onboarding, deposited funds, executed at least one trade, and maintain a positive account balance[26](index=26&type=chunk) - **Net Contribution:** Total revenue and income, less the cost of revenue from cryptoassets and margin interest expense It is used to evaluate the net contributions of user activity[27](index=27&type=chunk) [Cautionary Note Regarding Forward-Looking Statements](index=8&type=section&id=Cautionary%20Note%20Regarding%20Forward-Looking%20Statements) This section provides legal disclaimers, cautioning that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from expectations - Forward-looking statements are based on current expectations and are subject to risks including market volatility, competition, regulatory changes, and other factors detailed in the company's SEC filings[30](index=30&type=chunk) - The company warns that past performance is not indicative of future results and that these statements should not be relied upon as representing the company's views at any subsequent date[31](index=31&type=chunk)