Financial Data and Key Metrics Changes - Net contribution increased by 28% year over year to $215 million, while adjusted EBITDA rose by 43% to $78 million, resulting in solid operating margins of 36% [3][22] - Assets under administration reached a record high of $20.8 billion, up 76% year over year, and funded accounts grew by 16% to 3.73 million [5][22] Business Line Data and Key Metrics Changes - Net trading contribution from crypto surged by 229% year over year to $56 million, driven by higher invested amounts per trade and increased activity [23] - Net trading contribution from capital markets, equities, commodities, and currencies declined by 21% year over year to $73 million due to a shift in investor activity towards crypto [23] - Net interest income increased by 44% year over year to $62 million, largely due to a 52% rise in higher interest-earning assets [23] Market Data and Key Metrics Changes - Funded accounts in the US saw significant growth, with new funded accounts surpassing those of 2024 year-to-date, and a three-times increase in crypto volumes quarter over quarter [16][17] - The company expanded its market access globally, now offering access to 22 different exchanges and planning to increase to over 30 by 2026 [6] Company Strategy and Development Direction - The company is focused on four strategic pillars: trading, investing, wealth management, and neobanking, while accelerating product innovation [5][11] - Plans to democratize investing by making it simple, accessible, and social, with a focus on AI-driven tools and community engagement [4][12] - A $150 million share repurchase program was announced, reflecting confidence in long-term growth prospects [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture significant growth opportunities driven by innovation, global expansion, and macro trends [11][19] - The company anticipates continued strong performance in Q4, with positive momentum in capital markets and crypto businesses [25] Other Important Information - The company launched a new subscription model for the eToro Club, providing premium benefits and exclusive features [10][26] - The integration of Spaceship in Australia allows users direct access to superannuation products, enhancing the wealth management offering [10] Q&A Session Summary Question: Comment on the new subscription offering and its opportunity - The subscription model was launched to provide premium benefits and consolidate previous models, enhancing customer engagement [26][27] Question: Discuss account growth and contributing regions - Account growth has been strong, with double-digit growth driven by increased deposits and engagement, though geographic breakdowns were not provided [28][29] Question: Implications of artificial intelligence on trading - AI tools are being developed to enhance user engagement and automate trading strategies, with early signs of success in user adoption [30][31] Question: Strategic focus by geography - The company aims for long-term growth in the US and Asia while maintaining leadership in Europe, focusing on data-driven marketing strategies [33][34] Question: Account growth expectations - The company targets double-digit growth in funded accounts, supported by a growing market of younger investors [35][36] Question: Dynamics of crypto trading volumes - Strong crypto trading volumes were noted, with a shift in investor activity impacting capital markets revenues [37][38] Question: Capital allocation priorities - The company is balancing share buybacks with potential M&A opportunities, maintaining a strong cash position [40][41] Question: Pathway for prediction markets - The company is exploring both organic and inorganic opportunities for prediction markets, leveraging existing infrastructure [42] Question: Mechanics of copy trading in the US - Copy trading operates similarly in the US and internationally, with ongoing enhancements to the Pro Investor program [50][51]

Q3 2025 Key Performance Indicators - eToro's funded accounts reached 373 million, a 16% year-over-year increase[13] - Assets Under Administration (AUA) totaled $208 billion, marking a 76% year-over-year growth[13] - Net Contribution amounted to $215 million, reflecting a 28% year-over-year increase[13] - Adjusted EBITDA reached $78 million, a 43% year-over-year increase[13] Financial Performance - Net income increased to $57 million, a 48% year-over-year increase[119] - Total money transfers grew to $28 billion, a 58% year-over-year increase[115] - Interest-earning assets rose to $79 billion, a 53% year-over-year increase[111] User Engagement - The number of trades in capital markets/ECC increased to 135 million, a 15% year-over-year increase[106] - The number of cryptoasset trades increased to 16 million, a 73% year-over-year increase[106] - Invested amount per cryptoasset trade increased to $300, a 58% year-over-year increase[106] Strategic Initiatives - eToro announced a $150 million share repurchase program[156] - eToro Money accounts reached 175 million, with debit card issuance increasing 25 times compared to Q2[75]

Stock and crypto trading platform eToro beat estimates for third-quarter profit on Monday as retail investors maintained their buying streak despite bubble worries, sending shares up 8% before the bel... ...

Core Insights - eToro Group Ltd. reported a strong financial performance for Q3 2025, with significant year-over-year growth in key metrics, including a 28% increase in Net Contribution to $215 million and a 76% increase in Assets Under Administration to $20.8 billion [1][5][7] Financial Performance - Net Contribution increased by 28% year-over-year to $215 million, compared to $167 million in Q3 2024 [5] - Net income (GAAP) rose by 48% year-over-year to $57 million, up from $39 million in Q3 2024 [5] - Adjusted Net Income (Non-GAAP) increased by 35% to $60 million, compared to $45 million in Q3 2024 [5] - Adjusted EBITDA (Non-GAAP) grew by 43% year-over-year to $78 million, compared to $55 million in Q3 2024 [5] - Funded accounts increased by 16% year-over-year to 3.73 million, driven by user acquisition and retention efforts [5][7] Strategic Initiatives - eToro announced a $150 million share repurchase program, reflecting confidence in its long-term strategy and growth prospects [4] - The company is focused on executing its strategy across four key pillars: trading, investing, wealth management, and neo-banking, with ongoing product development and innovation [2][3] - eToro's commitment to product innovation includes the launch of AI-powered solutions and expansion of its crypto offerings, positioning the company to capture growth opportunities [2][12] Market Metrics - Assets Under Administration grew by 76% year-over-year to $20.8 billion, compared to $11.8 billion in Q3 2024 [5][7] - Cash, cash equivalents, and short-term investments totaled $1.2 billion as of September 30, 2025 [7] - The total number of trades for October was 62 million, up 53% year-over-year, with an invested amount per trade of $361, up 26% year-over-year [7] Product Highlights - eToro launched key products across its four strategic pillars, including continuous weekday trading (24/5) for S&P 500 and Nasdaq 100 stocks, and expanded its futures offering into Europe [7] - The company introduced the eToro Club Subscription, providing access to exclusive wealth tools and premium rewards, and localized its money management experience [7] - eToro's AI-powered analyst, Tori, has seen strong adoption, with over one-third of Club Members using it for personalized insights [7]

Core Insights - eToro has launched its CopyTrader technology for US users, allowing them to replicate the investment strategies of real US traders across various asset classes including stocks, ETFs, and cryptoassets [1][2]. Company Overview - eToro is a trading and investing platform founded in 2007, with a vision of simplifying and democratizing trading and investing for everyone. The platform has 40 million registered users across 75 countries [7]. Product Features - CopyTrader enables users to automatically mirror the portfolios of other investors in real-time, integrating seamlessly into their existing trading strategies [3]. - Users can view the performance history of other investors and can copy up to 100 investors, maintaining control over their portfolios by adjusting funds as needed [4]. - The technology is designed to empower retail investors by leveraging the expertise of others without management fees or hidden costs [2][5]. Launch Details - The announcement of CopyTrader's availability in the US was made during eToro's annual Investor Summit, which celebrated 15 years of social investing [6]. - The launch is part of a phased rollout, with a select group of US users gaining early access [5].

Group 1 - eToro Group Ltd. (NASDAQ:ETOR) is identified as one of the oversold financial stocks to buy according to hedge funds [1] - Bank of America Securities reduced its price target for eToro from $61 to $50 while maintaining a Neutral rating [1][2] - The analyst remains bullish on online brokers in the long term but is cautious in the short term due to high entry points and expectations of lower interest rates [2] Group 2 - eToro outperformed Wall Street's revenue estimates in the fiscal second quarter of 2025, reporting revenue of $209.63 million, exceeding estimates by $14.93 million [3] - The company's earnings per share (EPS) of $0.31 fell short of consensus estimates by $0.20 [3] - eToro operates a social investment platform that allows users to view and interact with other investors' portfolios and ideas [3]

Core Points - eToro Group Ltd. will release its third quarter 2025 financial results on November 10, 2025, before market opens [1] - A webcast will follow the financial results announcement at 8:30 AM ET / 5:30 AM PT [1] - Shareholders can submit questions for the management to address during the webcast until October 31, 2025 [3] Company Overview - eToro is a trading and investing platform founded in 2007, aiming to simplify and enhance the trading experience [4] - The company has 40 million registered users across 75 countries, promoting a collaborative investment community [4] - eToro offers a variety of traditional and innovative assets, allowing users to trade directly, invest in portfolios, or copy other investors [4]

Group 1: Bitcoin Act Advocacy - The Bitcoin Act, introduced by Senator Cynthia Lumis and Representative Nick Begich, aims to codify a strategic Bitcoin reserve established by an executive order from President Trump [3][4] - The advocacy for the Bitcoin Act is seen as crucial for establishing a long-term legal framework for Bitcoin, contrasting with the temporary nature of executive orders [4][5] - The proposed legislation includes plans to purchase 1 million bitcoins over the next five years and hold them for at least 20 years, potentially impacting the federal deficit positively [10] Group 2: Legislative Developments - Recent legislative advancements include the passing of the Clarity Act in the House, with hopes for a Senate version to be passed by the end of the year [13][18] - The Genius Act, which regulates stablecoins, represents a significant step forward in crypto regulation in the U.S., encouraging companies to establish U.S. operations [15][17] - The SEC has approved changes to listing standards for crypto-focused exchange-traded products, which is expected to streamline the process for bringing new products to market [22][23] Group 3: Market Opportunities and Innovations - The industry is witnessing a growing demand for tokenized stocks, with a focus currently in Europe but anticipated to expand to the U.S. [26][27] - The number of crypto assets available on platforms has increased significantly, from three to 111, reflecting a robust growth in offerings [29] - Upcoming features such as staking are expected to enhance customer engagement and investment options [30]

Group 1 - eToro Group Ltd. is recognized as a promising stock with significant upside potential, despite a recent price target reduction by Citi analyst Christopher Allen from $62 to $57, maintaining a Neutral rating due to broader caution in retail trading [1][3] - In Q2 2025, eToro reported a 31% year-over-year increase in adjusted EBITDA, reaching $72 million, attributed to higher revenue and effective cost management, alongside a 14% increase in funded accounts to 3.63 million [2] - eToro has expanded its trading offerings by launching 24/5 trading for 100 US equities and increasing its US crypto assets to over 100, while also introducing AI-powered tools and portfolios, including an AI analyst named "Tori" [3] Group 2 - eToro operates a multi-asset trading platform that supports various asset classes, including equities, crypto assets, commodities, currencies, and options, allowing trading as both assets and derivatives [4]

Company Overview - eToro has approximately $1.2 billion in cash and cash equivalents, with a cash position of $988 million and no debt, positioning the company well for potential mergers and acquisitions [3] - The company was founded in 2007 and raised $620 million in its initial public offering (IPO) in May [4] Strategic Plans - eToro aims to pursue more ambitious acquisitions to expand its asset classes and geographic reach, as stated by co-founder Ronen Assia [2] - Recent announcements include the addition of tokenization and artificial intelligence tools to enhance retail investor offerings [4] Market Position - Unlike competitors such as Crypto.com, eToro is not interested in acquiring prediction markets, as Assia believes they are not a long-term investment tool [3] - The company focuses on strengthening user engagement and expanding its addressable market through new features [5]