Financial Data and Key Metrics Changes - The company's net contribution for Q2 2025 increased by 26% year over year to $210 million, while adjusted EBITDA grew by 31% year over year to $72 million, with an adjusted EBITDA margin of 34%, expanding 140 basis points from the previous year [13][24][23] - Assets Under Administration (AUA) increased by 54% year over year to $7.5 billion, and funded accounts grew by 14% year over year to 3.63 million [24][23] - Adjusted EPS for the quarter was $0.56 compared to $0.51 in Q2 2024 [26] Business Line Data and Key Metrics Changes - Net trading contribution from equities, commodities, and currencies grew by 37% year over year to $114 million, driven by a 54% increase in invested amount per trade [24][25] - Net contribution from crypto increased by 34% year over year to $27 million, primarily due to higher invested amounts per trade, despite lower overall crypto activity [24][25] - Interest earning assets contributed $46 million, up 1% year over year, while eToro Money contribution grew by 17% year over year to $18 million [25] Market Data and Key Metrics Changes - The company expanded its global footprint by activating its license in Singapore, positioning itself to serve Asia's growing investor base [13] - The U.S. market saw significant expansion in crypto offerings, now providing access to over 100 different crypto assets [15][24] Company Strategy and Development Direction - eToro aims to be a leading trading investment platform, focusing on product development across four strategic pillars: trading, investing, wealth management, and neo banking [12] - The company is committed to leveraging AI technology to enhance the investing experience and democratize access to quantitative trading tools [19][20] - eToro is exploring the tokenization of assets, anticipating a significant transfer of wealth as traditional assets move onto the blockchain [15][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the U.S. and Asia, particularly with the recent regulatory developments around crypto [15][70] - The company is focused on sustainable, profitable revenue growth through diversification of revenue streams and disciplined cost management [22][23] - Management noted that while Q2 saw elevated trading activity, normalization is expected in subsequent months, with a positive outlook for crypto activity in July [27][34] Other Important Information - The company launched the eToro MoneyCard across Europe, which offers a 4% stockbroker reward on purchases [18] - eToro is actively working on expanding its product offerings, including the introduction of staking and CopyTrader for U.S. customers [48][70] Q&A Session Summary Question: When does eToro plan to provide calls and puts options to European investors? - eToro plans to expand options trading to Europe, UAE, Singapore, and Australia over the next twelve months, following initial launches in the U.S. and the UK [28] Question: Can you provide insights on the cadence throughout the quarter? - Elevated trading activity was observed in April, normalizing towards the end of Q2, with a noted increase in crypto trading in July [31][34] Question: What is the revenue opportunity from tokenized stocks? - eToro anticipates a significant process of digitization and tokenization of assets, expecting $100 trillion of assets to move on-chain over the next twenty years [38][39] Question: What is the update on CopyTrader in the U.S.? - eToro plans to launch CopyTrader for U.S. customers later this year, with significant progress made in expanding crypto offerings [48][70] Question: How is account growth dynamics across regions? - Growth is balanced across regions, with notable growth in the UAE, and overall funded accounts are expected to continue growing [51] Question: What is the outlook for funded account growth in the APAC region? - The company sees significant growth opportunities in Asia, particularly through its new license in Singapore [64] Question: What is the percentage mix from CFDs in net trading income? - The company does not break down net trading income by transaction type but aims to reach a 20% mark for CFDs in the coming months [94]

Financial Data and Key Metrics Changes - Net contribution for Q2 2025 increased 26% year over year to $210 million, and adjusted EBITDA grew 31% year over year to $72 million, with an adjusted EBITDA margin of 34%, expanding 140 basis points from a year ago [12][22][24] - Assets Under Administration (AUA) increased 54% year over year to $7.5 billion, while funded accounts grew 14% year over year to 3.63 million [23] Business Line Data and Key Metrics Changes - Net trading contribution from equities, commodities, and currencies grew 37% year over year to $114 million, driven by a 54% increase in invested amount per trade [23] - Net contribution from crypto grew 34% year over year to $27 million, largely driven by higher invested amounts per trade [24] - Interest earning assets contributed $46 million, up 1% year over year, while eToro Money contribution grew 17% year over year to $18 million [24] Market Data and Key Metrics Changes - The company activated its license in Singapore, expanding its global footprint to serve Asia's growing investor base [12] - Recent regulatory developments around crypto in the US represent a significant milestone, leading to an expansion of crypto offerings for US users [14] Company Strategy and Development Direction - eToro aims to be a leading trading investment platform by enhancing user engagement through product development across four strategic pillars: trading, investing, wealth management, and neo banking [12][20] - The company is focused on diversifying revenue streams, strategic investments, and disciplined cost management to support sustainable, profitable revenue growth [21][22] - eToro is committed to leveraging AI technology to enhance the investing experience and democratize quantitative trading [10][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the opportunities ahead, particularly in the US and Asia, and emphasized the importance of regulatory clarity for future growth [14][70] - The company is well-positioned to execute growth initiatives and drive sustainable long-term growth [20] Other Important Information - eToro launched a Toro MoneyCard across Europe, which offers a 4% stockbroker reward on everyday purchases [17] - The company is actively working on launching tokenized stocks and expanding its crypto offerings [13][14] Q&A Session Summary Question: When does eToro plan to provide calls and puts options to European investors? - eToro plans to expand options trading to Europe, UAE, Singapore, and Australia over the next twelve months, following initial launches in the US and UK [28] Question: Can you provide insights on the cadence throughout the quarter? - Elevated trading activity was observed in April, normalizing towards the end of the quarter, with a notable increase in crypto trading in July [30][32] Question: How do you quantify the revenue opportunity from tokenized stocks? - eToro expects a significant process of digitization and tokenization of assets, estimating $100 trillion of assets to move on-chain over the next twenty years [38] Question: What is the update on the CopyTrader opportunity in the US? - eToro plans to launch CopyTrader for US customers later this year, with significant scaling of crypto assets already achieved [68][70] Question: Can you provide an update on account growth dynamics? - Funded account growth was slower in the recent quarter, but the quality of customers improved, with a 34% year-over-year increase in average account size [54][56] Question: What is the percentage mix from CFDs in net trading income? - eToro does not break down net trading income by transaction type but aims to reach a 20% mark for CFDs in the next twelve to eighteen months [95] Question: How are users utilizing stablecoins? - eToro recently launched the ability for customers to deposit stablecoins, opening up new user audiences and enhancing the platform's crypto capabilities [84][85] Question: What are the future prospects for AI use in investing? - eToro is excited about the potential of AI to enhance product delivery and user engagement, with tools like Tori set to empower retail investors [88][91]

Core Insights - eToro Group Ltd. reported strong financial results for Q2 2025, with net contribution increasing by 26% year-over-year to $210 million, driven by heightened trading activity [1][6] - The company achieved a 54% year-over-year growth in assets under administration, reaching $17.5 billion, and a 14% increase in funded accounts to 3.63 million [1][6] Financial Highlights - Adjusted EBITDA grew by 31% year-over-year to $72 million, reflecting a focus on profitable revenue growth [3][6] - Net income (GAAP) was $30.2 million, slightly down from $30.6 million in Q2 2024, impacted by $15 million in IPO-related costs [6] - Adjusted net income (Non-GAAP) rose to $54.2 million from $44.2 million in the same quarter last year [6] Product and Service Innovations - eToro launched 24/5 trading for U.S. equities and expanded its U.S. crypto offering to over 100 assets [2][5] - The company introduced new long-term portfolios in collaboration with Franklin Templeton and launched savings products in France [2][5] - eToro is advancing its tokenization strategy, planning to launch tokenized U.S. listed stocks [5][11] Global Expansion and Strategic Initiatives - eToro established a new hub in Singapore, enhancing its presence in the Asia-Pacific region [2][11] - The company activated its Capital Markets Services license from the Monetary Authority of Singapore, reinforcing its commitment to the local fintech ecosystem [11] User Engagement and Growth Metrics - Funded accounts increased by 14% year-over-year, attributed to user acquisition and retention efforts, including the acquisition of the Australian investing app Spaceship [6][11] - The company reported cash, cash equivalents, and short-term investments totaling $1.2 billion as of June 30, 2025 [6]

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 ...