Group 1 - The article discusses the anticipation for Ex-US equities to begin outperforming due to significant valuation differences compared to domestic equities [1] - The author has a background in the hedge fund industry, with experience as a Portfolio Manager and Domestic Equity Analyst, managing a Long/Short Equity product with gross assets exceeding 1 billion dollars [1] - The investment philosophy includes fundamental, bottoms-up value investing for long positions and catalyst-oriented short investing, complemented by technical analysis for risk management [1] Group 2 - The author expresses a beneficial long position in the shares of EDIV and DFIV through various investment vehicles [2] - The article is written independently, reflecting the author's personal opinions without external compensation [2] - There is a disclaimer regarding the lack of guarantee that past performance will predict future results, emphasizing that no specific investment advice is provided [3]

Core Insights - eToro Group Ltd. reported strong financial results for Q1 2025, highlighting an increase in net contribution and a focus on sustainable growth [1][3][4] Financial Highlights - Net contribution rose by 8% year-on-year to $217 million, up from $201 million in Q1 2024, primarily due to increased trading activity [6] - Net income (GAAP) was $60 million, a decrease from $64 million in Q1 2024, attributed to higher marketing and growth investments [6] - Adjusted EBITDA (non-GAAP) was $80 million, down from $87 million in the prior year, with an adjusted EBITDA margin of 37%, compared to 43% in the previous year [6] - Funded accounts increased by 14% year-on-year to 3.58 million, driven by user acquisition and retention efforts [6] - Assets under Administration grew by 21% year-on-year to $14.8 billion, compared to $12.2 billion [6] Business Developments - eToro launched new products and services, including futures in Europe and options in the UK, expanding its range of over 130 cryptoassets [7] - The company introduced a commodities portfolio in partnership with WisdomTree and launched securities lending in Europe [7] - eToro began rolling out crypto to fiat services and partnered with local financial institutions to offer virtual bank accounts [7] - The company achieved a MiCA permit from CySec, allowing it to provide crypto services across the EU, marking a significant regulatory milestone [8] Market Positioning - eToro's CEO emphasized the importance of AI in transforming the investing landscape and the company's commitment to empowering retail investors [2] - The company aims to drive sustainable growth and profitability, creating value for shareholders [2]