Workflow
Tori
icon
Search documents
eToro Group Ltd-A(ETOR) - 2025 Q2 - Earnings Call Transcript
2025-08-12 13:30
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]
eToro Leverages AI to Redefine Social Investing
Globenewswire· 2025-08-07 12:00
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 ...