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]

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]

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]