eToro will buy US broker TradeZero for up to $231 million as its crypto business shrinks

@eToro has agreed to acquire US online brokerage @tradezero for up to $231 million, the company announced on Tuesday alongside its second-quarter 2026 results. The deal, structured as a mix of cash and up to 2.5 million newly issued Class A common shares, is expected to close in the first half of 2027, pending regulatory approvals.

What eToro Is Buying

TradeZero is a specialist US equities brokerage serving active and day traders, with direct market access, extended-hours trading and stock-locate services. TradeZero Holding Corp. owns TradeZero America, a US broker-dealer that has served US clients since 2019, along with entities in the Bahamas, Canada and the Netherlands.

TradeZero generated approximately $80 million in revenue in the 12 months ended June 30, 2026, with a gross margin of 81%. At the maximum purchase price of $231 million, the deal values the company at roughly 2.9 times its annual revenue. eToro said the acquisition is expected to be accretive to adjusted earnings per share in the first year after completion.

Co-founder and CEO Yoni Assia called the agreement "an important step in building our US business," pointing to TradeZero's technology, broker-dealer infrastructure and trading community as a faster route for launching new products. It is eToro's third acquisition signed in 2026, after it completed purchases of crypto wallet firm Zengo and exchange Bit2C in the second quarter.

Q2 Results: Equities Carry the Load as Crypto Slips

In its second-quarter report, eToro reported $1.59 billion in revenue, down from $2 billion in the comparable 2025 period. Of that, $1.34 billion was revenue from crypto assets, down about 30% from $1.9 billion in Q2 2025. eToro reported $1.35 billion in crypto-related cost of revenue, leaving $19.7 million in net income from crypto assets, against total net income of $53.4 million.

Equities and commodities-related trading generated $141 million in net income for the platform. Total cryptocurrency trades on the platform fell to 1.4 million in July, a 73% year-over-year decrease, and the amount invested in crypto on the platform dropped by roughly half.

Net contribution rose 9% year-over-year to $229 million, driven mainly by stronger equities trading, while GAAP net income jumped 77% to $53 million. Despite the profit beat, eToro shares fell sharply on the day following the results and acquisition announcement.

eToro faces the challenge of integrating TradeZero while managing the cyclical nature of cryptocurrency trading, which has historically driven significant portions of its revenue. The company's success will likely depend on whether its expansion into traditional capital markets can offset continued weakness in digital asset trading.

Sources:
eToro Official Q2 2026 Results Press Release
CoinTelegraph: eToro to Buy TradeZero as Crypto Revenue Falls 30%
Calcalist Tech: eToro Acquiring TradeZero for Up to $231 Million