eToro Bets Big on US Expansion Despite Crypto Revenue Dip

eToro is set to acquire TradeZero as part of its US expansion plans. The move comes after eToro reported $1.59 billion in revenue for Q2, down from $2 billion in the same period last year. Crypto assets generated $1.34 billion in revenue, a decline of 30% year-over-year.

eToro's crypto-related cost of revenue was $1.35 billion, with net income from crypto assets reaching $19.7 million. The company's total net income for the quarter was $53.4 million. Equities and commodities trading generated $141 million in net income.

TradeZero generated about $80 million in revenue over the last 12 months, with gross margins of 81%. eToro expects the acquisition to be accretive to adjusted earnings per share in the first year after closing, which is expected in the first half of 2026. The deal will likely impact eToro's shares, as they were down over 5% in pre-market activity on Tuesday.