Correction to EToro Posts Strong Results Thanks to Retail Trading Surge for Stocks and Crypto — Barrons.com

Paul R. La Monica

The retail trading boom is alive and well, but you wouldn't know it from the response to the latest financial results from the online stock and crypto brokerage firm eToro.

The company, which went public in May, reported results that topped Wall Street's forecasts Tuesday morning. Still, the stock finished the day down more than 8%.

EToro said that its net contribution, a top-line figure that subtracts the cost of revenue from cryptocurrency trading and margin-interest expense from total revenue and income, came in at $210 million. That was up 26% from a year ago, and ahead of analysts' consensus estimates for $196.1 million.

Adjusted net income, which backs out some of the costs related to the company's initial public offering in May, rose 23% from the same period last year to $54.2 million, or 56 cents a share. That surpassed Wall Street's expectations for 50 cents a share.

But eToro shares fell because of higher-than-expected costs, which put a dent into adjusted earnings before interest, taxes, depreciation and amortization.

Cantor Fitzgerald analyst Brett Knoblauch said in a report that the stock's sell-off was an overreaction. He expects stronger growth in trading volume in the third quarter and has a target of $80 for the stock price, implying a gain of nearly 60%.

EToro, much like rivals Robinhood Markets, Interactive Brokers, and Coinbase Global, is benefiting from the surge in demand for equities and digital assets thanks to the record-setting run for both stocks and Bitcoin.

The company also recently announced plans to expand its 24-hours-a-day/five-days-a-week trading program to 100 popular stocks and exchange-traded funds, while rolling out trading of U.S.-listed stocks as tokens on the Ethereum blockchain. EToro is also launching tools powered by artificial intelligence to develop trading algorithms and create investing recommendations.

"These advancements reflect our commitment to making investing simpler and more accessible for our global community," Yoni Assia, CEO and co-founder of eToro, said in the earnings release. "We are excited to continue developing technologies like tokenization and AI tools that we believe will transform how retail investors interact with the markets and create new opportunities for growth."

It has been a rocky couple of months for eToro as a publicly traded company, though. The stock debuted at a price of $52 in May and quickly rose as high as just below $80 by early June before pulling back. At a current price of about $50.75, shares are below their IPO price.

EToro, as a recent IPO itself, may also be benefiting from the increased appetite for IPOs in general. Strong showings for companies like AI firm CoreWeave, design-software company Figma, and rocket launcher Firefly Aerospace, are a sign of investors' increased interest in new listings.

Crypto-related stocks in particular are catching the eye of traders. Circle Internet Group, the stablecoin company that went public in June, has more than quintupled from its offering price. The company reported strong results in its first post-IPO earnings release Tuesday.

Galaxy Digital, the crypto firm run by Bitcoin bull Michael Novogratz, began trading in the U.S. in May following a direct listing. (The stock had previously traded on the Toronto Stock Exchange.) Gemini, founded by the Winklevoss brothers of Facebook fame, and Grayscale Investments have also recently filed confidentially for IPOs. That means they don't have to share financial information until the IPO date draws closer.

And later this week, crypto trading firm Bullish, which also owns the news and information site CoinDesk, is set to debut. The stock will trade on the New York Stock Exchange under the ticker symbol BLSH.

Bullish, backed by Peter Thiel, co-founder of Palantir Technologies and PayPal Holdings, is expected to be another hot IPO. The company has said that iShares owner BlackRock and Cathie Wood's ARK Investment Management expressed interest in buying up to a combined $200 million of shares at the IPO price. Bullish said Monday that it now expects to sell 30 million shares priced at a range of $32 to $33, up from its earlier plan to sell 20.3 million shares priced from $28 to $31.

Write to Paul R. La Monica at paul.lamonica@barrons.com

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Corrections & Amplifications

Gemini was founded by the Winklevoss brothers. A previous version of this article published on Aug. 12, 2025 incorrectly said Galaxy Digital was founded by the brothers.