eToro (ETOR) gains on Q4 2025 earnings; crypto drag stays

eToro’s Q4 beat lifted shares, but growth and margins lag

Shares of investment platform eToro jumped more than 20% after a better-than-expected fourth-quarter report, yet the stock remains below prior highs as investors weigh decelerating growth and margin pressure, as reported by Barron’s. The headline beat contrasted with signs of slower user expansion and profitability strain tied to the company’s mix of trading activity.

The report also noted that assets under administration increased year over year and funded accounts grew roughly in the high-single digits, but the pace has cooled versus earlier in 2025. That slowdown helps explain why the relief rally has not fully closed the gap with previous peaks.

Why it matters: slower funded accounts, EBITDA pressure, crypto volatility

Adjusted EBITDA declined year over year even as revenue diversified, while crypto-related revenue softened versus the prior year, according to TipRanks. When activity shifts toward lower take-rate products and operating costs rise, margins can compress even in periods of solid topline performance.

Before outlining an outlook, it is relevant to note how management frames strategy. “A financial system that is increasingly moving on-chain,” said Yoni Assia, CEO, in the company’s Q4 and full-year release posted via Nasdaq. In that release, the company also reported processing roughly $13 billion in crypto volume for the full year with about $43 million in net spread, illustrating how large reported volumes can yield modest net contribution when spreads are thin.

Immediate impact: stock pop; mixed KPIs across accounts, AUA, profitability

The immediate post-report pop reflected relief around the beat, but the KPI set remained mixed across funded accounts, AUA and profitability. That divergence between headlines and underlying drivers points to continued sensitivity to product mix and trading conditions.

Institutional commentary highlighted both opportunity and caution: according to Cantor Fitzgerald, volatility around the print resembled an overreaction, while continued product rollouts in areas like crypto and AI could be supportive if sustained. Execution, competition, and regulatory complexity remain key variables for sentiment.

At the time of this writing, Robinhood Markets (HOOD), a peer in retail brokerage, traded around $76 in the prior session with after-hours levels near that mark, based on data from Yahoo Scout. The backdrop underscores ongoing trading volatility across retail-investing platforms that can influence near-term engagement and revenues.

What to watch next: user growth, crypto mix, cost discipline

The pace of funded-account additions and engagement will be central to sustaining revenue growth, particularly as earlier acceleration normalizes. Investors will also monitor the crypto mix and effective take rates, since large headline volumes can translate into limited net contribution when spreads tighten. Cost discipline and the trajectory of adjusted EBITDA will be critical to assessing operating leverage as 2026 unfolds.