eToro Group has agreed to acquire U.S. online brokerage TradeZero in a cash-and-stock deal valued at up to $231 million, a move that would expand the company’s tools and infrastructure for active equity traders as its own crypto trading activity has slowed.
The consideration includes cash and up to 2.5 million newly issued eToro Class A common shares. The transaction is expected to close during the first half of 2027, pending regulatory approvals and customary closing conditions.
TradeZero, founded in 2015, operates a U.S.-focused brokerage platform aimed at active traders. eToro said the company generated roughly $80 million in revenue during the 12 months ended June 30, with an 81% gross margin. eToro expects the acquisition to add to adjusted earnings per share in the first full year after closing.
The purchase would give eToro access to TradeZero’s broker-dealer operations, proprietary trading technology and established base of active clients. Those assets could deepen eToro’s position in U.S. stocks and options, where fast execution, short-selling tools and specialized order management features have become central selling points for brokerages competing for frequent traders.
TradeZero adds an active-trading platform
TradeZero’s platform is designed around a market segment that differs from eToro’s better-known social investing model. Active traders generally place more frequent orders and tend to seek tools such as real-time market data, advanced charting and access to shares available for short selling.
The acquisition places eToro in a more direct contest for customers who use specialist U.S. retail trading platforms rather than simply buying and holding stocks or cryptocurrencies. TradeZero’s revenue and margin profile also suggest that eToro sees recurring trading activity as a potentially valuable complement to its existing customer base.
eToro already has a U.S. securities foothold. Its U.S. unit, eToro USA Securities Inc., has been registered as a broker-dealer since 2020, according to the Financial Industry Regulatory Authority’s BrokerCheck database. The company began offering stock trading to U.S. customers in 2022.
The company also received a virtual currency business license from the New York Department of Financial Services in 2023 and subsequently introduced crypto trading for eligible customers in New York. TradeZero would therefore add scale and specialist capabilities rather than create eToro’s first entry into the regulated U.S. brokerage market.
The length of the path to closing leaves substantial time for regulators to review the combination. The cash-and-share structure also means the final value received by TradeZero’s owners will partly depend on eToro’s share price when the deal closes and when any relevant share terms are determined.
Second-quarter earnings show growth, but slower sequential activity
eToro disclosed the acquisition alongside second-quarter financial results that showed year-over-year growth across several key measures, while activity and earnings declined from the unusually strong first quarter.
Net contribution — a company measure reflecting revenue after transaction-based costs — rose 9% from a year earlier to $229 million in the second quarter. GAAP net income climbed 77% year over year to $53 million, while adjusted net income increased 17% to $63 million.
Adjusted EBITDA rose 9% to $78 million, according to eToro. Funded accounts increased 18% from the prior year to 4.28 million, while assets under administration grew 10% to $19.2 billion. The company reported $1.2 billion of cash, cash equivalents and short-term investments, giving it considerable liquidity for acquisitions and integration spending.
Quarter-on-quarter comparisons were less buoyant. Net contribution fell from $258 million in the first quarter, adjusted EBITDA declined from $109 million, and net income dropped from $82 million. Such movement can reflect changes in market volatility and client trading patterns, which remain major drivers of online brokerage revenue.
eToro’s acquisition strategy now spans brokerage technology, crypto custody and regional market access. In July, the company led a $12.5 million strategic financing round in Extended, a platform focused on expanded-hours trading. It also acquired crypto wallet provider Zengo for about $70 million and purchased Israeli crypto exchange Bit2C.
Crypto activity has become a smaller part of trading revenue
The TradeZero agreement arrives as eToro’s reported cryptocurrency trading activity has weakened from prior levels. In the first quarter of 2026, crypto contributed 5% of the company’s total net trading profit. eToro also said the number of crypto trades in July was down 73% from a year earlier.
Those figures do not indicate that eToro is withdrawing from digital assets; its Zengo and Bit2C acquisitions point to continued investment in crypto custody and trading capabilities. They do show a business seeking to balance crypto exposure with services that can produce revenue across more conventional market cycles.
Adding TradeZero could give eToro more ways to serve customers whose activity is concentrated in U.S. equities, options and short-selling strategies. That may prove useful when crypto volumes are subdued, though the deal is not expected to close for roughly another year.
eToro shares fell 7.81% to $31.35 after initially rising in pre-market trading, according to Yahoo Finance. The market reaction followed the combination of the acquisition announcement and second-quarter results, which showed the company remains profitable and is growing its funded-account base, but is operating below the activity levels reported in the first quarter.
Active traders watching eToro’s U.S. expansion can deepen their stock knowledge with our concise guide: explore stock vs. crypto technical analysis.
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