eToro Plans TradeZero Deal After Q2 Crypto Revenue Falls 30%

eToro reported cryptoasset revenue fell 30% year-over-year to $1.35 billion in Q2 2026 from $1.91 billion, while its crypto-related cost of revenue came in almost as high, leaving roughly $12.5 million in net contribution for the quarter.

“eToro’s cryptoasset revenue fell 30% year-over-year to $1.35 billion from $1.91 billion”

Finance Magnates

Finance Magnates said the decline lined up with the crypto market’s third consecutive quarterly loss, with total crypto market capitalisation falling 12.6% quarter-over-quarter to $2.1 trillion, and spot trading volume on centralised exchanges dropping 27.9% to $1.95 trillion.

@coindesk

In the same quarter, Coinbase posted total revenue of $1.2 billion, missing the $1.35 billion analyst consensus, and reported a net loss of $359 million, per its Q2 2026 investor presentation.

Finance Magnates also said Bitcoin-related transactions made up just 12% of revenue, down from more than 50% historically, as Coinbase’s shift into other products reduced crypto’s share of the business.

Against that backdrop, eToro agreed to buy U.S.-focused online brokerage TradeZero for up to $231 million in cash plus up to 2.5 million newly issued Class A shares, with closing expected in the first half of 2027 and requiring regulatory approvals.

The Defiant reported TradeZero generated roughly $80 million in revenue in the twelve months ended June 30, with 81% gross margins in the second quarter, and said the acquisition is eToro’s third acquisition signed in 2026 after Zengo and Bit2C.

bloomingbit

eToro’s own framing tied the move to its US expansion, with co-founder and Chief Executive Yoni Assia saying, "This combination gives us a faster path to launching new products for US customers and strengthens our offering."

In parallel, eToro’s Q2 update showed total net revenue rose 32% to $1.31 billion for Robinhood even as its cryptocurrency transaction revenue fell 38% year-over-year to $100 million from $160 million, according to Finance Magnates.

eToro said its second-quarter net contribution rose 9% year-over-year to $229 million, with funded accounts increasing 18% to 4.28 million and assets under administration rising 10% to $19.2 billion, even as crypto revenue slid.

“EToro’s crypto trading was $7.2 million in the red in the second quarter of 2026”

CoinDesk

CoinDesk reported eToro’s crypto trading was $7.2 million in the red in Q2 2026, after it said cryptoasset revenue was $1.35 billion and crypto-related cost of revenue was $1.35 billion, leaving a $7.2 million loss.

CoinDesk also said crypto activity cooled, with eToro reporting 1.4 million crypto trades in July, down 73% from a year earlier, while the average crypto trade fell 50% to $182.

The same reporting tied the TradeZero acquisition to a multi-asset pivot, noting eToro expects the deal to be completed in the first half of 2027, pending regulatory approvals, as it seeks to keep growing beyond crypto.