eToro profit jumps 37% despite a sharp drop in crypto trading volumes

eToro has reported a rise in first-quarter profit after commodities trading activity surged, even as crypto volumes on the platform declined sharply.

According to eToro’s quarterly earnings release published Tuesday, net income climbed 37% year over year to $82 million, while diluted earnings per share rose to $0.91 from $0.77 in Q1 2025. Adjusted EBITDA increased to $109 million from $80 million a year earlier, and net contribution reached $258 million, up 19%.

Commodity trading played a major role in the quarter’s performance. eToro said commodities generated nearly 60% of total trading commissions, with trading volumes rising almost fourfold from the same period last year. At the same time, the company expanded its traditional market offerings by adding Japanese stocks, increasing its exchange coverage to 26 markets.

Funded accounts reached 4.02 million during the quarter, up 12% year over year, while assets under administration rose to $17 billion. As of March 31, eToro held $1.3 billion in cash, cash equivalents, and short-term investments.

Alongside the earnings update, the company said it had activated its BitLicense to begin crypto trading operations in New York. eToro also completed its acquisition of self-custodial wallet provider Zengo on April 30. Chief executive Yoni Assia said the acquisition supports the company’s effort to connect traditional financial products with on-chain infrastructure.

Despite strong growth in commodities, crypto activity on the platform moved lower. eToro disclosed that April crypto trading volumes fell 32% year over year to 2 million trades, while the invested amount per crypto trade dropped 22% to $207.

On the product side, the company introduced AI-powered Agent Portfolios and expanded its partnership by integrating Grok 4.2-powered market sentiment tools into its AI investing assistant, Tori.

April platform metrics still showed user activity increasing in other areas. eToro said assets under administration rose further to $18.7 billion, up 19% year over year, while monthly money transfers climbed 53% to $1.4 billion.

Elsewhere in the crypto sector, recent earnings from Coinbase also pointed to weaker trading conditions across digital asset markets. Coinbase reported a $394.1 million net loss for Q1 2026, reversing a $65.6 million profit recorded a year earlier.

Coinbase’s 10 Q filing showed transaction revenue falling 40% year over year to $755.8 million, while subscription and services revenue declined 13.5% to $583.5 million. CFO Alesia Haas said during the earnings update that “macro conditions were genuinely tough,” adding that total crypto market capitalization and trading volume both fell more than 20% quarter over quarter.

Trading activity also weakened sharply at Coinbase. The company reported total trading volume of $202 billion for the quarter, down from $401 billion a year earlier, which Coinbase linked to a 44% decline in global crypto spot trading volumes.

While spot trading revenue came under pressure, Coinbase continued pushing into derivatives, stablecoins, prediction markets, and tokenized assets. Chief executive Brian Armstrong said the company recorded growth in derivatives trading, USDC activity, and Base network usage during the quarter.