eToro Profit Surges 37% Despite Decline in Crypto Trading Activity

eToro reported higher first-quarter profit after trading activity in commodities surged, despite a sharp decline in crypto trading volumes on the platform.

According to eToro’s quarterly earnings report released on Tuesday, net income increased 37% year over year to $82 million, while diluted earnings per share climbed to $0.91 from $0.77 in Q1 2025. Adjusted EBITDA rose to $109 million compared with $80 million a year earlier, and net contribution advanced 19% to reach $258 million.

Commodity trading contributed heavily to the quarter’s results, with eToro reporting that commodities accounted for nearly 60% of total trading commissions. Trading volumes in the segment surged almost four times compared with the same period last year. Meanwhile, the company broadened its traditional investment offerings by introducing Japanese stocks, bringing its total exchange coverage to 26 markets.

eToro reported that funded accounts climbed 12% year over year to 4.02 million during the quarter, while assets under administration increased to $17 billion. As of March 31, the company held $1.3 billion in cash, cash equivalents, and short-term investments.

eToro Expands Crypto Services With New York BitLicense

Alongside its earnings update, eToro announced that it had activated its BitLicense to launch crypto trading services in New York. The company also finalized its acquisition of self-custodial wallet provider Zengo on April 30. Chief executive Yoni Assia said the deal supports eToro’s strategy of linking traditional financial products with onchain infrastructure.

Despite strong momentum in commodities trading, crypto activity on eToro declined. The company reported that crypto trading volumes in April dropped 32% year over year to 2 million trades, while the average amount invested per crypto transaction fell 22% to $207.

On the product front, eToro launched AI-powered Agent Portfolios and broadened its partnership by adding Grok 4.2-based market sentiment tools to its AI investing assistant, Tori.

April platform metrics still pointed to growing user activity in other segments. eToro reported that assets under administration increased further to $18.7 billion, marking a 19% year-over-year rise, while monthly money transfers jumped 53% to $1.4 billion.

Elsewhere in the crypto industry, recent earnings from Coinbase also reflected weaker trading conditions across digital asset markets. The company posted a net loss of $394.1 million for Q1 2026, reversing the $65.6 million profit reported during the same period a year earlier.

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

Trading activity at Coinbase also weakened significantly during the quarter. The company reported total trading volume of $202 billion, compared with $401 billion a year earlier, a decline Coinbase attributed to a 44% drop in global crypto spot trading volumes.

Although spot trading revenue faced pressure, Coinbase continued expanding into derivatives, stablecoins, prediction markets, and tokenized assets. Chief executive Brian Armstrong said the company experienced growth in derivatives trading, USDC-related activity, and usage of the Base network during the quarter.