eToro agrees to buy TradeZero for up to $231 million as equities drive Q2 growth

eToro Group(NASDAQ: ETOR) has agreed to acquire TradeZero, a U.S.-focused online brokerage catering to active traders, in a deal valued at up to $231 million. 

The deal, which includes cash and up to 2.5 million newly issued Class A common shares, is expected to close in the first half of 2027 pending regulatory approvals, according to an announcement on Tuesday.

TradeZero, founded in 2015, generated about $80 million in revenue with 81% gross margins over the trailing 12 months ended June 30, and the transaction is projected to be accretive to adjusted earnings per share in its first full year.

"Today's announcement is an important step in building our U.S. business," eToro CEO Yoni Assia said. "TradeZero has built a successful franchise, with differentiated technology, broker-dealer infrastructure and a highly engaged trading community. This combination gives us a faster path to launching new products for U.S. customers and strengthens our offering."

Of note, eToro has become the most recent Bitlicense recipient to roll out crypto trading in New York. The firm, which was licensed by the New York Department of Financial Services in 2023, held off expanding in the state for several years but is now focused on U.S. growth, Head of eToro U.S. Andrew McCormick previously told The Block.

TradeZero comes with its broker-dealer license and infrastructure as well as proprietary trading tools and an active trading base, TradeZero CEO Daniel Pipitone said in a statement. Etoro has operated a registered U.S. broker-dealer, eToro USA Securities Inc., since 2020 and launched stock trading for U.S. customers in 2022, according to BrokerCheck.

EToro has been on a bit of an investment kick. In July, the firm led a $12.5 million strategic round in Extended, an onchain exchange for perpetual futures, and a few months earlier it acquired crypto wallet provider Zengo, reportedly for about $70 million. It also bought Israel-based crypto exchange Bit2C.

eToro quarterly results

The announcement comes as eToro also posted its second-quarter results, which showed continued profitable growth.

Net contribution rose 9% year-over-year to $229 million, driven mainly by stronger equities trading, according to a statement, while GAAP net income jumped 77% to $53 million. Adjusted net income increased 17% year over year to $63 million and adjusted EBITDA climbed 9% to $78 million.

Funded accounts also grew 18% to 4.28 million, and assets under administration reached $19.2 billion, up 10% from a year earlier. The company also reported $1.2 billion in cash, cash equivalents and short-term investments.

The quarter, however, marked a step down from eToro’s record Q1 performance. Net contribution fell from $258 million in the first quarter, adjusted EBITDA declined from $109 million, and net income dropped from $82 million.

The first quarter of 2026 had been the company’s strongest as a public company, buoyed by commodities trading even as crypto contributions shrank to just 5% of its total net trading profit. Crypto trading appears to continue to shrink, with the total number of crypto trades in July down 73% year-over-year.

"Technology continues to reshape how people invest and manage their money. Throughout our history, etoro has embraced these shifts, from social investing to crypto, and today AI and on-chain finance represent the next chapter in that evolution,” Assia said.

ETOR is down 7.81% to $31.35 after a pop in pre-market trading, according to Yahoo Finance.