eToro Shares Surge 20% on Q4 Earnings Beat as Crypto Revenues Defy Market Trends
Shares of eToro Group Ltd. (ETOR) closed up 20.4% at $33.07 on Tuesday, one of the most impressive performances among fintech stocks. The
Quick overview
- eToro Group Ltd. shares surged 20.4% to $33.07 following a strong Q4 earnings report, driven by its cryptocurrency business.
- The company reported a Q4 net income of $68.7 million, exceeding expectations, with cryptocurrency sales making up the majority of its revenue.
- CEO Yoni Assia highlighted a strategic shift towards an 'on-chain' financial system, noting a trend of users diversifying into commodities like gold and silver.
- Despite the positive outlook, analysts caution about fluctuating quarterly sales and tight net margins, indicating potential revenue challenges ahead.
Following the release of the company’s better-than-expected fourth-quarter profits, which were supported by its cryptocurrency business, shares of eToro Group Ltd. (ETOR) closed up 20.4% at $33.07 on Tuesday, one of the most impressive performances among fintech stocks. The gains for the session were among the largest single-day movements for a crypto-related stock in recent weeks, despite a minor decline in after-hours trading to about $32.25.
The trading platform, which is based in Tel Aviv and London, posted Q4 net income of $68.7 million, which was 16% more than the same period last year. Earnings per share were 71 cents, which was much higher than the consensus forecast of 60 cents. The total revenue for the fourth quarter was $3.87 billion, which was 40% less than the previous year’s total and mostly reflected a normalization of the very robust cryptocurrency market from the previous year. At $3.59 billion, cryptocurrency sales made up the vast majority of the quarter’s top line.
eToro Q4 Earnings Breakdown: Crypto as the Primary Engine
eToro reported $13.84 billion in sales for the entire year 2025, up over 9% from 2024, and $215.7 billion in net income, up 12% year over year. Crypto revenue for the entire year was $13 billion, up almost 7% from the previous year.
In relation to the industry as a whole, the earnings beat was noteworthy. The main cryptocurrency competitors of eToro, Coinbase and Robinhood, both fell short of Q4 projections as a result of a late-year decline in the market. Investors were drawn to eToro’s multi-asset platform and diverse user base because of its capacity to outperform in the same market conditions.
During the earnings call, CEO Yoni Assia presented the results as a component of a broader strategy shift, setting an ambitious tone. Assia stated, “It is a pivotal moment for financial services,” pointing to the combination of blockchain technology and artificial intelligence as factors that are changing how people invest. “We are setting up eToro for an increasingly on-chain financial system. We are in a good position to influence this shift because of our established leadership in tokenization and cryptocurrency.
Assia also pointed out an intriguing change in the way eToro users behave, pointing out that while bitcoin volatility has subsided, some crypto-focused users are “suddenly trading commodities” for the first time, including gold and silver. “There’s somewhat of a convergence or a shift from crypto, which now has lower volatility, to basically gold, silver, and other commodities that have higher volatility,” he said.
The January trading figures provided by the corporation presented a mixed picture. With 4 million cryptocurrency trades at an average investment of $182 per trade, the month’s trading volume was 50% lower than the previous year and 34% lower than the previous year. Nonetheless, the average investment per trade increased 8% to $252 and the overall number of deals across all asset classes increased 55% year over year to 74 million, indicating that the platform’s wider diversification is gaining popularity.
Future Outlook: The Shift to Commodities and “On-Chain” Investing
In terms of value, eToro is now trading at a price-to-earnings ratio of about 12.9x, which is much less than the industry average of 23.1x for the U.S. capital markets and the average of 20.4x for peer platforms. The intrinsic value of the stock, as evaluated by analysts using discounted cash flow methods, is between $44 and $46 per share, suggesting that even after Tuesday’s strong rally, the stock may still be trading at a large discount.
However, some prudence is necessary. Quarterly sales has fluctuated significantly over the past few quarters, ranging from $1.5 billion to $5.8 billion, and net margins are very tight at 1.6%. Even though earnings growth projections of about 14.6% per year are still in place, projections for a possible sharp decrease in revenue in the upcoming years may put doubt on the bullish narrative.
For the time being, Tuesday’s spike shows that the market is once again confident that eToro is well-positioned for the changing digital finance landscape thanks to its crypto-anchored business model and its drive into wider asset classes.
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