That shows up in revenue. Net contribution, the company’s main revenue measure, fell 13% year-over-year to $186 million, the second straight quarterly decline after $258 million in the first quarter and $229 million in the second.
London’s trading industry is coming home!
Crypto Shrinks, Stocks and Commodities Slow
The income statement shows where the quarter lost ground. Crypto contributed about $28.3 million after costs, down from $59.0 million a year earlier, by FinanceMagnates.com’s calculation. That 52% drop is close to the 55% fall in crypto revenue that Robinhood reported for the same quarter.
Meron Shani, eToro CFO, Source: LinkedIn
“Crypto activity sequentially recovered,” Chief Financial Officer Meron Shani said in the release, speaking of the change from the second quarter.
Net trading income from equities , commodities and currencies rose 21% year-over-year to $88.5 million, but it was 38% below the $141.6 million booked in the second quarter. Net interest income from users fell 15% to $50.0 million.
Adjusted EBITDA dropped 56% to $34.2 million, leaving a margin of 18% of net contribution, half the 36% of a year earlier. In October, interest-earning assets fell 20% to $7.0 billion, assets under administration slipped 6% to $19.2 billion and money transfers fell 21% to $1.1 billion.
Paying More for Each New Account
Selling and marketing expenses rose 42% to $68.1 million in the third quarter. That equals 37% of net contribution, up from 22% a year earlier.
The company said account growth came “primarily” from user acquisition and retention efforts. The wider market was busier: retail trading volumes rose an estimated 8% quarter-over-quarter in the third quarter, according to FM Intelligence’s preliminary broker volumes data.
Yoni Assia, the CEO of eToro
Chief Executive Yoni Assia said the rebuilt eToro app, designed around AI, was “enabling us to ship products faster.” The company also expanded Edge, its desktop terminal for active traders, and said users of API and agentic trading rose 250% from the second quarter.
Shares Swing, Board Adds a Buyback
eToro shares fell as much as 4.8% to $22.21 shortly after the New York open, close to the $22.05 intraday low set on October 30. Within minutes they briefly traded above Monday’s close of $23.32, then slipped again.
The stock was under pressure well before the results. It fell 34.9% in the third quarter, while the median change among 13 listed brokers and platforms was a gain of 5.9%, FM Intelligence calculations show.
At about $22.40 in early trading, the shares were 36% below their end-2025 close and 57% below the $52 initial public offering price.
The board authorized a repurchase program of up to $250 million, about 14% of eToro’s market value by FinanceMagnates.com’s calculation from the third-quarter weighted share count.
It follows $189.1 million eToro spent on its own shares in the first half, when the stock closed between $24.76 and $41.98.
eToro has also agreed to buy LB Finanzas, an Argentine investment and payments platform, after signing for US broker TradeZero in August. Cash, cash equivalents and short-term investments stood at $1.2 billion at the end of September.