eToro posts record earnings as trading platform expands AI and asset base

eToro Group Ltd delivered a stronger-than-expected set of financial results for the full year and fourth quarter of 2025, reporting record yearly profits and bolstering its multi-asset trading platform even as the cryptocurrency market faced sustained volatility. The trading and investment platform posted a net contribution of $868 million for the full year, up about 10 per cent on 2024, and net income under generally accepted accounting principles climbed roughly 12 per cent to $216 million, underpinning a resilient performance across multiple revenue streams.

Fourth-quarter earnings topped market forecasts, with adjusted diluted earnings per share of $0.71 a share against analysts’ expectations of around $0.64–$0.69 and net income of $69 million marking a quarterly high. This earnings beat contributed to a jump in eToro’s share price on global markets, signalling investor confidence in the execution of its broader strategy.

The results highlight eToro’s endeavours to diversify beyond its original social trading and crypto roots. Assets under administration grew about 11 per cent year-on-year to roughly $18.5 billion, and the number of funded accounts climbed about 9 per cent to approximately 3.81 million. These gains were supported by broader market participation from equities, commodities and currencies, with trading income from non-crypto classes rising while crypto trading volumes slowed.

Chief Executive Officer Yoni Assia described 2025 as a landmark year for the firm, emphasising eToro’s transition into a publicly traded firm with an expanded suite of products. Under his leadership since founding the company in 2007 with Ronen Assia and David Ring, eToro has evolved from a retail-focused social trading platform into a global multi-asset fintech operator with offices and regulatory footprints spanning Europe, the United States, the Middle East and other regions.

Assia highlighted that the firm had accelerated innovation in artificial intelligence and on-chain market infrastructure, elements he said will underpin its next growth phase. The platform has rolled out AI-powered investment tools and is advancing its vision for an “App Store” to enable third-party development and bespoke strategies for retail and institutional users alike.

The company’s integration of AI in trading tools reflects a broader trend in fintech, where machine learning and algorithmic capabilities are being deployed to personalise investment strategies and improve client engagement. Industry executives suggest that AI-driven analytics could redefine customer experience and retention, allowing platforms with diversified offerings to better navigate market cycles and appeal to a wider investment demographic.

Despite these strides, the platform’s financials reveal some headwinds. Net contribution for the final quarter was down about 10 per cent versus the same period in 2024, largely attributable to diminished activity in crypto trading — a contraction linked to wider sell-offs and subdued volatility across digital asset markets. Bitcoin’s price slide during late 2025, for example, weighed on crypto revenue segments that accounted for a significant portion of the platform’s total income.

Market analysts note that this shift underscores the importance of eToro’s diversification strategy. eToro’s broader asset base helped offset crypto’s downturn as retail investors reallocated capital to traditional stocks, commodities and Forex products, and the firm expanded offerings to include 24/7 trading of select non-crypto assets. This pivot has drawn comparisons with competitors that remain more reliant on crypto trading volumes, which have struggled to maintain momentum amid regulatory uncertainty and macroeconomic headwinds.

Meron Shani, eToro’s chief financial officer, pointed to the strength of the company’s multi-asset model during the earnings call, emphasising disciplined financial management and sustained growth in funded accounts and assets under administration. January business metrics showed continued engagement, with total trades and money transfers rising year-on-year, even as crypto activity moderated sharply, illustrating the platform’s adaptability across differing investment preferences.

Looking ahead, eToro has signalled plans to further expand its tradable asset universe, aiming for tens of thousands of assets available to users by the end of 2026, and to strengthen its presence in key markets such as the United States, where competitive dynamics and regulatory frameworks present both challenges and opportunities. CEO Assia acknowledged the evolving regulatory landscape, particularly around digital assets, and indicated that strategic partnerships and compliance focus will be crucial as the platform extends its global reach.