EToro (ETOR) Third-Quarter Results Top Estimates on Crypto Trading Strength, KBW Says
eToro's Q3 earnings surpassed expectations, driven by strong crypto trading revenue offsetting weaker results in equities and commodities.Summary
Investment bank KBW reported that eToro's (ETOR) third-quarter earnings exceeded expectations, primarily due to robust crypto trading activity and increased net interest income, which compensated for weaker performance in equities and commodities.
The company's GAAP net income rose 48% year-over-year to $57 million, and adjusted Ebitda grew 43% to $78 million, beating KBW's $70 million estimate. This outperformance was attributed to a $0.06 boost in total net contribution and a $0.01 reduction in operating expenses. Specifically, crypto trading revenue exceeded expectations by $0.16, while net interest income beat forecasts by $0.07, successfully offsetting a $0.17 shortfall from equities, commodities, and currencies.
Total net contribution reached $215 million, fueled by $56 million in crypto trading. eToro also saw growth in funded accounts to 3.73 million and an increase in assets under administration to $20.8 billion. Furthermore, the company announced a $150 million share repurchase program, including a $50 million accelerated buyback.
(Source：CoinDesk)