eToro reports lower Q3 earnings, authorizes $250M share buyback

eToro listed on Nasdaq in May 2025 as a multi-asset brokerage, but crypto trading commissions had been its main profit engine since the 2021 boom, making earnings swing with digital-asset activity rather than with stocks or commodities. That dependency has surfaced before, in prior quarters when crypto volumes dipped and profit followed. The Q3 numbers repeat the pattern: a 74% profit drop lands squarely on a cooling crypto trading book, reviving scrutiny of how concentrated eToro's revenue still is.

Clients placed 2.0 million crypto trades in October, 62% fewer than a year earlier, yet funded accounts rose 18% to 4.42 million. That split means existing and new users are opening accounts for other products, stocks, ETFs, options, rather than abandoning the platform outright. Crypto-focused traders see thinner volumes and liquidity on eToro's crypto desk, while the broader client base keeps growing, pushing the company's own narrative toward diversification away from digital-asset dependence.

Authorizing a $250 million buyback while quarterly profit falls 74% signals management confidence, but it also means capital goes to shareholders rather than toward rebuilding the crypto trading business that once drove earnings. The 18% rise in funded accounts to 4.39 million supports a diversification story, yet it sits alongside a core trading metric that collapsed. Whether eToro is genuinely broadening its business or simply absorbing a crypto downturn with buybacks is the real unresolved question.

The next test is eToro's fourth-quarter report, due in early 2026, which will show whether the October trading slump extended through November and December or reversed. Watch also how much of the $250 million buyback the company actually executes against falling crypto income, and whether funded-account growth keeps outpacing trading volume. Either outcome will tell shareholders whether diversification is working or whether crypto still sets the pace for eToro's results. (per cryptobriefing.com)

The total crypto market fell 0.7% in the 4 hours after the first headline, after rising 0.2% in the 2 hours before.

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