eToro (ETOR) Q3 2025: Crypto Net Contribution Soars 229% as AI and CopyTrading Drive Platform Engagement
eToro’s Q3 2025 results mark a decisive acceleration in platform engagement, powered by a 229% surge in crypto net contribution and robust AI-driven product adoption. Strategic expansion in the US, deeper global localization, and the rollout of copy trading in new markets signal a business scaling on multiple fronts. With a $150 million buyback and strong cash flow, eToro is positioning for sustained growth and inorganic opportunities.
Summary
- Crypto Momentum Redefines Segment Mix: Crypto net contribution growth outpaced legacy capital markets, reshaping revenue drivers.
- AI and CopyTrading Fuel Engagement: Adoption of AI tools and US launch of CopyTrading are deepening user activity and retention.
- Capital Allocation Flexibility Expands: Share buyback and strong cash position enable both shareholder returns and M&A optionality.
Performance Analysis
eToro delivered standout Q3 results, underpinned by a sharp pivot toward crypto activity and multi-asset engagement. Net contribution rose 28% year over year, propelled by a 229% increase in crypto-driven revenue—now a significant force in the business mix. This crypto surge was matched by a 44% increase in net interest income, reflecting both higher client cash balances and margin book growth. Meanwhile, capital markets contribution (equities, commodities, currencies) contracted 21% as users rotated toward crypto, illustrating eToro’s dynamic asset allocation model—where platform volumes shift rapidly with investor sentiment and market cycles.
Platform fundamentals remain robust: Funded accounts climbed 16% to 3.73 million, and assets under administration (AUA) hit a record $20.8 billion, up 76% year over year. These gains reflect both new client acquisition and higher average balances per account, with management highlighting increased first-time deposits and engagement. The eToro Money business, focused on digital payments and card services, also posted 50% growth, signaling traction in financial super app ambitions. Operating expenses stayed flat quarter over quarter, supporting a 370 basis point EBITDA margin expansion to 36%.
- Crypto Dominance: Crypto’s 229% YoY net contribution growth, now $56 million, signals a structural shift in eToro’s revenue engine.
- Capital Markets Volatility: 21% YoY decline in non-crypto trading revenue reflects user migration toward high-momentum asset classes.
- Stable Cost Base: Flat OPEX and disciplined marketing spend underpin margin expansion and operating leverage gains.
Overall, eToro’s Q3 demonstrates the platform’s ability to monetize shifting investor appetites while scaling new features that drive lifetime value and retention.
Executive Commentary
"What excites us most is the remarkable pace of innovation unfolding across eToro, with AI accelerating our product development...record assets under administration, robust growth across all segments, and unprecedented engagement in copy trading."
Yoni Astia, CEO
"Our net trending contribution from crypto grew 229% year-over-year...Our business model provides us with flexibility in our selling and marketing expense, where approximately 70% of our expense is dynamic."
Mehran Shani, CFO
Strategic Positioning
1. Crypto and Multi-Asset Leadership
eToro’s core value proposition—multi-asset access with a social overlay—has found renewed relevance as crypto volumes surge. The platform’s ability to capture revenue from both crypto and traditional assets enables dynamic rebalancing as investor preferences shift. Management notes that when crypto is strong, capital markets revenue dips, and vice versa—a feature, not a bug, that supports platform stickiness.
2. AI-Driven Product Innovation
AI is reshaping eToro’s user experience and engagement model. The launch of an AI app studio and new analytics tools for pro investors democratizes access to institutional-grade strategies. Over a third of club members are already using AI-driven features, and management expects AI to increase both trading velocity and user returns—key drivers of platform economics.
3. CopyTrading and US Market Expansion
CopyTrading, eToro’s flagship social investing feature, is now live in the US, unlocking a major new growth lever. Globally, about a third of users engage with CopyTrading, and management expects similar adoption in the US over time, boosting wallet share and lifetime value. The US build-out also includes expanded crypto assets, staking, and localized marketing—aimed at scaling both new client growth and product attachment rates.
4. Wealth Management and Neobanking Integration
eToro is layering savings, rewards, and neobanking features to capture a greater share of wallet. The eToro Club subscription and cash ISA launches in the UK, plus superannuation integration in Australia, extend the platform’s reach into long-term wealth and everyday finance. The Money card’s 2.4x QoQ issuance increase and cashback incentives reinforce the super app thesis, aiming to keep client funds within the eToro ecosystem.
5. Capital Allocation and Inorganic Growth
The $150 million share repurchase and $1.2 billion cash balance provide flexibility for both shareholder returns and M&A. Management sees the stock as undervalued and is actively evaluating acquisition targets, particularly in the US and innovation-led adjacencies. This dual-track approach supports both organic scaling and opportunistic expansion.
Key Considerations
eToro’s Q3 2025 results reflect a business in transition, leveraging technology and product breadth to deepen engagement and expand addressable markets. The following considerations frame the company’s evolving risk-reward:
Key Considerations:
- Crypto Sensitivity: Revenue mix is increasingly tied to crypto market cycles, introducing volatility but also upside leverage as adoption grows.
- AI-Driven Differentiation: Early traction with AI tools and automation could drive a step-change in trade frequency and user retention, but execution and regulatory clarity remain critical.
- US Expansion Ambitions: CopyTrading’s US launch and broader product rollout are high-potential, but require ongoing investment and regulatory navigation.
- Super App Execution: Integration of savings, cards, and neobanking features is deepening wallet share, but cross-sell and retention rates will be key to long-term economics.
Risks
eToro’s platform is exposed to pronounced asset class rotation risk, as crypto and capital markets volumes can move inversely, impacting revenue predictability. Regulatory uncertainty, especially around crypto and social trading in the US, could constrain growth or require costly compliance adaptations. Execution risk around AI features and scaling in new geographies remains, as does competitive pressure from both fintech and incumbent brokers. Management’s transparency around these variables is improving, but the business model’s sensitivity to market cycles and regulatory shifts is a core risk theme.
Forward Outlook
For Q4 2025, eToro guided to:
- Flat operating expense base versus Q3, maintaining disciplined cost control.
- Continued publication of monthly KPIs for enhanced transparency.
For full-year 2025, management maintained a focus on:
- Double-digit funded account growth across all regions.
- Ongoing margin expansion and robust free cash flow generation.
Management highlighted several factors that will shape upcoming performance:
- Crypto market momentum and user deposit trends remain key revenue drivers.
- US product launches, especially CopyTrading and expanded crypto, are expected to accelerate engagement and wallet share.
Takeaways
eToro’s Q3 results confirm a platform gaining scale and engagement through crypto, AI, and product expansion, but with volatility and execution risk embedded in the model.
- Crypto-Driven Outperformance: Crypto’s 229% net contribution surge shows eToro’s ability to capture upside in volatile markets, but also exposes the business to cyclicality.
- AI and Product Breadth as Differentiators: Rapid adoption of AI tools and CopyTrading in new geographies are setting the stage for higher lifetime value per user and stronger competitive moats.
- Watch US Scaling and Regulatory Response: Success in US expansion and regulatory adaptation will be decisive for sustaining double-digit growth and margin trajectory.
Conclusion
eToro’s Q3 2025 marks a strategic inflection, with crypto and AI catalyzing growth and engagement across a global, multi-asset platform. While market and regulatory volatility persist, disciplined execution and capital flexibility position eToro to capitalize on both organic and inorganic opportunities in the quarters ahead.
Industry Read-Through
eToro’s results highlight the intensifying convergence of trading, investing, and digital banking in the fintech sector. The surge in crypto-driven revenue and rapid adoption of AI-powered tools are signals for peers that platform adaptability and product innovation are now table stakes. The US CopyTrading rollout underscores the growing importance of social investing features and the need for regulatory agility. For legacy brokers and fintechs alike, eToro’s trajectory suggests that capturing wallet share and engagement will require relentless product velocity and a willingness to embrace asset class volatility as both a risk and an opportunity.