eToro has reported a mixed second quarter for 2026, with strong overall earnings but a sharp slowdown in its crypto business.
The trading platform reported $1.35 billion in cryptoasset revenue during Q2, down from $1.91 billion a year earlier. More importantly, the crypto trading segment swung to a $7.2 million loss, compared with a $37.7 million profit in Q2 2025.
Crypto Activity Is Cooling
The decline was not limited to revenue.
eToro reported that crypto trades fell significantly, with July crypto trades down 73% year over year. The average crypto trade size also dropped by around 50% to $182.
This suggests that users are becoming less active in crypto trading, at least compared with the strong activity seen last year.
Overall Business Remains Strong
Despite the weakness in crypto, eToro's broader business continued to grow.
The company's net contribution increased 9% year over year to $229 million, while funded accounts climbed 18% to 4.28 million. Adjusted diluted earnings came in at $0.68 per share, above analysts' expectations of around $0.61.
Equities and other traditional markets helped offset some of the weakness in crypto, highlighting eToro's strategy of operating as a multi-asset trading platform.
TradeZero Acquisition
At the same time, eToro announced an agreement to acquire U.S.-focused online brokerage TradeZero for up to $231 million.
The deal is aimed at strengthening eToro's presence in the U.S. and expanding its offering for active traders. The transaction is expected to close in the first half of 2027, subject to regulatory approval and other conditions.
What Does This Mean for Crypto?
The numbers show an interesting shift.
eToro is still investing heavily in crypto and on-chain products, but its latest results indicate that crypto trading activity has cooled considerably.
At the same time, the company's growing user base and stronger performance in equities suggest that traders may be diversifying across different asset classes rather than leaving the platform altogether.
The bigger takeaway is simple:
Crypto remains an important part of eToro's business, but traditional markets are currently playing a bigger role in supporting its overall growth.