Business Context and Reporting Period
Company: eToro Group Ltd.
Filing Type: Form 20-F (Annual Report)
Reporting Period: Fiscal year ended December 31, 2025
Business Overview: eToro operates a global, multi-asset social trading platform allowing users to trade equities, commodities, currencies, and cryptoassets. The company utilizes a "social investing" model featuring CopyTrader and Smart Portfolios. As of December 31, 2025, the company reported approximately 3.81 million Funded Accounts across 75 countries.
Key Financial Metrics
| Metric | 2025 | 2024 | 2023 |
|---|---|---|---|
| Total Revenue and Income | $13,838 million | $12,641 million | $3,886 million |
| Net Income | $216 million | $192 million | $15 million |
| Net Contribution | $868 million | $788 million | $556 million (implied) |
| Adjusted EBITDA | $317 million | $304 million | $117 million |
| Cash and Cash Equivalents | $1,073 million | $575 million | $388 million |
| Operating Cash Flow | $318 million | $269 million | $112 million |
| Assets Under Administration | $18.5 billion | $16.6 billion | $9.6 billion |
Note: Revenue is reported on a gross basis for cryptoasset sales, resulting in high top-line figures that are largely offset by the cost of revenue from cryptoassets.
Material Changes vs. Prior Period
- Revenue Growth: Total revenue increased 9.5% year-over-year (YoY) to $13.8 billion, driven primarily by a 7% increase in revenue from cryptoassets ($13.0 billion) and a 21% increase in net trading income from equities, commodities, and currencies ($399 million).
- Profitability: Net income rose 12% to $216 million, despite a 29% decrease in taxes on income ($37.7 million vs. $53.2 million in 2024) due to changes in discrete tax items.
- User Growth: Funded Accounts grew by approximately 0.33 million (9.5%) to 3.81 million. Net growth in Funded Accounts was 0.3 million in 2025 compared to 0.4 million in 2024.
- Capital Structure: The company completed its Initial Public Offering (IPO) in May 2025, raising net proceeds of approximately $378 million. In November 2025, the board authorized a $150 million share repurchase program, of which $62.2 million was utilized by year-end.
- Acquisitions: The company acquired Spaceship Capital Limited in November 2024 to expand its footprint in Australia and offer superannuation products.
Guidance, Outlook, and Risks
Management Commentary & Outlook: Management emphasizes a diversified revenue model across trading income, interest income, and money management fees. The company is focusing on expanding its user base in underpenetrated markets (Europe, Asia-Pacific) and deepening engagement through new products like eToro Money, securities lending, and AI-driven tools (Tori AI Agent). The company anticipates capital expenditures in 2026 to be approximately 0.4% of projected Net Contribution.
Key Risks and Contingencies:
- Regulatory Environment: The company faces a complex, evolving regulatory landscape globally. Key risks include the Markets in Crypto-Assets (MiCA) Regulation in the EU, potential SEC enforcement actions regarding cryptoasset classification, and ongoing proceedings with the Australian Securities and Investments Commission (ASIC) regarding target market determinations.
- Cryptoasset Volatility: Revenue is heavily dependent on cryptoasset trading volumes and price volatility. A decline in cryptoasset prices or trading activity could materially impact Net Contribution.
- Geopolitical Instability: Operations in Israel are subject to risks from regional conflict, including potential employee call-ups for military reserve duty and cybersecurity threats.
- Interest Rate Sensitivity: A portion of revenue is derived from interest on user funds and margin positions. A decline in interest rates would reduce this income stream.
- Cybersecurity: The company faces significant risks related to the security of user funds and cryptoassets, including potential theft of private keys or hacking of digital wallets.
Investor Verification Checklist
- Cryptoasset Revenue Presentation: Verify the impact of gross vs. net revenue presentation for cryptoassets on the top line and the corresponding cost of revenue.
- Regulatory Proceedings: Monitor the status of the ASIC proceedings in Australia and any potential outcomes from SEC examinations regarding recordkeeping and net capital requirements.
- Share Repurchase Program: Track the utilization of the $150 million repurchase program authorized in November 2025 and the subsequent $100 million expansion authorized in February 2026.
- Interest Rate Exposure: Assess the sensitivity of Net Interest Income to potential future declines in global interest rates.
- Geopolitical Impact: Evaluate the potential operational and financial impact of ongoing conflicts in the Middle East on the company's Israeli headquarters and workforce.