NEW YORK, June 10, 2025 (GLOBE NEWSWIRE) -- eToro Group Ltd. ("eToro", or the "Company") $(ETOR)$, the trading and investing platform, today announced financial results for the first quarter ended March 31, 2025.
"I am incredibly proud of the eToro team for producing strong first quarter results and the successful completion of our initial public listing. As a business that champions access to capital markets, we are excited to now be part of those markets. The retail investor of 2025 is informed and connected and we're encouraged to see their trading behavior enabling them to benefit from market opportunities. We believe that AI is turbo-charging the reshaping of the investing landscape and we're excited to be at the forefront of this transformation. As a global community that empowers retail investors, we are well positioned to drive sustainable growth and profitability over time, creating further value for our shareholders," commented Yoni Assia, CEO and Co-founder of eToro.
First Quarter 2025 Financial Highlights
-- Net contribution increased by 8% year on year to $217 million, compared to $201 million in the first quarter of 2024, driven primarily by increased trading activity. -- Net income (GAAP) was $60 million, compared to $64 million in the first quarter of 2024 due to increased investment in marketing and growth in response to favorable market conditions. -- Adjusted EBITDA (non-GAAP) was $80 million compared to $87 million in the first quarter of the prior year reflecting the investments referenced above. Adjusted EBITDA margin was 37%, compared to 43% in the prior year period.1 -- Funded accounts increased 14% year on year to 3.58 million compared to 3.13 million in the first quarter of 2024. This was driven primarily by ongoing user acquisition and retention efforts, as well as the acquisition of Australian investing app Spaceship in 2024. -- Assets under Administration grew by 21% year on year to $14.8 billion compared to $12.2 billion. -- Cash, cash equivalents and short term investments were $736 million as of March 31, 2025.
(1 See "Non-GAAP Financial Metrics and Key Performance Indicators" below for additional information and a reconciliation to GAAP for all Non-GAAP financial metrics. Adjusted EBITDA margin is based on net contribution.)
"Our results show strong business performance for Q1 with an increase in net contribution driven by increased trading activity and our continued focus on sustainable, profitable growth. In the first quarter, in response to the market environment, we increased investment in marketing and growth," said Meron Shani, eToro CFO.
Business Highlights
eToro continued to focus on sustainable, profitable growth in Q1, launching products and services to support users at every stage of their investing journey.
-- Trading: eToro continues to expand and develop the range of assets and tools users need to trade the global markets. In the first quarter, eToro launched futures in Europe and options in the UK. With the addition of 40 more tokens, eToro now offers trading in over 130 cryptoassets. The Company also extended trading hours by offering a number of stocks and ETFs for 24/5 trading. -- Investing: eToro added stocks from the Abu Dhabi and Hong Kong stock exchanges and now offers users the ability to invest in companies listed on more than 20 of the world's leading exchanges. It continued to grow its range of Smart Portfolios with the launch of a commodities portfolio in partnership with WisdomTree, and a portfolio offering 100% capital protection. As part of the Company's commitment to offer its users access to interest earning assets, eToro launched securities lending to users in Europe, and expanded crypto staking to include DOT and ATOM. -- Wealth management: As part of its long-term investment strategy, in the first quarter, eToro introduced a new self-directed offering as part of its UK ISA and introduced recurring investments for stocks, ETFs and crypto allowing users to make regularly scheduled investments. The Company also initiated the integration of Spaceship and the expansion of its Australian offering to include superannuation solutions. -- Neo-banking: In the first quarter, eToro began the roll out of crypto to fiat enabling users to transfer their crypto to eToro and diversify into other asset classes. As part of the expansion of the eToro Money offering, eToro partnered with local financial institutions to offer local virtual bank accounts in multiple countries. The Company also continued to expand the ability for users to trade local stocks using local currencies. -- Financial education and AI: eToro is committed to empowering its users to grow their financial knowledge with accessible and engaging content. The Company is leveraging AI to accelerate the production and translation of education materials and now offers more than 3,000 articles, videos, podcasts and webinars in 11 languages. -- Regulatory developments: In Q1, eToro was granted a MiCA permit by CySec which enables the provision of crypto services across the EU. As long-term supporters of crypto, this is a key milestone and eToro welcomes the regulatory clarity and uniform rules provided by MiCA which it believes will foster greater crypto adoption across Europe. The Company also achieved a SOC 2 Type II compliance certification which demonstrates its strong commitment to operational excellence throughout its crypto custody operations.
Second Quarter 2025 Update
-- The performance of the business through May 31, 2025 reflects continued progress and interest in trading and investing from retail investors in response to market events. -- As of May 31, 2025 eToro had 3.61 million funded accounts and $16.9 billion in Assets under Administration.
Contact
Media Relations - pr@etoro.com
Investor Relations - investors@etoro.com
About eToro
eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we've created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media center here for our latest news.
ETORO GROUP LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
March 31, December 31, ---------- -------------- 2025 2024 ---------- -------------- Unaudited Audited ---------- -------------- Assets Current assets: Cash and cash equivalents 660,060 575,395 Restricted cash 319 314 Short-term investment 76,000 65,000 Counterparties 240,842 224,867 Cryptoassets 99,761 113,279 Receivable from omnibus accounts 10,905 50,466 Other receivables and prepaid expenses 49,795 46,005 --------- ----------- 1,137,682 1,075,326 --------- ----------- Non-current assets: Restricted cash 11,751 11,630 Right of use assets 43,054 44,406 Property and equipment, net 4,965 5,007 Goodwill and other intangible assets, net 45,564 46,346 Deferred taxes 12,708 8,647 --------- ----------- 118,042 116,036 --------- ----------- Total Assets 1,255,724 1,191,362 --------- ----------- Liabilities and equities Current liabilities: Accounts payable 5,768 4,201 Current maturities of long-term lease liabilities 4,940 4,758 Payable to users 115,290 103,493 Accrued expenses and other payables 176,718 193,115 --------- ----------- 302,716 305,567 --------- ----------- Non-current liabilities: Employee benefit liabilities, net 1,202 1,253 Long-term lease liabilities 42,447 43,546 Deferred taxes liabilities 7,210 2,968 Other long-term liabilities 7,484 5,653 --------- ----------- 58,343 53,420
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