TLDR
- eToro (ETOR) reported Q3 adjusted EBITDA of $78 million, beating analyst estimates of $70 million and consensus of $70.6 million
- Net income jumped 48% year-over-year to $57 million, driven by crypto trading strength and cost management
- Crypto trading revenue hit $56 million versus expectations of $36.3 million, offsetting weakness in equities and commodities
- Assets under administration grew 76% year-over-year to $20.8 billion, with funded accounts reaching 3.73 million
- The company announced a $150 million share buyback program, including a $50 million accelerated repurchase
eToro reported third-quarter results that exceeded Wall Street expectations on Monday. The trading platform’s performance was driven by strong crypto activity.
Net income climbed 48% from the prior year to $57 million. Adjusted EBITDA grew 43% to reach $78 million.
The EBITDA figure topped KBW’s estimate of $70 million and the consensus of $70.6 million. The GAAP net income also came in ahead of forecasts.
Shares rose as much as 3.2% in early trading. The stock later pulled back to trade 0.1% lower at $34.83.
KBW analysts broke down the earnings beat. The company posted $0.07 per share above expectations.
This came from a $0.06 boost in total net contribution. Operating expenses came in $0.01 lower than forecast.
Crypto Trading Powers Results
Crypto trading revenue exceeded estimates by $0.16. Net interest income topped expectations by $0.07.
These gains offset a $0.17 shortfall in equities, commodities and currencies. The company’s diversified revenue streams helped balance the performance.
Total net contribution rose to $215 million. This beat KBW’s forecast of $208 million by a comfortable margin.
Crypto trading generated $56 million in revenue. Analysts had expected just $36.3 million.
The quarter saw extreme volatility in crypto markets. Traders reacted to shifting regulatory and macro signals throughout the period.
Equities hit record highs during the quarter. Steady earnings and softer inflation expectations encouraged investors to move into risk assets.
The company’s CFO Meron Shani highlighted the results. He said they reflect strength across segments and geographies.
User Growth and Capital Returns
The platform ended September with 3.73 million funded accounts. This represents growth from 3.63 million in the prior quarter.
The figure slightly exceeded KBW’s estimate of 3.7 million accounts. Retail investors maintained their buying streak through the period.
Assets under administration reached $20.8 billion. This marks a 76% increase from the year-ago period.
The previous quarter’s total stood at $17.5 billion. Accessible trading apps and volatile price moves have supported strong retail participation.
The company posted adjusted profit of 60 cents per share. This compared to 51 cents per share a year earlier.
Analysts had expected 56 cents per share according to LSEG estimates. eToro also unveiled a $150 million share repurchase program.
The buyback includes plans for a $50 million accelerated repurchase. Larger rival Robinhood Markets topped third-quarter profit estimates earlier this month as retail traders capitalized on market momentum.
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