eToro profit jumps 37% as crypto volumes drop 32% in April
eToro reported a 37% year-on-year jump in Q1 net income to $82 million, despite a sharp fall in crypto trading volumes on its platform.
Commodities drove the upside. Commodities trading volumes rose nearly fourfold, and commodities generated almost 60% of total trading commissions. Adjusted EBITDA increased to $109 million, while net contribution rose to $258 million (+19%). eToro also said funded accounts climbed to 4.02 million (+12% YoY) and assets under administration reached $17 billion.
For crypto, momentum weakened. eToro disclosed that April crypto trading volumes fell 32% YoY to 2 million trades, and the invested amount per crypto trade dropped 22% to $207. Still, eToro said crypto operations expanded in New York after it activated its BitLicense, and it completed the Zengo acquisition (self-custody wallet provider) on April 30.
Product efforts continued. eToro introduced AI-powered Agent Portfolios and integrated Grok 4.2-powered market sentiment tools into its AI assistant, Tori.
Broader context: Coinbase’s latest earnings also pointed to tougher conditions. Coinbase reported a Q1 net loss and saw transaction revenue and trading volumes decline sharply, citing a broader drop in crypto market activity.
For traders, eToro profit growth is a positive corporate signal, but the platform-level crypto volume declines reinforce near-term caution on trading demand.
Neutral
eToro profit growth looks bullish for the business, but the key trading input for crypto markets—real transaction volume—fell. In Q1, profits rose 37% mainly because commodities surged, while crypto volumes on eToro dropped 32% in April. This split usually means customer demand for trading may be shifting toward other asset classes rather than indicating broad crypto market inflows.
Compared with similar “earnings beat vs. weaker trading volumes” cases in crypto broker/exchange reporting, traders often interpret it as: (1) cost/income resilience for the firm, but (2) near-term pressure on retail trading activity and fee-related flows in crypto. Coinbase’s concurrent results (net loss and lower trading revenue/volume) reinforce that the broader market backdrop is soft.
Short term, expect limited upside for spot-driven sentiment because volume is an immediate flow metric. Long term, eToro’s New York BitLicense activation and Zengo custody acquisition could support product distribution and user trust, but they are unlikely to change volume trends instantly if macro conditions and overall market capitalization remain weak.