eToro Q1 2026 Crypto Revenue Falls to $2.15B Amid Trading Decline

eToro’s crypto revenue dropped to $2.15 billion in the first quarter of 2026, down from $3.5 billion in the same period last year, according to the brokerage’s financial statement published on Tuesday. The decline reflects a broader slowdown in crypto activity, with the total number of trades down 32% year-over-year on the platform.

Financial Performance

Despite the revenue decline, eToro’s overall financial metrics showed strength. The firm’s adjusted EBITDA increased 35% year-over-year to $109 million, while net income rose 37% to $82 million. Basic net income per share reached 0.98, up from 0.79 in the prior year period.

eToro’s cost of revenue from cryptoassets fell substantially to $2.1 billion from $3.5 billion, while its balance sheet crypto holdings declined only slightly to $60.5 million, down from $62.6 million at year-end 2025.

Strategic Initiatives

Despite the crypto activity slowdown, eToro made significant crypto-related investments in Q1 2026. The company completed a $70 million acquisition of Zengo, a self-custodial crypto wallet provider, and launched crypto trading in New York following its BitLicense acquisition from three years ago.

“The acquisition of Zengo, a leading self-custodial crypto wallet provider, meaningfully advances our strategy of bridging traditional finance with on-chain infrastructure, prediction markets, perpetuals and the broader crypto ecosystem,” eToro CEO Yoni Assia said in a statement. “Looking ahead, we continue to enhance our global product offering, deepen our investment in on-chain technologies, and grow our suite of AI-driven tools, which we believe will fundamentally reshape how retail investors engage with the markets and unlock new opportunities for growth.”

Business Diversification

eToro’s non-crypto business segments demonstrated stronger growth. Commodities represented 60% of eToro’s trading commissions, with volumes growing 4x year-over-year. The company introduced 24/7 trading for select commodities, equities, and indices in the quarter.

Funded accounts grew 12% to over 4 million, while assets under administration increased 15% to $17 billion.

“Strong first quarter 2026 results supported by a surge in commodities trading, demonstrated the strength of our multi-asset business model,” said Meron Shani, eToro CFO. “We delivered compelling financial performance through a combination of diversified revenue streams, strong funded accounts growth, and increased customer engagement. We continue to execute with discipline and focus as we seek to deliver long-term value to our shareholders.”

Sector-Wide Slowdown

eToro is not alone in reporting a dip in crypto activity. Robinhood saw crypto revenues and trading volumes drop by roughly 50% in its latest financial statement, while Coinbase posted a net loss of $394.1 million in the first quarter.