Shares of eToro (ETOR) experienced a notable surge of 17.81% on Tuesday morning after the Israeli social trading and investment platform released its fourth-quarter 2025 earnings results, which exceeded expectations set by Wall Street analysts.
During the three-month period ending December 31, adjusted diluted earnings per share fell by 10% compared to the previous year, reaching $0.71. However, this figure surpassed the consensus estimate of $0.60. Additionally, the company’s net contribution—which is defined as revenue minus the cost of users’ trading activities—declined approximately 10% year-over-year to $227 million, still surpassing Wall Street’s forecast of around $218 million.
Despite these declines, eToro’s net income for the quarter rose by 16% year-over-year to $69 million, in contrast to a significant decrease in total revenue and income, which fell 34% to $3.87 billion. The ongoing slump in cryptocurrency prices notably impacted eToro’s results, with revenue from crypto assets plummeting 38% to $3.59 billion, down from $5.81 billion in the same period the previous year.
Nevertheless, the full year exhibited a more positive outlook, with net contribution climbing by 10% to $868 million, and total revenue and income increasing roughly the same percentage to $13.84 billion. Profits for the entire year also saw an expansion of 12%, totaling $216 million, up from $192 million in 2024.
CEO Yoni Assia characterized 2025 as “a milestone year for eToro,” emphasizing the company’s efforts to enhance access to global markets. He highlighted the adoption of artificial intelligence, particularly the introduction of its Tori AI analyst, and previewed plans for new applications ahead of the launch of the anticipated eToro App Store.
Looking toward the future, eToro indicated that its capital market key performance indicators from January suggest a strong start to 2026. The company is also preparing to introduce 24/7 trading for select popular assets before the current quarter concludes on March 31.
In a move to strengthen shareholder value, eToro’s board approved an additional $100 million for its share buyback program, increasing the total remaining authorization to $150 million.
As for market perspective, eToro’s shares hold a consensus rating of Moderate Buy on Wall Street, based on five Buy ratings and three Holds over the past three months. The average price target for ETOR is set at $50.14, suggesting potential upside of approximately 55%. Analysts’ estimates may adjust following the release of the latest earnings report.
