eToro Q1 2026: Revenue Lift, Funded Accounts Rise as AI and Zengo Push Expansion

eToro posts stronger Q1 2026 results as product push accelerates

eToro Group reported a stronger first quarter of 2026, delivering year-on-year gains in profitability and customer engagement as the retail trading platform accelerates product development and expands its crypto infrastructure. The results, released after the company’s recent public listing, underline a strategic pivot toward broader asset coverage, artificial intelligence features and self-custody capability.

Financial performance: higher contribution and net income

The company reported net contribution of $258 million for the quarter, up 19% from the year-ago period, and GAAP net income of $82 million, a 37% increase year-over-year. eToro’s non-GAAP measures also improved: adjusted net income rose to about $86 million and adjusted EBITDA increased approximately 35% to roughly $109 million. Adjusted diluted earnings per share came in at $0.91, compared with $0.77 in Q1 2025.

eToro ended the quarter with roughly $1.3 billion in cash, cash equivalents and short-term investments and reported assets under administration of $17.0 billion, a 15% increase from Q1 2025. Funded accounts climbed 12% year-over-year to 4.02 million.

Product launches and the Zengo acquisition

During the quarter the company rolled out a series of product updates that management says expand its addressable market. Key initiatives included the launch of 24/7 trading for select commodities, equities and indices, the addition of Japanese equities, and the start of crypto trading for users in New York following activation of a BitLicense and money transmitter registration.

eToro completed the acquisition of Zengo on April 30, 2026, bringing a self-custodial crypto wallet technology into its platform. Management framed the deal as a step toward integrating traditional brokerage functionality with on-chain infrastructure and the broader crypto ecosystem.

Market activity: commodities up, crypto volumes down

The quarter’s performance was notably supported by stronger commodities trading, which the company said accounted for around 60% of trading commissions in the period and saw volumes grow nearly fourfold year-over-year. April operational metrics showed a mixed picture: total capital markets trades for the month rose to 63 million, up 50% year-over-year, but the invested amount per trade declined to $197, down 48%.

Crypto activity remained subdued in April, with 2 million trades for the month, a 32% decline year-over-year, and an invested amount per trade of $207, down 22%. The divergence between booming commodities volumes and softer crypto trading underlines a shift in where retail activity is concentrating on the platform.

AI and ecosystem initiatives

eToro continued to push AI into its product stack. The company expanded its eToro App Store, introduced Agent Portfolios - sub-portfolios designed for automated strategies - and integrated market sentiment from xAI’s Grok model into Tori, its conversational AI agent. Management described the AI tools as both a user acquisition and engagement driver and a means to differentiate the platform in a competitive retail brokerage market.

Business dynamics and unit economics

Management attributed funded account growth in part to increased marketing spend on user acquisition and retention, while a decline in invested amount per trade points to a greater share of smaller, retail-sized trades. Interest-earning assets rose to $7.0 billion in April, up 28% year-over-year, and total money transfers for the month expanded 53% to $1.4 billion, indicating higher cash flows through the eToro Money product and neo-banking services.

On the balance sheet and cash flow side, the quarter showed operating cash generation, though the company also executed a significant buyback of treasury shares noted in the filings. Readers should refer to eToro’s SEC filings for further detail and reconciliations between GAAP and non-GAAP measures.

Implications for the market

eToro’s results highlight several trends affecting retail brokerages and crypto platforms. First, diversification across asset classes can support revenue resilience when crypto markets cool. Second, embedding AI and modular app ecosystems creates new monetization avenues and may increase user stickiness if these tools provide measurable investment utility. Third, integrating custody and wallet technology via acquisitions such as Zengo positions intermediaries to capture on-chain flows as demand for self-custody and crypto-native services persists.

However, the mix shift toward smaller trade sizes and the April decline in crypto trades signal potential headwinds for average revenue per user if larger-ticket activity does not return. Regulatory requirements in the U.S. and other jurisdictions remain an important variable, particularly as eToro expands trading and custody services across regulatory regimes.

Outlook and risks

eToro noted it will continue to invest in on-chain capabilities and AI-driven tools, and management framed the quarter as the strongest since listing. The company also reiterated standard caution about forward-looking statements, pointing to market volatility, competition, regulatory uncertainty and other operating risks described in its public filings.

Investors and industry observers will be watching whether the Zengo integration and AI-driven product release cadence translate into sustained growth in assets under administration and per-user revenue, particularly if crypto market activity stabilizes.

Methodology note: The figures and operational metrics in this article are drawn from eToro Group Ltd.’s first quarter 2026 results and accompanying operational data released by the company.

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