eToro Stock Surges 20% Following Strong Q4 Results Driven by Cryptocurrency Revenue
The Q4 financial results from trading platform eToro surpassed market predictions even as revenue declined nearly 40% compared to the same period last year, with performance significantly supported by cryptocurrency-related products and services.
Investment platform eToro experienced a surge exceeding 20% following the announcement of fourth-quarter financial results that exceeded analyst projections, with the majority of revenue derived from cryptocurrency-related services.
According to Tuesday's announcement, the company's net income for Q4 saw a 16% increase compared to the previous year, reaching $68.7 million, while earnings per share hit 71 cents versus the 60 cents that analysts had anticipated.
Revenue for the fourth quarter totaled $3.87 billion, representing a 40% decline from the same quarter in the previous year, though cryptocurrency revenues accounted for the majority of earnings at $3.59 billion.
The positive earnings surprise stood in contrast to eToro's primary cryptocurrency competitors, Coinbase and Robinhood, both of which failed to meet Q4 earnings expectations as their revenue figures suffered during a late-year cryptocurrency market downturn.
In the meantime, eToro's complete 2025 fiscal year revenue increased by more than 9% compared to 2024, totaling $13.84 billion, while net income climbed 12% on a year-over-year basis to $215.7 million. Cryptocurrency revenue for the full year reached $13 billion, representing an increase of nearly 7% from 2024.
Stock price rallies on quarterly performance, CEO emphasizes crypto opportunity positioning
Stock in eToro (ETOR) concluded Tuesday's trading session with a gain of 20.4%, closing at $33.07 following the company's earnings surprise, positioning it among the top-performing cryptocurrency-related stocks for the trading day. Following the close, shares dipped marginally to $33.
CEO of eToro, Yoni Assia, characterized the current period as "a pivotal moment for financial services" with artificial intelligence and expanding blockchain infrastructure adoption "reshaping how people invest and interact with markets."
eToro is uniquely positioned to capture this opportunity. We are positioning eToro for a financial system that is increasingly moving on-chain. With our long-standing leadership in crypto and tokenization, we are well placed to help shape this transition.
Yoni Assia, eToro CEO
During an earnings call with investors, Assia shared that eToro has observed some of its cryptocurrency-oriented users "suddenly trading commodities" for the first time.
There's somewhat of a convergence or a shift from crypto, which now has lower volatility, to now basically gold, silver, and other commodities that have higher volatility.
At the same time, the company disclosed that cryptocurrency trading volume during January declined 50% from the prior year, with 4 million crypto trades executed throughout the month, while the amount invested per individual trade also fell 34% to $182.
Nevertheless, the overall number of trades during the previous month rose 55% year-over-year to reach 74 million, with the investment amount per trade increasing 8% to $252.