EToro to buy TradeZero as Q2 crypto revenue falls 30%
Summary
eToro said it plans to acquire US online brokerage TradeZero as part of its US expansion and push to become a multi-asset platform. In its second quarter, revenue fell to $1.59 billion from $2 billion a year earlier, with crypto revenue down to $1.34 billion. Net income was $53.4 million, including $19.7 million from crypto assets, while equities and commodities trading contributed $141 million. Crypto activity also weakened, with July crypto trades dropping to 1.4 million, down 73% year over year, and invested amount falling 50%. TradeZero generated about $80 million in revenue over the last 12 months with 81% gross margins. eToro expects the deal to boost adjusted earnings per share in the first year after closing.
