EToro to buy TradeZero as Q2 crypto revenue falls 30%
Summary
eToro 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, eToro reported $1.59 billion in revenue, down from $2 billion a year earlier, with crypto revenue falling about 30% to $1.34 billion. Total net income was $53.4 million, including $19.7 million from crypto assets, while equities and commodities trading produced $141 million in net income. Crypto activity weakened sharply, with July trades down 73% year over year and invested amounts down 50%. TradeZero generated about $80 million in revenue with 81% gross margins over the last 12 months. eToro expects the deal to boost adjusted EPS in the first year after closing.
