eToro to Buy TradeZero for Up to $231 Million as Equities Lead Second-Quarter Growth

eToro, the Nasdaq-listed trading platform, announced on Tuesday that it has agreed to acquire US brokerage TradeZero for up to $231 million. The deal was disclosed alongside second-quarter results showing net contribution rose 9% year-over-year to $229 million and net income reached $53.5 million. eToro will pay in cash and up to 2.5 million newly issued Class A shares, subject to purchase price adjustments. TradeZero generated about $80 million in revenue in the 12 months to June 30, with an 81% gross margin, putting the price at roughly 2.9 times revenue.

The acquisition deepens eToro’s push into US equities, a segment that alone contributed more than the entire increase in net contribution. Net trading income from equities, commodities and currencies climbed $27.6 million year-over-year to $141.6 million, while total net contribution rose $19.8 million. TradeZero, founded in 2015, operates an equities and options brokerage for active US traders across the United States, Canada and international markets. eToro CEO Yoni Assia said the combination “gives us a faster path to launching new products for US customers.”

TradeZero carries a regulatory record from the meme-stock era. In May 2022, the SEC fined TradeZero America $100,000 and co-founder Daniel Pipitone $25,000 over public statements about trading restrictions on January 28, 2021. Neither admitted nor denied the findings. eToro’s second-quarter performance trailed the first quarter, when a commodities boom pushed net contribution to $258 million and net income to $82 million. On a sequential basis, net contribution fell 11% to $229 million, and GAAP net income of $53.5 million was 35% below Q1. Adjusted net income rose 16% year-over-year to $62.8 million, while adjusted EBITDA increased 9% to $78.1 million.

July data showed a slowdown, with assets under administration falling 5% year-over-year to $18.5 billion, after May assets of $20.1 billion were up 18%. Capital markets trades were flat at 48.5 million, with the average invested amount per trade down 23% to $207. Crypto trades plunged 73% to 1.4 million, and the average crypto trade amount halved to $182. Funded accounts reached 4.32 million, up 18%. CFO Meron Shani noted that over 60% of clients who traded commodities in the two quarters to March later traded equities in the second quarter, illustrating “how users move between asset classes as market opportunities evolve.”

Revenue from cryptoassets, booked gross, fell 30% year-over-year to $1.35 billion, with the cost of that revenue exceeding the revenue by about $7 million. Including $19.7 million in crypto derivatives income, net crypto contribution was roughly $12.5 million, down from $29.3 million a year earlier. Crypto’s share of net contribution dropped to 5.5% from 14% in the same quarter of 2025. eToro completed the purchases of self-custody wallet maker Zengo and crypto exchange Bit2C during the quarter. The TradeZero acquisition is eToro’s third this year and the first outside crypto. Daniel Pipitone, TradeZero’s co-founder and CEO, said the firm “was built by active traders, for active traders.” The deal requires regulatory clearance and is expected to close in the first half of 2027. TradeZero previously attempted to go public in October 2021 via a SPAC merger with Dune Acquisition Corp at an enterprise value of about $556 million, but the listing never materialized.