Finance
Trading platform eToro beats profit estimates as retail investors ride market boom
Published by Global Banking and Finance Review
Posted on November 10, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 10, 2025
2 min readLast updated: January 21, 2026
eToro beats Q3 profit estimates as retail investors drive growth amid market boom, despite bubble concerns.
(Reuters) -Stock and crypto trading platform eToro beat estimates for third-quarter profit on Monday as retail investors maintained their buying streak despite bubble worries, sending shares up 8% before the bell.
Equities hit record highs in the quarter as steady earnings, softer inflation expectations and optimism around the AI boom encouraged investors to move back into risk assets.
The rally has stirred concerns about a bubble, some analysts warned, with valuations in high-growth names appearing stretched. Several prominent Wall Street CEOs have cautioned that the market could be nearing a correction.
Meanwhile, crypto markets were extremely volatile through the quarter, swinging sharply as traders reacted to shifting regulatory and macro signals.
Net contribution, which deducts the cost of revenue from crypto assets and margin interest expense, jumped 28% to $215 million from the year-ago quarter.
"Our results reflect the strength of our diversified revenue streams across segments and geographies, robust user engagement, and disciplined cost management, a trend that has continued into October," CFO Meron Shani said in a statement.
Newer fintech platforms have eroded the dominance of Wall Street incumbents in recent years, luring younger, tech-savvy investors with low fees, slick mobile apps and access to a wider asset range.
The financial technology company's assets under administration grew by 76% year-on-year to $20.8 billion.
A combination of accessible trading apps, volatile price moves and a steady flow of market news has persistently supported strong retail participation, helping these platforms maintain growth.
The company posted adjusted profit of 60 cents per share in the three months ended September 30, versus 51 cents per share a year earlier. Analysts had expected 56 cents per share, according to an average estimate compiled by LSEG.
It also announced a share repurchase program of up to $150 million.
Larger rival Robinhood Markets topped third-quarter profit estimates earlier this month as retail traders seized opportunities presented by the market momentum.
(Reporting by Manya Saini in Bengaluru; Editing by Pooja Desai)
A trading platform is software that allows investors to buy and sell financial instruments like stocks, bonds, and cryptocurrencies. It provides tools for analysis, charting, and executing trades.
Cryptocurrencies are digital or virtual currencies that use cryptography for security. They operate on decentralized networks based on blockchain technology, allowing peer-to-peer transactions.
Retail investing refers to individual investors buying and selling securities for their personal accounts, as opposed to institutional investors who manage funds for clients.
Profit margin is a financial metric that indicates the percentage of revenue that exceeds the costs of goods sold. It measures how much profit a company makes for every dollar of sales.
Revenue growth refers to the increase in a company's sales over a specific period, often expressed as a percentage. It indicates the company's ability to expand its business and increase sales.
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