eToro (ETOR) AI Stock Analysis

• Market Cap: $2.92B
• Dividend Yield: N/A
• Average Volume (3M): 865.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1,414
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.53
• Shares Outstanding: 47,220,867
• 10 Day Avg. Volume: 1,042,360
• 30 Day Avg. Volume: 865,344
• PEG Ratio: <0.01
• Price to Book (P/B): 1.22
• Price to Sales (P/S): 1.21
• P/FCF Ratio: 3.81
• Enterprise Value/Market Cap: 1.82
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 12.32
• Enterprise Value/Ebitda: 39.38
• 1Y Price Target: $62.69
• Price Target Upside: 66.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $38.00 ▲(0.72% Upside)

eToro's overall stock score is driven by its strong financial performance and positive earnings call sentiment, highlighting robust growth and strategic initiatives. However, technical analysis indicates bearish momentum, and the lack of comprehensive valuation metrics limits the assessment. Despite these challenges, the company's focus on innovation and expansion supports a favorable outlook.

Positive Factors

Revenue Growth

The significant increase in revenue demonstrates eToro's strong market position and ability to scale operations, supporting long-term growth.

Cash Generation

Strong cash generation enhances eToro's financial flexibility, enabling reinvestment in growth initiatives and providing a buffer against economic downturns.

Innovation and Expansion

eToro's focus on innovation and global expansion positions it to capture new market opportunities, driving sustained competitive advantage.

Negative Factors

Regulatory Challenges

Regulatory hurdles in the U.S. could limit eToro's expansion and growth potential in a key market, impacting long-term strategic goals.

Decline in Capital Markets Contribution

A decline in capital markets contribution indicates shifting investor behavior, which could affect eToro's revenue diversification and stability.

Moderate Profit Margins

Moderate profit margins suggest limited pricing power and cost control, potentially affecting profitability and competitive positioning.

eToro Business Overview & Revenue Model

Company Description

eToro (ETOR) is a social trading and investment platform that allows users to trade a wide range of financial assets, including stocks, cryptocurrencies, commodities, and more. Founded in 2007, eToro operates in the fintech sector, focusing on democratizing trading through its unique social trading features that enable users to follow and copy the trades of experienced investors. The platform caters to both novice and professional traders, offering tools for market analysis, portfolio management, and community engagement.

How the Company Makes Money

eToro generates revenue through several key streams, primarily including spreads, which are the differences between the buying and selling prices of assets. The platform charges users a spread when they execute trades, which varies by asset class. Additionally, eToro earns money through withdrawal fees, overnight fees for leveraged positions, and various subscription services for premium features. The company also engages in partnerships with financial institutions and payment processors, which can provide additional revenue opportunities. By leveraging its social trading model, eToro fosters a community of traders, encouraging user engagement and retention, which further contributes to its revenue growth.

eToro Financial Statement Overview

Summary

eToro demonstrates robust financial performance with significant revenue growth, strong cash flow generation, and a stable balance sheet. The company has improved its profitability margins, although further enhancement is possible. The low leverage and high equity ratios suggest financial stability and low risk, positioning eToro well for future growth.

Income Statement

eToro's income statement shows significant revenue growth, with a 225.78% increase from the previous year. The gross profit margin is moderate at 6.11%, but the net profit margin has improved to 1.52% from 0.39%, indicating better cost management. The EBIT margin of 1.95% and EBITDA margin of 2.33% suggest stable operational efficiency, although there's room for improvement in profitability.

Balance Sheet

The balance sheet reflects strong financial health with a low debt-to-equity ratio of 0.06 and a solid equity ratio of 69.86%, indicating a robust capital structure. The return on equity is a modest 23.11%, showing effective use of equity to generate profit. Overall, eToro maintains a stable and strong financial position.

Cash Flow

Cash flow analysis shows a strong Free Cash Flow growth of 138.95%, indicating excellent cash generation capability. The operating cash flow to net income ratio is 1.40, and the free cash flow to net income ratio is 1.38, both reflecting efficient cash conversion from profits. This highlights eToro's strong cash flow management and operational efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	5.84B	837.49M	3.88B	6.33B	945.43M	550.11M
Gross Profit	432.08M	12.52B	546.32M	584.80M	945.43M	485.69M
EBITDA	135.14M	293.62M	65.27M	-193.06M	0.00	93.09M
Net Income	90.14M	192.38M	15.26M	-214.98M	-265.70M	82.86M
Balance Sheet
Total Assets	1.75B	1.19B	800.16M	2.40B	1.13B	531.37M
Cash, Cash Equivalents and Short-Term Investments	1.19B	640.39M	388.33M	358.96M	0.00	0.00
Total Debt	51.25M	48.30M	36.46M	45.86M	0.00	24.43M
Total Liabilities	431.19M	358.99M	202.60M	1.89B	553.55M	145.28M
Stockholders Equity	1.32B	832.38M	597.56M	515.43M	581.38M	386.09M
Cash Flow
Free Cash Flow	149.00M	266.21M	111.41M	343.61M	0.00	-63.31M
Operating Cash Flow	150.68M	268.58M	111.83M	346.98M	0.00	-60.49M
Investing Cash Flow	-137.17M	-68.53M	-1.42M	-24.92M	0.00	-2.89M
Financing Cash Flow	380.03M	-3.19M	-10.74M	-291.38M	0.00	-2.81M

eToro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBKR	80 Outperform	$31.42B	33.98	19.82%	0.40%	11.88%	28.96%
FUTU	80 Outperform	$25.80B	26.01	26.43%	―	66.97%	86.46%
ETOR	68 Neutral	$2.92B	―	―	―	―	―
SOFI	68 Neutral	$34.02B	55.38	8.59%	―	22.40%	215.81%
HOOD	68 Neutral	$115.80B	54.12	27.82%	―	73.48%	315.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BULL	47 Neutral	$4.77B	―	-3.09%	―	―	―

eToro Corporate Events

eToro Announces Q3 2025 Results and $150M Share Repurchase Plan

On November 10, 2025, eToro announced its financial results for the third quarter of 2025, highlighting a 28% increase in net contribution to $215 million and a 76% growth in assets under administration to $20.8 billion. The company also revealed a $150 million share repurchase program, reflecting confidence in its long-term strategy and growth prospects. eToro’s strategic focus on product development and global expansion, particularly in the U.S. through initiatives like Copy Trading, positions it well to capitalize on macroeconomic tailwinds and deliver shareholder value.

eToro Reports Strong Q2 2025 Results Amid Global Expansion

On August 12, 2025, eToro Group Ltd. reported its financial results for the second quarter of 2025, marking its first quarter as a public company. The company achieved a 26% year-over-year growth in net contribution to $210 million and a 54% increase in assets under administration to $17.5 billion. eToro expanded its product offerings with 24/5 trading for U.S. equities, new long-term portfolios in partnership with Franklin Templeton, and savings products in France. The company also strengthened its presence in Asia with a new hub in Singapore. These developments reflect eToro’s commitment to innovation and global expansion, aiming to enhance user experience and drive sustainable growth.