eToro (ETOR) AI Stock Analysis

• Market Cap: $2.57B
• Dividend Yield: N/A
• Average Volume (3M): 1.54M
• Price to Earnings (P/E): 12.0
• Beta (1Y): 2.05
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 1,414
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): 0.69
• Shares Outstanding: 47,220,867
• 10 Day Avg. Volume: 1,842,501
• 30 Day Avg. Volume: 1,539,374
• PEG Ratio: -0.18
• Price to Book (P/B): 2.10
• Price to Sales (P/S): 3.24
• P/FCF Ratio: 11.38
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 0.16
• Enterprise Value/Gross Profit: 1.84
• Enterprise Value/Ebitda: 5.29
• 1Y Price Target: $52.13
• Price Target Upside: 69.97% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): 2.61
• Revenue Forecast (FY): $931.39M

• Rating: 70 Outperform
• Price Target: $36.00 ▲(17.38% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is driven primarily by improved profitability/cash generation and a conservatively financed balance sheet, supported by constructive 2026 guidance and disciplined growth investments. Offsets include high business volatility (notably large revenue swings), crypto-related headwinds discussed on the call, and only mixed technical momentum.

Positive Factors

Conservative balance sheet

eToro’s balance sheet shows low leverage (debt-to-equity ~0.06–0.09) and sizable liquidity (≈$1.3B). This financial conservatism supports continued product investment, share buybacks, and resilience through market cycles, giving durable capital flexibility to execute strategic plans.

Strong cash generation

Consistent positive operating and free cash flow in recent years, with FCF tracking net income, underpins earnings quality and funds growth investments, buybacks and dividend optionality. Reliable cash conversion enhances long-term financial stability despite episodic volatility.

Expanding product and ecosystem

eToro’s push to embed AI, launch an app store, expand tradable assets and deepen partnerships (Amundi, BlackRock, Franklin Templeton) broadens its platform moat. These structural moves diversify revenue pools (payments, capital markets, wealth) and raise switching costs over the medium term.

Negative Factors

Revenue volatility

The business exhibits very large year-to-year revenue swings driven by episodic trading volumes and product mix shifts. Such top-line unpredictability complicates forecasting, risks margin sustainability and increases reliance on management execution to smooth performance over time.

Crypto revenue weakness

A steep drop in crypto contribution highlights sensitivity to crypto market cycles and take-rate pressure. Given crypto’s prior outsized impact on revenue, persistent weakness or lower structural take-rates could materially reduce topline and operating leverage going forward.

Execution and marketing risk

Management intends to increase marketing to accelerate funded-account growth; this raises execution risk if cohort economics or ROI deteriorate. Additionally, selective M&A and disciplined pricing are cited as constraints, so execution missteps could pressure near-term margins and growth sustainability.

eToro Business Overview & Revenue Model

Company Description

eToro Group Ltd. is an Israeli-based financial technology company founded in 2007. It operates a multi-asset investment platform that combines social networking features with trading capabilities, allowing users to trade stocks, cryptocurrencies, commodities, and more. As of December 31, 2024, eToro had approximately 3.5 million funded accounts across 75 countries.

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

Strong recovery to solid profitability and robust cash generation in 2023–2025, supported by a low‑leverage balance sheet and growing equity base. The main risk is pronounced volatility, including a very large revenue decline in 2025 versus 2024, which reduces predictability.

Income Statement

Profitability has improved materially versus the earlier loss years (2021–2022), with 2023–2025 returning to positive earnings and very strong margins in 2025 (annual net margin ~24% and high operating profitability). However, results are volatile: revenue swings sharply across years, including an extreme revenue decline in 2025 (down ~94% year over year after a very large 2024 base). This level of top-line instability is a meaningful risk despite the improved earnings profile.

Balance Sheet

The balance sheet looks conservatively financed with low leverage across all years (debt-to-equity generally ~0.06–0.09, and effectively zero in 2021) and a growing equity base into 2025. Returns on equity are strong in the latest periods (positive and healthy in 2024–2025), though they were deeply negative during the 2021–2022 loss period, highlighting that performance can turn quickly with the business cycle/market conditions.

Cash Flow

Cash generation is strong in recent years, with operating cash flow and free cash flow both solidly positive in 2022–2025, and free cash flow closely tracking net income (near 1x in 2022–2025), which supports earnings quality. That said, cash flow has not been consistent over the full history (negative operating/free cash flow in 2020 and zero in 2021), and some coverage readings vary sharply year to year, reinforcing the company’s volatility.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	905.92M	12.62B	3.88B	6.33B	945.43M
Gross Profit	842.44M	680.52M	404.71M	361.34M	945.43M
EBITDA	266.37M	296.12M	66.99M	-180.62M	0.00
Net Income	215.70M	192.38M	15.26M	-214.98M	-265.70M
Balance Sheet
Total Assets	1.79B	1.19B	800.16M	2.40B	1.13B
Cash, Cash Equivalents and Short-Term Investments	1.28B	3.63B	388.33M	358.96M	0.00
Total Debt	102.95M	48.30M	36.46M	45.86M	0.00
Total Liabilities	396.76M	358.99M	202.60M	1.89B	553.55M
Stockholders Equity	1.39B	832.38M	597.56M	515.43M	581.38M
Cash Flow
Free Cash Flow	257.68M	266.21M	111.41M	342.75M	0.00
Operating Cash Flow	262.52M	268.58M	111.83M	346.98M	0.00
Investing Cash Flow	-87.85M	-68.53M	-1.42M	-24.92M	0.00
Financing Cash Flow	319.95M	-3.19M	-10.74M	-291.38M	0.00

eToro Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IBKR	75 Outperform	$31.71B	32.11	20.41%	0.46%	11.88%	28.96%
ETOR	70 Outperform	$2.57B	11.95	19.37%	―	―	―
FUTU	70 Outperform	$20.71B	16.67	30.18%	―	81.43%	119.47%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
HOOD	64 Neutral	$68.34B	36.84	22.01%	―	73.48%	315.24%
SOFI	63 Neutral	$22.65B	46.74	5.66%	―	22.40%	215.81%
BULL	52 Neutral	$2.92B	―	―	―	―	―

eToro Corporate Events

eToro Launches $50 Million Accelerated Share Buyback With Citibank

On February 18, 2026, eToro Group Ltd. entered into an accelerated share repurchase transaction with Citibank, N.A. to buy back $50 million of its Class A common shares under its existing repurchase authorization. The move follows a $100 million increase to the program’s remaining capacity, leaving $100 million available after giving effect to this deal and signaling management’s confidence and focus on capital returns. Under the arrangement, eToro will pay the $50 million on February 20, 2026 for an initial tranche of shares, with the final number determined by the volume-weighted average price over the transaction period, which is set to conclude in the second quarter of 2026. The structure may require eToro to deliver additional shares or cash, or receive more shares at settlement, reflecting standard market terms that could modestly affect its share count and capital structure depending on trading conditions.

The most recent analyst rating on (ETOR) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on eToro stock, see the ETOR Stock Forecast page.

eToro Posts Record 2025 Results and Expands AI-Driven Trading Platform

On February 17, 2026, eToro reported its fourth-quarter and full-year 2025 results, highlighting a milestone year in which it became a public company and advanced its global financial super-app strategy. For 2025, the firm posted record net contribution of $868 million, up 10% year-on-year, GAAP net income of $216 million, and growth in funded accounts and assets under administration, while Q4 showed higher net income despite softer contribution and EBITDA.

Management emphasized strong January 2026 KPIs, including a sharp rise in total trades and money transfers, and steady increases in interest-earning assets and funded accounts, underscoring the resilience of its multi-asset model. eToro also detailed strategic progress across trading and investing, such as broader 24/5 and emerging 24/7 market access, an expanded crypto and derivatives lineup, launch of its AI analyst “Tori,” preparation of an app store, and a larger share repurchase program, moves that collectively reinforce its positioning at the intersection of traditional finance, AI and on-chain market infrastructure.

The most recent analyst rating on (ETOR) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on eToro stock, see the ETOR Stock Forecast page.