eToro (ETOR)
NASDAQ:ETOR
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eToro
(NASDAQ:ETOR)
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Rating:70Outperform
Price Target:
$36.00
▲(22.66% Upside)
Action:ReiteratedDate: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.
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.
Read all positive and negative factors
Positive Factors
Negative 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.
Read all positive factors
eToro (ETOR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.41B
Dividend YieldN/A
Average Volume (3M)1.41M
Price to Earnings (P/E)11.1
Beta (1Y)1.74
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees1,414
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.69
Shares Outstanding66,806,750
10 Day Avg. Volume951,545
30 Day Avg. Volume1,409,213
Financial Highlights & Ratios
PEG Ratio-0.18
Price to Book (P/B)2.10
Price to Sales (P/S)3.24
P/FCF Ratio11.38
Enterprise Value/Market Cap0.63
Enterprise Value/Revenue0.15
Enterprise Value/Gross Profit1.75
Enterprise Value/Ebitda5.02
Forecast
1Y Price Target
$52.44Price Target Upside78.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering9
EPS Forecast (FY)2.63
Revenue Forecast (FY)$935.92M
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, ...
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....
eToro Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Jun 16, 2026
Earnings Call Sentiment Positive
The call emphasized broad, diversified growth across core KPIs—net contribution, adjusted EBITDA, AUA, funded accounts, product expansion, strategic partnerships, AI and payments momentum—while acknowledging a material decline in crypto trading contribution and some near-term EPS and product‑line pressure. Management highlighted resilience of the multi-asset model, strong balance sheet, disciplined marketing ROI and plans to scale selectively (including increased S&M and buybacks). Overall, positive operational and financial momentum outweighs the crypto-related headwinds and execution risks, underpinning a constructive outlook for 2026.Positive Updates
Product and Geographic Expansion
Platform breadth expanded: supported crypto assets surpassed 150 (U.S. offering >100 coins) with plans to exceed 300; access to 25 exchanges and over 12,000 assets; goal to support 100,000 tradable assets across equities and crypto by end of 2026.
Negative Updates
Sharp Decline in Crypto Trading Contribution
Net trading contribution from crypto declined 72% YoY to $26 million, reflecting lower investor demand per trade and softer crypto trading activity in November and December.
Read all updates
Q4-2025 Updates
Positive
Negative
Product and Geographic Expansion
Platform breadth expanded: supported crypto assets surpassed 150 (U.S. offering >100 coins) with plans to exceed 300; access to 25 exchanges and over 12,000 assets; goal to support 100,000 tradable assets across equities and crypto by end of 2026.
Read all positive updates
Company Guidance
Management guided to accelerate growth in 2026 while increasing sales & marketing spend from ~21% of net contribution toward 25% (phased through the year) to drive double‑digit funded‑account growth and stronger KPIs, with G&A and R&D expected to be roughly flat (minor growth) and overall spend remaining flexible. For context and targets they cited FY2025 net contribution $868M (Q4 $227M, +6% seq.), FY2025 adjusted EBITDA $370M (Q4 $87M, +11% q/q; Q4 margin 38%), AUA ≈ $18.5B, funded accounts ≈ 3.8M, cash & equivalents ≈ $1.3B, free cash flow $42M, adjusted OpEx $140M, adjusted S&M $46M (20% of net contribution), adjusted R&D $37M, G&A $57M, adjusted diluted EPS $0.71, and share repurchases of 1.5M shares for $59.5M (new buyback authorization raised to $250M, $100M deployed to date). Product and operational guidance includes expanding supported tradable assets to >100,000 by end‑2026, increasing crypto coverage from 150+ toward >300 (100+ in the U.S.), broader 24/7 trading and margin capabilities, continued rollouts (noncustodial wallet, app store), and a focus on profitable, diversified revenue growth driven by commodities, equities and interest income (capital markets contribution $116M in Q4, crypto contribution $26M in Q4, net interest income $59M).eToro Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
82
Very Positive
Cash Flow
76
Positive
| 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 Risk Analysis
eToro disclosed 83 risk factors in its most recent earnings report. eToro reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
eToro Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $29.46B | 29.11 | 19.88% | 0.46% | 11.88% | 28.96% | |
70 Outperform | $2.41B | 11.08 | 17.30% | ― | ― | ― | |
68 Neutral | $19.52B | 15.73 | 32.39% | ― | 81.43% | 119.47% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $62.19B | 53.37 | 22.32% | ― | 73.48% | 315.24% | |
63 Neutral | $21.87B | 62.56 | 5.87% | ― | 22.40% | 215.81% | |
52 Neutral | $2.78B | 124.53 | 2.92% | ― | ― | ― |
* Financial Sector Average
ETOR
eToro
29.35
-37.50
-56.10%
IBKR
Interactive Brokers
66.12
22.86
52.83%
FUTU
Futu Holdings
140.29
32.78
30.49%
SOFI
SoFi
16.70
3.63
27.77%
HOOD
Robinhood
69.08
24.35
54.44%
BULL
Webull Corporation
5.13
-6.72
-56.71%
eToro Corporate Events
eToro Launches $50 Million Accelerated Share Buyback With Citibank
Feb 19, 2026
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 i...
eToro Posts Record 2025 Results and Expands AI-Driven Trading Platform
Feb 17, 2026
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 contri...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.