eToro (ETOR) AI Stock Analysis

• Market Cap: $3.51B
• Dividend Yield: N/A
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.29
• 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: 1,953,414
• 30 Day Avg. Volume: 1,553,998
• 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: 0.85
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 3.82
• Enterprise Value/Ebitda: 9.18
• 1Y Price Target: $58.08
• Price Target Upside: 38.38% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 12
• EPS Forecast (FY): 2.34
• Revenue Forecast (FY): $870.28M

• Rating: 75 Outperform
• Price Target: $47.00 ▲(11.98% Upside)

eToro's overall stock score is driven by its robust financial performance and positive earnings call sentiment, highlighting strong growth and strategic initiatives. Technical analysis supports a moderately positive outlook, while the lack of valuation data limits a comprehensive assessment. Despite some challenges, the company's strong financial metrics and strategic focus on innovation and expansion position it well for future growth.

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	15.78B	12.62B	3.88B	6.33B	945.43M	550.11M
Gross Profit	777.24M	680.52M	404.71M	361.34M	945.43M	485.69M
EBITDA	323.36M	296.12M	66.99M	-180.62M	0.00	93.09M
Net Income	206.14M	192.38M	15.26M	-214.98M	-265.70M	82.86M
Balance Sheet
Total Assets	1.80B	1.19B	800.16M	2.40B	1.13B	531.37M
Cash, Cash Equivalents and Short-Term Investments	1.22B	3.63B	388.33M	358.96M	0.00	1.40B
Total Debt	51.01M	48.30M	36.46M	45.86M	0.00	24.43M
Total Liabilities	422.58M	358.99M	202.60M	1.89B	553.55M	145.28M
Stockholders Equity	1.38B	832.38M	597.56M	515.43M	581.38M	386.09M
Cash Flow
Free Cash Flow	254.04M	266.21M	111.41M	342.75M	0.00	-63.31M
Operating Cash Flow	258.29M	268.58M	111.83M	346.98M	0.00	-60.49M
Investing Cash Flow	-136.36M	-68.53M	-1.42M	-24.92M	0.00	-2.89M
Financing Cash Flow	377.46M	-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
ETOR	75 Outperform	$3.51B	―	―	―	―	―
IBKR	75 Outperform	$28.96B	31.32	19.82%	0.77%	11.88%	28.96%
SOFI	71 Outperform	$35.84B	53.89	8.59%	―	22.40%	215.81%
FUTU	70 Outperform	$23.61B	18.96	30.24%	―	81.43%	119.47%
HOOD	68 Neutral	$115.54B	53.34	27.82%	―	73.48%	315.24%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BULL	52 Neutral	$4.68B	―	―	―	―	―

eToro Corporate Events

eToro Initiates $50 Million Share Repurchase with Goldman Sachs

On November 13, 2025, eToro Group Ltd. announced an accelerated share repurchase transaction with Goldman Sachs & Co. LLC, involving the repurchase of $50 million of its Class A common shares. This transaction is part of eToro’s previously announced $150 million share repurchase authorization, leaving $100 million available for future repurchases. The transaction, set to conclude in the fourth quarter of 2025, is expected to impact the company’s share value and market positioning positively, reflecting eToro’s confidence in its financial stability and future growth prospects.

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.