Etoro Group Ltd. (ETOR)
NASDAQ:ETOR
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eToro
(NASDAQ:ETOR)
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Rating:79Outperform
Price Target:
$47.00
▲(15.79% Upside)
Action:Reiterated
Date:05/19/26
The score is driven primarily by improved financial performance and a strong balance sheet with solid recent cash generation, tempered by meaningful revenue volatility. Technicals add support with a clear uptrend and positive momentum, though the stock looks extended short-term. Valuation is favorable on a low P/E, and the latest earnings call reinforced operational momentum and shareholder returns, offset by execution and mix/cycle risks (crypto weakness, lower net interest income, higher marketing investment, and U.S. rollout/regulatory timing).
Positive Factors
Balance sheet strength
eToro's low leverage and growing equity base provide durable financial flexibility. With minimal debt burden the company can fund product rollouts, M&A and buybacks, absorb trading-volume shocks and avoid refinancing stress, supporting multi‑year strategic execution.
Negative Factors
Top-line volatility
History of dramatic revenue swings—culminating in an extreme 2025 decline—weakens forecasting and capital allocation. Persistent top-line volatility risks undercutting long-term investment plans, complicating margin sustainability and stakeholder confidence across cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance sheet strength
eToro's low leverage and growing equity base provide durable financial flexibility. With minimal debt burden the company can fund product rollouts, M&A and buybacks, absorb trading-volume shocks and avoid refinancing stress, supporting multi‑year strategic execution.
Read all positive factors
eToro (ETOR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.18B
Dividend YieldN/A
Average Volume (3M)1.37M
Price to Earnings (P/E)14.8
Beta (1Y)2.05
Revenue Growth12.56%
EPS Growth20.38%
CountryUS
Employees1,414
SectorFinancial
Sector Strength70
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)2.81
Shares Outstanding66,806,610
10 Day Avg. Volume1,215,263
30 Day Avg. Volume1,365,244
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 Cap0.74
Enterprise Value/Revenue0.35
Enterprise Value/Gross Profit2.62
Enterprise Value/Ebitda7.30
Forecast
1Y Price Target
$55.33Price Target Upside36.32% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering12
EPS Forecast (FY)2.78
Revenue Forecast (FY)$962.85M
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
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eToro Earnings Call Summary
Earnings Call Date:May 12, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 18, 2026
Earnings Call Sentiment Positive
The call presented strong financial results, record profitability and clear product momentum (notably AI, Agent Portfolios, 24/7 trading and the Zengo acquisition). Key metrics — net contribution (+19% YoY), adjusted EBITDA (+35% YoY, margin 42%), funded accounts (+12% YoY) and capital markets contribution (+71% YoY) — support robust operational performance. Near‑term headwinds include subdued crypto trading, a modest drop in net interest income, planned higher marketing spend and early‑stage execution risks for agentic products and U.S. rollouts. On balance, positive operational and financial developments and substantial liquidity and buyback activity outweigh the manageable challenges.Positive Updates
Record Profitability and Margin Expansion
Net contribution rose 19% YoY to $258M and adjusted EBITDA increased 35% YoY to $109M, with adjusted EBITDA margin improving to 42% from 37% a year ago.
Negative Updates
Crypto Revenue Weakness and Mark-to-Market Loss
Crypto net trading contribution was only $13M with a YoY decline driven by lower trading activity and customer shifts to commodities; corporate crypto holdings incurred a $5M negative valuation impact, leaving a $14M balance at quarter end.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Profitability and Margin Expansion
Net contribution rose 19% YoY to $258M and adjusted EBITDA increased 35% YoY to $109M, with adjusted EBITDA margin improving to 42% from 37% a year ago.
Read all positive updates
Company Guidance
Management's guidance emphasized continued investment and product rollouts while highlighting strong KPIs: they plan to scale sales & marketing from ~21% toward 25% of net contribution this year, expect U.S. rollouts of CopyTrader/Smart Portfolios in H2 and to enable commodities trading in the U.S. in ~6–9 months, see 24/7 trading ultimately adding roughly 10–20% of volumes, and expect revenue per trade to be slightly above their $0.60–$0.75 range; they also noted ongoing share repurchases (Q1 buybacks ~3.3M shares for ~$103M) alongside an active M&A pipeline. Key numbers cited alongside that guidance: Q1 net contribution $258M (+19% YoY), adjusted EBITDA $109M (+35% YoY) with a 42% margin (vs 37%), capital markets contribution $166M (+71%), funded accounts 4.02M (+12%; April 4.07M, +13%), AUA $17B (+15%; April $18.7B, +90%), a 90% rise in trades in Q1, commodities = 60% of trading commissions, crypto net contribution $13M (including $5M valuation impact), net interest income $48M (-5%), eToro Money $29M (+32%), adjusted OpEx $150M (up 7% QoQ), adjusted diluted EPS $0.91 vs $0.77, cash & equivalents ~$1.3B and operating cash flow $104M; early AI/Agent metrics: Agent Portfolios produced >500k trades in ~3 weeks and are driving higher trade velocity with smaller trade sizes.eToro Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
82
Very Positive
Cash Flow
76
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 6.70B | 905.92M | 12.62B | 3.88B | 6.33B | 945.43M |
| Gross Profit | 895.56M | 842.44M | 680.52M | 404.71M | 361.34M | 945.43M |
| EBITDA | 321.40M | 266.37M | 296.12M | 66.99M | -180.62M | 0.00 |
| Net Income | 238.15M | 215.70M | 192.38M | 15.26M | -214.98M | -265.70M |
Balance Sheet | ||||||
| Total Assets | 1.86B | 1.79B | 1.19B | 800.16M | 2.40B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 1.28B | 1.28B | 3.63B | 388.33M | 358.96M | 0.00 |
| Total Debt | 33.67M | 102.95M | 48.30M | 36.46M | 45.86M | 0.00 |
| Total Liabilities | 481.88M | 396.76M | 358.99M | 202.60M | 1.89B | 553.55M |
| Stockholders Equity | 1.38B | 1.39B | 832.38M | 597.56M | 515.43M | 581.38M |
Cash Flow | ||||||
| Free Cash Flow | 306.97M | 257.68M | 266.21M | 111.41M | 342.75M | 0.00 |
| Operating Cash Flow | 314.13M | 262.52M | 268.58M | 111.83M | 346.98M | 0.00 |
| Investing Cash Flow | -136.09M | -87.85M | -68.53M | -1.42M | -24.92M | 0.00 |
| Financing Cash Flow | 222.08M | 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $3.18B | 14.83 | 17.42% | ― | 12.56% | 20.38% | |
72 Outperform | $14.71B | 11.38 | 32.39% | ― | 52.73% | 52.01% | |
72 Outperform | $76.47B | 44.70 | 21.61% | ― | 41.76% | 17.91% | |
70 Outperform | $890.91M | 5.34 | 21.89% | ― | 56.68% | 159.90% | |
68 Neutral | $8.77B | 8.44 | 22.01% | 1.10% | 10.28% | 17.87% | |
68 Neutral | $26.91B | -346.38 | -2.60% | ― | 51.46% | -233.85% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
ETOR
eToro
41.98
-17.22
-29.09%
FUTU
Futu Holdings
104.07
3.72
3.70%
TIGR
Up Fintech Holding
5.14
-2.97
-36.62%
XP
XP
16.67
-2.50
-13.03%
HOOD
Robinhood
94.30
28.15
42.55%
CRCL
Circle Internet Group, Inc. Class A
113.00
5.30
4.92%
eToro Corporate Events
eToro Posts Record Q1 2026 Results and Closes Zengo Crypto Wallet Acquisition
May 12, 2026
On May 12, 2026, eToro reported that for the first quarter ended March 31, 2026, net contribution rose 19% year-on-year to $258 million and GAAP net income climbed 37% to $82 million, supported by a surge in commodities trading. Adjusted EBITDA in...
eToro Sets May 26, 2026 Shareholder Meeting to Vote on Governance Changes
Apr 21, 2026
eToro Group Ltd. has called its 2026 annual general meeting of shareholders, which will also serve as a separate class meeting for holders of Class B common shares, for May 26, 2026, at its headquarters in Bnei Brak, Israel. Shareholders of record...
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...
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.