eToro (ETOR) Stock: Drops 4% as Revenue Growth, AI Tools and Zengo Deal Stay in Focus

TLDR

• ETOR stock fell 4.81% despite stronger Q1 earnings and revenue growth.

• eToro’s commodities trading surge helped offset weaker crypto activity.

• Zengo deal strengthens eToro’s push into self-custody crypto services.

• AI tools and Agent Portfolios support eToro’s product expansion strategy.

• Funded accounts rose to 4.02 million as assets under administration grew.

eToro (ETOR) stock fell on Tuesday even after the trading platform reported stronger first-quarter earnings and wider product growth. ETOR traded at $36.88, down 4.81%, as selling pressure followed an early move above $41. The drop placed focus on crypto weakness, AI tools, commodities growth, and the Zengo acquisition.

eToro Group Ltd., ETOR

ETOR Stock Falls Despite Strong Q1 Growth

eToro reported higher first-quarter profit as its multi-asset model gained support from commodities trading. Net contribution rose 19% year-over-year to $258 million, compared with $217 million a year earlier. The company said stronger commodities activity helped drive the increase.

Net income also improved during the quarter, rising 37% year-over-year to $82 million. Adjusted net income climbed 28% to $86 million, while adjusted EBITDA increased 35% to $109 million. Besides that, adjusted diluted earnings per share reached $0.91, compared with $0.77 last year.

The company also expanded its customer base during the period. Funded accounts rose 12% year-over-year to 4.02 million, supported by higher marketing spending. Assets under administration increased 15% to $17 billion, while cash and short-term investments stood at $1.3 billion.

Crypto Activity Weakens as Commodities Trading Leads

Crypto activity remained under pressure during the quarter, despite eToro’s continued digital asset expansion. The company reported that April crypto trades fell 32% year-over-year to 2 million. The invested amount per crypto trade declined 22% to $207.

Revenue from cryptoassets also dropped to $2.15 billion from $3.5 billion in the same period last year. However, crypto-related costs also fell sharply to $2.1 billion.The weaker crypto activity did not stop eToro from reporting stronger overall earnings.

Commodities became a major growth driver for the platform. The segment accounted for about 60% of trading commissions during the quarter. In addition, commodities volumes increased nearly fourfold year-over-year after eToro launched 24/7 trading for selected assets.

AI Tools, Zengo Deal and Product Expansion Support Growth

eToro continued to expand its product lineup across trading, investing, wealth management, and neo-banking. The company launched 24/7 trading for selected commodities, equities and indices. It also added Japanese equities, giving users access to stocks from 26 exchanges.

The platform also strengthened its AI strategy during the quarter. eToro introduced Agent Portfolios and added new apps within the eToro App Store. It integrated xAI’s Grok 4.2 into Tori, its AI-powered investing assistant.

The Zengo acquisition also remained central to eToro’s crypto strategy. The $70 million deal added self-custodial wallet technology to eToro’s broader product base. The company aims to link traditional finance with on-chain infrastructure, prediction markets, and crypto-native services.

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