eToro is acquiring TradeZero, a U.S.-focused retail brokerage, for up to $231 million in a combination of cash and stock. The deal expands eToro's footprint in American equities and options trading as the Israeli platform seeks to deepen its U.S. retail market presence.
TradeZero generated approximately $80 million in revenue over the 12 months ended June 30, 2026, with gross margins of 81 percent. eToro expects the acquisition to add to adjusted earnings per share in the first year after closing, according to the announcement. The deal structure includes both cash and equity consideration, though the exact split was not disclosed.
eToro, which went public on NASDAQ in 2021, has built its U.S. retail business through organic growth and technology investment since its founding in 2007. The platform operates as a brokerage and social trading network with a focus on lower-friction account setup and copy-trading features that let users mimic other traders' positions. TradeZero operates independently as a commission-free broker with a customer base concentrated in active options and equities traders.
The 81 percent gross margin at TradeZero exceeds eToro's reported blended gross margin of approximately 50 percent across its global operations. TradeZero's user base or product mix carries higher-margin revenue streams than eToro's overall platform.
eToro's last material acquisition was its purchase of Signaly, a crypto social trading platform, in 2021 for an undisclosed sum. U.S. retail trading volumes have remained volatile since 2022, with customer acquisition costs rising as discount brokers compete for share.
TradeZero's $80 million revenue and 81 percent gross margin translate to approximately $64.8 million in gross profit over the trailing 12 months, a baseline against which eToro's $231 million total deal value can be assessed. The accretion to adjusted EPS in year one is contingent on integration execution and retention of the seller's customer base, both material risks in retail brokerage M&A.
eToro must complete the acquisition and realize the stated financial benefits by the end of 2027 to meet its first-year EPS accretion guidance. Regulatory approval from FINRA and state regulators, as well as customer retention during the technology integration phase, will determine whether the deal delivers its projected returns.
