eToro's gross crypto revenue declined to $1.35 billion in the second quarter, marking a year-over-year drop of roughly 29 percent, according to the company's quarterly results announced Monday.
The decline in crypto revenue came as the retail broker's overall profitability exceeded analyst expectations. eToro reported net income of $53.4 million, up 77 percent from the prior-year quarter, with adjusted earnings per share of $0.68, beating consensus estimates of $0.65 by 4.6 percent.
eToro operates a commission-free trading platform serving retail investors in cryptocurrency, equities, and commodities across 140 countries. The company's crypto business has faced headwinds from lower trading volumes in digital assets and reduced retail participation in the broader market through the first half of 2026. The crypto revenue decline comes alongside both a smaller addressable market and lower average transaction sizes compared to the second quarter of 2025.
The company's overall profit expansion despite crypto revenue contraction points to cost discipline and growth in other business segments. eToro has shifted focus toward account retention and profitability per user rather than pursuit of top-line growth in volatile trading volumes. The company achieved margin improvement on a flatter revenue base.
A 29 percent year-over-year decline in crypto revenue places eToro's quarterly crypto segment well below the $1.9 billion-plus quarters the company posted in 2025, when retail trading volumes peaked. The gap between the Q2 crypto figure and prior-year levels spans approximately $540 million in quarterly revenue.
The number that will clarify the path forward is whether eToro's crypto revenue in the second half of 2026 stabilizes near current levels or contracts further; management guidance on full-year crypto segment expectations would reveal whether the company expects sustained pressure or a rebound in digital asset trading.
