eToro to acquire TradeZero for up to $231M

eToro reported Q2 2026 GAAP net income of $53 million, up 77% year over year but missing the $55.1 million consensus, causing about an 11% drop in ETOR shares. The company announced plans to acquire TradeZero for up to $231 million in cash and up to 2.5 million new Class A shares, with closing expected in the first half of 2027. Funded accounts rose 18% to 4.28 million and assets under administration grew 10% to $19.2 billion, while crypto trading activity fell about 73% year over year in July and crypto revenue declined ~30%, signaling a pivot away from crypto‑dependent growth. TradeZero will provide broker‑dealer infrastructure and faster access to the US market, aligning with eToro’s multi‑asset strategy and enabling quicker product launches. The acquisition is expected to be accretive to adjusted EPS in the first year after closing. The report highlights the broader context of US expansion and product development in light of Q2 results.