eToro Group Ltd 6-K, filed Feb 17, 2026
eToro Group Ltd. (ETOR)
About this 6-K
eToro Group Ltd filed this 6-K on February 17, 2026.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
UNDER the Securities Exchange Act of 1934
For the month of February 2026
Commission File Number 001-42647
| ETORO GROUP LTD. |
| (Translation of registrant’s name into English) |
| 30 Sheshet Hayamim St., Bnei Brak, Israel 5120261 |
| (Address of principal executive offices) |
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
Explanatory Note
On February 17, 2026, eToro Group Ltd. (the “Company”) issued a press release titled “eToro Reports Fourth Quarter and Full Year 2025 Results.” A copy of the press release is furnished as Exhibit 99.1 herewith.
Incorporation By Reference
The unaudited condensed consolidated balance sheets, unaudited condensed consolidated statements of profit or loss and other comprehensive income (loss), unaudited condensed consolidated statements of cash flows and unaudited reconciliation of non-GAAP metrics contained in the press release attached as Exhibit 99.1 to this report on Form 6-K are hereby incorporated by reference into the Company’s registration statement on Form S-8 (Registration No. 333-287430) (including any prospectuses forming a part of such registration statement), to be a part thereof from the date on which this report is submitted, to the extent not superseded by documents or reports subsequently filed or furnished. Except for the foregoing information, the other information contained in Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act.
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EXHIBIT INDEX
| Exhibit Number | Description of Exhibit | |
| 99.1 | Press Release dated February 17, 2026, titled “eToro Reports Fourth Quarter and Full Year 2025 Results” |
2
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| ETORO GROUP LTD. | |||||
| (Registrant) | |||||
| Date: | February 17, 2026 | By: | /s/ Johnathan Alexander Assia | ||
| Name: | Johnathan Alexander Assia | ||||
| Title: | Chief Executive Officer | ||||
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Exhibit 99.1
eToro Reports Fourth Quarter and Full Year 2025 Results
Record Net Contribution of $868 million, up 10% year-over-year, including $227 million in Q4
Q4 Assets Under Administration grew by 11% year-over-year to $18.5 billion
Announced $100 million increase to share repurchase program
New York, February 17th, 2026 - eToro Group Ltd. (“eToro”, or the “Company”) (NASDAQ: ETOR), the trading and investing platform, today announced financial results for the fourth quarter and full year 2025 which ended December 31, 2025.
“This was a milestone year for eToro,” said Yoni Assia, CEO of eToro. “We became a publicly traded company and significantly advanced the build-out of our global financial super-app. In 2025, we accelerated product innovation and AI adoption, expanded access to global markets, broadened and localized our offering, and strengthened eToro’s footprint around the world.
We are operating at a pivotal moment for financial services. Artificial intelligence and progress towards on-chain market infrastructure are reshaping how people invest and interact with markets and eToro is uniquely positioned to capture this opportunity. Through our public APIs and suite of AI-powered tools, users and partners can build, share, and scale strategies and tools, as part of a growing ecosystem. We are launching a number of apps ahead of the roll out of the eToro App Store, bringing enhanced capabilities to our retail audience.
In parallel, we are positioning eToro for a financial system that is increasingly moving on-chain. With our long-standing leadership in crypto and tokenization, we are well placed to help shape this transition. This quarter, we are introducing 24/7 access to select popular assets with plans to expand around-the-clock access across asset classes.
Our focus remains on empowering users through a simple, transparent, and digital-first investing experience, while positioning eToro to serve the next generation of investors at every stage of their journey. We are uniquely positioned as both a natively crypto company and a global equities trading platform. We look forward to capturing the many long-term growth opportunities ahead for the benefit of our users, shareholders, and partners.”
Meron Shani, CFO of eToro, said: “Our fourth quarter results reflect the strength and resilience of our mult-asset business model. We delivered compelling financial performance through a combination of diversified revenue streams, healthy funded accounts growth, and disciplined financial management. Furthermore, we are off to a strong start to 2026 with our January capital markets KPIs demonstrating the ability of our platform to adapt and perform across all different market conditions, including the recent spike in commodities trading. With our strong balance sheet and a clear execution roadmap, we believe that we are well positioned to deliver accelerated growth in 2026.”
Full year 2025 Financial Highlights1
| ● | Net Contribution increased by 10% year over year to $868 million, compared to $788 million in 2024. |
| ● | Net Income (GAAP) increased 12% year over year to $216 million, compared to $192 million in 2024. |
| 1 | See “Non-GAAP Financial Metrics and Key Performance Indicators” below for additional information and a reconciliation to GAAP for all Non-GAAP financial metrics. Numbers may not sum up due to rounding; percentage changes based on unrounded data. |
| ● | Adjusted Net Income (Non-GAAP) increased 10% to $251 million, compared to $228 million in 2024. |
| ● | Adjusted EBITDA (Non-GAAP) increased by 4% year over year to $317 million, compared to $304 million in 2024. |
| ● | Adjusted Diluted EPS (Non-GAAP) was $2.64, compared to $2.67 in 2024. |
Fourth Quarter 2025 Financial Highlights2
| ● | Net Contribution decreased by 10% year over year to $227 million, compared to $253 million in the fourth quarter of 2024. |
| ● | Net Income (GAAP) increased 16% year over year to $69 million, compared to $59 million in the fourth quarter of 2024. |
| ● | Adjusted Net Income (Non-GAAP) increased 6% year over year to $70 million, compared to $67 million in the fourth quarter of 2024. |
| ● | Adjusted EBITDA (Non-GAAP) decreased by 19% year over year to $87 million, compared to $108 million in the fourth quarter of 2024. |
| ● | Adjusted Diluted EPS (Non-GAAP) was $0.71, compared to $0.79 in the fourth quarter of 2024. |
| ● | Funded Accounts increased 9% year over year to 3.81 million compared to 3.48 million in the fourth quarter of 2024. |
| ● | Assets Under Administration (AUA) grew by 11% year over year to $18.5 billion, compared to $16.6 billion in the fourth quarter of 2024. |
| ● | Cash, Cash Equivalents and Short-Term Investments were $1.3 billion as of December 31, 2025. |
January KPI metrics3
eToro also reported the below selected monthly business metrics for January 2026:
| ● | Assets under Administration (AUA) were $18.4 billion, up 2% year-over-year. |
| ● | Funded accounts were 3.85 million, up 9% year-over-year. |
| ● | Capital Markets/ECC Activity |
| ○ | Total number of trades for January was 74 million, up 55% year-over-year; |
| ○ | Invested amount per trade for January was $252, up 8% year-over-year; |
| ● | Crypto Activity |
| ○ | Total number of trades for January was 4 million, down 50% year-over-year; |
| ○ | Invested amount per trade for January was $182, down 34% year-over-year; |
| ● | Interest Earning Assets for January was $7.7 billion, up 17% year-over-year. |
| ● | Total Money Transfers for January was $1.8 billion, up 68% year-over-year. |
Business Highlights
eToro is demonstrating strong progress across its four product pillars driven by continued product innovation, localization, and strategic partnerships.
| ● | Trading: eToro expanded access to global markets while advancing toward always-on trading. With the addition of equities listed on the Abu Dhabi Securities Exchange, Hong Kong Stock Exchange, and across the Nordics, eToro now offers access to equities from 25 stock exchanges. The Company grew its crypto offering to more than 150 cryptoassets, including an expanded range of more than 100 cryptoassets for US users. eToro also broadened derivatives access, expanding its futures offering across Europe and launching futures and options in the UK. It has also begun the roll out of stock margin trading, where eligible users can access leveraged exposure to U.S. equities. In 2025, eToro expanded 24/5 trading to all S&P 500 and NASDAQ 100 stocks, and in Q1, the Company is introducing 24/7 access to a select number of popular assets with plans to expand this across asset classes. |
| 2 | See “Non-GAAP Financial Metrics and Key Performance Indicators” below for additional information and a reconciliation to GAAP for all Non-GAAP financial metrics. Numbers may not sum up due to rounding; percentage changes based on unrounded data. |
| 3 | Numbers may not sum up due to rounding; percentage changes based on unrounded data. |
2
| ● | Investing: eToro strengthened its investing proposition by expanding access to intelligent, long-term investment solutions. The Company launched Tori, its AI Analyst, and through its public APIs and suite of AI-powered tools, users and partners can build, share, and scale strategies and tools, creating a growing ecosystem. This quarter, eToro is introducing a number of apps ahead of the launch of the eToro App Store, where ‘investor builders’ and partners can publish and share their apps with millions of eToro users globally. eToro continued to expand its range of Smart Portfolios including launching portfolios with Franklin Templeton, WisdomTree, ARK Invest and Amundi. The launch of Alpha Portfolios provides retail investors with access to quantitative, data driven strategies leveraging eToro’s data for the benefit of our customers. Having pioneered social investing, users can follow, copy, and engage with over 5,000 members of eToro’s Pro Investor Program, with Copy Trading now also launched in the US. During 2025, eToro introduced securities lending in the UK, Europe and the UAE, as well as expanding its staking program to help users access passive yield generating opportunities. eToro launched the eToro Club Subscription providing access to premium investing tools, financial perks and dedicated support. |
| ● | Wealth Management: eToro continued to scale its long-term savings solutions in 2025. The Company partnered with Generali to provide French users with access to long-term, tax advantaged retirement (PER) and life insurance products. eToro also expanded its ISA offering in the UK with the addition of a self-directed stocks and shares ISA and a cash ISA. The AuA in eToro’s UK ISA products grew by 7x from Q4 2024 to Q4 2025. Assets under administration in our Australian savings products grew 44% between 2023 and 2025, supported by strong momentum following the launch of our superannuation offering. |
| ● | Neo-Banking: During 2025, eToro accelerated the localization of its money management experience. The expansion of local bank accounts to more countries and the continued roll out of the debit card across Europe resulted in eToro Money’s transaction volume increasing 6.5x year-over-year. eToro Money ended the year with 1.87 million accounts. eToro Money, including eToro’s crypto wallet, is now fully integrated into the eToro app and provides seamless crypto transfers including 1% stock-back rewards on eligible crypto transfers. |
| ● | Partnerships: eToro announced a multi-year partnership with BWT Alpine Formula 1 extending the business’ global brand presence and engagement with a fast-growing, international audience. eToro also entered into a partnership with Gemini Space Station Inc to support the migration of their customers from the UK, Europe and Australia onto the eToro platform, reinforcing its position as a leading, global, multi-asset broker. |
Share Repurchase Program
eToro today announced that its Board of Directors has approved a $100 million increase to its existing share repurchase program. The program previously authorized $150 million, of which $100 million has already been used, leaving $50 million remaining. Following the increase, total remaining authorization is $150 million. Such repurchases may be made through a variety of methods, including through open market transactions (including through Rule 10b5-1 plans), privately negotiated transactions, block trades and by way of an accelerated share repurchase program. Additionally, subject to market and other conditions, the Company intends to enter into an Accelerated Share Repurchase (“ASR”) agreement to repurchase approximately $50 million of its common shares under the new authorization. This authorization reflects the Company’s confidence in its long-term strategy and growth prospects, financial strength, and commitment to deliver shareholder value. eToro believes that its current share price does not fully reflect the Company’s fundamental value, and that repurchasing shares represents a prudent allocation of capital. The program also provides additional flexibility to support potential future strategic initiatives, including mergers and acquisitions, where eToro shares could serve as an effective transaction currency. The actual timing, number, manner and value of any shares repurchased will depend on several factors, including the market price of our shares, general market and economic conditions, our liquidity requirements, applicable legal requirements and other business considerations. The authorization does not expire.
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Conference Call and Livestream Information
eToro will host a video call to discuss its results at 5:30 a.m. PT / 8:30 a.m. ET today, February 17, 2026. The video call can be accessed at investors.etoro.com, along with this earnings press release and accompanying slide presentation and certain monthly business metrics. The event will also be live streamed to eToro’s YouTube and X.com official channels.
Contact
Media Relations - pr@etoro.com
Investor Relations - investors@etoro.com
About eToro
eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we’ve created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media center here for our latest news.
Website and Social Media Channels
eToro uses its website to distribute company information and makes available free of charge a variety of information for investors, including its filings with the U.S. Securities and Exchange Commission (“SEC”), in addition to disclosing information via press releases, filings with the SEC, public conference calls, webcasts, X feed (@eToro), Instagram page (@eToro_official) and LinkedIn page. The information disclosed through the foregoing channels could be deemed to be material information and we encourage investors, the media, and others to follow the channels listed above and to review the information disclosed through such channels. In addition, investors may opt in to automatically receive email alerts and other information about eToro when enrolling their email address under the “Stay Up to Date” option at the bottom of https://investors.etoro.com/. Information contained on or accessible through any of the foregoing channels is not incorporated by reference into this press release.
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ETORO GROUP LTD.
CONDENSED CONSOLIDATED BALANCE SHEETS
U.S. dollars in thousands
| December 31 | December 31 | |||||||
| 2025 | 2024 | |||||||
| Unaudited | Unaudited | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | 1,072,641 | 575,395 | ||||||
| Restricted cash | 329 | 314 | ||||||
| Short-term investment | 202,688 | 65,000 | ||||||
| Counterparties | 249,055 | 224,867 | ||||||
| Cryptoassets | 62,606 | 113,279 | ||||||
| Receivable from omnibus accounts | 26,820 | 50,466 | ||||||
| Other receivables and prepaid expenses | 61,299 | 46,005 | ||||||
| 1,675,438 | 1,075,326 | |||||||
| Non-current assets: | ||||||||
| Restricted cash | 11,688 | 11,630 | ||||||
| Right of use assets | 41,873 | 44,406 | ||||||
| Property and equipment, net | 7,361 | 5,007 | ||||||
| Goodwill and other intangible assets, net | 43,211 | 46,346 | ||||||
| Deferred taxes assets | 11,776 | 8,647 | ||||||
| 115,909 | 116,036 | |||||||
| Total Assets | 1,791,347 | 1,191,362 | ||||||
| Liabilities and equities | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | 4,435 | 4,201 | ||||||
| Current maturities of long term lease liabilities | 5,978 | 4,758 | ||||||
| Other short term liabilities | 8,994 | - | ||||||
| Payable to users | 107,830 | 103,493 | ||||||
| Accrued expenses and other payables | 215,414 | 193,115 | ||||||
| 342,651 | 305,567 | |||||||
| Non-current liabilities: | ||||||||
| Employee benefit liabilities, net | 962 | 1,253 | ||||||
| Other long term liabilities | - | 5,653 | ||||||
| Long term lease liabilities | 48,485 | 43,546 | ||||||
| Deferred taxes liabilities | 4,659 | 2,968 | ||||||
| 54,106 | 53,420 | |||||||
| Equity attributable to equity holders of the company: | ||||||||
| Common share premium | 1,273,894 | 474,469 | ||||||
| Preferred share premium | - | 397,019 | ||||||
| Treasury shares | (62,085 | ) | (2,625 | ) | ||||
| Advanced Investment Agreement | 9,091 | 9,091 | ||||||
| Other capital reserve | 5,441 | 1,868 | ||||||
| Retained Earnings (Accumulated deficit) | 168,249 | (47,447 | ) | |||||
| 1,394,590 | 832,375 | |||||||
| Total liabilities and equity | 1,791,347 | 1,191,362 | ||||||
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ETORO GROUP LTD.
CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS
AND OTHER COMPREHENSIVE INCOME (LOSS)
U.S. dollars in thousands
| Three months ended | Twelve months ended | |||||||||||||||
| December 31 | December 31 | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
| Revenue and income: | ||||||||||||||||
| Net trading income from equities, commodities and currencies | 115,618 | 80,683 | 399,362 | 328,706 | ||||||||||||
| Revenue from cryptoassets | 3,592,968 | 5,813,811 | 12,975,078 | 12,147,329 | ||||||||||||
| Net trading income (loss) from cryptoassets derivatives | 73,783 | (130,498 | ) | 124,032 | (130,729 | ) | ||||||||||
| Net interest income from users | 58,073 | 51,610 | 213,415 | 197,178 | ||||||||||||
| Currency conversion and other income | 25,277 | 26,866 | 95,978 | 81,415 | ||||||||||||
| Other interest income | 9,062 | 4,366 | 30,067 | 16,654 | ||||||||||||
| Total revenue and income | 3,874,781 | 5,846,838 | 13,837,932 | 12,640,553 | ||||||||||||
| Costs: | ||||||||||||||||
| Cost of revenue from cryptoassets | 3,636,921 | 5,585,104 | 12,932,009 | 11,816,192 | ||||||||||||
| Margin interest expense | 11,075 | 9,204 | 37,536 | 36,660 | ||||||||||||
| Research and development | 37,867 | 31,991 | 151,247 | 131,071 | ||||||||||||
| Selling and marketing | 46,970 | 59,215 | 208,671 | 178,365 | ||||||||||||
| General, administrative and operating costs | 60,430 | 67,570 | 243,636 | 228,004 | ||||||||||||
| Finance and other expenses, net | 3,081 | 2,491 | 11,432 | 4,642 | ||||||||||||
| Total costs | 3,796,344 | 5,755,575 | 13,584,531 | 12,394,934 | ||||||||||||
| Income before taxes on income | 78,437 | 91,263 | 253,401 | 245,619 | ||||||||||||
| Taxes on income | 9,695 | 32,079 | 37,705 | 53,238 | ||||||||||||
| Net income | 68,742 | 59,184 | 215,696 | 192,381 | ||||||||||||
| Other comprehensive income, net: | ||||||||||||||||
| Items that may be reclassified subsequently to profit or loss: | ||||||||||||||||
| Cash flow hedges, net of tax | (179 | ) | 1,267 | 3,573 | 1,868 | |||||||||||
| Other comprehensive income (loss) for the year, net of tax | (179 | ) | 1,267 | 3,573 | 1,868 | |||||||||||
| Total comprehensive income | 68,563 | 60,451 | 219,269 | 194,249 | ||||||||||||
| Basic net income per share | 0.79 | 0.78 | 2.58 | 2.55 | ||||||||||||
| Diluted net income per share | 0.69 | 0.70 | 2.27 | 2.26 | ||||||||||||
| Weighted-average shares of common shares used to compute net income per share attributable to common shareholders: | ||||||||||||||||
| Basic | 86,740,531 | 75,676,247 | 83,503,592 | 75,595,967 | ||||||||||||
| Diluted | 99,635,590 | 84,969,521 | 95,129,729 | 85,297,910 | ||||||||||||
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ETORO GROUP LTD.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
U.S. dollars in thousands
| Three months ended | Twelve months ended | |||||||||||||||
| December 31 | December 31 | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
| Cash flows from operating activities: | ||||||||||||||||
| Net income | 68,742 | 59,184 | 215,696 | 192,381 | ||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
| Adjustments to profit or loss items: | ||||||||||||||||
| Depreciation, amortization and impairment | 3,821 | 3,097 | 12,973 | 11,337 | ||||||||||||
| Share-based payment | 4,013 | 3,313 | 16,145 | 27,150 | ||||||||||||
| Evaluation of contingent liabilities | (622 | ) | - | 3,341 | - | |||||||||||
| Revaluation of fair value of cryptoassets and counterparties | 114,355 | (4,456 | ) | 29,560 | (35,967 | ) | ||||||||||
| Non-cash revenue from staking and blockchain rewards | (10,290 | ) | (9,178 | ) | (37,380 | ) | (21,022 | ) | ||||||||
| Non-cash costs from staking and blockchain rewards | 6,843 | 6,048 | 25,395 | 13,417 | ||||||||||||
| Finance and other expenses, net | 3,081 | 2,491 | 11,432 | 4,642 | ||||||||||||
| Taxes on income, net | 9,695 | 32,079 | 37,705 | 53,238 | ||||||||||||
| 130,896 | 33,394 | 99,171 | 52,795 | |||||||||||||
| Changes in asset and liability items: | ||||||||||||||||
| Increase of counterparties | (61,070 | ) | (21,035 | ) | (52,527 | ) | (34,492 | ) | ||||||||
| Decrease of cryptoassets | 27,097 | 508 | 55,692 | 8,593 | ||||||||||||
| Decrease (Increase) of other receivables and prepaid expenses | 6,856 | 3,598 | (7,097 | ) | (3,947 | ) | ||||||||||
| Decrease (Increase) of restricted cash | (6 | ) | (11 | ) | 30 | (857 | ) | |||||||||
| Increase (Decrease) of user and omnibus accounts, net | (41,860 | ) | (31,506 | ) | 33,728 | 30,536 | ||||||||||
| Increase (Decrease) of accounts payable | (2,964 | ) | (11,065 | ) | (2,400 | ) | 2,218 | |||||||||
| Increase of accrued expenses and other payables | 3,343 | 35,916 | 1,937 | 39,667 | ||||||||||||
| Increase (Decrease) of employee benefit liabilities, net | 2 | (11 | ) | (459 | ) | (555 | ) | |||||||||
| (68,602 | ) | (23,606 | ) | 28,904 | 41,163 | |||||||||||
| Interest paid, net during the period | (335 | ) | (24 | ) | (7,096 | ) | (3,188 | ) | ||||||||
| Taxes paid, net during the period | (5,047 | ) | (3,252 | ) | (18,430 | ) | (14,572 | ) | ||||||||
| Net cash provided by operating activities | 125,654 | 65,696 | 318,245 | 268,579 | ||||||||||||
| Cash flows from investing activities: | ||||||||||||||||
| Increase of Short term deposits | (182,264 | ) | (65,000 | ) | (427,264 | ) | (65,000 | ) | ||||||||
| Decrease of Short term deposits | 110,701 | - | 289,701 | - | ||||||||||||
| Increase of long-term investments | - | (609 | ) | (500 | ) | (609 | ) | |||||||||
| Purchase of property and equipment | (1,775 | ) | (359 | ) | (4,841 | ) | (2,372 | ) | ||||||||
| Purchase of intangible assets | (12 | ) | (203 | ) | (635 | ) | (546 | ) | ||||||||
| Net cash used in investing activities | (73,350 | ) | (66,171 | ) | (143,539 | ) | (68,527 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||||||
| Exercise of options | 2,396 | 242 | 6,126 | 929 | ||||||||||||
| Repayment of lease liabilities | (1,233 | ) | (1,116 | ) | (4,573 | ) | (4,119 | ) | ||||||||
| Issuance of class A common share upon initial public offering, net of underwriting discounts, commissions and other issuance costs | - | - | 377,943 | - | ||||||||||||
| Purchase of treasury shares | (59,547 | ) | - | (59,547 | ) | - | ||||||||||
| Net cash provided by (used in) financing activities | (58,384 | ) | (874 | ) | 319,949 | (3,190 | ) | |||||||||
| Exchange differences on balances of cash and cash equivalents | (14,746 | ) | (10,020 | ) | 2,591 | (9,801 | ) | |||||||||
| Increase in cash and cash equivalents | (20,826 | ) | (11,369 | ) | 497,246 | 187,061 | ||||||||||
| Cash and cash equivalents at beginning of the period | 1,093,467 | 586,764 | 575,395 | 388,334 | ||||||||||||
| Cash and cash equivalents at end of the period | 1,072,641 | 575,395 | 1,072,641 | 575,395 | ||||||||||||
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Non-GAAP Financial Metrics and Key Performance Indicators
This press release and the accompanying tables contain financial measures that are not calculated in accordance with International Financial Reporting Standards nor with Generally Accepted Accounting Principles (collectively “GAAP”) metrics, including Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS. The inclusion of the non-GAAP financial information is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP. eToro believes these non-GAAP financial measures provide important supplemental information to management regarding financial and business trends used in assessing its results of operations. eToro believes excluding specified items provides a more meaningful comparison to the corresponding reporting periods and internal budgets and forecasts, assists investors in performing analysis that is consistent with financial models developed by investors and research analysts, provides management with a more relevant measure of operating performance and is more useful in assessing management performance.
eToro urges its investors to review the reconciliations of Adjusted EBITDA, Adjusted Net Income and Adjusted Diluted EPS to their most directly comparable GAAP financial measure set forth herein, and not to rely on any single financial measure to evaluate its business.
This press release includes key performance indicators that eToro’s management uses to help evaluate the business, measure its performance, identify trends, prepare financial projections and make business decisions. eToro’s key performance indicators include Funded Accounts, Assets Under Administration and Net Contribution. Definitions of performance indicators can be found in this press release.
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ETORO GROUP LTD.
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
U.S. dollars in thousands
| Three months ended | Twelve months ended | |||||||||||||||
| December 31 | December 31 | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
| Net income | 68,742 | 59,184 | 215,696 | 192,381 | ||||||||||||
| Finance expense, net | 3,081 | 2,491 | 11,432 | 4,642 | ||||||||||||
| Taxes on income | 9,695 | 32,079 | 37,705 | 53,238 | ||||||||||||
| Share-base payment expense | 4,028 | 3,313 | 16,160 | 27,150 | ||||||||||||
| Depreciation and amortization | 3,822 | 3,097 | 12,973 | 11,337 | ||||||||||||
| Employee non-cash expense | (1,824 | ) | 682 | 5,239 | 6,557 | |||||||||||
| Transaction related costs | - | 1,283 | 10,891 | 1,281 | ||||||||||||
| Other expenses, net | (621 | ) | 5,473 | 6,876 | 7,285 | |||||||||||
| Adjusted EBITDA | 86,923 | 107,602 | 316,972 | 303,871 | ||||||||||||
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ETORO GROUP LTD.
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME
U.S. dollars in thousands (except per share amounts)
| Three months ended | Twelve months ended | |||||||||||||||
| December 31 | December 31 | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||
| Net income | 68,742 | 59,184 | 215,696 | 192,381 | ||||||||||||
| Share-base payment expense | 4,028 | 3,313 | 16,160 | 27,150 | ||||||||||||
| Amortization | 1,221 | 906 | 3,768 | 3,085 | ||||||||||||
| Employee non-cash expense | (1,824 | ) | 682 | 5,239 | 6,557 | |||||||||||
| Transaction related costs | - | 1,283 | 10,891 | 1,281 | ||||||||||||
| Other expenses, net | (1,502 | ) | 5,473 | 5,995 | 7,285 | |||||||||||
| Adjusted net income before tax | 70,665 | 70,841 | 257,749 | 237,739 | ||||||||||||
| Effective tax rate | 12.4 | % | 35.2 | % | 14.9 | % | 21.70 | % | ||||||||
| Tax impact | (238 | ) | (4,098 | ) | (6,257 | ) | (9,831 | ) | ||||||||
| Adjusted net income | 70,427 | 66,744 | 251,492 | 227,908 | ||||||||||||
| Basic Shares Outstanding | 86,740,531 | 75,676,247 | 83,503,592 | 75,595,967 | ||||||||||||
| Diluted Shares Outstanding | 99,635,590 | 84,969,521 | 95,129,729 | 85,297,910 | ||||||||||||
| Basic GAAP EPS | 0.79 | 0.78 | 2.58 | 2.55 | ||||||||||||
| Diluted GAAP EPS | 0.69 | 0.70 | 2.27 | 2.26 | ||||||||||||
| Basic Non - GAAP EPS | 0.81 | 0.88 | 3.01 | 3.01 | ||||||||||||
| Diluted Non - GAAP EPS | 0.71 | 0.79 | 2.64 | 2.67 | ||||||||||||
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Definitions of Certain Metrics
Adjusted EBITDA: Adjusted EBITDA is a non-GAAP financial metric that we define as net income adjusted to exclude finance and other expenses, net, taxes on income, share-based payment expense, depreciation and amortization, employee non-cash expense, one-time transaction costs and other expense.
Adjusted Diluted Earnings Per Share (Adjusted diluted EPS): Adjusted diluted EPS is a non-GAAP financial metric and is calculated by dividing the Adjusted Net Income attributable to common shareholders by the diluted shares outstanding during the period. Adjusted diluted EPS excludes the impact of the same non-recurring or non-operational items to provide investors with a normalized measure of profitability on a per-share basis.
Adjusted Net Income: Adjusted Net Income refers to the company’s net income after making adjustments for non-recurring, one-time,
or non-cash items such as restructuring charges, asset impairments, acquisition-related expenses, or gains/losses from discontinued operations.
Assets under administration (AUA): AUA reflects the aggregate fair value of assets held by users within the platform, including those held by third-party partners for execution or custody services, categorized as follows:
| ● | Crypto: Includes all cryptocurrencies and users’ crypto assets held in eToro digital wallets. |
| ● | Equities: Includes stocks, ETFs, and assets managed under the Spaceship program. |
| ● | Cash: Includes customers’ uninvested cash (e.g., cash balances, eMoney balances, in-process cashouts), as well as cash used for margin or posted as collateral for leveraged positions. |
Funded Accounts: Funded Accounts are users who have completed KYC, AML and other onboarding processes, activated their account, deposited funds, executed at least one trade at any time and have a positive account balance (invested or uninvested). Funded Accounts represent the deepest level of our user acquisition funnel and are the users from whom we generate total commission.
Net Contribution: Net Contribution reflects Total revenue and income, less the Cost of revenue from cryptoassets and Margin interest expense. We use Net Contribution to evaluate the net contributions of our users’ activity on our platform before considering the overhead costs associated with our operations.
Net Contribution consists of the following five components, each representing revenue or income divided across our products based on the distinct patterns upon which we monetize users’ activity on the platform. We evaluate the performance of our business and our success in both diversification and risk management across these five components:
| ● | Net Trading Contribution (Equities, Commodities and Currencies) is equal to our Net trading income from equities, commodities and currencies. |
| ● | Net Trading Contribution (Cryptoassets) is equal to Revenue from cryptoassets plus Net trading income (loss) from cryptoasset derivatives less Cost of revenue from cryptoassets, excluding the net contributions from blockchain rewards and staking activity. |
| ● | Net Interest Contribution represents Net interest contribution from users plus Other interest income plus the net contributions of staking activity, less Margin interest expense. |
| ● | eToro Money comprises the vast majority of our Currency conversion and other income. It represents the income earned from our money management services, including currency conversions, withdrawals, interchange on our debit card, transfers of cryptoassets, and fees relating to our cryptoasset wallet services. |
| ● | Subscriptions and Other is the remainder of Currency conversion and other income not attributable to eToro Money plus the net contributions of blockchain rewards. |
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Net Income: Net income represents the company’s total earnings or profit for a given period, calculated as total revenue minus all expenses, including operating costs, depreciation, interest, taxes, and other income or expenses. It reflects the company’s overall profitability according to GAAP standards.
Cautionary Note Regarding Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook, market positioning, artificial intelligence (“AI”), and share repurchase authorization, including execution of the expected accelerated share repurchase arrangement. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as “outlook,” “guidance,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond eToro’s control. eToro’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to market volatility and erratic market movements; failure to retain existing users or add new users; extreme competition; changes in the regulatory and legal framework under which we operate; regulatory inquiries and investigations; our estimates of our financial performance; interest rate fluctuations; the evolving cryptoasset market, including the regulations thereof; conditions related to our operations in Israel, including the ongoing war; risks related to data security and privacy and use of Open Source Software (“OSS”); risks related AI; changes in general economic or political conditions; changes to accounting principles and guidelines; unexpected costs or expenses; and other factors described in “Risk Factors” in our prospectus, dated May 13, 2025, filed with the Securities and Exchange Commission (“SEC”), as such factors may be updated from time to time in eToro’s filings with the SEC, which are, or will be, accessible on the SEC’s website at www.sec.gov.
Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent eToro’s views as of the date of this press release. eToro anticipates that subsequent events and developments will cause its views to change. eToro undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing eToro’s views as of any date subsequent to the date of this press release.
Source: eToro Group Ltd.
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