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eToro Beats Profit Estimates as Retail Investors Drive Market Momentum

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eToro, the stock and cryptocurrency trading platform, reported better-than-expected third-quarter profit on Monday, driven by a surge in retail investor activity and renewed optimism across global markets. The company’s shares rose 7% in afternoon trading following the announcement.

The ongoing equities rally—fueled by steady corporate earnings, cooling inflation expectations, and enthusiasm around the AI-driven tech boom—has prompted investors to reenter riskier assets. Gold has also seen record demand, becoming one of the most sought-after commodities this quarter.

“We have seen the gold craze hitting our customers in October, with gold reaching an all-time high,” said Yoni Assia, eToro’s CEO, in an interview with Reuters. “We also saw some rebalancing in portfolios across U.S. and European equities, and some trimming of tech holdings.”

eToro’s net contribution—which accounts for revenue after deducting crypto costs and margin interest—rose 28% year-on-year to $215 million, while adjusted profit came in at $0.60 per share, beating analysts’ estimates of $0.56 per share (LSEG data).

The company also announced a $150 million share repurchase program, signaling confidence in its growth trajectory.

eToro’s assets under administration jumped 76% year-on-year to $20.8 billion, underscoring strong retail participation supported by accessible trading apps and continuous market volatility.

Looking ahead, eToro plans to expand through acquisitions and enter prediction markets by late 2026. “We’re hungry and we have a large checkbook,” Assia said. “We’ll find the right targets to add value to our customers.”

The firm continues to face fierce competition from rivals such as Robinhood, Charles Schwab, and Morgan Stanley’s E*Trade, but Assia remains confident: “We invented social trading. Copying is the ultimate form of flattery.”

Olidata Targets Italian M&A Deals to Build Scale, Chairman Says

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Olidata (OLI.MI), the Italian IT and cybersecurity group, is preparing to expand through mergers and acquisitions, with a potential deal likely before the end of the year, Chairman and main shareholder Cristiano Rufini told Reuters.

Rufini said the focus will remain on the Italian market, where small but innovative tech firms risk losing ground without consolidation. “In Italy, we have some very good, high-performing centres of excellence, but they are very small. If we don’t manage to build significant critical mass, some valuable technologies and solutions risk being lost,” he explained at the TEHA Forum in Cernobbio.

Since returning as chairman in April, Rufini has steered Olidata toward growth in digital healthcare and proprietary cybersecurity technologies. The company reported €96.7 million in revenue and €5.9 million in adjusted EBITDA last year.

Despite being relisted in 2023, Olidata’s share price has been volatile—currently around €2.8 with a €53 million market cap, well below its September 2023 peak of €8.65. Rufini attributed the swings to the stock’s structure, dominated by retail investors holding 32% of capital and the absence of institutional backers.

His goal: build a stronger governance framework, attract institutional investors, and position Olidata as a solid, growth-driven technology player in Italy’s digital economy.

eToro CEO Highlights Retail Investor Surge as Q2 Profit Beats Estimates

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Trading and cryptocurrency platform eToro reported stronger-than-expected second-quarter profits, fueled by a surge in retail investor activity during market volatility, CEO Yoni Assia said Tuesday.

MARKET CONTEXT
Retail investors actively “bought the dip” following sharp declines in April after U.S. President Trump announced new tariffs. Assia noted investors targeted high-growth stocks such as Google, Nvidia, and Tesla, echoing patterns seen during the COVID-19 market disruptions when institutional investors pulled back.

Despite the Q2 profit beat, shares of eToro fell 8% post-earnings, reflecting expectations set by the company’s recent May IPO, which saw shares debut above the marketed range. Analysts said the surge in April trading activity was not sustained through July, tempering market enthusiasm.

CRYPTO AND PRODUCT EXPANSION
eToro saw heightened crypto trading activity in July, driven by bitcoin reaching all-time highs. Assia highlighted that regulatory clarity in the U.S. is helping fintech firms expand crypto offerings and attract younger, tech-savvy investors.

The company plans to expand into AI-driven trading strategies and cater to more sophisticated users while maintaining its core retail trading platform, which allows users to invest in stocks, crypto, and other assets while mirroring strategies of top investors.

FINANCIAL HIGHLIGHTS

  • Adjusted Q2 profit: $0.56 per share (est. $0.50)

  • Market focus: Retail investors driving stock and crypto activity