I have been looking into etor for a while and recently purchased it as part of my portfolio. And I will increase my stake around and below a pe of 10
Below are a few metrics on etoro.
Financial Performance & Growth Metrics
• Revenue / Net Contribution: For the trailing twelve months (TTM), eToro generated $11.87 billion in top-line revenue. In its core financial reporting metric, Net Contribution, eToro posted $229 million for Q2 2026 (up 9% YoY) and $868 million for the full year 2025.
• Earnings Per Share (EPS): The TTM diluted EPS sits at $2.71. Looking at recent quarters, Q2 2026 reported a GAAP diluted EPS of $0.58 (Adjusted Non-GAAP EPS of $0.68), following a strong Q1 2026 GAAP EPS of $0.98.
• Profit (Net Income): TTM Net Income is $261.44 million. For the single quarter of Q2 2026, GAAP Net Income rose 77% year-over-year to $53 million.
• User Growth (Funded Accounts): eToro reached 4.28 million funded accounts in Q2 2026, marking an 18% year-over-year increase from 3.63 million. Total Assets Under Administration (AUA) reached $19.2 billion.
• Cash on Balance Sheet: As of June 30, 2026, eToro maintains a robust liquid cushion with $1.2 billion in cash, cash equivalents, and short-term investments.
What Else You Need to Know
• Strategic U.S. Expansion: eToro announced a definitive agreement to acquire TradeZero for up to $231 million. This move aims to directly compete in the U.S. market by adding options, self-clearing capabilities, and futures tracking.
• Aggressive Share Buybacks: The board recently authorized a $100 million expansion to its share repurchase program, leaving roughly $150 million remaining to support the stock price during downturns.
• AI Pivot: The platform is heavily indexing on an artificial intelligence framework, launching a standalone eToro AI application, specialized Agent Portfolios, and the "Edge" professional interface to build a holistic financial super-app.
With all these in mind a few things attract me to etoro with $1.2 billion on their balance sheet and a profit of about $250 million dollars a year this company will be able to buy itself in about 4-5 years(this screams cheap to me).
The company possess a narrow moat ( network social effect powered by the copy trader patent).
Etoro is currently trying to expand its business into option trading and features buy acquiring trade zero. This opens more doors and stickiness for existing users.
The have initiated share buy backs.
Amongst all these the most important is thing is customer behaviour, I see more people trading and buying shares in the future and hence their user growth will steadily climb during bull years and stagnate and drop during bear years overall as long as management operates with some level of intelligence the business will do very well in the future.
Etoro has a market cap of 2 billion and a pe of 9. One of the lowest amongst its pairs. I definitely see this climbing to a base line of 13-15 in the future when there is better confidence in the business. This screams as one of those businesses that could 10x in 5 years not just from revenue/profit growth but from pe multiple.
As an active stock investor. I have tried opening accounts with ibkr, etor and nordnet(I live in norten europe and amongst this etoro was the most straightforward and easiest to open.
ibkr was a lot harder and I was denied access to the platform without tangible reason.
Nordnet had an ok process it took about 2 weeks to get this running
Downsides.
Etor does not have a lot of stocks listed on the canadian market.(I have missed buying opportunities for companies like csu😭), no options and futures.
Etoro is bound to grow and get traction with all these in mind the current price is very attractive to I as an investor looking to hold stocks for a minimum of 5 to 10 years.
There are 4 metrics i use in purchasing a company.
1. Cheapness- pass
2. Moat-narrow and passes(copy trade patent and mental switching cost.)
3. Consumer behaviour(trading will become more popular and the company with the best comfort tends to win). Fractional shares helps this also.
4. Growth(still growing and has a huge potential run way)
5. The company is still manking embryonic bets like trying to get into futures, options, ability to purchase the canadian stock market and penetrate the us market. The underlying technology is more exiciting than penetrating the us market.
For me I think this company is a long term compounder. What do you guys think😁