eToro Group (NASDAQ:ETOR) Posts Quarterly Earnings Results, Beats Expectations By $0.11 EPS

eToro Group (NASDAQ:ETOR) announced its quarterly earnings data on Tuesday. The company reported $0.71 EPS for the quarter, beating the consensus estimate of $0.60 by $0.11, FiscalAI reports. eToro Group had a net margin of 1.31% and a return on equity of 25.75%. The firm had revenue of $3.87 billion during the quarter.

Here are the key takeaways from eToro Group’s conference call:

• Delivered solid profitability and user growth — FY2025 net contribution rose 10% to $868M, Q4 net contribution was $227M (+6% seq), adjusted EBITDA was $317M with a 38% Q4 margin, while AUA reached $18.5B and funded accounts grew to 3.81M.
• Strong balance sheet and shareholder returns — ended Q4 with $1.3B cash, generated $42M free cash flow, repurchased $59.5M of shares in the quarter and expanded the buyback authorization by $100M to a total $250M.
• Aggressive product roadmap targeting long-term growth — positioning as an AI-first “financial super app” (AI-powered analyst, app store ~1,000 apps), expanding 24/5→24/7 trading, and targeting >100,000 tradable assets by end‑2026 with a non‑custodial wallet and on‑chain plans.
• Crypto trading materially weaker in the quarter — crypto net trading contribution fell 72% YoY to $26M, and management is shifting focus toward equities/commodities while maintaining long‑term crypto/tokenization bets.

eToro Group Stock Up 20.4%

ETOR opened at $33.07 on Wednesday. The firm has a market cap of $2.71 billion and a P/E ratio of 17.88. The business’s fifty day simple moving average is $32.43 and its 200 day simple moving average is $39.04. eToro Group has a 52 week low of $24.74 and a 52 week high of $79.96. The company has a quick ratio of 4.63, a current ratio of 4.63 and a debt-to-equity ratio of 0.03.

Institutional Investors Weigh In On eToro Group

A number of hedge funds and other institutional investors have recently modified their holdings of ETOR. Balyasny Asset Management L.P. raised its position in shares of eToro Group by 150.5% in the fourth quarter. Balyasny Asset Management L.P. now owns 427,575 shares of the company’s stock valued at $15,021,000 after buying an additional 256,861 shares during the last quarter. Schonfeld Strategic Advisors LLC acquired a new stake in eToro Group during the fourth quarter worth approximately $3,842,000. Trexquant Investment LP purchased a new stake in eToro Group in the 4th quarter worth approximately $5,624,000. Jump Financial LLC purchased a new stake in eToro Group in the 4th quarter worth approximately $1,504,000. Finally, Price T Rowe Associates Inc. MD raised its holdings in eToro Group by 270.5% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 399,937 shares of the company’s stock valued at $14,050,000 after acquiring an additional 291,985 shares during the last quarter.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on ETOR shares. Bank of America boosted their price target on eToro Group from $50.00 to $55.00 and gave the stock a “neutral” rating in a research note on Tuesday, November 11th. Mizuho decreased their target price on eToro Group from $65.00 to $60.00 and set an “outperform” rating on the stock in a research report on Friday, January 16th. Cantor Fitzgerald dropped their price target on eToro Group from $66.00 to $50.00 and set an “overweight” rating for the company in a research report on Monday, January 12th. Susquehanna raised eToro Group from a “neutral” rating to a “positive” rating and lifted their price target for the stock from $50.00 to $55.00 in a research note on Wednesday, November 12th. Finally, UBS Group lowered their price objective on shares of eToro Group from $58.00 to $50.00 and set a “neutral” rating on the stock in a research note on Wednesday, November 12th. Ten equities research analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $58.31.

Key Headlines Impacting eToro Group

Here are the key news stories impacting eToro Group this week:

• Positive Sentiment: Q4 earnings beat and strong revenue — eToro reported adjusted EPS of $0.71 (above estimates) and $3.87B in revenue, highlighting growth across asset classes and beating Street expectations, a clear fundamental catalyst for the rally. Trading platform eToro beats profit estimates
• Positive Sentiment: Expanded share buyback — management boosted the repurchase program (reported increase ~$100M), which reduces float and signals capital return priorities, supporting the stock. eToro posts 12% rise in 2025 net income
• Positive Sentiment: Analyst support with upside — multiple firms reaffirmed or maintained “buy” views (Needham $58 PT; Canaccord cut its PT to $65 but stayed at buy), implying significant upside vs. the current price and reinforcing investor confidence. Benzinga
• Positive Sentiment: Bullish derivatives flow — unusually large call-option buying occurred, indicating speculative and hedged bullish positioning ahead/after the print. (Options volume spike reported Tuesday.)
• Positive Sentiment: New product / market push — CEO commentary and product moves (e.g., 24/7 gold trading launch, CEO interviews discussing tokenization and non‑crypto growth) support longer-term expansion of addressable market. ‘ALWAYS-ON’: eToro launches 24/7 gold trading
• Neutral Sentiment: Technical momentum — the stock broke above its 50-day moving average, which can attract momentum/quant traders but isn’t a fundamental change. Etoro Group Ltd (ETOR) Q4 2025 Earnings Call Highlights
• Neutral Sentiment: Media and analyst write-ups — extensive coverage (Seeking Alpha, MarketWatch, Proactive, Business Insider) amplifies attention but may increase short-term volatility. eToro stock surges after strong Q4 earnings
• Negative Sentiment: User-growth and crypto headwinds — coverage flagged slower user growth trends and lingering crypto volatility that pressure transaction volumes; these are potential medium-term risks to revenue if trends persist. eToro stock: why is trading platform struggling with user growth?

About eToro Group

eToro Group Ltd. (NASDAQ: ETOR) is a global multi-asset brokerage company known for its social trading platform. The company enables individual and institutional investors to trade and invest in a broad range of financial instruments, including stocks, exchange-traded funds (ETFs), commodities, indices, forex, and cryptocurrencies. eToro’s platform integrates a user-friendly interface with advanced trading tools, catering to both novice and experienced market participants.

A distinguishing feature of eToro’s offering is its CopyTrader™ functionality, which allows users to replicate the trades of selected investors on the platform.