eToro Q2 2026: Earnings Beat, Funded Accounts Up 18%, and a TradeZero Deal to Bolster the US

eToro reported its second-quarter 2026 results on 11 August, posting net contribution of $229 million — up 9% year-on-year — and adjusted EPS of $0.68 that beat the $0.61 consensus. Funded accounts grew 18% year-on-year to around 4.3 million, the platform announced an agreement to acquire US brokerage TradeZero, and it rolled out a new AI-driven app built around its “Tori” assistant. For European traders weighing multi-asset platforms, the quarter confirms eToro's financial durability while sharpening its push into active trading and AI-led investing.

The headline numbers

Figures per eToro Group Ltd's Q2 2026 release (11 August 2026), filed with the SEC and published via the company's investor relations channel. Funded accounts count clients who have deposited — a narrower, more meaningful figure than eToro's ~40 million total registered users.

Equities carried the quarter

Where Q1's standout was a commodity-driven surge on Hormuz-era oil volatility, Q2's growth in net contribution came primarily from increased equities trading. The 18% jump in funded accounts is the more structural signal: it points to genuine user acquisition rather than a one-off volatility spike, and it is the metric eToro leans on to argue its diversified model is compounding.

The one soft spot was assets under administration, down 5% year-on-year to $18.5 billion — a reminder that account growth and balance growth do not always move together. But with $1.2 billion of cash and no debt, eToro is entering the second half of 2026 with ample capacity to fund the acquisition strategy below.

An AI-first app — built around “Tori”

The most consequential product news was the launch of eToro's new mobile app, which folds trading, investing, wealth management and neo-banking into a single experience organised around Tori, eToro's AI agent. Tori is positioned to deliver proactive, personalised portfolio insights — flagging opportunities and keeping users informed rather than waiting to be queried.

Alongside the app, eToro shipped sub-accounts, eToro edge for active traders, and eToro wealth, plus an eToro work product that connects payroll directly with investing. The strategic thread is clear: eToro is broadening from a social-trading platform into a four-pillar business — trading, investing, wealth management and neo-banking — with AI as the connective tissue. For a European user base that has historically valued the social layer above raw execution, an AI assistant that lowers the knowledge barrier is a natural extension of the copy-trading proposition.

TradeZero: a bet on active US traders

eToro announced an agreement to acquire TradeZero, a US-based online brokerage serving active traders. The deal is expected to close in the first half of 2027 — it has been announced, not completed — and it is eToro's third acquisition signed this year, following the completed purchases of the Zengo self-custodial wallet and Bit2C. CEO Yoni Assia framed TradeZero as a step to strengthen eToro's US presence and deepen its capabilities for active traders specifically.

The direction of travel is unmistakable. eToro built its name on beginner-friendly social investing; the TradeZero deal and the new “eToro edge” product both target the more demanding, self-directed end of the market — a segment where it has historically been weaker than dedicated execution brokers. Co-founder Ronen Assia has separately signalled appetite for more ambitious M&A, noting the group has the balance sheet — roughly $1.2 billion in cash and no debt — to pursue deals that add asset classes or extend regional coverage.

What it means for European traders

eToro serves EU clients through eToro (Europe) Ltd, regulated by CySEC (licence 109/10), with additional authorisation from the FCA in the UK and ASIC in Australia. The same Cyprus entity holds a CySEC MiCA authorisation for crypto-asset services. EU retail clients receive standard ESMA protections: 30:1 maximum leverage, negative balance protection, and Investor Compensation Fund coverage up to EUR 20,000.

The practical implications of this quarter:

• Financial stability reaffirmed — a profitable broker with $1.2B cash and no debt is well-capitalised; counterparty risk is low.
• The product is widening — sub-accounts, wealth, and an AI assistant give EU users more tools, though the headline new products roll out on eToro's own timeline by market.
• Copy trading remains the core draw — if that is your reason for considering eToro, see our best copy trading brokers in Europe comparison.

The standing caveat is unchanged: eToro does not offer raw-spread or ECN-style accounts, and EUR/USD spreads average around 1.0 pip. Active traders who prioritise raw execution cost over social features will still find tighter pricing at brokers like Pepperstone or Exness. eToro's value proposition is the social and now AI-assisted layer, not raw execution cost.

What to watch next

eToro's Q3 2026 results are due on 11 September 2026, with analysts pencilling in adjusted EPS of around $0.63. The read-through from Q2 is whether the 18% funded-account growth sustains once the equities tailwind normalises, and whether the new AI app and eToro edge start showing up in active-trader engagement. The TradeZero integration will not appear in the numbers until the deal closes in 2027, but management commentary on further M&A is worth close attention given the stated appetite.

Bottom line

eToro's Q2 2026 is a quarter of durable growth rather than a volatility windfall: an earnings beat, 18% more funded accounts, and a strategic pivot — via TradeZero, eToro edge and an AI-first app — toward the active-trader and AI-investing segments where it has been underweight. For European traders, the takeaway mirrors Q1: eToro is financially robust and strategically evolving, while active traders focused purely on execution cost remain better served elsewhere.