Wikilix

eToro to Acquire TradeZero for Up to $231 Million as Q2 Earnings Show Mixed Trends

eToro agreed to acquire US brokerage TradeZero for up to $231 million, expanding its US equities presence. The announcement accompanied second-quarter results showing higher year-over-year net contribution but weaker quarter-on-quarter performance.

Wikilix Editorial Team

Author

2 min read
Market performance chart Q1 2026

eToro has agreed to acquire US brokerage TradeZero for up to $231 million, the Nasdaq-listed trading platform said on Tuesday, August 11, 2026. The deal, which combines cash and newly issued shares, was announced alongside second-quarter results showing a mixed performance for the group.

Under the terms of the agreement, eToro will pay up to $231 million in a combination of cash and up to 2.5 million newly issued Class A shares, subject to purchase price adjustments. Based on TradeZero’s approximately $80 million of revenue in the 12 months to June 30 and an 81% gross margin, the transaction values the target at roughly 2.9 times revenue. The acquisition is subject to regulatory clearance and is expected to close in the first half of 2027.

Strategic Expansion Into US Equities

TradeZero, founded in 2015, operates an equities and options brokerage aimed at active US traders, with operations across the United States, Canada and international markets. The purchase is eToro’s third signed acquisition this year and the first that is not a crypto business, furthering its push into US equities. Net trading income from equities, commodities and currencies at eToro rose by $27.6 million year-over-year to $141.6 million.

Yoni Assia, eToro's co-founder and chief executive, said the combination "gives us a faster path to launching new products for US customers." The deal is intended to deepen eToro’s access to US trading clients and broaden its product capabilities in equities and options.

Regulatory Background of TradeZero

TradeZero also brings a regulatory track record from the meme-stock episode. In May 2022, the SEC fined TradeZero America $100,000 and co-founder Daniel Pipitone $25,000 over public statements concerning TradeZero's trading restrictions on January 28, 2021.

eToro Second-Quarter Financial Performance

Alongside the acquisition announcement, eToro reported that second-quarter net contribution rose 9% year-over-year to $229 million. However, net contribution declined 11% compared with the first quarter. Net income for the quarter was $53.5 million, which was 35% below the first quarter, while adjusted net income increased 16% to $62.8 million.

July assets under administration stood at $18.5 billion, down 5% year-over-year. The TradeZero acquisition, if completed as planned in the first half of 2027, will add an established US-focused brokerage platform to eToro’s operations at a time when the company is seeking to grow its presence in the US equities market.

Share this article:
Back to All News

Frequently Asked Questions

Common questions about this article

TradeZero operates an equities and options brokerage for active US traders, with operations across the United States, Canada and international markets.
The TradeZero acquisition is expected to close in the first half of 2027, subject to regulatory clearance.
eToro reported net contribution of $229 million, up 9% year-over-year but down 11% from the first quarter, and net income of $53.5 million, 35% below the first quarter. Adjusted net income was $62.8 million, up 16%.
eToro agreed to pay up to $231 million in a mix of cash and up to 2.5 million newly issued Class A shares, subject to purchase price adjustments.

Comments & Reviews

0 entries

Nothing on the record yet

Be the first to share what happened.