eToro Group Ltd. delivered a robust performance in the third quarter, exceeding analyst forecasts with adjusted EBITDA of $78 million, outperforming Keefe, Bruyette & Woods' estimate of $70 million and market consensus of $70.6 million. This growth was primarily driven by heightened crypto trading revenue and net interest income, underscoring the platform's resilience amid evolving market conditions.
The company reported a 48% year-over-year increase in GAAP net income to $57 million, attributed to disciplined cost management and solid user engagement. Crypto trading volume soared to $56 million, significantly surpassing expectations of $36.3 million, while total net contribution reached $215 million, reflecting a 28% revenue growth from the previous year.
eToro ended the quarter with 3.73 million funded accounts, slightly above projections, and assets under administration grew to $20.8 billion from $17.5 billion, a 76% surge. In a strategic move, the company announced a $150 million share repurchase program, including a $50 million accelerated buyback, aimed at supporting valuation and offsetting stock-based compensation.
Looking ahead, eToro's future performance hinges on continued strength in digital asset trading, with recent expansions including staking services for Ethereum, Cardano, and Solana in approved U.S. states. The platform's community-driven model, enhanced by AI tools and social integrations like the X Cashtags link-up, remains a key advantage, fostering user engagement and low acquisition costs.
UNI
AVAX
BTC
HUGS
MOBU
XRP
LINK
MUTM