Shares of trading platform eToro Group Ltd. (ETOR) surged as much as 18.6% on Tuesday, climbing to around $32.49, following the release of its fourth-quarter and full-year 2025 financial results. The sharp rally was driven by investor enthusiasm for a record quarterly profit and a dramatic turnaround in the firm's crypto derivatives business, marking one of the stock's strongest single-day performances in recent months.
In the fourth quarter of 2025, eToro reported a net income of $69 million, a 16% increase year-over-year and a record quarterly high. A key driver was the crypto derivatives segment, which posted a net trading income of $73.8 million. This figure represents a stark reversal from a $130.5 million loss recorded in the same quarter of 2024, signaling improved market conditions and risk management. For the full year 2025, GAAP net income reached $216 million, up 12% from the previous year, while total net contribution revenue hit a record $868 million, a 10% annual increase.
The company's diversification strategy proved crucial as revenue from crypto assets declined. While crypto revenue dropped to $3.59 billion in Q4 from $5.8 billion a year prior, eToro offset the shortfall with a 43% quarterly surge in trading income from equities, commodities, and currencies, which reached $115.6 million. CEO Yoni Assia noted on an analyst call that some crypto-focused users were shifting attention to commodities like gold and silver for higher volatility.
Other metrics showed growth, with funded accounts rising 9% to 3.81 million and assets under administration increasing 11% to $18.5 billion by year-end. Management also expanded its share repurchase program, approving an additional $100 million, bringing the total remaining authorization to $150 million.
This performance stands in contrast to rivals like Robinhood and Coinbase, which posted weaker Q4 results amid a broader crypto trading slump. However, eToro's own data indicates a cooling trend continuing into 2026, with January crypto trading volumes down 50% year-over-year. Despite this, the company's broad asset class exposure appears to have provided a buffer, reinforcing investor confidence in its hybrid model as a "natively crypto company and a global equities trading platform."
