eToro's quarterly profit falls 74% to $15 million as crypto trading dries up, and the broker authorizes a $250 million buyback

The online broker eToro said on Tuesday that its third-quarter net income fell 74% to $15.0 million from $56.8 million a year earlier. Net contribution fell 13% to $186 million from $215 million, and adjusted EBITDA fell 56% to $34.2 million from $77.9 million. The Block reported that the company attributed the decline to reduced crypto trading activity.

The October figures show how far activity has cooled. eToro's clients placed 2.0 million crypto trades, down 62% from a year earlier, and 48.2 million trades in other markets such as stocks, commodities and currencies, down 22%. Assets under administration were $20.8 billion at September 30, unchanged from a year earlier, and were $19.2 billion in October, down 6%.

Customer growth has continued. Funded accounts reached 4.39 million at the end of September, up 18% from a year earlier. Chief executive Yoni Assia pointed to the new eToro app, "built from the ground up with AI at its core." The board also authorized a buyback of up to $250 million; The Block reported that purchases depend on market conditions and the company's liquidity needs. The results show a broker whose account base is growing while customers trade crypto far less often.