Below is the Q2 2025 earnings call transcript for eToro.

This transcript is provided for informational purposes only and may contain errors, omissions, or inaccuracies. While we strive to ensure the content is as accurate as possible, it has not been verified by the company or its representatives. This transcript should not be relied upon as a verbatim record of the earnings call or as the basis for any investment decisions. Please refer to the company's official filings and recordings for authoritative information.

Daniel Amir:
Thank you, everyone, for joining eToro's Second Quarter 2025 Earnings Call.

My name is Daniel Amir, Head of Global Investor Relations. Here with me today are Yoni Assia, Founder and Chief Executive Officer; and Meron Shani, Chief Financial Officer.

This morning at 7:00 a.m. Eastern Time, eToro released its second quarter 2025 results.

In the Investors Section of our website, you will find the earnings press release and presentation to accompany today's discussion.

This webcast is being recorded and will be available for replay in the Investors section of our website.

Yoni and Meron will offer opening remarks and then open the webcast to Q&A.

During the Q&A portion of the webcast, we will answer live questions from publishing research analysts. And we'll address the selection of the most up-voted questions previously submitted by eToro's shareholders.

As a reminder, today's webcast will contain forward-looking statements, which relate to our financial outlook and market positioning among other items.

Such forward-looking statements are not guarantees of future performance.

Actual results may differ materially from these expressed or implied in the forward-looking statements due to a variety of factors.

These factors are discussed in more detail in the press release that we issued today and related earnings presentation and our filings with the SEC including our prospectus dated May 13, 2025, as such factors may be updated from time to time in our filings with the SEC, which are or will be accessible on the SEC's website at www.sec.gov.

We do not undertake any obligation to update forward-looking statements.

Throughout this webcast, we will also present and discuss non-GAAP financial measures.

Reconciliation of our non-GAAP financial measures to their most directly comparable GAAP financial measures appear in today's earnings press release and presentation, which are available in the Investors section of our website.

And now I will turn the call over to Yoni, Founder and CEO.

Yoni Assia:
Thank you, Daniel. And thank you to everyone joining us today for your interest in eToro.

And welcome to our second quarter 2025 earnings call our first earnings call as a public company. After Meron and I conclude our prepared remarks, we'll open it up to analyst questions.

Before sharing some highlights from our second quarter results, I would like to briefly introduce eToro for those of you who are new to our story.

We founded eToro in 2007 with a vision of opening the global markets for everyone to trade and invest in a simple and transparent way.

At that time investing was largely the domain of traditional financial institutions catering to seasoned investors with significant capital. Retail investors face daunting barriers, complex platforms, high fees and a lack of educational resources.

Our goal was to change that by using technology to level the playing field and create a platform that could empower millions to participate in the financial markets.

Today eToro provides a gateway to the global financial markets, offering a social and investment platform that empowers our users from around the world to trade, invest, save and spend in a way that suits their unique needs.

We've built a social investment network designed to provide users with educational resources and tools they need to grow their knowledge and wealth.

We provide what retail investors around the world care about the most, simple access to the assets they want to invest in an intuitive and user-friendly mobile app and a trusted and transparent source for financial education and tools including the ability to draw the knowledge and insights of the top investors from all around the world.

On eToro's platform, users can invest in stocks for more than 20 different stock exchanges and trade over 130 different crypto assets alongside indices, commodities and currencies.

We serve customers in 75 different countries and 20 different languages, users can trade directly, invest in a portfolio or use our patented CopyTrader technology to replicate the investment strategies of the top investors on our platform. eToro Money, our money management offering enables our customers to have a virtual bank account and a debit card and manage multiple balances as they trade both global and local stocks.

We also provide mid valuable investment tools and services including sophisticated charting and AI-powered tools.

We've built a track record for identifying and adopting key investment and technology trends.

We've been a pioneer in the crypto space since 2011 due to my own passion around blockchain technology. Crypto's underlying principles of transparency, security and inclusivity resonate deeply with eToro's mission.

As one of the first global investment platforms to embrace crypto, we've helped millions of investors access this new market in a safe way.

As technology continues to evolve so does our ability to create more inclusive financial systems, artificial intelligence holds immense potential to revolutionize investing.

We're already using AI to provide users with personalized insights, identify trends and optimize their strategies, but this is just the beginning.

We believe that the next wave of financial innovation will be driven by collaboration between people and technology. Editorial, we're committed to staying at the forefront of this transformation using technology to enhance the investing experience while keeping the human element of its core.

Our goal is to create a platform that not only meets the needs of today's investors but also anticipates the opportunities and challenges of tomorrow.

Now let's move to the quarter results.

We are very pleased with our strong second quarter results, which reflect the continued success of our goal to be the leading trading investment platform.

Our net contribution for the quarter increased 26% year-over-year to $210 million, and our adjusted EBITDA increased 31% year-over-year to $72 million, while improving operating margins.

In terms of geographic diversification, we recently expanded our global footprint, activating our license in Singapore. This milestone positions eToro to serve Asia's growing investor base from a key financial center as we continue to grow our global presence.

Over the past quarter, we also made real progress in advancing our product development across our four strategic pillars: trading, investing, wealth management and neo banking, delivering innovative features that strengthen user engagement and expand our addressable market.

In trading, we continue to enhance the trading experience by expanding and flexibility for our users.

We announced the expansion of 24/5 trading and on exchange futures, and we intend to expand this offering to provide our users around the world with the flexibility to trade on their own time. The ongoing efforts to remove boundaries in training and financial markets underpins our interest and focus in tokenization. Back in 2012, we wrote the colored coins white paper, a method for representing and managing real-world assets on top of the Bitcoin blockchain.

We first offered tokenized assets back in 2019, following our acquisition of Smart contract start-up Firmo. Building on this heritage, we're launching tokenized stocks.

We believe that blockchain technology will facilitate the greatest ever transfer of wealth as traditional assets move on to the blockchain.

As a platform that bridges between traditional trading and a blockchain-powered future, we believe we're very well positioned to participate in the transformation of financial markets and grow our business.

In the U.S. recent regulatory development around crypto represents an important milestone and a great tailwind for our U.S. expansion.

As a result, in recent months, we've significantly expanded our crypto offering for our U.S. users and now offer the ability to trade over 100 different crypto assets.

We'll continue to add more crypto assets and more features for our U.S. consumers and will be soon launching staking as well. Turning to investing.

We continue to introduce innovative solutions that make investing simpler, smarter and more personalized. This quarter, we rolled out a suite of our Alpha portfolios as part of our smart portfolio offering. These AI-powered long/short strategies are built using advanced analysis of multiple sources of data including eToro's proprietary retail trading data.

This gives our users assets to exclusive quantitative trading strategies typically used by hedge funds and institutional investors only.

In addition, we also announced a partnership with Franklin Templeton to launch new portfolios focused on long-term target date investing. These efforts broaden our investment offering and personalized user experience to help our customers achieve their financial goals at each stage of their financial journey.

As part of our efforts to provide a global platform with a localized experience, we've expanded our wealth management offering to provide access to long-term tax advances, savings and investment solutions.

In the second quarter, we expanded our savings from Australia and the U.K. to also France, launching retirement and life insurance products to give our users more ways to invest in the future.

Additionally, we rolled out recurring investments and saving plans in crypto and stocks in the U.K., Europe and the UAE, enabling our users to automate their investments in making disciplined investing easier and more accessible. Moving to our neo-banking solutions.

We recently launched the eToro Money Card across Europe. This card turns everyday spending into investing by offering a 4% stock back reward on every purchase alongside premium benefits.

Before I conclude, I want to also address the topic of harnessing AI technology. eToro has been leveraging artificial intelligence for many years, but we believe that we are now at an inflection point.

We are harnessing AI to redefine social investing.

We're rolling out a suite of powerful AI-driven tools that empower popular investors with sophisticated professional capabilities.

With these tools, we're not democratizing only access to the markets and data.

We're now democratizing quantitative trading and investing. Community is at the heart of everything we do, and these AI-powered tools will enable our popular investors to build apps and trading strategies that combine social trading with advanced execution capabilities. equipping them to innovate like the top hedge funds around the world and scale their impact with the eToro ecosystem.

In line with this vision, we recently launched Tori, our powerful AI system, transforming how users interact with eToro, answering questions, surfacing personalized insights, guiding them into the platform and helping them make better decisions, all through natural conversation. Tori helps users make smarter decisions and navigate our platform based on the advanced models out there including recently GPT 5.

We truly believe that AI tools are a game changer for investors.

I suggest you all try that. Together, these product innovations and enhancements reflect our focus on empowering our users from around the world to trade, invest, save and send in a way that suits their needs.

We feel great about our product development velocity that's been accelerated by AI and the business result it is driving.

Looking ahead, I'm excited about the opportunities in front of us, and we are well positioned to execute on our growth initiatives to drive sustainable long-term growth.

With that, I will pass the call to Meron to discuss our financial results for the quarter.

Meron Shani:
Thank you, Yoni.

Before we begin with an overview of this quarter's financial results, I would like to share some insights on eToro's financial philosophy.