Below is the Q3 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: My name is Daniel Amir, Head of Investor Relations.

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

Our earnings press release, investor presentation and October monthly spreadsheet is now available on our website at investors.etoro.com.

Today I'm joined by Yoni Assia, our CEO; and by Meron Shani, our CFO. Following the prepared remarks, we will conduct a Q&A session and answer questions from both institutional research analysts and a selection of the most upvoted question previously submitted by eToro's retail shareholders.

But before we begin, I want to note that today's discussion contains forward-looking statements including statements about goals, business outlook, industry trends, market opportunities, expectations for future financial performance and similar items, all of which are subject to risks, uncertainties and assumptions.

And you can find more information about these risks and uncertainties in the press release that we issued today and in the risk factors section of our filings at sec.gov.Actual results may differ.

And we take no obligation to revise or update any forward-looking statements.

Finally, during today's meeting, we will discuss non-GAAP financial measures.

These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP.

Definitions and reconciliation of GAAP to non-GAAP measures is available in our press release, investor presentation and on the sec.gov website as applicable.

With that, I will pass the call to Yoni.

Yoni Assia: Thank you, Daniel. And thank you, everyone, for joining us today.

Welcome to our third quarter's 2025 earnings call. After Meron and I conclude our prepared remarks, we'll open it up for questions.

We're proud to share another strong quarter that reflects eToro's continued momentum and a growing strength as a global leader in trading and investing. This performance with net contribution up 28% year-over-year to $215 million and adjusted EBITDA rising 43% to $78 million, delivering solid operating margins of 36% is a testament to the vision, resilience and scalability of our diversified business.

What excites us most is the remarkable pace of innovation unfolding across eToro, with AI accelerating our product development.

We're not only enhancing the platform that our users know today.

We're reshaping the future of investing.

We're expanding into new frontiers in crypto, tokenization and AI, while also broadening our global reach to serve an ever-growing community of smart investors. This wave of innovation is delivering tangible results.

Record assets under administration, robust growth across all segments and unprecedented engagement in copy trading. Together, these achievements underscore how our investment in technology is fueling growth, deepening client engagement and bringing us ever closer to our mission, which is to empower everyone to trade and invest in a simple and transparent way.

Our key performance indicators accelerated meaningfully this quarter. Funded accounts grew 16% year-over-year to $3.73 billion with organic funded accounts expanding at a double-digit rate. This growth demonstrates the growing appeal of eToro's differentiated platform, the trust we've built with our global community of investors and the success of our disciplined and data-driven marketing approach.

Assets under administration reached an all-time high of $20.8 billion, up 76% year-over-year, fueled by growth in new deposits and strong user investment returns in both crypto and equities this year. The positive momentum in our KPIs has continued into Q4 as shown in the October results released today. These results show our strategy in action.

We're democratizing and investing by making it simple, accessible and social while combining multi-asset trading with smarter products like copy trading and smart portfolios to empower investors everywhere.

As we execute on this vision, we're confident in our ability to deliver lasting value for our users and shareholders.

To achieve the strong performance we delivered in Q3, we've remained focused on executing across our four strategic pillars of trading, investing, wealth management and neobanking while accelerating product innovation across the platform.

Let me share a few highlights across each of these areas.

In trading, we're continuing to expand market [act] globally.

We continue to expect our 24/5 trading.

We began offering retail investors access to stocks listed on NASDAQ Nordic changes throughout our partnership with NASDAQ. This expansion comes amid rising retail investor interest in the global markets.

Today we offer access to [22] different exchanges worldwide and plan to increase to over 30 in 2026.

We've expanded futures across Europe and launched spot-quoted futures and partnership with the CME Group. Retail participation continues to grow in these markets, and we are pleased to give local traders the ability to execute in a more advanced and diversified strategies.

Our expanded to futures also establishes the infrastructure to support prediction markets in the future.

In investing, we're bringing together the power of community and AI to drive deeper user engagement on eToro's platform and help investors make smarter decisions with AI.

Our Pro investor community has grown to over 4,000 investors globally, supported by our new Pro investor program. This program is designed to support users on their journey to certify themselves as professional investors.Our Pro investors gain exposure and grow their profile by sharing their expertise with eToro's global user piece.

In addition, over 130 Pro investors now have north of $1 million assets under management with our top row investor growing from $50 million to over $250 million in 2025 alone, a milestone that reflects the growth and influence of our Pro investor program.

Last month, we launched CopyTrading in the U.S.

We're excited to bring our flagship product to the world's largest capital market. Copy trading today is experienced across approximately a third of our users.

With the launch of Copy Trading in the U.S., we anticipate increased user engagement and platform traction.

In AI, we're entering the next great leap in trading and investing.

One that puts the power of professional grade technology direct in the hands of every investor with our newly launched eToro apps, users can build share and scale their own investment tools across our global community.

What was once the privilege of sophisticated institutions is now being democratized.

Our AI-driven insights from sentiment to decision analysis, enabling investors to think and act as institutional investors by creating their own strategies, dashboards and innovations that shape the future of investing.

In Wealth Management, we launched a new subscription model for the eToro Club, our loyalty and rewards program, offering members premium benefits and exclusive features.

The subscription offers members smarter tools, monetary benefits and more personalized support while driving incremental engagement. Furthermore, we've expanded the eToro long-term savings offering for our U.K. users with the new eToro Cash ISA and Cashback rewards and management and do-it-yourself ISAs. And in Australia, we advanced integration of spaceship, giving users direct access to superannuation products through the eToro platform.

These developments demonstrate our commitment to continuously enhancing wealth management offering, which is a multitrillion-dollar opportunity.

With the Australian superannuation market valued at over $2.5 trillion and the U.K. individual savings account market exceeding $1.3 trillion.

In neo banking, we continue to enhance our global platform by delivering localized experiences that strengthen user trust, drive adoption and support sustainable growthacross our key regions. This quarter, we expanded our localization offering in the UAE, Singapore and Australia. Furthermore, across the U.K. and Europe on top of the 4% cash back in stocks, we now offer also a 1% cash back in stocks for new crypto deposits.

We plan to expand this offering to more countries in the future.

We're also very pleased with the strong traction we've seen with the eToro Money Card available today in Europe and the U.K., which saw a 2.4x increase in cards issued quarter-over-quarter.

Looking ahead, we believe there are five key factors that will drive eToro's continued growth and advance our mission to open the global markets, connect users to leading investors and give them tools they need to grow their knowledge and wealth. Number one, advancing at the forefront of innovation. Number two, continuing to expand globally. Number three, expanding our U.S. presence.

Number four, broadening our product offering with AI. And number five is leading to inevitable elastic macro trends.

We are focused on positioning our business to capture the significant growth opportunities presented by these five factors.

First, advancing the platform at the forefront of innovation. From day one, product innovation has been at the core of who we are.

We've built a strong track record of identifying early major trends like social trading and crypto and turning these trends into products that bring real financial utility to our users.

Our social investing products continue to define who we are today as a company. From the outset 15 years ago, eToro set out to transform retail investing experience by pioneering the concept of social investing, empowering individuals to learn from one another and invest together.

We believe there is a tremendous value and shared knowledge and collective insight.

Over the years, we have led the industry with innovations such as our social network, copy trading, crypto investing, fractional shares, machine learn driven analytics and our smart portfolios. Together, these capabilities make investing more inclusive, informed and collaborative for our growing global community.

Artificial intelligence is the next frontier in investing. And we're already seeing the impact across our business.

Our AI analyst story launched last quarter has already been used by over a third of our club members, a strong sign of engagement and potential. As we expand our AI capabilities, we're giving an investor powerful tools to make smarter decisions, improve performance and deepen their connection to our platform.

Our vision is also centered on building open, tokenizing borderless market to help millions to build wealth.

We're bringing U.S.-listed equities to the blockchain enabling 24/5 trading of over 500 prominent stocks with plans to move forward to 24/7 as the market's involved.

We're currently developing a crypto wallet that will open the opportunity for our users through decentralized finance to participate in innovations like on chain prediction markets, lending, loans and swaps of their assets of millions of different crypto assets and connect our tokenized assets ecosystem and benefit from tokenization of real-world assets, which will happen over time.

We expect these more advanced crypto products to continue to increase our client engagement within the crypto industry.

Second, continue to expand globally.

We're proud to serve users in more than 75 different countries across the world. The diversification of our revenues across geographies is the core strength of eToro and a differentiator of our business.

In Q2, we expanded our footprint in Asia by launching our capital market services license in Singapore, a meaningful step towards scaling our business in that region.

Looking ahead, we plan to further localize our offering in key markets and continue to expand globally in region where we're underpenetrated.

As part of our broader strategy to solidify eToro's position as a truly global platform serving investors everywhere.

Third, expanding our U.S. presence.

We're seeing solid growth in the U.S. Year-to-date, new funded accounts have already surpassed those of 2024 and we've achieved that growth while remaining disciplined and efficient in our marketing spend, consistent with our strategy. To continue this growth, we're focused on bringing the full product offering for which we are known globally into the U.S. market.

For example, in the third quarter, we brought in an crypto offering in the U.S. to include more than 100 different crypto assets and introduced staking in the U.S.

As a result, we saw a 3x increase in our crypto volumes quarter-over-quarter in the U.S. market. Additionally, last month, we announced the launch of Copy Trading in the U.S., a major milestone that lays the foundation for our next phase of expansion in this market. The copy trading product is a significant driver of user engagement with our platform is reflected in the increase of the number of trades we've seen this year.

We expect Copy Trading to be an important driver of growth in the U.S. going forward.

Fourth, broadening our product offering.