eToro files for NASDAQ IPO, reporting strong 2024 profits driven by crypto trading and global expansion efforts. Social trading-focused online broker eToro has taken a significant step towards becoming a publicly traded company by filing an “F-1” registration statement with the U.S. Securities and Exchange Commission (SEC). The move signals the company’s intent to list on NASDAQ under the ticker symbol ETOR.
eToro Files for NASDAQ IPO Amidst Strong Crypto Growth
While the F-1 filing remains preliminary and does not specify key IPO elements such as valuation, offering size, or timeline, it does provide a comprehensive look into eToro’s financial results and plans.
Leading the IPO are major investment banks Goldman Sachs, Jefferies, UBS, and Citi. Notably, Jefferies owns FXCM, a competitor to eToro.
In terms of financials, eToro reported $824 million in revenue for 2024, marking a 42% increase from 2023. Net profit surged to $192 million, a substantial improvement from near breakeven $15 million in 2023 and a $215 million loss in 2022.
A closer examination of the F-1 document reveals that eToro’s accounting structure separates “Revenue from cryptoassets” and offsets “Cost of revenue from cryptoassets” within expenses. When netting these figures, eToro’s true revenue stands at $824 million, rather than the seemingly inflated $12.64 billion presented in the filing.
As of December 31, 2024, eToro had 3.5 million funded accounts across 75 countries, with 70% of users based in Europe and the UK.
The report highlights that crypto trading has been the primary growth driver, contributing over 40% of total revenues in 2024. In contrast, core revenues from equities, commodities, and currency trading saw only a 7% increase year-over-year and remained below 2022 levels.
The impact of crypto trading was most pronounced in Q4-2024, following the November re-election of Donald Trump as U.S. President. The quarter alone contributed 25% of the total 2024 revenue and more than 100% of net profit, underlining the volatile yet lucrative nature of crypto trading for eToro.
Strategic Expansion Plans
Looking ahead, eToro aims to grow through three key strategies:
- Expanding its user base in existing markets.
- Increasing asset holdings from existing users.
- Entering new geographic markets.
Geographic Distribution and Market Expansion
Currently, 70% of eToro’s client accounts are in Europe and the UK, followed by 16% in Asia-Pacific, and 10% in the Americas.
The company has been actively expanding in Asia-Pacific, particularly Australia and Singapore. In November 2024, eToro acquired the Australian investing app Spaceship, enhancing its market position. Additionally, eToro Singapore has received In Principle Approval for a Capital Markets Services license from the Monetary Authority of Singapore, which is expected to be fully activated in 2025.
In the Americas, eToro has steadily expanded since launching in 2019. Initially offering only crypto trading, it now includes equities, ETFs, and options trading in the U.S. The company is also eyeing growth in Latin America.
Furthermore, in November 2023, eToro entered the UAE market and is focusing on expanding in the Middle East, which it considers a high-growth potential region.
With a strong foothold in social and crypto trading, eToro’s IPO is poised to attract investors eager to tap into the fast-growing online trading sector. The full F-1 registration statement is available on the SEC website, offering further insights into the company’s financial health and future ambitions.
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