eToro’s first financial results as a publicly traded company didn’t quite deliver the splash it may have hoped for. eToro reported declines in both revenue and profit for Q1 2025, with crypto trading activity—typically a key driver of performance—slowing sharply at the start of the year.

Shares of eToro (NASDAQ: ETOR) fell 12% on Tuesday and continued to slide in after-hours trading, closing at $66.96. This drop followed a recent rally that had pushed the stock to an all-time high of $79.96. Despite the sell-off, eToro’s stock remains significantly above its mid-May IPO price of $52 per share.

eToro Q1 2025 Earnings: Slower Crypto Trading Hits Revenue

The company’s reporting format, which separates gross “revenue from cryptoassets” and related costs, somewhat obscures its net performance. By netting out crypto revenue costs, eToro’s adjusted net revenue came in at $227 million for Q1 2025, a 13% decline from $262 million in Q4 2024.

Net profit also slipped slightly to $59.95 million, down from $60.41 million in the previous quarter and $64.12 million in Q1 2024. The primary factor behind the downturn was a marked decrease in crypto trading, which fell to 37% of total commissions, down from 50% in Q4 2024. Historically, eToro has outperformed when crypto activity among users surges, as seen in previous quarters.

Not all was gloomy, however. eToro continues to grow its user base and assets. Funded accounts rose to 3.58 million at the end of Q1, up from 3.48 million at the close of 2024. That figure has since reached 3.61 million as of May 31. Assets under administration also climbed, hitting $16.9 billion, up from $14.8 billion at the end of Q1.

While the first earnings report may not have met market expectations, eToro’s core growth trends suggest long-term potential remains intact.

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