eToro TradeZero acquisition will see the trading platform buy the US brokerage for up to $231 million, as it pushes further into equities and active trading.
The deal came with eToro’s second-quarter results. It includes cash and up to 2.5 million newly issued Class A shares. TradeZero made about $80 million in revenue in the 12 months to June and posted an 81% gross margin.
Meanwhile, eToro said the purchase still needs regulatory approval. The company expects the deal to close in the first half of 2027. TradeZero operates in the US, Canada and international markets.
eToro TradeZero Acquisition Expands Equities Push
eToro reported that net contribution rose 9% from a year earlier to $229 million. Net income reached $53.5 million. In addition, net trading income from equities, commodities and currencies climbed by $27.6 million to $141.6 million.
The company announced the TradeZero purchase as crypto revenue weakened. eToro’s cryptoasset revenue fell 30% year on year to $1.35 billion. Its net contribution from crypto dropped to about $12.5 million.
Those declines matched a softer quarter for digital assets. Total crypto market capitalisation fell 12.6% in the period. Centralised exchange spot volume also dropped 27.9%.
Crypto Weakness Hit Major Platforms
Other large platforms also reported lower crypto revenue in the second quarter. Robinhood said cryptocurrency transaction revenue fell 38% to $100 million. However, its total net revenue rose 32% to $1.31 billion.
Coinbase reported total revenue of $1.2 billion and a net loss of $359 million. Bitcoin-related transactions made up only 12% of its revenue. The broader weakness in crypto trading activity weighed on results across major platforms.
The eToro TradeZero acquisition stands out as one of the week’s largest brokerage expansion moves.
You can access our other news on brokers and global market developments here.
Source: Finance Magnates
