eToro Group Ltd. Q3 FY2025 earnings call

• Strong Q3 performance with net contribution up 28% YoY and adjusted EBITDA up 43% to $78 million. • Innovations in AI, crypto, tokenization, and global expansion. • In trading: expanding market access globally, offering retail investors access to NASDAQ Nordic Exchanges, expanding futures in Europe. • In investing: Pro Investor Program with over 4,000 global investors, launch of Copy Trading in the U.S. • In AI: democratizing professional-grade technology with AI-driven insights. • In wealth management: new subscription model for eToro Club, expansion of long-term savings offerings. • In neo-banking: enhancing global platform, expanding localization, growth of eToro Money card.

In the third quarter, net contribution grew 28% year-over-year to $215 million, and adjusted EBITDA rose 43% to $78 million with an adjusted EBITDA margin of 36%. Assets under administration reached an all-time high of $20.8 billion, up 76% year-over-year. Funded accounts grew 16% year-over-year to $3.73 billion. Net trading contribution from crypto grew 229% YoY to $56 million. Net trading contribution from capital markets declined 21% YoY to $73 million. Net interest income contributed $62 million, up 44% YoY. eToro Money contribution grew 50% YoY to $21 million.

• Expect double-digit growth in funded accounts across regions. • Continued global expansion, including further localizing offerings in key markets. • Expansion of U.S. presence with launch of Copy Trading in the U.S. and increased crypto volumes. • Broadening product offering with AI-driven tools. • $150 million share repurchase program announced, indicating confidence in long-term growth.

• Forward-looking statements subject to risks, uncertainties, and assumptions. • Market shifts between asset classes (crypto vs. capital markets) could impact revenues.

Q: Can you comment on why eToro decided to launch the new subscription offering?

A: Jonathan Assia says the eToro Club program provides premium benefits and consolidates subscription models, offering unique features, better service, and discounts.

Q: Talk about account growth by regions.

A: Meron Shani mentions double-digit growth in funded accounts and good signs from new regions, with strong user acquisition and retention efforts.

Q: Discuss artificial intelligence implications and conversion uplift.

A: Jonathan Assia talks about AI tools for Pro investors to build automated strategies, driving higher returns and trade velocity.

Q: Strategic focus by geography.

A: Jonathan Assia says they focus on data-driven growth, maintaining leadership in Europe and exploring new regions like the U.S.

Q: Account growth outlook.

A: Jonathan Assia expects double-digit growth in funded accounts across all regions, outpacing market growth.

Q: Crypto volumes and dynamics.

A: Jonathan Assia and Meron Shani discuss crypto volume growth, market shifts between asset classes, and future plans for prediction markets.

Q: Capital allocation priorities.

A: Jonathan Assia mentions share buyback and exploration of inorganic growth opportunities through acquisitions.

Q: Prediction markets pathway.

A: Jonathan Assia talks about organic development with futures in Europe and crypto wallet for on-chain prediction markets.

Q: Copy Trading in the U.S. scaling.

A: Jonathan Assia discusses scaling Copy Trading by promoting the feature, increasing attachment rates, and expanding product strategy.

Q: Banking services long-term opportunity.

A: Jonathan Assia views neo-banking as part of a super app strategy to increase user share of wallet and compound wealth.