EToro Third-Quarter Results Top Estimates on Crypto Trading Strength, KBW Says

EToro’s (ETOR) third-quarter earnings topped expectations as stronger crypto trading activity lifted results, investment bank KBW said.

Net income rose 48% from a year earlier to $57 million, according to the company’s GAAP results. Adjusted Ebitda grew 43% to $78 million, largely due to increased net contribution and disciplined cost management, the company said Monday.

Adjusted Ebitda of $78 million exceeded KBW's $70 million estimate and the $70.6 million consensus, while GAAP net income of $57 million was also ahead of forecasts, the bank said.

Shares of the company rose as much as 3.2% in early trading before falling back. They were recently 0.1% lower at $34.83.

KBW analysts said the $0.07 per-share Ebitda beat came from a $0.06 boost in total net contribution and a $0.01 reduction in operating expenses.

Crypto trading revenue and net interest income topped expectations by $0.16 and $0.07 respectively, the report noted, offsetting a $0.17 shortfall in equities, commodities and currencies.

EToro’s total net contribution rose to $215 million, above KBW’s $208 million forecast, driven by $56 million in crypto trading versus expectations for $36.3 million.

The company ended the quarter with 3.73 million funded accounts, up from 3.63 million the prior quarter and slightly above KBW’s 3.7 million estimate.

Assets under administration climbed to $20.8 billion from $17.5 billion. EToro also unveiled a $150 million share repurchase program, including plans for a $50 million accelerated buyback, the report added.

Read more: Crypto Trading Drove Over 90% of eToro’s Second Quarter Revenue