eToro Q1: Commodities surge, crypto revenue drops, Zengo deal

eToro's Q1 net income rose 37% to $82M, driven by commodities, while crypto revenue fell 39%. The company expanded DeFi with Zengo and focused on AI tools for growth.

eToro reported a robust first quarter, with net income rising 37% to $82 million and net contribution up 19% to $258 million, largely driven by a surge in commodities trading. Commodities now account for about 60% of trading commissions, a significant increase from 16% in Q2 2025, as commodity volumes grew nearly fourfold year-over-year. While capital markets trades rose 90% to 243 million, crypto trading activity weakened. Crypto trades halved to 10 million, and crypto revenue dropped 39% to $2.15 billion from $3.5 billion a year earlier. Despite this slowdown, eToro expanded its crypto services in New York and acquired Zengo, a self-custody wallet provider, for $70 million to strengthen its DeFi capabilities. The company also focused on AI-driven investing tools and Agent Portfolios to boost account growth and retention. Funded accounts reached 4.02 million, and assets under administration climbed 15% to $17 billion. These results reflect a broader industry trend of declining crypto activity, with competitors like Robinhood and Coinbase also reporting lower crypto revenues.