Overview
- eToro announced the agreement on Tuesday, August 11, 2026, to acquire TradeZero in a cash-and-stock deal that company filings peg at as much as $231 million.
- Under the terms eToro will pay cash and may issue up to 2.5 million new Class A shares, and the companies expect the transaction to be accretive to adjusted EPS within the first year after closing, which they target for the first half of 2027 pending regulatory approvals.
- TradeZero generated roughly $80 million of revenue in the 12 months to June 30, 2026, with an 81% gross margin and offers commission-free U.S. equities and options trading plus advanced order-routing tools; its filings also disclose a past SEC matter related to 2021 trading restrictions.
- eToro reported Q2 results the same day showing stronger equities trading but a roughly 30% year-over-year fall in reported crypto revenue and a 73% drop in July crypto trades, leaving the company more reliant on traditional brokerage activity for near-term growth.
- Investors reacted negatively, pushing eToro shares down about 9–11%, as analysts flagged dilution from the share issuance and execution risks tied to U.S. regulatory clearance and the integration of TradeZero, which will determine whether the deal reduces eToro’s dependence on volatile crypto volumes.