eToro (NASDAQ: ETOR) has reported robust financial results for the second quarter of 2026, simultaneously announcing plans to acquire US-based brokerage TradeZero in a deal worth up to $231 million.

The multi-asset trading and investing platform said net contribution climbed 9% year over year to $229 million, driven primarily by increased equities trading activity. Funded accounts rose 18% to 4.28 million, up from 3.63 million in the same quarter last year.

Under GAAP accounting, net income surged 77% to $53 million, compared with $30 million in the year-ago period. Adjusted net income, a non-GAAP measure, increased 17% to $63 million, while adjusted EBITDA grew 9% to $78 million. Diluted earnings per share reached $0.58, up from $0.31 a year earlier.

Assets under administration expanded 10% to $19.2 billion. As of the end of June, the company held $1.2 billion in cash, cash equivalents, and short-term investments.

CEO Yoni Assia characterized the quarter as reflecting steady progress on the company's long-term strategy. He highlighted several key initiatives, including the launch of a new mobile application, the expansion of self-custody crypto services, and ongoing development of on-chain perpetual futures.

Assia added that the TradeZero acquisition, announced the same day as the earnings results, would bolster eToro's competitive position in the US market and introduce additional tools for active traders. TradeZero is known for offering short-selling capabilities and direct market access routing, features that appeal particularly to active day traders and that complement eToro's existing product suite. The acquisition comes amid intensifying competition among retail trading platforms, with firms such as Robinhood and Interactive Brokers vying for active trader segments in the US market. Further details on the acquisition are available here.

CFO Meron Shani said the results underscored the strength of eToro's multi-asset platform, noting that users have been actively shifting between commodities, equities, and crypto as market conditions evolve. He described TradeZero as a complementary business that is expected to be accretive to earnings.

Founded in 2007 and headquartered in Israel, eToro is widely known for its social and copy trading features, allowing users to replicate the portfolios and strategies of other investors. The company completed its listing on the Nasdaq stock exchange under the ticker ETOR. TradeZero, the acquisition target, is a US brokerage that offers commission-free stock trading and direct market access routing.