eToro reported first-quarter crypto revenue of $2.15 billion, down from $3.5 billion in the same period a year earlier, as trading activity on the platform slowed despite continued growth in user accounts and assets under administration.
eToro Q1 crypto revenue drops to $2.15 billion
The Israeli-founded trading platform disclosed revenue from cryptoassets of $2.15 billion for the three months ending March 31, 2026. The figure represents a gross revenue line item, with the company also reporting cost of revenue from cryptoassets of $2.17 billion in the same quarter.
Despite the decline in crypto revenue, eToro posted net income of $82.4 million in Q1 2026, up from $60 million a year earlier. Net contribution, a profitability metric the company highlights, rose 19% year over year to $258 million.
Funded accounts on the platform climbed 12% to 4.02 million from 3.58 million, while assets under administration grew to $17 billion from $14.8 billion. The user growth signals continued demand for multi-asset trading platforms even as blockchain networks expand their infrastructure globally.
How the result compares with the prior year
In Q1 2025, eToro recorded crypto revenue of $3.5 billion. The drop to $2.15 billion represents a decline of roughly $1.35 billion, or approximately 38.5% year over year.
The revenue presentation is important context. eToro reports crypto revenue on a gross basis alongside an offsetting cost-of-revenue line. The $2.17 billion in crypto cost of revenue nearly matches the gross figure, meaning the net margin from crypto trading was slim in the quarter.
The broader crypto market reflected cautious sentiment during much of Q1 2026. The Fear & Greed Index currently reads 42, placing market sentiment in “Fear” territory, a backdrop that likely weighed on retail trading volumes across platforms.
Profit beat and revenue mix shift
While crypto revenue fell, eToro beat Wall Street profit expectations. Reuters reported that the company posted adjusted profit of 91 cents per share versus analyst estimates of 73 cents. Commodities made up roughly 60% of trading commissions in the quarter, highlighting a significant shift in the platform’s revenue mix away from crypto.
The diversification mirrors a broader trend among trading platforms seeking stable revenue streams. As traditional financial institutions push into tokenized assets, platforms like eToro appear to be hedging their dependence on crypto trading volumes.
CEO Yoni Assia noted in the earnings release that the company continues to “enhance our global product offering and deepen our investment in on-chain technologies.” The forward-looking statement comes as eToro recently activated its BitLicense and Money Transmitter License to launch crypto trading for users in New York, expanding the platform’s U.S. footprint.
Why the revenue drop matters for crypto exchange coverage
The 38.5% decline in crypto revenue at a publicly reporting multi-asset broker provides a concrete data point on how retail crypto trading activity has shifted since early 2025. Unlike privately held crypto-native exchanges, eToro’s quarterly filings offer auditable figures that track the sector’s health.
April data from the filing suggests the softness extended beyond Q1, with total crypto trades down 32% year over year even as funded accounts continued to grow. The divergence between rising user counts and falling trading volumes points to lower per-user engagement with crypto markets during periods of macroeconomic uncertainty and shifting monetary policy expectations.
For investors tracking the crypto exchange sector, the quarter underscores that gross revenue headlines can be misleading without the corresponding cost figures. eToro’s near-zero net margin on crypto in Q1 2026, with $2.15 billion in revenue against $2.17 billion in costs, illustrates why net contribution and overall profitability metrics matter more than top-line crypto revenue alone.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.