eToro Q3 earnings beat on strong AUA, net contribution; unveils $150M buyback

Multi-asset trading platform eToro Group (ETOR) on Monday delivered Q3 earnings that rose past the Wall Street consensus, driven in part by stronger-than-expected net contribution and assets under administration.

In addition, the company's board authorized a new share buyback program of up to $150M. ETOR said it plans to enter into an accelerated share repurchase agreement to buy back about $50M of its common shares under the new authorization.

Q3 adjusted EPS of $0.60, topping the $0.55 average analyst estimate, rose from $0.56 in Q2 and $0.51 a year earlier.

Total revenue and income of $4.11B in Q3 surged from $2.09B in the prior quarter and $1.56B in Q3 2024.

ETOR shares edged up 1% at the time of writing.

Net contribution advanced to $215M from $210M in Q2 and $167M in Q3 2024. That's better than the $207.6M Visible Alpha consensus.

Adjusted EBITDA was $77.9M in Q3, vs. $70.6M Visible Alpha estimate, up from $72M in Q2 and $54.6M in Q3 2024. The Y/Y gain was driven by increased net contribution and disciplined cost management, ETOR said.

Number of funded accounts advanced to 3.73M, in line with consensus, from 3.63M in Q2 and +16% Y/Y.

Assets under administration were $20.8B, vs. $19.9B Visible Alpha estimate, up from $17.5B in Q2 and +76% from the year-ago period.

"Our results reflect the strength of our diversified revenue streams across segments and geographies, robust user engagement, and disciplined cost management, a trend that has continued into October," said Chief Financial Officer Meron Shani.