eToro Group Ltd. (ETOR): A Bull Case Theory

We came across a bullish thesis on eToro Group Ltd. on The Diversified Fins Analyst’s Substack. In this article, we will summarize the bulls’ thesis on ETOR. eToro Group Ltd.’s share was trading at $41.97 as of November 28th. ETOR’s trailing and forward P/E were 17.04 and 14.97, respectively according to Yahoo Finance.

eToro Group Ltd. engages in the trading business. Its multi-asset platform supports trading and investing in equities, crypto assets, commodities, currencies, and options, which can be traded either as assets or as derivatives related to various underlying asset types. ETOR delivered a strong 3Q25 performance, with total net contribution rising to $215M, up 2% sequentially and 28% year-over-year, driven primarily by a surge in crypto trading activity.

Crypto net trading contribution increased 229% Y/Y and 107% Q/Q to $56M, while net interest income climbed 44% Y/Y to $62M. eToro Money grew 50% Y/Y to $21M, and subscription contribution rose meaningfully Y/Y despite a quarterly decline. Traditional asset trading—equities, commodities, and currencies—softened, falling 21% Y/Y to $73M amid shifting customer activity.

Operating discipline was evident as GAAP operating expenses decreased Q/Q, helping expand GAAP pre-tax margins to 32.1%, while adjusted margins reached 31.6%. Earnings also improved, with GAAP EPS rising to $0.53 and adjusted EPS of $0.56 topping both year-ago levels and Street estimates. Key operating metrics reflected continued momentum: funded accounts grew to 3.73M, customer assets surged 75% Y/Y to $20.8B, and trading volumes increased across both traditional and crypto assets.

October trends indicate a solid start to 4Q, with ECC trades up sharply and crypto trades up 83% Y/Y, though total client assets dipped slightly month-over-month. Management reiterated confidence in the business, highlighting strong marketing ROI, a stable cost outlook, and the launch of a $150M share repurchase program, including a $50M ASR.

The company remains open to disciplined M&A and is building infrastructure for prediction markets following recent futures expansion. Overall, ETOR’s quarter demonstrated healthy top-line growth, improving profitability, strong customer engagement, and proactive capital allocation, positioning the company well for continued momentum.

Previously we covered a bullish thesis on Robinhood Markets, Inc. (HOOD) by kumaramit0703 in March 2025, which highlighted its expanding fintech ecosystem, rising profitability, and strong user engagement. The company’s stock price has appreciated approximately by 200.21% since our coverage. This is because the thesis played out with accelerating growth. The thesis still stands as product expansion continues. The Diversified Fins Analyst shares a similar view but emphasizes ETOR’s stronger crypto-driven momentum.

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Disclosure: None.