eToro Group Ltd. Class A Common Shares 2026 Q2 Earnings Call

Hi, my name is Daniel Amir, Head of Investor Relations. This webcast is being recorded and will be available for replay in the investors section of eToro's website. Our earnings press release, investor presentation, and July monthly spreadsheet is now available on our website at investors.etoro.com. Today, I am joined by Yoni Assia, our CEO, and by Meron Shani, our CFO. Following the prepared remarks, we will conduct a Q&A session and answer questions from both institutional research analysts and a selection of the most up-voted question previously submitted by eToro's retail shareholders. Before we begin, I want to note that today's discussion contains forward-looking statements, including statements about goals, business outlook, industry trends, market opportunities, expectations for future financial performance, and similar items, all of which are subject to risks, uncertainties, and assumptions.

You can find more information about these risks and uncertainties in the press release that we issued today, and in the risk factors section at our filings at sec.gov. Actual results may differ, and we take no obligation to revise or update any forward-looking statements. Finally, during today's meeting, we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to, and not a substitute for, or superior to measures of financial performance prepared in accordance with GAAP. Definitions and reconciliation of GAAP to non-GAAP measures is available in our press release, investor presentation, and on the sec.gov website as applicable. With that, I will pass the call to Yoni.

Thank you, Daniel, and thank you to everyone joining us today. Welcome to eToro's second quarter 2026 earnings call. After Meron and I conclude our prepared remarks, we will open the call for your questions. We delivered another strong quarter, demonstrating the strength of our diversified business model. One of eToro's key differentiators is our ability to perform across a wide range of market environments, and the second quarter was another example of that. As investor activity shifted from commodities to equities, our platform continued to deliver strong results, underscoring the value of offering users access to multiple asset class through a single platform. Net contribution increased 9% year-over-year to $229 million, and adjusted EBITDA grew 9% to $78 million. We also continued to see strong momentum across our key performance indicators as part of our growth strategy.

Funded accounts increased 18% year-over-year to 4.28 million, driven by marketing investment and improved user retention, while assets under administration grew 10% year-over-year to more than $19 billion, reflecting continued strong user inflows. Today's announcement of our planned acquisition of TradeZero marks another important milestone for eToro. TradeZero has built a successful franchise with differentiated technology, a robust broker-dealer infrastructure, and a highly engaged trading community. This combination gives us a faster path to launching new products for U.S. users and strengthens our offering. I will provide additional details on the acquisition later in my remarks. Perhaps the most important thing this quarter demonstrates is execution. Every few years, technology fundamentally changes the way people invest. Throughout our history, eToro has embraced those shifts from social investing to crypto, and now to AI and on-chain finance. Social investing made investing collaborative.