The company achieved a significant recovery in profitability with a 93.9% gross margin and a 30.7% net margin in 2026Q1, marking a departure from the erratic margin performance observed throughout 2025.
| Sales/Revenue | 6.7B | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - |
| Cost of Goods Sold | 0 | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - |
| Gross Profit | 895.56M | 842.44M | 680.52M | 404.71M | 361.34M | 945.43M | 485.69M |
| Gross Margin % | 13.37% | 92.99% | 5.39% | 10.44% | 5.71% | 100% | 88.29% |
| Gross Profit Growth % | - | 23.79% | 68.15% | 12% | -61.78% | 94.66% | - |
| Operating Expenses | 604.18M | 589.04M | 410.25M | 357.91M | 548.82M | 1.19B | 398.52M |
| OpEx % of Revenue | - | 65.02% | 3.25% | 9.24% | 8.67% | 125.45% | 72.44% |
| Selling, General & Admin | 234.18M | 0 | 270.15M | 218.85M | 384.23M | 1.07B | 329.55M |
| SG&A % of Revenue | - | - | 2.14% | 5.65% | 6.07% | 112.97% | 59.91% |
| Research & Development | 0 | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | - | - | - | - | - | - |
| Operating Income | 291.38M | 253.4M | 270.27M | 46.8M | -187.47M | -240.65M | 87.17M |
| Operating Margin % | 4.35% | 27.97% | 2.14% | 1.21% | -2.96% | -25.45% | 15.85% |
| Operating Income Growth % | - | -6.24% | 477.53% | 124.96% | 22.1% | -376.06% | - |
| EBITDA | 304.56M | 266.37M | 281.6M | 57.9M | -176.47M | -240.65M | 93.05M |
| EBITDA Margin % | 4.55% | 29.4% | 2.23% | 1.49% | -2.79% | -25.45% | 16.92% |
| EBITDA Growth % | - | -5.41% | 386.33% | 132.81% | 26.67% | -358.61% | - |
| D&A (Non-Cash Add-back) | 13.18M | 12.97M | 11.34M | 11.11M | 11.01M | 0 | 5.88M |
| EBIT | 308.23M | 253.4M | 284.78M | 55.88M | -191.63M | 0 | 87.21M |
| Net Interest Income | 113.84M | 243.48M | -22.51M | -18.04M | -21.6M | 1.52M | -29K |
| Interest Income | 140.01M | 243.48M | 16.65M | 10.1M | 1.64M | 1.52M | 1.45M |
| Interest Expense | 26.17M | 0 | 39.16M | 28.15M | 23.24M | 0 | 1.47M |
| Other Income/Expense | 0 | - | - | - | - | - | - |
| Pretax Income | 282.06M | 253.4M | 245.62M | 27.73M | -214.87M | -266.3M | 85.73M |
| Pretax Margin % | 4.21% | 27.97% | 1.95% | 0.72% | -3.39% | -28.17% | 15.58% |
| Income Tax | 43.91M | 37.7M | 53.24M | 12.47M | 117K | -593K | 2.88M |
| Effective Tax Rate % | 15.57% | 14.88% | 21.68% | 44.98% | -0.05% | 0.22% | 3.36% |
| Net Income | 238.15M | 215.7M | 192.38M | 15.26M | -214.98M | -265.7M | 82.86M |
| Net Margin % | 3.56% | 23.81% | 1.52% | 0.39% | -3.4% | -28.1% | 15.06% |
| Net Income Growth % | - | 12.12% | 1160.77% | 107.1% | 19.09% | -420.68% | - |
| Net Income (Continuing) | 238.15M | 215.7M | 192.38M | 15.26M | -214.98M | -265.7M | 82.86M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.53 | 2.27 | 8.76 | 0.72 | -11.45 | -15.18 | 1.01 |
| EPS Growth % | - | -74.09% | 1116.67% | 106.29% | 24.57% | -1602.97% | - |
| EPS (Basic) | - | 2.58 | 9.85 | 0.80 | -11.45 | -15.18 | 1.01 |
| Diluted Shares Outstanding | 94.18M | 95.13M | 21.95M | 21.33M | 18.77M | 17.5M | 81.92M |
| Basic Shares Outstanding | 84.16M | 83.5M | 19.53M | 19.06M | 18.77M | 17.5M | 81.92M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Regulatory and accounting volatility
As reported in financial statements, the company's gross margin expanded significantly to 93.9% in 2026Q1, a sharp recovery from the anomalous 2.2% to 10.0% range observed throughout 2024 and 2025, suggesting a fundamental shift in revenue recognition or a stabilization of core trading execution costs.
The extreme volatility in reported gross margins over the last two years indicates that the company's top-line accounting may be subject to significant non-operating adjustments or changes in how crypto-asset revenue is captured. Investors should monitor whether this recent expansion to 93.9% represents a sustainable improvement in operational efficiency or merely a temporary accounting artifact that masks underlying competitive pressures.
Based on the most recent quarterly data, eToro achieved an operating margin of 37.0% in 2026Q1, demonstrating a notable improvement in overhead management as the company successfully decoupled its operating income growth from the aggressive marketing expenditures that characterized previous periods of high operational burn.
The transition to a 37% operating margin suggests that the platform is beginning to benefit from the scalability of its social trading infrastructure. By reducing reliance on heavy SG&A spending, the firm appears to be prioritizing bottom-line profitability, though the sustainability of this leverage depends on maintaining user engagement without the prior levels of customer acquisition investment.
According to recent financial disclosures, the company's net income reached $82.4 million in 2026Q1, reflecting a net margin of 30.7%, which warrants careful scrutiny given the historical volatility in revenue reporting and the potential for non-recurring items to distort the perceived quality of these earnings.
The absence of stock-based compensation in the most recent quarter, compared to the $4.3 million reported in 2025Q3, suggests a potential change in compensation structure or reporting methodology that could artificially inflate net income figures. Analysts should investigate whether these earnings are driven by core transactional activity or if they are bolstered by interest income on the company's substantial cash reserves.
While the 2026Q1 results show a strong net margin of 30.7%, the historical pattern of massive revenue swings and erratic margin performance suggests that the current profitability profile may be fragile and highly susceptible to shifts in retail trading sentiment or regulatory changes in key markets.
Short-term improvements in operating margins may be masking a underlying decline in user acquisition velocity or a structural shift in the platform's competitive moat. Investors should remain cautious, as the company's reliance on spread-based revenue makes it uniquely vulnerable to periods of low market volatility, which could quickly reverse the recent gains in net income.
Quick answers to the most common questions about buying ETOR stock.
eToro Group Ltd. (ETOR) is profitable, generating $215.7M in net income for the fiscal year ending 2025 with a net profit margin of 23.8%.
eToro Group Ltd. (ETOR) reported an operating income of $253.4M, resulting in an operating profit margin of 28.0%. This margin reflects the operational efficiency of the business before interest and taxes.
eToro Group Ltd. (ETOR) generated $842.4M in gross profit for the year, representing a gross profit margin of 93.0%. This demonstrates the company's core pricing power and production efficiency.