eToro Group Ltd. (ETOR) shares plummeted 5.51% in pre-market trading on Tuesday, reversing earlier gains following the company's first quarter 2026 earnings release.
The trading and investing platform reported adjusted earnings of $0.91 per diluted share, beating analyst expectations of $0.71 and showing improvement from $0.77 a year earlier. However, total revenue for the quarter declined to $2.44 billion from $3.76 billion in the same period last year, representing a 35% year-over-year decrease.
While the company showed strong growth in net income (up 37% year-over-year) and adjusted EBITDA (up 35%), market participants appeared focused on the significant revenue decline and mixed business metrics. The company's crypto activity showed particular weakness, with crypto trades down 32% year-over-year and invested amount per crypto trade declining 22%. This reversal from initial pre-market gains suggests investor concerns about the sustainability of growth amid declining revenue.
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