eToro Aktie

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 April monthly spreadsheet is now available on our website at investors.etoro.com.

Today, I'm 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 upvoted question previously submitted by eToro's retail shareholders.

But 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. And you can find more information about these risks and uncertainties in the press release that we issued today and in the Risk Factors section of 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 First Quarter 2026 Earnings Call. After Meron and I conclude our prepared remarks, we will open the call for questions.

This was a very strong quarter and a very strong start to 2026. Net contribution and adjusted EBITDA were both record as a public company. Net contribution increased by 19% year-over-year to $258 million, while adjusted EBITDA grew 35% to $109 million. This marks our fourth consecutive strong quarter since becoming a public listing.

Just as importantly, the quarter demonstrates the durability of our model and a confirmation of our strategy as trading continued to shift from crypto to commodities and our diversified offering kept users engaged. This highlights our ability to sell across market environments and is a core structure advantage.

We also saw meaningful acceleration across our key performance indicators. Funded accounts grew 12% year-over-year to over 4 million, representing our fastest organic growth in over a year, driven by increased strategic marketing investment and improved retention efforts. Momentum carried into April with funded accounts growing 13% year-over-year. Assets under administration reached $17 billion, up 15% year-over-year, driven by strong customer inflows.

We are a highly diversified global financial services company. We're building a global platform for investing built around the idea that everyone should have access to the world's financial markets in a simple and transparent way. Today, users can invest across almost every major asset classes from stocks, indices, commodities, currencies, crypto assets, tokenized assets and emerging market opportunities like prediction markets.

Innovation remains at the core of our strategy. We continue to expand our platform with new products and technologies, including AI-powered investing experiences, 24/7 trading capabilities and on-chain financial infrastructure while continue to strengthen our traditional investment offering. We believe these initiatives position us well to capture the long-term evolution of global investing and wealth creation.

Six months ago, we made AI a company-wide mandate across every function in eToro. We didn't just adopt tools. We rethought how we operate. Today, every function inside eToro, research, engineering, product development and marketing is supported by AI agents that operate against our infrastructure, continuously upgrade themselves as frontier models improve. The impact is significant.

We're already seeing significant productivity gains in engineering with more to come and similar acceleration is extending across the rest of the organization. Work that historically took quarters now ships in a fraction of the time. Capabilities that used to require deep technical expertise are become accessible across the business. We believe 2026 is the year of agents, and eToro is among the early adopters of this shift in our industry. This is an engine behind a significantly faster product road map.

As we deliver against our mission, we have remained focused on execute on our four strategic pillars, trading, investing, wealth management and neo banking. Allow me to share a few highlights across each of these areas.

In trading, we saw incredibly strong growth in commodities, which represented 60% of trading commission in the first quarter, with volumes increasing nearly fourfold year-over-year. This reflects both market conditions as well as the strength of our multi-asset model, which continues to drive cross-asset engagement.

Over the past six months, users who initially traded crypto or equities accounted for most of the commodities trading volume. That is the multi-asset model in action, and it is how we deepen user engagement over time. The strength and resilience of eToro's business model are anchored in our proven ability to sell across a diversified multi-asset platform, a pattern we've successfully executed through both crypto rallies and periods of elevated activity in traditional capital markets.

Our 24/5 trading offering launched last year and is being widely used and it underscores the global nature of our user base. This year, we took the next step. We rolled out 24/7 trading across multiple asset classes, eToro users can now trade select commodities, single stocks and indices around the clock with more to come. We see this as an evolution in capital markets. Traditional markets are starting to look like crypto markets and users want to trade on their own schedule.

We also continue to expand our offering. With the addition this quarter of Japanese equities, eToro users can now trade equities from 26 of the world's leading stock exchanges. In the U.S., we expanded our crypto offering with the launch of crypto trading for users in New York, the epicenter of the country's financial markets following the successful activation of our BitLicense and Money Transmitter License.

Turning to investing. Copy trading remains a core differentiator for eToro as we're the only company offering automated agentic trading. This quarter, Copy trading reached an all-time high, driven by rising demand to copy and Pro Investors were actively reacting to volatile market events. Copy trading is widely used by our users, reinforcing its role as a cornerstone of our social investing model.

As an AI-first company, AI-powered investing sits at the core center of our innovation strategy. We're entering a new era of investing where AI is reshaping how individuals access markets, make decisions and build wealth. At eToro, we see AI as a force that levels the playing field, giving every investor access to capabilities once reserved only for institutions.

Our vision is to equip each user with their own team of AI agents, tools that analyze the markets, generate insights and share personalized analysis while enabling them to build, share and scale strategies within a global collaborative investing ecosystem.

We're extending the same agent architecture we have built internally directly to our users by putting institutional-grade capabilities into the hands of every retail investor on eToro, designed to similarly integrate with the community they already trust to learn from and engage with.

Ultimately, AI is accelerating a long-term trend of making investing more accessible, more social and more personalized. The Internet democratized information, blockchain democratized value, AI is now democratizing financial expertise. And as finance and technology continue to converge, it is becoming the primary interface between users and the markets. AI will help millions of people participate in the markets with greater confidence, better tools and a stronger connection to both data and community.

The introduction of Agent Portfolios is also a meaningful step on that journey. Agent Portfolios let users allocate capital to AI-driven strategies inside a dedicated environment in the eToro account. Through Tori, our AI investing agent and conversational interface, users define the parameters and the AI agents run the portfolio. They get exposure to intelligent portfolio management in a controlled and transparent way while keeping full control over their broader investments.

As part of our AI efforts, we also recently expanded our partnership with SpaceX AI by embedding real-time X intelligence and market sentiment powered by the frontier Grok 4.2 model directly into the investment workflows of Tori. As more activity shifts toward automated AI-driven strategies, we expect increased engagement, trading activity and volume across the platform.

Building on this, we have launched the eToro App Store, a marketplace for trading and analytics applications directly within the eToro ecosystem. We have also introduced a builders portal, providing partners with access to APIs, tools and development resources. Some of the apps developed include AI trading -- an AI trading cockpit, a trading hub, a Bloomberg-style terminal for traders. Price point turns web page into trading signals, and POTUS turns politicians and influencer comments into trading signals.

Together with Agent Portfolios, the eToro App Store and our builders portal create a foundation for a new builders economy, enabling the creation and distribution of applications to millions of users, including no-code AI-powered tools. Developers, quantitative strategists and everyday users can now access, create, share and scale financial applications across our global platform.

Over time, we expect a broad set of applications to be built on top of eToro, further expanding the capabilities of our ecosystem and fostering a more engaged loyal user base.

In wealth management, the continued adoption of our Club subscription gave us the runway to introduce an upgraded plan, giving users access to first-class benefits of our premium tier for a monthly or annual recurring fee. More users can now get enhanced rewards, professional tools and premium experiences, which we believe drives deeper engagement and higher user satisfaction.

Our Cash ISA offering in the U.K. also had a record quarter. ISA AUA grew 15x compared to the same period last year with the underlying market opportunity exceeding $1 trillion. We're now using that playbook to push deeper into localized savings products across other key markets.

In neobanking, eToro Money delivered a record quarter. We continue to invest in localization and in regional expansion, enhancing the user experience and supporting long-term growth. We've seen strong adoption to the eToro Money card available today in Europe and the U.K., and we'll continue to expand the benefits associated with that card. In the first quarter, the number of cards issued more than doubled quarter-over-quarter.

Finally, last month, we announced the acquisition of Zengo, a leading self-custodial crypto wallet provider, marking an important step in advancing our long-term crypto strategy. At eToro, we have long believed that blockchain technology and digital assets will play a central role in the future of finance.

Crypto is revolutionary because it reduces friction in financial services, gives individuals and companies true ownership of their assets and expands access to a more inclusive global economy. As one of the first crypto companies to offer crypto back in 2013, we've been pioneers in the blockchain technology. Having experienced many crypto cycles, we believe that crypto downtimes are the time to build, and this acquisition reflects that long-term commitment and approach.

Zengo combines naturally with eToro. Our global multi-asset platform and distribution together with their secure self-custodial wallet technology gives users direct control over their digital assets while staying seamlessly connected to on-chain infrastructure. This transaction enhances our digital asset capabilities and accelerates our strategy to bridge traditional investing with decentralized finance, unlocking new opportunities across tokenized assets, prediction markets and perpetual futures.

Globally, we now offer over 200 crypto assets on eToro and access now to thousands of more on Zengo, including tokenized stocks. Importantly, our crypto efforts are not dependent on short-term market conditions. We are seeking to position eToro to lead the transition to an on-chain financial world.

To wrap up, we've delivered strong financial results, grown funded accounts ahead of the market and continue to drive product and innovation, particularly in AI. At the same time, we continue to thoughtfully pursue strategic initiatives, including expansion through acquisitions and our share repurchase program. Our focus remains firmly on creating long-term value, and we believe our strong start to the year reflects our unwavering commitment to that objective.

With that, I'll hand it over to Meron.

Thank you, Yoni.

As Yoni mentioned, we are very pleased with our first quarter results, which demonstrate our continued momentum as well as the durability of our diversified business model. First quarter net contribution grew 19% year-over-year to $258 million, and adjusted EBITDA grew 35% year-over-year to $109 million. In line with our focus on diversified profitable revenue growth, our adjusted EBITDA margin was 42% compared to 37% a year ago.

These very strong margin results were due to a higher net contribution in the quarter. Our KPIs reflect strong momentum in the first quarter with AUA increasing 15% year-over-year to $17 billion and funded accounts growing 12% year-over-year to $4.02 million. These positive trends continued into April, which I will discuss in more detail shortly. Growth was driven by strong user acquisition and retention, supported by continued investment in marketing initiatives.

Now let's take a closer look at our first quarter financials by business lines compared to a year ago. Our net revenue contribution from capital markets grew 71% year-over-year to a record $166 million, supported by increased engagement of our customers and crypto traders shifting to trading capital markets, with commodities being particularly strong.

As Yoni mentioned, in Q1, commodities accounted for 60% of our trading commissions. The 90% rise in the number of trades during the quarter was primarily driven by strong market activity in commodities and record inflows into copy trading as Pro Investors reacted to evolving market conditions in the first quarter. This performance reflects growing user engagement and the strength of our multi-asset business model.

Additionally, the growth of our business is reflected in the steady increase in total invested amount over time. This growth has been driven by the expansion of our capital markets business and the continued shift of crypto customers towards broader investment products amid crypto market cyclicality.

Net trading contribution from crypto was $13 million with a year-over-year decline driven primarily by lower trading activity and customers shifting to trade commodities. As we have seen in prior crypto cycles, these periods of volatility are expected, and our diversified business model has demonstrated resilience across market cycles. Our crypto net contribution includes a $5 million negative valuation impact of our corporate crypto holdings, resulting in a balance of $14 million at the end of the quarter.

Net interest income contributed $48 million, down 5% year-over-year, largely driven by a lower interest rate environment and user deleveraging amid market volatility. The decline was partially offset by a 13% increase in higher interest-earning assets as a result of an increase in user cash deposits, staking, and corporate cash.

eToro Money's contribution grew 32% year-over-year to a record $29 million, driven by a 70% year-over-year increase in total money transfers as we continue to experience increased deposits and user activity. In the first quarter, adjusted OpEx was $150 million, up 7% quarter-on-quarter, driven by a $12 million increase in customer acquisition costs.

Our adjusted selling and marketing expenses for the quarter was $58 million or 22% of net contribution. As discussed last quarter, given the strength of our cohort returns and our objective to accelerate growth in 2026, we plan to increase our sales and marketing investment from 21% last year, scaling gradually to 25% of net contribution this year.

Adjusted R&D, G&A, and operating expenses for the quarter were $38 million and $54 million, respectively. Our adjusted diluted EPS for the quarter was $0.91 compared to $0.77 in the first quarter of 2025.

Moving to our balance sheet. We ended the quarter with $1.3 billion in cash, cash equivalents, and short-term investments, and generated $104 million of cash from operating activities during the quarter. In the first quarter, we repurchased approximately 3.3 million shares with an aggregate of $103 million in accordance with our previously announced share repurchase program.

Now, let me share a few comments on the second quarter trends. As part of our quarterly results today, we also released our April monthly KPIs. April has continued on a positive trajectory with the business momentum carrying through from Q1. Our capital markets business followed the same year-over-year pattern as Q1, with significant growth in total trades led by equities and commodities, with a higher-than-average revenue per trade.

We have seen the multi-asset strength yet again when 40% of the customers who traded commodities in Q1 also traded stocks or crypto in April. In April, KPIs accelerated. AUA reached $18.7 billion, up 90% year-over-year, and funded accounts grew to $4.07 million, up 13% year-over-year. These KPIs reflect the strength of our multi-asset platform and a confirmation of our strategy, even against the backdrop of the current crypto market cycle.

To summarize, we are very pleased with our strong first-quarter performance and positive momentum year-to-date. We believe we are well-positioned to capture new opportunities, drive sustainable growth, and further strengthen eToro's leadership at the forefront of trading and investing while delivering meaningful value to shareholders.

With that, Daniel, let's move to Q&A.

Thank you, Meron. The first question comes from our list of questions that have been pre-submitted by our retail investors. This question is for Yoni.

Following Zengo's acquisition, can you elaborate on eToro's crypto strategy?

We've always been very big believers in crypto and blockchain and in Bitcoin, starting with launching Bitcoin back in 2013, while actually starting the company as a TradFi company. So, we were always a regulated financial institution, starting from our regulated activities and then adding to our brokerage activities, crypto over time, where we support now more than 200 crypto assets.

Over the last five years, roughly, we've seen an inflection in DeFi technologies and customers, mostly Gen-Zer's, so even younger audiences that are crypto native and are basically managing their entire financials on chain. Zengo accelerates our path to have a crypto native offering where our customers can hold their own crypto on-chain, transact with thousands of coins and hundreds of different blockchains, introducing products like on-chain swaps, yield, prediction markets, and perpetuals over time, and any other new innovation coming into the DeFi world. So Zengo accelerates our path into DeFi and on-chain capital.

Thank you, Yoni. So, we'll now open it up to questions from our institutional analysts. Operator, go ahead.

[Operator Instructions] Our first question comes from the line of Dan Fannon of Jefferies.

So, I wanted to just follow-up on the kind of current environment. So, the April update seeing still very good activity and the mix skewed more towards commodities. So can you maybe talk about the capture rates that you're seeing as well as we start 2Q, but also just the sustainability of the move to commodities versus crypto and whether you think or any stats that you could share around number of products being traded or thinking about the structural change towards commodities that might be more sustainable versus temporary?

Sure. So, as we've always said, there's always something interesting happening in the markets. During both Q4 and Q1, that's something interesting was really around first precious metals, then oil then going back to precious metals.

And the strength of the eToro platform has always been the ability to offer our customers a multi-asset offering where with a click of a button, they can shift between crypto commodities to stocks. Right now, we're seeing more volatility, all-time high in stocks, still heightened volatility in commodities.

So, as we look at the different markets, usually crypto is very directional. When crypto and we're starting to see that shift back up when crypto is going higher, especially when it reaches all-time high, we'll see record activities in crypto, and we've seen that historically in the last four waves of crypto.

Stocks, we actually see more heightened activity when the markets drop. So, when there is significant volatility, we see actually customers buying the deep consistently. We've seen it through tariffs. We've seen it through Q4. So, every time there is significant volatility downturn, we see increased customer activity and then they basically accumulate as markets go up and reach all-time high.

In commodities, it's really about volatility. The heightened volatility across different types of assets. By the way, we're seeing interesting things in food commodities now like corn and cacao. So, the heightened volatility impacts almost directly the same day, the increased activity of customers.

So, in relation to what should we expect in the rest of the quarter, it's really up to the markets. What we are seeing right now is again, increased volatility still in the commodities market and starting to see the rise of crypto, which we expect to see higher by the end of the year.

In relation to some of the numbers and KPIs that we shared on April, maybe Meron can add some more.

Sure. We also added some color about the fact that we expect our revenue per trade to be just slightly above the range, which is the $0.60 to $0.75 that we normally communicate to the market. So that continued the trend also from previous quarter.

In terms of the rest of the KPIs, we do see the strength. So, we do see the effectiveness of our business model where customers are trading and navigating from one asset to another. So, customers who traded commodities in Q1, we saw a lot of them already switching back to equities or to crypto as well.

That's helpful. And just as a follow-up, as you think about the account growth that's picked up a bit, any shift in geography or areas of contribution that maybe is a bit more outsized more recently than previous periods?

So, we haven't seen any significant growth in a specific region. We are spread all over the world, as you guys are aware, and our efforts are globally. But into the future, we do have some markets that we expect to grow faster, being Singapore, being U.S. and some other markets where we are trying to integrate as well.

Our next question comes from the line of Devin Ryan of Citizens Bank.

First one, just on the agentic portfolios and kind of the opportunity there. Obviously, investors are going to have more tools and access. Do you have any early evidence about how customers can perform the customer outcomes being better using these agentic tools. Obviously, that's going to be important to adoption.

And then just also the kind of the multiplier that you expect on transaction activity, clearly, would expect to be many times more than kind of the average trader. So, kind of what do you expect on the transactions per account using those as well?

Sure. So, I've been -- I'd call it amateur quant trader since I was about 16. So, I love algo trading. But historically, anything that revolves around building software to automatically trade the market has been a very complex process that required a lot of resources.

When you think of the capabilities today of AI that are in the hands of hundreds of millions of people, AI really levels the playing field for people to actually trade algorithmically. What we're seeing right now is we have about published 45 apps to the App Store, and we see that the majority of them include actually agentic trading capabilities.

And with that, we're seeing a significant increase in the velocity of the trading behavior velocity of our customers as they're starting to use more and more of these tools to manage some or their entire portfolio. I believe that over time, we're going to see retail investors as a whole use more agentic tools to optimize their portfolios over time. And I'm a very big believer that, that significantly improves their Alpha.

Retail customers actually were very good at finding beta and investing in the markets over time and beta of retail actually was quite good, whether it's crypto or tech stocks over the past five years. I think agentic tools enable retail investors to actually also participate and find Alpha in a much more meaningful way.

Okay. And then just a follow-up here just on the balance sheet. Obviously, continue to be in an incredibly strong position with over 1/3 of the market cap in cash and investments today. You just did the Zengo deal. Can you talk about just the optionality that you have right now and kind of how you're thinking about deploying cash toward more buybacks versus what does the acquisition pipeline look like? And are there actionable things to do there that are accretive, but it just seems like you have a lot of optionality to drive accretion with that excess cash?

So, first of all, we announced two acquisitions over just the last two weeks. We also announced B2C acquisition, which is one of the two regulated exchanges of crypto in Israel. We have a very, very strong M&A pipeline. So, we've been in the business soon 20 years. We know hundreds of companies in this space. And we actually do believe that the fact that currently crypto is in a downturn provides us the opportunity to find significant and accretive M&A opportunities in 2026. So, we have a very good pipeline. That's why we keep the optionality. And in parallel, as we said in the past, we believe in buybacks as a company, and we'll continue to explore that in relation, of course, to the company's cash flow.

Our next question comes from the line of Joseph Vafi of Canaccord Genuity.

Great results here. Congratulations. Just wanted to drill down a little more on the pivot and trading volume from crypto over commodities and equities. Just the mechanics there. To a certain degree, if a user signs up to trade crypto, they may not be a commodity trader. They may not know much about commodities. Are they following CopyTraders? Is there incentives or education you're providing? How are these investors finding this other asset class in such a big way? And then I have a quick follow-up.

So, we're very focused on market education and retail investor education. We have the eToro Academy, which continuously adds more and more information. Now we added also the layer of shared intelligence and of Tori, the AI agent that actually can cover what's happening in the markets and tell you about what's happening in the markets, where are things that are interesting and actually sees your portfolio and tell you in relation to other people's portfolios where are the opportunities.

So, we are very focused on making sure our customers understand both the risk management and understand all of the options in eToro's ecosystem. We look internally at products sold per customer. And as we've seen in the IPO deck, which we're celebrating now one year too, the more products that our customers use, we see a significant increase both to the lifetime value of eToro, but more important to actually the net deposits over time and the size of the accounts of our customers. So, as our customers educate themselves more about the markets, we see them significantly adding more and more funds into the accounts.

Just as an example, our long/short momentum Smart Portfolio accumulated a lot of assets during the last nine months, and it actually brought people to educate themselves about long/short strategies. About 60% of customers that traded commodities in Q1 originally came to eToro to trade crypto or to trade equities. So, we've always seen that, I'd say, unification between people who came to trade crypto on eToro and learned about the stock markets, people who came to eToro to trade stocks and learn about crypto.

I'd say the last six months where we had a lot of commodities trading in the news enabled a lot of our customers to dive into and learn more about commodities markets as well. And in addition, we've launched, which is a very unique product, 24/7 trading on commodities and now selected stocks as well.

What does that mean for the business moving forward strategically and the U.S. business? Was that a key thing to acquire before a bigger push, maybe broader product set, et cetera? Just updated thoughts there.

So what we're seeing internally as a much more accelerated product delivery utilizing AI in the company. And just as an example, we have today both product managers launching directly to the app store without engineering as well as internally operations teams that are building internal tools and launching them to an internal app store. That accelerated product roadmap enables us to bring more products to more regions faster.

And in the U.S., of course, futures or commodities is CFTC/NFA regulated. We are looking at enabling our customers to trade commodities in the U.S. in the next six to nine months as well. So definitely, our capabilities of delivering faster on product globally in all of the regions where we operate will enable us to bring more products to our customers across the globe, which we believe will increase significantly lifetime value and the deposits of customers as well.

Our next question comes from the line of Edward Engel of Compass Point.

I want to dig a little bit more into the agentic portfolios. Have these been rolled out across most of your key markets today? And I guess for the users that you are seeing implementing new strategies, is there any color you can give on the impact to trading volumes for these users?

Sure. So first of all, it's relatively early days. I think it's been about three weeks since we launched it. We've seen north of 500,000 trades so far. So early days of agentic portfolios, small amount of customers with a lot of trades.

So, if you look at the ratio of number of trades per customer per agentic portfolio, we see a significant increase. Customers are actually using their agents, whether it's a Tori internal agent or external agents anywhere from OpenClaw. We just were on the app store of Cursor as well, which is rumored to be acquired by SpaceX AI, which is a partner of ours on Tori with Grok 4.2. I believe that over time, we'll see significant adoption of customers to Agent Portfolios. These are still early days and that will significantly increase trading velocity of customers.

Great. And then I recall the take rate on copy trading is often lower than stand-alone trading. I was wondering for the take rate on agentic trading, is it similar to copy trading? Or is it similar to typical trading?

It's more similar to copy trading. So, we see higher velocity in smaller size right now. So, a big part of the Agent Portfolio rollout was our understanding that customers don't want to connect AI or their AI agent, whether it's internal or third party, to their entire portfolio because people still need to trust AI and their strategies, which is why when you create an Agent Portfolio, if you have a $50,000 account in eToro, you basically tell the agent, take $5,000.

So, it actually operates on the same model of Copy trading and Smart Portfolio, which is why it enables us to run faster. So, it actually creates a personalized Smart Portfolio for you and then you connect your agent to define the strategy of that Agent Portfolio.

So, once we launched that Agent Portfolio, it actually increased significantly the usage of the eToro APIs that we launched about six months ago because, again, retail investors with AI suddenly have capabilities to run algorithms very easily, but they were still afraid or concerned to connect that to their entire account.

So, we use the same technology of Smart Portfolios and CopyTrader to enable Agent Portfolio through APIs. And that means it's a part of their portfolio, which is why also trades are smaller than managed by AI, which is why velocity is higher.

Our next question comes from the line of James Yaro of Goldman Sachs.

Divyam here on behalf of James. My first question is that you touched upon the rationale for the Zengo acquisition. I wanted to ask if having self-custodial wallet capabilities allow you to facilitate CopyTrader in the U.S.

Well, CopyTrader in the U.S. is actually under our regulated broker-dealer in the U.S. and MSB. So it operates for copy trading on the CeFi part or the TradFi part. On DeFi, we haven't yet went into the details of copy trading.

We are looking at agentic trading into the DeFi part of eToro and soon are going to launch something very similar to Agent Portfolio, which is called Agent Wallet, where we can actually create now a DeFi wallet and use AI to algorithmically trade DeFi markets as well.

So, we are looking at parts of automated trading into DeFi markets. Copy trading and how it is being done and who do you copy in the DeFi wallet of Zengo is something we started exploring, but don't have a direct road map.

That's helpful. As a quick follow-up, could you update us on the status of CopyTrader in the U.S.? Where are you in the rollout and the regulatory considerations at this point?

Sure. So, we are in process of getting the RIA license to enable the Smart Portfolios in the U.S. CopyTrader is in limited rollout right now is in process with discussions with the regulators. So, we do expect both to be in complete rollout in H2.

Our next question comes from the line of Jamie Friedman of Susquehanna.

Yoni, could you share your early impressions regarding 24/5 and 24/7 training? How much can you see this adding to your volume?

So, 24/5 added significant amount of volume, about 30% of volume in stock shifted to aftermarket hours. I'm not sure whether we have how much was it additive versus substitute volumes. Do we have that number?

No. We haven't shared that number.

We haven't shared that number. So, we did add to volumes. I'm not sure how much of the 30% again is additive versus substitute. 24/7 still relatively early days. I do believe that over time, again, we saw this in crypto. So, I remember these dialogues in 2017 because we came from TradFi to crypto, we had these dialogues around "Do we open over the weekend trading?" That's how we call it back then.

In crypto, and obviously, that required for us to set up the trading room, the NOC, the network monitoring room as well as everything had to shift to 24/7 for crypto back then. And we've seen roughly 10% to 20% of additional volume to crypto. And in crypto rallies, in some cases, we saw Saturday and Sunday trading activity, which actually surpassed the activity in regular days, right? So again, it all comes down to volatility and the volatility of those assets over the weekend.

Right now, it's early days for 24/7. The market formation and price formation is actually coming from, in some cases, the crypto markets, which operate always 24/7. I do believe overtime, again, that adds both customers, customers' expectations coming from crypto. We saw a lot of people who don't understand why aren't markets opened during the weekend. And I expect that to be at least 10% to 20% of volumes over time.

And then what's your high-level perspective on marketing? Is this summer or winter or spring? Is that 1% sequential that we had talked about last quarter still a good way to think about it?

So, you referred to the margin in terms of the net contribution. So, as we discussed last quarter as well, we are planning to grow marketing out of net contribution to 25% by the end of the year. We do expect to do it gradually.

However, we are also looking at the market opportunities and taking advantages of different events that are coming. So, when markets are high, then we have like the summer also in terms of customer acquisition. We do have the ability to scale up very quickly and scale down as well. So, we do expect that to gradually grow. Again, as Yoni mentioned, also depending on the events in the market.

And again, when we operate globally across the globe, 24/7 across all markets, 26 now stock exchanges, commodities, currencies, crypto, there's always summer somewhere. So, it might be winter-ish in crypto, but it's some are in commodities and it's some are in AI stocks.

We saw increased volatility and activity now in a lot of the AI-driven stocks from the obvious ones like NVIDIA to the hopefully expectation of SpaceX AI coming post IPO into the platform to the 4,000% suddenly increase in SanDisk and other AI-related stocks.

So, as a reminder, we always look at the daily activity of our customers to see what is happening, what is interesting for retail investors. And then we take those insights and actually promote them on social media, on digital channels. So, we have the insight of millions of customers trading millions of trades every day. We take those insights and actually translate them with AI directly to all of the ad platforms and social media channels of eToro accelerating basically that impact and market education about where is summer right now.

Our next question comes from the line of Brian Bedell of Deutsche Bank.

Maybe if you could just talk a little bit more about Zengo in terms of your expectations on maybe it's early, but any expectations on revenue contribution and probably more importantly, just that 2 million user base that you're acquiring, your views on converting those users to funded accounts? And any color on expectations of trading growth from that business?

Sure. I think it's still early days. We just closed the deal. And again, the hypothesis there is that customers, which we've seen in eToro, that crypto-native customers want to trade also stocks and that our customers will want to trade also assets on Zengo. We are seeing convergence because you can actually trade now tokenized stocks in Zengo. And you can obviously trade crypto, the 200 coins today on eToro, but now suddenly thousands on Zengo. So, there's a process here of both integrating the platforms.

I would say that over time, what it increases is our market share in crypto. So, we're now building the entire suite of products to compete on crypto on the entire product categories across the globe. And that will, over time, increase our crypto market share in all of the different markets where we operate.

So, I see this as an opportunity to actually scale up product category coverage across DeFi and TradFi, which enables our customers to basically stay in eToro, trade all of the crypto that they want on eToro and all of the products that they want, whether it's DeFi or TradFi within the eToro ecosystem.

Great. That's great color. And maybe just any update on prediction markets in terms of your development of connectivity to prediction markets and how you're seeing the customer demand for that at eToro.

So again, early days for us. With the Zengo acquisition, we do plan to launch prediction markets in Zengo over time in the applicable markets. And we are also working on building prediction markets for our U.S. customers with the NFA-regulated introducing broker. So, we're looking at a lot of the new products. We're now looking at both TradFi and DeFi for the right applicable markets with the right licenses.

Our next question comes from the line of John Todaro of Needham.

Congrats on the results here. I guess just first on -- there's a number of big IPOs coming up. We've seen a push from these companies to get more retail allocation. Just wondering on the overall strategy there and how you guys see that opportunity set playing out over a longer time.

Sure. So, first of all, we're actually looking now at potentially launching prices on secondary markets to our customers around these IPOs. We've been talking to other companies who we work with as well to see how can we get potential IPO location. There has been also an interesting shift potentially in regulation in Europe and the U.K., specifically around enabling U.S. IPOs to launch overseas, which is an interesting development.

So, we do -- we know from the past when there's hot IPO season, we launch it on the same day of trading, and that's quite popular. And we are looking at enabling actually participation in the IPOs. And again, some of them are expected to be very significant IPOs that we are seeing our customers already gaining interest, whether it's the SpaceX AI, Anthropic and potentially OpenAI IPOs.

That's great to hear, Yoni. And then I guess just turning to crypto. You talked about there just needs to be some of that directionality movement in order to get customers more engaged. Is there just kind of other catalysts you see driving that to, whether that's Clarity Act here in the U.S., this adoption of tokenized real-world assets, anything there that you can point to that maybe drives some of that momentum?

Sure. I think, first of all, markets have their cycles in crypto. We do believe that we're going to see, again, I'm personally very bullish on crypto markets in the future, especially when we're seeing capital markets moving on chain, I'd say, systematically, right?

So, when you think of the dialogues that DTCC is having now and when you hear the SEC chair, CFTC chair pushing basically the market infrastructure players to move on chain, that's a very significant catalyst into crypto markets. So, the same way that stablecoins accelerate the adoption of crypto across the globe. I think tokenized assets, whether it's stocks, treasuries, money market funds, private equity, private credit, all of that moving on chain will continue to accelerate crypto as a whole.

Basically, crypto and digital assets are going to converge. Again, our view is this is a transition of $100 trillion over the next 10 to 15 years, moving on chain and potentially happening much, much faster if DTCC converges what is now early days into a full rollout. So, I think those are very, very strong momentum within the crypto industry.

Clarity Act is another one. I think it's, by the way, beautifully marketed as exactly what it is. Clarity Act. It provides clarity on the regulation of crypto markets and digital asset markets.

Right now, when you look at DeFi and TradFi, you're seeing those sort of parallel worlds. And in many cases, in many jurisdictions, you don't necessarily have that bridge between DeFi and TradFi. You don't have clarity on the various regulations in DeFi. I think once there are better rules, regulations, clarity coming from regulators not only in the U.S. but globally, that will increase adoption of crypto, crypto markets and prices will follow that.

[Operator Instructions] Next question comes from the line of Dan Dolev of Mizuho.

Great results as expected. I wanted to ask you, Yoni and Meron, like the user growth has been phenomenal and continued into April. Can you maybe talk about your new strategic user acquisition strategy? And to the extent that you feel comfortable talking about it. Again, congrats.

So, we've been utilizing more and more actually AI in marketing activities leading to more, I'd say, micro segments, both on retention and on acquisition. So, what in the past would have taken us four, five weeks to create a specific campaign to, let's say, a target audience in Germany is now shortening to a point of like we're able to create a landing page marketing assets multiple times a day and also distributed across the company.

So, in the past, our region like Germany or Australia, if they needed a campaign, they needed to sort of open a ticket, go to marketing, marketing had to build the campaign, they had to then go to engineering to set up the website and lending pages then for someone to hook up everything for tracking today. It's a click of a button basically for people in the different places, and that's accelerating. So, we moved, I'd say, from five campaigns a month to potentially now 20 to 50, and we expect that to potentially accelerate to 100 a day, and that's both for retention and for acquisition.

So, we can now using AI, find these micro segments within the eToro ecosystem, which is who are the people. So, things that in the past, companies like Meta, Facebook did, which is called custom audiences, right? So, you're looking for people who are similar to the people who already bought a specific product ,now we're able to do that internally and searching for the audiences that we believe the right marketing message is relevant to, plus the ability to create those campaigns with AI is truly magnificent.

We're even testing right now with our Pro Investors who are with me in various groups. We're actually testing the ability of our Pro Investors using our AI and our brand to create their own landing pages. So, with a click of a button, they create a landing page and that landing page is then connected to our AI that can manage Facebook, Taboola, X, LinkedIn.

So, what we're building for our internal teams in eToro be able to run faster, better micro segments on both acquisition and retention and much faster campaign creation and management is something that we're actually looking to give the 5,000 people that are in the Pro Investor Program. And I do believe that will continue acceleration of funded accounts over time.

I would now like to turn the conference back to Daniel Amir for closing remarks. Sir?

Thank you. Thank you all for attending our earnings call today. We're looking forward to seeing you at our upcoming investor conferences during the quarter, and thanks, and have a great day.

This concludes today's conference call. Thank you for participating. You may now disconnect.

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 January monthly spreadsheet, is now available on our website at investors.etoro.com.

Today, I'm joined by Joni Assia, our CEO; and by Meron Shani, our CFO. [Operator Instructions] But 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. And you can find more information about these risks and uncertainties in the press release that we issued today and the Risk Factors section of 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 Joni.

Thank you, Daniel, and thank you, everyone, joining us here today. Welcome to our fourth quarter 2025 earnings call. After Meron and I finish our prepared remarks, we'll open the call for questions.

2025 was a defining year for eToro. We became a publicly traded company on NASDAQ. We accelerated innovation and AI adoption across our platform, broadened and localized our product offering and expanded our presence in key markets such as the U.S., while continuing to strengthen our global footprint. More importantly, we made amazing progress towards the financial super app we're building, all while delivering growth across our primary KPIs. We're operating at a pivotal moment for financial services. AI is advancing at an unprecedented pace, reshaping how people access information, make decisions and interact with markets. At the same time, financial services are continuing to move on chain, enabling a more continuous, transparent and borderless global market infrastructure. Along these technological shifts, we're seeing a structural increase in retail participation in markets across the globe and the largest generational transfer of wealth in history. Together, these forces are driving demand for a seamless digital first investing experience that is more personalized, more intuitive and available at all times. At eToro, we're at the forefront of this evolving financial landscape, using technology and community to power our users to become better, more confident and more engaged investors. Our focus is on expanding access to global markets, moving towards 24/7 trading, bringing financial assets on chain. Broadening our crypto and decentralized finance offering, while continuing to provide the full suite of investing in savings products in traditional markets, enabling partners to build and trade through our eToro APIs and interact with the eToro apps, leveraging AI to help users make smarter investment decisions. All of this is delivered through a simple and transparent investing experience in line with our mission to democratize investing and give anyone anywhere the tools they need to grow their knowledge and wealth. While we're proud of the progress we've made, we see a significant opportunity ahead. We are confident in our ability to capture this opportunity for the benefit of our shareholders, users and partners.

Turning to our results. We delivered a strong fourth quarter that reflects continued momentum and the strength of eToro's diversified offering. For the year, net contribution increased 10% to $868 million and rose 6% sequentially in the fourth quarter to $227 million. Adjusted EBITDA grew 4% year-over-year to $370 million and 11% quarter-over-quarter to $87 million, delivering a 38% adjusted EBITDA margin in the quarter. We achieved these results despite the current crypto market environment, underscoring the strength of our multi-asset model and the benefits of our global diversification across geographies and asset classes. We first offered crypto trading on eToro in 2013, and since then, we've been through several crypto market cycles. We've seen people right off crypto, we've kept building. Over time, we have built a truly global multi-asset platform, spanning crypto, equities, commodities and currencies. That breadth allows us to adapt as market activity shifts and to perform in any market condition.

In 2025, we continue to execute across our four product pillars: Trading, investing, wealth management and neobanking. In trading, our focus remains on expanding product reach, flexibility and global market coverage. Since 24/5 equity trading, we've seen very strong adoption, reinforcing our belief that investors around the world want the ability to engage with the markets on their own time and terms. We now offer 24/5 trading across all S&P 500 and NASDAQ 100 stocks, which has contributed to a doubling of our total stock trading volume over the past two years. We continue to listen closely to our active traders across 75 different markets as we accelerate toward 24/7 trading and expanded margin capabilities.

This quarter, we're introducing a round-the-clock access to a selection of popular assets with plans to expand 24/7 trading across additional asset classes. We're already seeing traditional capital markets begin to follow the always-on 24/7 model pioneered by crypto. In Q4, we surpassed 150 supported crypto assets with plans to expand to more than 300 in the near term. In the U.S., we significantly broadened our crypto offering in 2025 to over 100 crypto coins, adding a wide range of new assets and enhancing our staking capabilities. These milestones mark an important progress in our localization strategy and broader asset expansion. By the end of 2026, we plan to support over 100,000 tradable assets across equities and crypto.

In investing, we continue to broaden access to global markets. In 2025, we expanded coverage to include Hong Kong, Nordic and Middle East stock exchanges. And today, we provide access to 25 exchanges from across the world in over 12,000 assets on the platform. It was also a year of continued innovation in smart portfolios with a focus on localization, partnerships and alpha. This quarter, we launched two new smart portfolios in partnership with Amundi, Europe's largest wealth manager. These portfolios provide access to professionally managed strategies to combine broad market exposure with forward-looking investment themes available in local currencies. At the same time, our pro investor community continued to expand, growing from about 3,200 at the end of 2024 to now over 5,000, reflecting strong momentum in copy trading and community-driven investing. This caps a year in which we also introduced our Alpha Portfolios, our AI-powered quantitative strategies and established new partnership with Franklin Templeton, BlackRock and WisdomTree. Today, we have more than 127 smart portfolios in our platform. In Q4, we also expanded our stock lending program in the U.K. and margin trading in Europe, enabling users to earn additional buying power and yield on their equity holdings, thereby enhancing passive income opportunities.

In Wealth Management, adoption of our long-term tax advantages savings solutions continue to accelerate, expanding our presence across trillion-dollar addressable markets in Australia, U.K. and France. In the U.K., we strengthened our ISA proposition with assets under administration in Q4, increasing sevenfold year-over-year. In France, we launched new savings products extending our reach into another large and structurally attractive tax-advantaged investment market. Together, these markets represent a multitrillion dollar long-term opportunity. As we look ahead, we remain focused on further localizing and scaling our wealth offering to capture that opportunity.

Turning to neobanking. Momentum continues to build with Toro money, which is now fully integrated into the core platform delivering seamless end-to-end money management experience. The past year was a breakthrough year for eToro Money with multiple product launches driving a 29% year-over-year increase in total money transfers. We also expanded our debit card footprint. In this past quarter, we saw a 650% increase from Q4 2024 to Q4 2025 in transaction volume. We are rolling out our noncustodial crypto wallet, which bridges traditional finance and decentralized finance, enabling users to hold stake and transfer crypto as well as accessing the centralized finance markets such as swaps of 100,000 different assets. As we discussed in our last earning calls, we see a consistent set of themes driving eToro's continued growth and supporting the democratization of investing. These themes continue to guide our strategy as we move on to 2026.

Firstly, innovation. As I mentioned at the start, we had a pivotal moment for financial services with advance of AI and the move on chain progressing at rates we could not have anticipated a few years ago. Innovation has always been at the core of Toro. From the beginning, our goal has been to use technology to remove barriers, simplify investing and give individuals access to opportunities that were previously reserved for institutions. That philosophy hasn't changed. What has changed is the scale of the opportunity and the power of the tools now available to us. We're committed to staying at the forefront of this revolution. We're now an AI-first company. We're embedding AI across our business to accelerate product development to improve efficiency and enhance how we operate at scale. AI is becoming a core part of our operating model, helping our teams to move faster and focus on delivering the most impact. Processes that historically took months or even years are not achievable in a matter of days, if not hours. We're building now our eToro super app 100% with AI. All of the eToro apps are developed 100% by AI, but it's not just the code rather the entire way how we operate and plan. AI means we can move 10x faster. It is accelerating our growth, enabling us to innovate more rapidly without a corresponding increase in complexity or headcount. AI is now core to the eToro experience. It enables us to deliver smarter tools and more personalized insights at scale. [ TorE, ] our AI analyst, continues to evolve as new AI models come online, becoming an increasingly powerful companion for investors. Across the platform, AI helps users interpret market dynamics as per value performance and risk and ultimately make better investment decisions. Through our public APIs and a suite of AI-powered tools, users and partners can build, share and scale strategies and apps creating a growing ecosystem. We are launching apps as part of our new upcoming launch of our app store, which will bring enforced capabilities into a retail trading experience. eToro apps will include additional AI tools like BASE-44, an open claw, and we already have nearly 1,000 apps in the pipeline.

In parallel, we're actively building as finance moves increasingly on chain. With a long history in [ cryptoentoconization, ] eToro is already part of this transition. Our holistic crypt offering positions us to continue bridging digital assets and traditional markets, supporting the evolution from crypto trading today to tokenized markets and new forms of fontal participation over time. To be clear, this is not about or dependent on the spot price of crypto assets at any given point in the cycle. This is about building a platform that is poised to lead the inevitable shift to on chain market infrastructure. This will unlock for our users new types of tokenized real-world assets already in 2026, such as tokenized private markets and real estate. Our noncustodial wallet is the gateway to Web 3. Over time, the wallet will expand to support tokenized assets, swaps, lending, prediction markets and perpetual where applicable. Throughout the year, we plan to roll out a broad range of new products across these areas. Taken together, these innovations are about empowering smarter investing. It's about leading the next evolution of investing, opening the global markets, connecting people to better tools and insights enabling everyone anywhere to participate in a simple and transparent way.

Secondly, global expansion. Our global footprint continues to be a key differentiator, and we remain focused on strengthening that advantage. We will continue to expand our product offering in existing regions while selectively entering new markets. By combining a global platform with a localized user experience, we're able to grow in markets where we're still early, while deepening engagement and increasing our share of wallet in more established regions. To this point, in 2025, we saw an 80% year-over-year trading volume in non-U.S. stock activity.

In Asia, establishing Singapore as a regional hub last year provides a strong foundation to produce more investors to eToro from the region. We expect to introduce additional products and increase targeted marketing activity as the year progresses.

In Europe, where we already have a meaningful scale, our focus is on deepening relationships with existing users and increasing share of wallet. We continue to enhance our localized offering, particularly in savings and long-term investing as we work to capture a greater share of wallet across our core European markets.

In the U.S., the world's largest retail investing market, we are in the process of bringing the fully to experience to the U.S. As a global pioneer in social investing, we have spent more than a decade building community-driven tools such as copy trader, which enables investors to learn and invest alongside the smarter investors.

Furthermore, we plan to roll out additional crypto products and smart portfolios to drive engagement and momentum over the coming quarters. More broadly, we continue to evaluate new market opportunities, prioritizing regions with strong financial literacy, digital adoption and sustained demand for trading and investing.

Thirdly, macro trends. We continue to align with powerful long-term market trends that are reshaping global investing. We are at the early stages of the largest wealth transfer in history with more than $120 trillion expected to move to younger generations over the next 20 years. These investors are digital first, more self-directed and more engaged with equities and crypto than any generation before them. This shift aligns directly with our platform and positions eToro to support how the next generation builds and manages it well. At the same time, our global footprint provides meaningful exposure to structurally underpenetrated retail investing markets.

In the United States, around 60% of households have some exposure to equities while in Europe, retail participation remained significantly lower with brokerage account penetration still in the single digits in some markets. This gap highlights the long-term opportunity ahead and reinforces why we believe eToro is well positioned to lead the next phase of global retail investing growth.

To summarize, we delivered resilient net contribution and strong adjusted EBITDA performance in 2025 and in the fourth quarter, we continued to see positive KPI trends in January, largely driven by strength in commodity trading activity, demonstrating the strength of our diversified multi-asset model.

Looking ahead to 2026, we're confident that our strategy continuing to leverage technology to innovate, expanding globally and aligning with long-term macro trends position us to capture significant opportunities. We see 2026 as a year of accelerated momentum growth. We're uniquely positioned as both native crypto company and a global equities trading platform and believe we're building a strong foundation for long-term sustainable value creation for our shareholders, users and partners.

With that, I'll now turn the call over to Meron to walk us through the financial results.

Thank you, Joni. Fourth quarter net contribution was $227 million, a 6% sequential increase demonstrating the continued momentum and durability of our diversified business model. Adjusted EBITDA was $87 million, an 11% improvement quarter-over-quarter, reflecting strong execution and disciplined cost management. The year-over-year adjusted EBITDA decline was impacted by the crypto tailwind and unique market conditions that follow the previous year's U.S. presidential elections. In line with our focus on diversified profitable revenue growth, our adjusted EBITDA margin was 38%. AUA for the quarter increased 11% year-over-year to $18.5 billion. The increase was driven by record net deposits and improving customer retention metrics. Our funded accounts grew 9% year-over-year to 3.81 million. This growth reflects the strength of our multi-asset business model and our disciplined data-driven marketing approach.

Let's take a closer look at the fourth quarter financials by business lines compared to a year ago. Net rating contribution from capital markets, including equities, commodities and currencies, increased 43% year-over-year to $116 million driven by investor rotation between crypto and traditional asset classes with particularly strong performance in commodities. This pattern is consistent with historical behavior and highlights the strength of our diversified multi-asset platform. In contrast, net trading contribution from crypto declined 72% year-over-year to $26 million due to the crypto tailwinds in the fourth quarter of 2024 that I had mentioned before. The decline was primarily driven by lower investor demand per trade and softer trading activity, particularly in November and December. As we have seen in prior crypto cycles, these periods of volatility are expected and our diversified business model continues to demonstrate resilience across market conditions. Net interest income contributed $59 million, up 18% year-over-year, largely driven by a 29% increase in higher interest-earning assets due to an increase in customers' cash deposits customers' margin book, staking and corporate cash. This growth was achieved despite a moderating interest rate environment, reflecting the strength of our balanced growth. eToro money's contribution declined 6% year-over-year to $23 million, largely driven by higher year-over-year cash redemption in crypto in 2024 due to market conditions we had mentioned before.

In the fourth quarter, adjusted OpEx was in line with our expectations at $140 million. Our adjusted selling and marketing expense was $46 million or 20% of net contribution. Our marketing strategy continues to generate strong and disciplined returns with shorter payback periods, delivering ROI within the same year and cohorts driving sustained commission growth over time. Notably, our 2024 cohort has already achieved a 1.8x return on investment, while our 2020 cohort has delivered 5.6% return on investment, demonstrating the durability of our model. Importantly, we continue to see cohorts generating meaningful revenue even after 8 years underscoring the long-term lifetime value of our customers.

Given the strength of our cohort returns and our objective to accelerate growth in 2026, we plan to increase our sales and marketing investment from 21%, scaling gradually to 25% of net contribution. Importantly, this spend remains highly flexible and can be adjusted based on market conditions and performance. We are making this decision from a position of confidence as the ROI profile supports incremental investment, and we expect this increased spend to drive accelerated growth across our key KPIs in the year ahead. Adjusted R&D and G&A and operating expenses were $37 million and $57 million, respectively. Our adjusted diluted EPS for the quarter was $0.71 compared to $0.79 in the fourth quarter of 2024.

Moving to our balance sheet. We ended the quarter with $1.3 billion in cash, cash equivalents and short-term investments and generated $42 million in free cash flow from operations. Furthermore, we do not have any material exposure to crypto or commodities on the balance sheet. In the fourth quarter, we repurchased 1.5 million shares with $59.5 million pursuant to our previously communicated share repurchase program.

Lastly, alongside today's earnings release, we announced an additional $100 million authorization under our share repurchase program, increasing total authorization to $250 million. To date, we have deployed $100 million under the program. This reflects our confidence in the long-term outlook and our commitment to driving shareholder value. Given our strong cash generation and balance sheet, we have the flexibility to continue executing buybacks, while also evaluating selective M&A opportunities to support disciplined inorganic growth.

Now let me share a few comments on our first quarter trends. As part of our quarterly results today, we also released our January monthly KPIs. The month of January saw improved KPIs versus November and December. Our Capital Markets business saw significant year-over-year growth in both total number of trades and invested amount per trade. This was largely driven by equities and commodities. Both our AUA at $18.4 billion and funded accounts at $3.85 million were up year-over-year. These solid KPIs are a testament to our multi-asset strategy support of strong results despite a soft crypto pricing environment.

To summarize, we are excited to start the year with solid January KPIs and are looking forward to driving meaningful profitable revenue growth in 2026.

With that, Daniel, let's move to Q&A.

Thank you, Meron. So the first question comes from our list of questions that we have been pre-submitted by our retail investors. This question is for Joni. Joni, so how has eToro manage the current volatility in commodities?

So we're very excited to see a lot of engagement and very high volumes the highest volumes we've seen actually are in October last year and now January as well as gold rise to $5,500 and then seen significant volatility, and we've seen significant engagement of our customers and high trading volumes in commodities both in October and in January this year.

Thank you, Joni. Operator, we'll now open the queue for questions from our institution analysts.

[Operator Instructions] Our first question comes from Dan Fannon with Jefferies.

I was hoping you could just provide a bit more context on the current crypto market backdrop, and how this compares to maybe other downturns? And then in that, how you guys are potentially operating differently this time versus previous periods?

Sure. So first, this is our first crypto cycle. We've seen these crypto cycles in the past as well. We remain extremely bullish on crypto, on Bitcoin's future as well as other leading blockchains as well as what we're seeing is the friendliest administration and regulatory environment towards crypto innovation and towards tokenization and capital markets moving on chain. We have seen in the past the volatility or corrections happening in crypto markets. They are correction. So as a volatile asset class corrections that are sort of more significant or have a higher amplitude usually than capital markets. And in the past, what we've done, as always, is shifted focus. When we see less interest in crypto, we shift the focus from a marketing perspective to basically equities to commodities, which we're seeing very high engagement levels on. And we keep on building constantly new products in crypto. So we've actually developed a very significant crypto road map with our noncustodial wallets with new products coming into crypto, and we have no doubt that we'll see more and more engagement, especially by the way, of younger crypto-native generations into crypto despite the price of Bitcoin right now at lower than Q4 2025.

Great. And just as a follow-up, you mentioned marketing -- sales and marketing going from 21% to 25% as a result of what you see as opportunity. Can you talk the time period for which you expect that to occur. And then more broadly, just about the expense outlook for 2026 would be helpful.

Sure, Meron?

Yes, sure. So we expect to grow gradually. So in Q1, we -- you should not expect to see 25%. We are looking to grow there, looking at the right opportunities, but conceptually, as we've seen great results in the history also as we shared on the slides that are the investor deck as well we have the ability to scale up. So we're going to look into new opportunities in new markets. We've already seen some early signs in the U.S. that the marketing is working. So we're looking to expand over there. We're looking to expand in the new regions as well that we launch, where it is Singapore that we launched last year or it is UAE, we launched a few years back. We're seeing some great results. So we are happy to scale there. So it will not happen necessarily in Q1, but gradually throughout the year, we will get to 25%. And if we see opportunities, we have the right flexibility in the model to be able to scale even further than 25%.

Our next question comes from Devin Ryan with Citizens Bank.

Question on AI. Obviously, a lot of talk on the call here, good to hear that you guys are ahead of the curve. As we think about AI being further integrated into the model and even kind of the next kind of iteration with genetic AI. When we think about that combined with more trading on chain, instant settlement 24/7, what does that mean for the outlook for trading at eToro over time? Like should we see a step function here with kind of integration of those two themes.

Well, in the medium term, I definitely believe this is a significant step function with advancements in AI, whether it's things like open clot, the new models, our APIs, the launch now of the app store, which actually all cater to more sophisticated investors and more sophisticated in automating trading strategies. I do believe over time, we'll see a significant uplift in the algorithmic or the automated trading activity on eToro, moving basically from click to trade to many of our customers using automated strategies over time, and that will lift significantly over time, trading volumes and trading clicks.

Okay, great. And then a quick follow-up here to Dan's question. Just on the increased marketing. What does that mean for the equation for kind of new account additions? How should we think about account growth over the next couple of years here? And should we think about the same [ CAC ] math? Or is it going towards something else?

So [ CAC ] math, I believe, is very similar. That's basically how we've always managed our increase in scale of marketing is over roughly 3.5% to 4.5% expected ROI of [ CAC 2 ] LTV. We are expecting double-digit account growth, and that's also where we see opportunities right now to scale up marketing activities to basically scale up account growth over time.

Our next question comes from Alex Kramm with UBS.

Also just another follow-up from Dan's question. I don't think you answered the other expense outlook. So maybe talk a little bit about the pace of G&A and R&D expansion that you're expecting for 2026.

Meron?

Thank you. Yes, so while we don't publish any guidance with regards to our operating expenses, besides marketing. We do expect our G&A and R&D to be roughly at the levels where we are these days maybe with a few minor percentages of growth. We don't expect any significant growth over there and any growth over there we have the levers to generate more efficiencies also within the existing cost base.

I would just comment on -- yes, that in my view what we're seeing in AI internally is significant opportunities of scaling the business without scaling expenses over time. We did do about a month ago, an adjustment to headcount as well. And I believe as we're using more and more AI, we will be able to scale the business significantly over time without the need to basically increase adjusted cost basis.

Okay, great. And then maybe just secondly, I don't think you proactively addressed M&A unless I missed it, but that was a big part of the story to go public. Obviously, your currency, meaning your stock has not been favorable. So maybe that hasn't helped. But just wondering what your appetite is. You talked about global expansion. We haven't seen much yet. So maybe talk about what we should be expecting in 2026, and what the target companies are saying in terms of purchase prices, et cetera?

Sure. So first of all, we do expect to see several M&A deals in 2026. We have been in active discussions with several target companies over the last 6 months since the IPO, I would say we have a high appetite for M&A, but we want to make sure we're selective and find the right accretive opportunities. And I think also, right now, we do see opportunities both in the crypto space, both in the U.S. but also globally as well as in the new brokerage and wealth management space. So we've been in this space for a long while for 18 years. We know a lot of the great founders, great teams, great companies, and we are looking for the right teams and the right opportunities to join eToro in scaling 10 and 20x. Anything to add there?

You covered it.

And I think, obviously, we have a significant balance sheet. We have our revolver as well. So we feel comfortable in looking at sizable deals. But again, at the right price and being accretive.

Our next question comes from Dan Dolev with Mizuho.

Great results here, really, really strong across the board, congrats. I have a question and then a quick follow-up. So just really quickly, Joni and Meron, on the crypto take rates obviously down and you spoke to some of that? Like how should we think about this for the rest of the year? And then I have a follow-up.

Yes, so there was a slight decline in the take rate in Q4. We had a small exposure on the balance sheet, which is less than $20 million, but caused the take rate to a decline from the usual 1% to 0.7%. So it's really immaterial going forward, and we don't expect that to deviate much from the usual 1% that we have delivered so far.

Okay, great. And then maybe as a follow-up, the -- can you talk a little bit about your app store and app strategy, that would be really, really helpful.

Sure. I think we've been early to realize that our community of pro investors are people that are super passionate about capital markets and wanted more advanced tools. And that coincides with the ability of AI to actually write amazing software. So we started with BACE 44 since then acquired by Wix and basically enabled our pro investors. Now there are almost or about 1,000 apps developed by 800 of our popular investors from the pro investor program and they're developing really amazing tools. And those tools basically reflect sort of how a smart investor looks at the market. We started publishing these apps this week, and we'll be embedding them inside the app. So think about sort of scaling up significantly. eToro's ability to innovate towards the rest of the users and building a subscription model on top of that. So just as an example, we've had somebody build basically tighten invest where you can actually talk to the grated investors of all times about what's in your portfolio, and what's the recommendation around your portfolio. So we could actually get their views from their personalities. And we've seen many, many amazing innovations from people building their own Chief Investment room with risk management and geopolitical risk to people who are actually building add-ons, which are quite cool, like swapping assets on the eToro platform. So we expect a lot of these apps to be useful, not only to the pro investors building them, but actually to the rest of the eToro community, expanding significantly or accelerating product innovation scale to our customers. And I'd say that we've seen another step function just over the last two weeks with OPUS 4.6 with [ Open Clone. ] Suddenly, we've seen a lot of our customers actually using [ Open Clone ] on top of eToro's APIs and MCPs, which are the AI-based APIs. And again, unleashing another wave of creativity from our Pro investors who've been with us, 65% of them, more than 5 years, all of them passionate about capital markets and building very, very cool things for themselves and then being able to share them and monetize them with the rest of the eToro customers.

Our next question comes from Brian Bedell with Deutsche Bank.

Maybe just shifting back to the U.S. strategy, if you could just update us on the customer traction. I think you were at 300,000 customers in the -- around 300,000 customers in the U.S., and how that's going? And especially on the copy trading side, you've ruled that out. I think you said you've gotten pretty good reception so far. Any numbers you could share on that? And then related to that -- both on the pro investor side and also the appetite for those in the U.S. that want a CopyTrader from investors. And then any update on the plan for the U.S. pro investors to be paid, I think you have to get the fiduciary license, but I think you had a couple of different routes for that.

Sure. So we've been very active since the IPO on expanding eToro's U.S. product launches and product road map. Since then, we've launched CopyTrader. We plan to launch in H1 this year smart portfolios, which is based on our RIA license, which is in process. We're looking at prediction markets as well for the U.S. We've seen a significant uptake as we started scaling some of the marketing activities from Q4 to Q1. So we are seeing a significant uptick to something that's still early stages of the U.S. business, but we're very excited about continuing to launch all of eToro's global product road map here in the U.S. I do believe that now with being able to accelerate product development, we'll be able to actually launch more of our products than we expected originally in 2026 here in the U.S. And we're making sure we are, I'd say, selective in how we scale our marketing budget. Here in the U.S., we want to see [ CAC ] to LTV while not at the same levels as globally. We want to see that ratio between [ CAC ] to LTV increase. We've seen the best ratio we've seen to date last year, especially by the way, moving forward into the year. And that basically gives us the ability to continue scale up marketing activity and then funded accounts, where we believe product engagement will then follow as well.

SP-30 Okay. And then just timing of when you think you'll have the fiduciary license in the U.S. And then you mentioned prediction markets as well, just any timing on rollout of prediction markets for U.S. customers this year.

So as everything in product, we are working on the RA license. We hope to be able to launch the smart portfolios product, which will be based on the RA license in H1 this year. We are in active discussions on the launch of prediction markets, which, of course, requires an additional regulated entity here in the U.S., which is NFA regulated. So we believe that will be probably later in the year towards Q3, Q4.

Our next question comes from Brett Knoblauch with Cantor Fitzgerald.

Congrats on the quarter. Just maybe on the split between kind of where you're spending marketing dollars for the year on maybe U.S. and ex U.S.? And I know when you guys IP, maybe disclose some kind of market share statistics on different key countries. Do you have an update to that? Or just maybe qualitatively on kind of where share has progressed throughout 2025 and maybe expectations for 2026?

Sure. So first of all, when you look at the size of marketing budget, it's a significant marketing budget globally. The U.S. is still a small part of it. And if we scale, let's say, 25%, 30% over the year roughly in 2025, we basically select where to scale more based usually on the [ CAC ] to LTV ratio, which we see higher right now in other markets where we have a more developed product in those markets. We have scaled the percentage higher in the U.S. in 2025 versus the rest, and we expect that percentage increase in 2026 to be higher as well, but not extremely high as to sort of bridge the entire gap from the U.S. to our more mature markets. So what is a part of scale up? Anything to add on that, Meron?

No, we are looking carefully, obviously, at the ROI against each of the investments very closely and scaling up as we scale in the market in the U.S. will continue to scale by high percentages, as you mentioned, Joni. We'll continue to do that this year and next year as we've seen some good results, but it's still not as a material number to quote compared to the entire budget globally.

Our next question comes from Ed Engel with Compass Point.

It looks like there was a nice rebound in the revenue per trade within the ECT segment in the fourth quarter. Was that uptick driven just by mix of commodities versus equities trading? Just maybe a bit more tilted to commodities? And then is it fair to assume, as I think about January, was revenue per trade likely remain elevated just alongside the string in the commodities?

So both Q4 and January, we've seen significant commodities activity, gold and silver, very popular as obviously we've seen unprecedented volatility and price of both gold and silver. We also now are expanding the 24/7, which we believe will continue to expand activity in commodities as a very unique new product to trade alongside crypto assets on the platform, 24/7. Regarding the net contribution per trade, I don't think we can still comment on...

Yes, I'll comment my usual comment like when you look at our revenue per trade on ECC, you should always count at the range of $0.60 to $0.75 per trade. That's how we always look into it. And in the long term, this is where it's converged normally. It is impacted by the higher commodities part of the mix. Also on the other side, we have higher contribution. We've seen tremendous volumes coming on our copy product, which is our USP, that drives the revenue per trade to be slightly lower as part of the mix. But overall, as you should look into it is almost the $0.60 to $0.75 per trade.

It's actually very interesting because we're seeing something that we haven't seen before, which is crypto-native customers or people who came into too add to trade crypto, and treated mostly crypto suddenly trading commodities. So I do think there's somewhat of a convergence or a shift from crypto, which now has lower volatility to now basically gold, silver and other commodities that have higher volatility. And that's a unique part of eToro also because when people trade only crypto at only crypto companies versus in eToro, where they can now trade equities and commodities as well, what we see over time is that customers that actually trade multiple asset classes onto are more active, more engaged, higher lifetime and higher lifetime value on the eToro platform.

SP-39 Great. And then, I guess, just from our point of view, I mean, it seems like there's a pretty big divergence between just underlying strength of the business and then the stock price, has the Board considered any other ways to kind of unlock value beyond the stock buyback? I know you've been public the last in a year, but I mean is there any other types of strategic alternatives that have been considered?

So I think, first of all, from a corporate strategy point of view, as we discussed before, we do believe in buybacks, and we do believe we'll see M&A opportunities manifest this year. So that's more on corporate strategy. I think from a business perspective and product strategy, very focused on AI-first unleashing AI to our customers to increase product velocity and making sure that we also expand our entire product offering in crypto as well as increase the margin capabilities. So we've launched margin trading now in Europe alongside futures in the U.K., so enabling our customers to trade also more on exchange. On exchange leveraged products, which obviously will increase velocity as well. So I think -- all in all, that's the strategy we believe that providing great service, great product and accelerating our product [indiscernible] and innovation to our customers and scaling up, as we mentioned before, also marketing activities to bring on new more funded accounts that will eventually lead to a larger base of funded accounts that drive activity, increased revenues, profitability over time, and the stock will follow.

Our next question comes from Craig Siegenthaler with BofA.

I hope everyone is doing well. So we have a follow-up on M&A on some of your previous comments. But I'm curious on your desire to expand to new geographies versus focusing on keeping your leading share in the Continental Europe. So why not in Europe, deepen your moats keep taking share versus the legacy brokers and banks, build on your first-mover advantage and hold off on expanding in new markets where you're probably going to be subscale for some time or at least until the eToro stock valuation improves, so then the M&A math becomes more attractive.

Sure. So first of all, the M&As we're looking at to expand regionally are not sort of, I'd say, significant in scale or we expect them to potentially impact EBITDA margin. So we are looking at this very selective. We're very focused on, first and foremost, to deepen the existing eToro product in the existing both mature markets such as Europe, U.K., Australia as well as new markets, which we've already unlocked, which is Singapore and Asia and of course, the U.S. So we're not looking to dilute attention from our existing markets. But as we said, looking at selective opportunities if they arise, and create for us basically a local moat, which is a regulated activity where we believe, if we bring our products to that market we can actually scale our business relatively easy without increase the cost base. I think that's an interesting opportunity, especially as I do believe that now AI is actually accelerating the gap between traditional banks and insurance companies and eToro's product offering.

Great. My follow-up is just on promotions. I know you have a bunch out there, but I want to make sure I'm not missing anything, but on the debit card, I believe there's a 4% bank option, but not on anything. So maybe help us with that one. And then also, I think, crypto deposits in the U.S. there's like a sliding scale, but you deposit more than $5,000 of crypto you get $500 initially. And in Europe and parts of Asia, you have something similar on a stock basis. But do you mind summarizing kind of what you have live out there today on the promotional front?

Sure. So I won't go into all of the details because we do operate in 12 different regions. Each of them have their own incentive plans. But the same way that we're looking at [ CAC ] to LTV on the acquisition front, where you mentioned some of those, which is basically providing an incentive to open an account and deposit. We also provide incentives on product engagement. So we do an analysis. And when we find out that, as an example, a customer in the U.K. if they deposit and bringing transfer their ISA, which is the equivalent of IRA roughly into eToro, is it increases significantly over time, their lifetime value. So we calculate basically the same on existing customers on what's the cost of promoting a new product, what is the LTV added to that customer if they actually use that promotion over time. Is that profitable? And if it's profitable, how basically do we move the needle and scale up product engagement using incentives. And in different markets, we have different products and different incentive strategies. Do you want to add anything into that from the breakdown of the financials.

No, the numbers are insignificant at this stage to quote it out and in general.

Yes, it's still a small part out of the total marketing budget. When it does become significant, we'll break it down.

Yes, it's definitely part of our strategy to make sure that we increase customer acquisition. We decreased the churn of customers by combining those acquisition campaigns and incentivized campaigns also for CRM purposes.

Our next question comes from Joseph Vafi with Canaccord.

Great results here for Q4. Just maybe we double-click on the noncustodial wallet rollout the strategy there and maybe intersection with some of the sales and marketing spend?

Sure. We're taking more of a product-first approach to crypto-native into the noncustodial wallet. So we -- and by the way, that is generally true. We, first and foremost, promote always sort of the eToro platform of equities, of crypto of commodities. So that's the forefront and the window, including, of course, CopyTrader and Smart portfolio. And then as we add more products, for example, the card program or now the noncustodial wallet, we use these products to basically offer them to existing customers. So we don't expect our crypto wallet to increase in any way the marketing activities of eToro. I'd say also it's a bit of a different target audience. So what we are seeing is that more of the crypto native younger audiences, actually, I'd say, Gen Zeders are much more active on noncustodial and in crypto wallets. The equivalent, of course, is Metamask and wallets where basically people actually have their custody in crypto. It, by definition, means it's a higher-risk product because the responsibility on custody sits with the customers but it actually unlocks a lot of products that are very hard to unlock and Tread.fi. So just as an example, Solana has now 1 million tokens. It's very hard to unlock 1 million tokens in Tread.fi, But when you look at the noncustodial wallet, you'll be able to actually swap into hundreds of thousands of assets that are out there, and we do see that interest coming from a younger audience that has a higher, I'd say, risk appetite and also is more SEFI on what does it mean to be a crypto-native to move between chains to swap between chains to look at opportunities that some of them are mind boggling, like 40,000 new coins launched on Solana and thousands of coins launched on other blockchains as well. So these opportunities are out there, not only for the U.S. market, but outside the U.S. as well. And we want to make sure that our younger audience can that within the eToro framework.

Great. And then Meron, I know you quickly mentioned that net retention was was pretty good in the quarter. Is there anything to call out on that?

No, it's part of our strategy to always look at the funded accounts and see how we can grow there from acquisitions. So adding customers and on the other side is making sure that our churn rates are getting lower and lower. We deploy different strategies into that. We've seen great results. on that, that support us into our plans into the future of growing the marketing spend into 25% gradually throughout the year and making sure that we have and that we achieved a double-digit growth of funded accounts on a constant basis.

Our next question comes from Bill Katz with TD Cowen.

This is Robin Holly on for Bill Katz. I wanted to ask a question on the ROI on the cohorts. Could you unpack what is driving the faster payback period for the newer cohorts, specifically the 2025 ones. It looks like the payback periods are accelerating. Is this more -- are the customers more engaged, or is it something on the marketing side?

So we are constantly evolving marketing strategy being more active in identifying both opportunities also looking at the higher LTV or the higher payback period cohorts we've seen in 2025, a 23% year-over-year increase on what is the first time deposit average amount of customers. So when you look at online marketing can actually target and see what campaign to which product brings better customers, the deposit more and generate revenues more. And then, of course, we always want to balance that across what's happening in the markets. Anything to add to that?

Yes. I would say that our -- call it, the marketing machine is very flexible in a way to identify different trends. So when there is a trend in the gold or silver, we can very quickly turn the machine to into what's really interesting in the market. So have better results coming there. And if the customers are coming with the intent because they are looking for gold, and that really helps us improve the ROIs and the year return as well.

Basically, the direct correlation between volatility in a specific market where gold silver indices usually are -- it doesn't matter where the price direction is volatility increases significantly initial LTV and therefore, payback period. And the same happens in crypto, where there's a significant crypto rally. We're seeing basically customers that come in to eToro much more engaged better cohorts.

Our next question comes from James Yaro with Goldman Sachs.

Some of your competitors are building similar products to cope trader, which clearly reflects the success that you've had in building this product over time. What does the landscape look like today for Copy trader in your view? And what can you do to stay ahead of these competitors, some of which are quite scaled?

So first of all, we are seeing and have seen over the past 19 years, a lot of the competitive landscape talking about social trading. So far, we haven't seen anybody actually executing on it. So that's one. Second is, we have a significant moat, which is customers that have been on eToro for the past 5 years, 10 years with very, very solid track record that have their basically AUC already on eToro. So if you look at our top two investors on eToro, the first one has more than 30,000 people copying him more than $300 million of assets under copy, the second one, $200 million, both by the way, have a track record of, if I remember correctly, over 29% over a tenure of 6 years and 12 years, respectively. So that moat is a time-based mode. Nobody replaces Warren Buffet that fast and nobody replaces 10- and 12-year 10-year on eToro, I do think, of course, we've innovated and created a category that will eventually change a lot of how people think of general portfolio management in the RIA industry. And we'll see younger audiences. There's a big app, by the way, across the world that financial intermediaries are getting older and that younger audiences are not looking for their advice. And I do believe that our product category as a category will significantly scale in the moat that we have is the track record of those customers and again, bringing them new tools now where they can actually build their apps. They can monetize them eventually in a subscription model in eToro, to basically -- and we already have significant communities of customers, so popular investors in France are actually meeting our customers in France, popular investors, again, Germany and Australia and the U.K. And that is something that the competitive landscape doesn't have.

Excellent. Very clear. You touched on prediction markets already. Given the vast majority of your customers are outside the U.S., could you touch on whether you see a prediction market opportunity for your non-U.S. customers?

So it does seem like prediction markets right now, at least from our analysis is very much U.S. the on-chain regulated one -- sorry, the off-chain, the regulated prediction markets is very much a U.S.-led business and very high interest in the U.S., which is why from a regulated perspective, we're looking at the U.S., a lot of the activity outside the U.S. actually sits more with crypto-native customers. So again, those younger audiences that are crypto native, that know how to move their crypto and basically trade directly on chain. So I'd say that's roughly what we're seeing U.S. with the regulated infrastructure to offer production markets, where it's an NFA, CFTC regulated activity towards which we'll build in the U.S. and globally more of an on-chain activities of prediction markets happening in basically noncustodial wallets.

And our next question comes from John Todaro with Needham & Company.

Congrats on the strong quarter. I guess first one, just as it relates to crypto regulation and in particular, the Clarity Act. Is there just kind of anything in the current iteration of the bill, where maybe you would like to see adjusted -- just kind of any additional thoughts there we've been getting from some of your peers.

We usually try not to comment on sort of regulations and sort of where they are in the process as we are regulated in many places under different regulators across the globe. We do believe that clarity in regulation helps significantly in industry to mature. We've seen that in Europe with Mika. We've seen it already, I'd say, in the environment right now here in the U.S. And the biggest driver, by the way, what is going to drive, in our view, is the path towards new types of asset classes moving on chain. So the more clarity, there is in an industry, and we're seeing in Europe now banks, insurance companies, private equity firms, basically tokenizing different types of assets to be able to distribute them into that new audience. So as we'll see clarity in regulation here, in the U.S., we believe we'll see also more opportunities to bring in more new products to our customers. And we've seen the largest wealth managers in the world already working today with eToro, whether it's BlackRock Flink, Templeton, WisdomTree now, Amundi as well ARC. So we are seeing the interest of basically the large financial institutions, asset managers that are issuing new products, and they want to deliver those products into a global audience and into a younger audience, very early days of that, but there is no doubt that more clarity and regulation will expand that.

Great. That's very helpful. And then just kind of going back to prediction market. It sounds like from your prior comments that you guys would still look to work with a partner like a causal market, whether in the U.S. or outside the U.S. Is there an avenue where you could kind of go at this alone though and offer something more direct?

We're currently looking at the industry. I think the industry is evolving very fast, both in predictions and in per different regulatory environments across both categories. We do believe that working with partners, and there's now an emerging by the way, new type of what's called a prediction aggregator. So you can actually use aggregators to find the best prices on predictions, for example, the same with perps. So we are looking in that space right now to partner versus to build the entire stack on our own.

And that's all the time we have for questions. I'd like to turn the call back over to Daniel Amir for closing remarks.

Yes. Thank you for attending the call today. And we're looking forward to seeing you at the upcoming investor conference during the quarter. You're welcome to follow up with me directly. Thank you, and have a great day.

Thank you for your participation.

[Audio Gap] 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 October monthly spreadsheet is now available on our website at investors.etoro.com.

Today, I'm 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 upvoted question previously submitted by eToro's retail shareholders.

But 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. And you can find more information about these risks and uncertainties in the press release that we issued today and in the Risk Factors section of 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, everyone, for joining us today. Welcome to our third quarter's 2025 earnings call. After Meron and I conclude our prepared remarks, we'll open it up for questions. We're proud to share another strong quarter that reflects eToro's continued momentum and a growing strength as a global leader in trading and investing. This performance with net contribution up 28% year-over-year to $215 million and adjusted EBITDA rising 43% to $78 million, delivering solid operating margins of 36% is a testament to the vision, resilience and scalability of our diversified business.

What excite us most is the remarkable pace of innovation unfolding across eToro, with AI accelerating our product development. We're not only enhancing the platform that our users know today. We're reshaping the future of investing. We're expanding into new frontiers in crypto, tokenization and AI, while also broadening our global reach to serve an ever-growing community of smart investors. This wave of innovation is delivering tangible results. Record assets under administration, robust growth across all segments and unprecedented engagement in copy trading. Together, these achievements underscore how our investment in technology is fueling growth, deepening client engagement and bringing us ever closer to our mission, which is to empower everyone to trade and invest in a simple and transparent way.

Our key performance indicators accelerated meaningfully this quarter. Funded accounts grew 16% year-over-year to $3.73 billion with organic funded accounts expanding at a double-digit rate. This growth demonstrates the growing appeal of eToro's differentiated platform, the trust we've built with our global community of investors and the success of our disciplined and data-driven marketing approach.

Assets under administration reached an all-time high of $20.8 billion, up 76% year-over-year, fueled by growth in new deposits and strong user investment returns in both crypto and equities this year. The positive momentum in our KPIs has continued into Q4 as shown in the October results released today. These results show our strategy in action. We're democratizing and investing by making it simple, accessible and social while combining multi-asset trading with smarter products like copy trading and smart portfolios to empower investors everywhere. As we execute on this vision, we're confident in our ability to deliver lasting value for our users and shareholders.

To achieve the strong performance we delivered in Q3, we've remained focused on executing across our 4 strategic pillars of trading, investing, wealth management and neobanking while accelerating product innovation across the platform. Let me share a few highlights across each of these areas.

In trading, we're continuing to expand market [ act ] globally. We continue to expect our 24/5 trading. We began offering retail investors access to stocks listed on NASDAQ Nordic changes throughout our partnership with NASDAQ. This expansion comes amid rising retail investor interest in the global markets. Today, we offer access to [ 22 ] different exchanges worldwide and plan to increase to over 30 in 2026. We've expanded futures across Europe and launched spot-quoted futures and partnership with the CME Group. Retail participation continues to grow in these markets, and we are pleased to give local traders the ability to execute in a more advanced and diversified strategies. Our expanded to futures also establishes the infrastructure to support prediction markets in the future.

In investing, we're bringing together the power of community and AI to drive deeper user engagement on eToro's platform and help investors make smarter decisions with AI. Our Pro investor community has grown to over 4,000 investors globally, supported by our new Pro investor program. This program is designed to support users on their journey to certify themselves as professional investors. Our Pro investors gain exposure and grow their profile by sharing their expertise with eToro's global user piece. In addition, over 130 Pro investors now have north of $1 million assets under management with our top row investor growing from $50 million to over $250 million in 2025 alone, a milestone that reflects the growth and influence of our Pro investor program.

Last month, we launched CopyTrading in the U.S. We're excited to bring our flagship product to the world's largest capital market. Copy trading today is experienced across approximately 1/3 of our users. With the launch of Copy Trading in the U.S., we anticipate increased user engagement and platform traction. In AI, we're entering the next great leap in trading and investing. One that puts the power of professional grade technology direct in the hands of every investor with our newly launched eToro apps, users can build share and scale their own investment tools across our global community. What was once the privilege of sophisticated institutions is now being democratized.

Our AI-driven insights from sentiment to decision analysis, enabling investors to think and act as institutional investors by creating their own strategies, dashboards and innovations that shape the future of investing.

In Wealth Management, we launched a new subscription model for the eToro Club, our loyalty and rewards program, offering members premium benefits and exclusive features. The subscription offers members smarter tools, monetary benefits and more personalized support while driving incremental engagement. Furthermore, we've expanded the eToro long-term savings offering for our U.K. users with the new eToro Cash ISA and Cashback rewards and management and do-it-yourself ISAs. And in Australia, we advanced integration of spaceship, giving users direct access to superannuation products through the eToro platform. These developments demonstrate our commitment to continuously enhancing wealth management offering, which is a multitrillion-dollar opportunity. With the Australian superannuation market valued at over $2.5 trillion and the U.K. individual savings account market exceeding $1.3 trillion.

In neo banking, we continue to enhance our global platform by delivering localized experiences that strengthen user trust, drive adoption and support sustainable growth across our key regions. This quarter, we expanded our localization offering in the UAE, Singapore and Australia. Furthermore, across the U.K. and Europe on top of the 4% cash back in stocks, we now offer also a 1% cash back in stocks for new crypto deposits. We plan to expand this offering to more countries in the future. We're also very pleased with the strong traction we've seen with the eToro Money Card available today in Europe and the U.K., which saw a 2.4x increase in cards issued quarter-over-quarter.

Looking ahead, we believe there are 5 key factors that will drive eToro's continued growth and advance our mission to open the global markets, connect users to leading investors and give them tools they need to grow their knowledge and wealth. Number one, advancing at the forefront of innovation. Number two, continuing to expand globally. Number three, expanding our U.S. presence. Number four, broadening our product offering with AI. And number five is leading to inevitable elastic macro trends. We are focused on positioning our business to capture the significant growth opportunities presented by these 5 factors. First, advancing the platform at the forefront of innovation. From day one, product innovation has been at the core of who we are. We've built a strong track record of identifying early major trends like social trading and crypto and turning these trends into products that bring real financial utility to our users.

Our social investing products continue to define who we are today as a company. From the outset 15 years ago, eToro set out to transform retail investing experience by pioneering the concept of social investing, empowering individuals to learn from one another and invest together. We believe there is a tremendous value and shared knowledge and collective insight. Over the years, we have led the industry with innovations such as our social network, copy trading, crypto investing, fractional shares, machine learn driven analytics and our smart portfolios. Together, these capabilities make investing more inclusive, informed and collaborative for our growing global community.

Artificial intelligence is the next frontier in investing. And we're already seeing the impact across our business. Our AI analyst story launched last quarter has already been used by over 1/3 of our club members, a strong sign of engagement and potential. As we expand our AI capabilities, we're giving an investor powerful tools to make smarter decisions, improve performance and deepen their connection to our platform.

Our vision is also centered on building open, tokenizing borderless market to help millions to build wealth. We're bringing U.S.-listed equities to the blockchain enabling 24/5 trading of over 500 prominent stocks with plans to move forward to 24/7 as the market's involved. We're currently developing a crypto wallet that will open the opportunity for our users through decentralized finance to participate in innovations like on chain prediction markets, lending, loans and swaps of their assets of millions of different crypto assets and connect our tokenized assets ecosystem and benefit from tokenization of real-world assets, which will happen over time. We expect these more advanced crypto products to continue to increase our client engagement within the crypto industry.

Second, continue to expand globally. We're proud to serve users in more than 75 different countries across the world. The diversification of our revenues across geographies is the core strength of eToro and a differentiator of our business. In Q2, we expanded our footprint in Asia by launching our capital market services license in Singapore, a meaningful step towards scaling our business in that region. Looking ahead, we plan to further localize our offering in key markets and continue to expand globally in region where we're underpenetrated. As part of our broader strategy to solidify eToro's position as a truly global platform serving investors everywhere.

Third, expanding our U.S. presence. We're seeing solid growth in the U.S. Year-to-date, new funded accounts have already surpassed those of 2024 and we've achieved that growth while remaining disciplined and efficient in our marketing spend, consistent with our strategy. To continue this growth, we're focused on bringing the full product offering for which we are known globally into the U.S. market. For example, in the third quarter, we brought in an crypto offering in the U.S. to include more than 100 different crypto assets and introduced staking in the U.S. As a result, we saw a 3x increase in our crypto volumes quarter-over-quarter in the U.S. market.

Additionally, last month, we announced the launch of Copy Trading in the U.S., a major milestone that lays the foundation for our next phase of expansion in this market. The copy trading product is a significant driver of user engagement with our platform is reflected in the increase of the number of trades we've seen this year. We expect Copy Trading to be an important driver of growth in the U.S. going forward.

Fourth, broadening our product offering. In our core markets, we're focused on increasing engagement and share of wallet by broadening what we offer across our 4 strategic pillars. Trading, investing, wealth management and neo banking. We continue to expand each of these areas quarter after quarter. As mentioned, recent highlights include the launch of the savings products in the U.K. and France, expansion of the eToro Money card across Europe, the [indiscernible] futures and options across key European markets and introducing localized trading and cash management capabilities in new regions as well. This approach has proven successful over time by driving both higher user retention and growth in assets per account.

And fifth, leaning into elastic macro trends. Over the next 2 years, we will see the largest generational transformation of wealth in history with over $150 trillion moving to younger generations globally. These younger generations are digital first, and they're far more engaged with equities encrypted than their parents. On their back end, we also expect to see $100 trillion moving on change as capital markets transform into digital assets. Moreover, in many non-U.S. markets, retail participation remains below U.S. levels. We believe this cap will continue to narrow as younger generations, more inclined to invest in crypto and equities than their parents enter the market, offering us a long runway for growth across our global franchise. These secular shifts are powerful tailwind that will continue to support both assets under [ reinstation ] and new account growth over the long term.

Altogether, these 5 drivers gives us strong confidence in our ability to deliver sustainable, profitable growth and position eToro as the global broker of choice.

Lastly, we announced today a $150 million share repurchase program, underscoring our confidence in eToro's long-term growth prospects and our continued commitment to delivering value for shareholders. We believe that our stock is undervalued. And given our significant cash generation, we have the flexibility to buy back shares. Our strong cash position also gives us the ability to consider M&A opportunities to drive inorganic growth. We're evaluating a range of opportunities, though we will remain disciplined in any transaction we pursue.

In some, this quarter's results and KPIs for October clearly demonstrated that our strategy is working. We're achieving double-digit growth in organic funded accounts, significantly increasing our assets under administration, expanding net contribution and adjusted EBITDA margins and doing so while entering new markets and launching new products that strengthen our leadership for the future.

With strong execution, financial discipline and a relentless focus on innovation, we believe we're very well positioned to drive long-term value, and we're just getting started. With that, I will pass now along the call to Meron, our CFO, to discuss our financial results.

Thank you, Yoni. As Yoni mentioned, we are very pleased with our third quarter results. Third quarter net contribution grew 28% year-over-year to $250 million and adjusted EBITDA grew 43% year-over-year to $78 million. In line with our focus on diversified, profitable revenue growth, our adjusted EBITDA margin was 36%, expanding 370 basis points from a year ago. These results are consistent with our view that our long-term adjusted EBITDA margins will increase from these levels.

Our momentum has accelerated in the third quarter. Assets added administration for the quarter increased 76% year-over-year to a record of $20.8 billion, while our funded accounts grew 16% year-over-year to $3.73 million. The growth was driven by strong user acquisition and retention efforts and ongoing disciplined marketing.

Let's take a closer look at our third quarter financials by business plans compared to a year ago. Our net trading contribution from crypto grew 229% year-over-year to $56 million, which was largely driven by higher invested amount per trade and increased crypto activity, especially in the month of July and August. Our net trading contribution from capital markets, equities, commodities and currencies declined 21% year-over-year to $73 million as investors shifted activity between crypto and capital markets. The 15% rise in the number of trades was driven by strong momentum across Copy Trading with record inflows into Copy, a clear reflection of growing customer engagement and platform strength.

Net interest income contributed $62 million, up 44% year-over-year, largely driven by a 52% increase in higher interest-earning assets due to an increase in customers' cash deposits, customers' margin book, staking and corporate cash. eToro money contribution grew 50% year-over-year to $21 million, largely driven by an increase in total money transfers.

In the third quarter, adjusted OpEx was $137 million, flat quarter-on-quarter. Our adjusted selling and marketing expense was $47 million or 22% of net contribution. Our business model provides us with flexibility in our selling and marketing expense, where approximately 70% of our expense is dynamic.

Adjusted R&D and G&A and operating expenses were $36 million and $54 million, respectively. Our adjusted diluted EPS for the quarter was $0.60 compared to $0.51 in the third quarter of 2024.

Moving to our balance sheet. We ended the quarter with $1.2 billion in cash, cash equivalents and short-term investments and generated $57 million in free cash flow from operations.

Now let me share a few comments on fourth quarter trends. As part as our quarterly results today, we also released our October monthly KPIs. Consistent with our commitment to greater transparency and enhanced disclosure, we will now begin publishing KPIs on a monthly basis. We've also made a detailed spreadsheet available on our website, which includes historical monthly data to help investors better track our performance over time. Our goal is to provide the investment community with the information and tools needed to more clearly understand, model and evaluate our business.

The month of October continues the strength that we saw in Q3. Our capital markets and crypto businesses saw significant year-over-year growth in both total number of trades and invested demand per trade. Assets under administration was $20.5 billion, up 72% year-over-year and funded accounts were [ 3.76% ], up 17% year-over-year.

To summarize, we are very pleased with our strong Q3 performance and positive momentum, and we believe we are well positioned to capture new opportunities, drive sustainable growth, and further strengthen eToro's leadership in global investing.

With that, Daniel, let's move to Q&A.

Thank you, Meron. The first question here comes from a list of questions that have been pre-submitted by our retail investors. This question is for Yoni. So eToro announced its new subscription offering. Can you comment on why eToro decided to launch the program? And what is the opportunity?

Sure. We've built the eToro Club program to provide great premium benefits including unique features, better service as well as discounts to various parts in eToro, as well as the card, the cash back and now the crypto cash back. The club originally was based only on the tiers of how much assets customers have, and we wanted to provide the same great benefits to people who want to subscribe to the new eToro subscription. This also consolidates to subscription models that we've had from acquisitions that we've done in the past, and we're very excited to see how the pickup is already to the new subscription model.

Thank you, Yoni. Operator?

[Operator Instructions] Our first question will be coming from Dan Fannon of Jefferies.

Wanted to talk about account growth. And so obviously, it's been good or quite strong. I was hoping you could talk about if there are regions or new markets that are contributing more and maybe the breakdown of that account growth here, not just for the quarter, but also October, if there's any more granularity, that would be helpful.

Sure. Meron?

Thank you, Dan. So with regards to our current growth, like organically, as we discussed in the past, we have achieved a double-digit growth. We've seen great results coming out of the cohort of clients that we are bringing, increasing the level of deposits on to the platform and increasing their level also of engagement with the platform. So overall, very good results.

With regards to geographic, we are not breaking down geographically, but I could definitely tell you that we are seeing early, but good signs coming out of the new regions that we launched in the -- recently and in the last few years as well as well as a significant strength coming from our core markets.

And we have seen also a very good increase in the size of accounts coming into eToro. So it's both new funded accounts growth and their first time deposit, which is a very good indicator to the future size of the accounts.

And our next question will be coming from Devin Ryan of Citizens.

A question on artificial intelligence implications here. So great to see 30% of club members engage with eToro. It'd be great to hear about anything you can share on kind of conversion uplift from doing research to actually trading and trade frequency. I know we're early days here, but I'm just trying to think about that. And then more broadly, taking a step back, just some of the other types of offerings you're planning to launch with artificial intelligence and just how you feel like that can maybe differentiate the eToro offering in the market?

Sure. So during our Pro Investor Summit about 2 weeks ago, we've actually announced our new tools, an AI studio for Pro investors to actually vibe code tools. Those tools include both new types of analysis that can actually look at their portfolio using AIs, look at other people's portfolio, using AI read our entire feed and create automated strategy. I think the biggest driver eventually of AI, and I started, I think I did my first automated trading strategy when I was about 16, 17 is the transition from just click to trade through the [indiscernible] to eventually running automated strategies, quantitative strategies of our users.

And what we've built is the ability for our Pro investors to actually build those apps, those strategies. It includes dashboards and analysis of how they generate their trades and then actually provide an app store, so all of our customers can access that. And we've seen some really amazing apps developed already by our pro investors. This is a quick example. We've had one of our pro investors actually creating the persona of Ward Buffet Benjamin Gram, and I think it was Kathy Wood basically ranking his stocks in his portfolio and suggesting how to rebalance the portfolio.

So I do believe AI One is an amazing tool for people who are not necessarily technical to actually bring in sort of their ideas on how to automate their strategies, how to make their strategies more professional on top of the eToro platform. And I think over time, that drives both high returns, so making our customers more successful and actually higher velocity of trades in eToro.

And our next question will be coming from Craig Siegenthaler of Bank of America.

Our question is on your strategic focus by geography. So please correct me if I'm wrong, but I see a company that is very focused on growth in the U.S., in Asia and maybe widely geographically as new markets. But eToro has leading share in Europe with some scale. And this market also looks a lot less competitive than the U.S. and Asia. So my question is, why not focus on your first-mover advantage in Europe, and continue to deepen our investor base here, especially given that there are less regulatory restrictions on your coffee charter model in Europe than in the U.S.?

Sure. So as we think of our growth strategy, first of all, we think of long-term growth, and we do want to build significant presence in the U.S. and in Asia. Nonetheless, on the day-to-day when we drive our marketing and most of our marketing is a data-driven performance marketing approach, we always look at basically the ratio between CAC to LTV. So when we have a strong region, and obviously, Europe -- some of our strongest regions in Europe, UAE, Australia as well, we're actually doubling down on growth there as well. So we are focused on growing the business through data-driven approach and make sure that where we see the highest return on investment, that's where we continuously grow and invest more. So we are definitely focused on maintaining our leadership in Europe in the retail brokerage industry.

And our next question will be coming from James Yaro of Goldman Sachs.

Could you help us think about the account growth algorithm here. What do you see as achievable for account growth going forward? Is it high single digits or double-digit account growth on a yearly basis? And then in the press release, you talked about net new accounts in the first 3 quarters being stronger than all of 2024, but maybe any ability to comment more narrowly on the 3Q 25 trends?

Sure. So first of all, strategically, we are aiming towards double-digit growth of funded accounts. We believe, again, PAUSE the total available market of new generations coming into the market, the market itself will grow in double digits, and we believe we can outpace the market growth in all of our -- both existing strong regions in Europe and beyond as well as obviously new regions such as the U.S.

The comment in the press release, I do believe, was regarding the U.S., which post IPO, we actually started basically revamping both our product strategy in the U.S., bringing all of eToro's global products into the U.S., including now more than 100 crypto assets staking that was launched in the U.S. as well as very excited about launching CopyTrader now in the U.S. So we do expect double-digit growth in funded accounts moving forward strategically across all regions.

And our next question will be Brett Knoblauch of Cantor Fitzgerald.

Maybe to one on the crypto side, it was a really strong quarter in terms of crypto volumes have been -- you guys bought outpaced global spot volumes by 2 1, if not more. Can you point to comment to that was maybe from what you did in the U.S. and had new tradable assets in the U.S. post outside of the U.S.

And then as a follow-up, I think ECC can be a bit below where we were expecting. Can you just talk about some dynamics at play within the DCC doing shorter as well?

Sure. So I'll cover a high level and then I'll let Meron talk a bit about the numbers in the quarter. But first of all, when you look at our numbers in the last 8 quarters, and you see that in the investor presentation, what we've seen over time is very clear. When one asset class is very strong, we see a shift towards the asset class from other asset classes. So every time crypto has a very strong momentum, we actually see the noncrypto revenues or capital markets revenue actually going down a bit. And then as crypto goes down, we see capital markets significantly shift higher as well. And that is a dynamic that we did see in Q3.

In addition to that, within capital markets, there are 2 segments. There's currencies, commodities and indices basically future based and their stocks. And we did see more stock trading volumes increase in Q3, which led to the lower -- basically take rate this take rate on stock trading is lower than on commodities and they [indiscernible] FX.

Regarding the crypto market, of course, we've seen a couple of all times high during Q3 that always supports our crypto revenues and trading activities. In general, we do expect to continue and see a strong crypto market with a very, very positive U.S. administration towards the crypto industry and a lot of new product rollouts for eToro within the crypto industry with that a bit about the actual numbers in Q3.

Sure. So we can see definitely a sequential growth from Q2 in a very high pace, both on the number of trades as well as the invested amount. We saw elevated activity coming in July and August as we released our KPIs also early September about the summer. So very good traction coming out of the crypto activities of customers in the summer. We did see a slight reduction in that in September, but remains at the same level also in October. We're very happy about what we see in the industry.

And in general, as it goes to become more and more mainstream, we'll see the number of trades and the number of customers tapping into crypto growing. And together with that, our revenues as well.

Our next question will be coming from Chris Allen of Citi.

Maybe you could talk about capital allocation priorities here. You announced the buyback this morning, make some sense with a lot of exploration now, but you've also talked in the past about looking at inorganic growth opportunities, particularly in the U.S. to build it out. So help us think about the different levers here from a capital allocation perspective.

Sure. So first of all, we've added a significant amount of cash flow already this year. So our balance sheet grew from $1 billion to $1.8 billion in total with $1.2 billion in cash and short-term investments. So we have a very strong balance sheet to look both at buyback. And again, at these levels, we do believe the price is undervalued, which is why we're buying as well. And of course, leaves a significant amount of dry powder also to look at acquisitions. We have been talking to various potential targets. We're always excited to meet great teams of great founders with products that we believe add value to our customers and that our products will add value to their customers, and we're actively exploring these opportunities across different regions. And of course, as we announce them, you'll know what are the actual targets.

And our next question will be coming from Bill Katz of TD Cowen.

This question coming back to your commentary about the longer-term opportunity for the prediction and the event market. Just wondering if you could maybe lay out your pathway of like how you get there. Is this an organic opportunity? Is it inorganic? And then within that, I was just wondering if you could share your thoughts on just philosophically how you think about the sports or gambling opportunity within that?

Sure. So prediction markets, we're looking at basically both alternatives. So first of all, we've launched futures in Europe and the future rails that we've launched in Europe are the same rails that eventually enable basically to trade prediction markets in the U.S. as well. In addition, we are launching our crypto wallet, which will enable our customers to engage with on chain prediction markets such as Poly Chain and others. So we're actually going towards both of those directions.

We do believe that prediction markets on financial events, on geopolitics, on economic events have to create significant value and people thinking about their trading strategies or hedging what they want to do and that initially will be our focus to help our customers, basically find those financial opportunities that are related to their portfolios.

Our next question will be coming from Alex Kramm of UBS.

Just on Copytrade in the U.S., I know it's super early, but maybe you can talk a little bit about [Audio Gap] how you're looking to scale it in terms of marketing, you're leaning in. I think you have 300,000 roughly accounts in the U.S. I think you said earlier, CopyTrader globally has 1/3 or so of your clients have uptake there. So just how should we be thinking about the opportunity and how quickly gain scale and if the third is kind of like a good target for the U.S. as well?

Sure. So our view holistically is always, as we enter new markets to roll out all of the products that we offer globally in that market. And of course, we look at the U.S. as a huge opportunity with now crypto back, taking back and Copy Trader now launch alongside stocks and options trading as well. And the way we look at each product that we release is an attachment of a customer. So a customer engaging with CopyTrader. What we see over time is the increase in both size of the wallet or share of wallet as well as over time, LTV increases significantly. So the way we view it is we continue basically to do what we do across the globe now here in the U.S., which is promoting the CopyTrader feature within the app, increase the attachment rate of Copy Trading, building gradually more and more great investors that in the U.S. people can copy.

And over time, we'll see that increasing LTV and enabling us to basically spend more or increase our tax in the marketing budget to bring in more users to the eToro platform. So it's all about bringing all of the products to our U.S. product strategy, then make sure that throughout the product, we create those attachment rates that increase the lifetime value and share of wallet of our customers here in the U.S., and that obviously leads to us scaling up our marketing strategy here in the U.S. in a profitable way.

And our next question will be coming from Jamie Friedman of Susquehanna International Group.

[indiscernible] ask first about funded accounts as well. [indiscernible].

Let's move to the next question, and then I'll come back if we can get a better connection with him.

Our next question will be coming from John Todaro of Needham.

Congrats here. I just wanted to follow up, and I'll make sure I heard it correctly. Would you guys look for kind of economic partnerships on production markets with like a telco poly market, and then if I could get kind of a second question. It sounds like there is some -- I don't know if you want to call it cannibalization intra-quarter between some of these trading products, as you mentioned, where crypto maybe goes up and some of the other markets go down a little bit. How do you eventually get around that where they kind of are all kind of up and up on -- in the same quarter?

Sure. So first of all, we are talking to [indiscernible] poly market. Obviously, the market leader is in prediction markets. And we are excited about exploring the path of our users to be able to trade prediction markets on financial events. On the -- sorry, do you want to take it?

Yes, the switching between the...

I'm not sure whether cannibalization is the right way to describe where customers inter-quarter trade different products. So over time, when you look at the growth of the net contribution of trading, both in crypto and capital markets, you see them growing over time, and we think it's a great opportunity for people to actually reshuffle or rebalance their portfolios. We've seen by this -- by the way, the same also between U.S. stocks and European stocks earlier this year as European stocks were very strong and a lot of our customers started buying basically defense stocks. We've seen, obviously, in the past, the same amping with [indiscernible]. Later, we've seen it with MIM coins.

So again, as we bring in more products to our customers, we expect constant rebalancing of customers between different assets. And actually, that's the strength of eToro versus pure crypto companies, which don't have stocks or significant capital markets, and it's a significant strength of eToro, the fact that we cover today 22 different global exchanges, so our customers can trade all of those different products, alongside, of course, both on-exchange and off-exchange derivatives like futures and options. So we feel that the fact that customers are trading in between the different assets that is a strength and something that we actually want to see with all of our customers.

And our next question comes from Brian Bedell of Deutsche Bank.

Maybe just to go back to copy trading, the mechanics of that in the U.S., in particular, I know there was some different regulatory regime in terms of being able to offer it with, I guess, the advisory component being a -- critical component of being able to be paid. Can you just go through the mechanics of how this is operating in the U.S. versus outside the U.S.? And if it's the same now or when you expect to have that aligned with how it works outside the U.S.? And any commentary on initial take-up. I know it's very early, of course.

Sure. So first of all, it's very early to look at take rates and engagement, but we have seen already people being copied and people are copying top investors here on the U.S. platform, which is great to see. Second on the mechanics. The mechanics are quite similar from how it operates. So you can actually -- when you copy an investor, it copies their entire portfolio into your portfolio in the amount you chose. So you copy somebody with $1,000, it fractionalize his entire account across stocks and crypto and it basically opens those trades in your account. And every time they trade and trade in your account at the same time, the same price and the same proportion.

So the mechanics of copying works the same here in the U.S. and outside the U.S., we are looking right now outside the U.S., we've actually just revamped our Pro investor program, which is around how do the Pro investors actually get paid here. We're still early stages. We'll be building that as well as we move towards next year.

The second copy product, which is our smart portfolios product, where our Global Chief Investment Office actually curates specific portfolios, about 120 different smart portfolios across different strategies. That part will fall under an RIA license, which we are in the process and expect that to launch in H1 next year.

And our next question will be coming from Dan Dolev of MIZ.

Congrats, guys. Great quarter, great October. I have a question on banking. A lot of fintech companies view thinking as the Holy Grail kind of, that's what everyone wants to do. So Yoni, Meron, like how do you guys view sort of like banking services globally in the U.S., et cetera, in terms of the long-term opportunity for eToro?

Sure. So I generally say everybody is looking at the concept of the super app, right? So we believe our core is actually helping our customers find data in alpha into their portfolio to generate over time, returns than to compound wealth over time. So our view comes more from our core expertise on trading in investing. What we've seen over time is basically expanding the business also into savings, the various pension schemes around the world where we have already launched U.K., Australia and France recently, including the now new launch of cash sizes in the U.K. And lastly, of course, neobanking.

And what we wanted to see and what we're seeing in our strategy is basically when we provide our customers the virtual bank account on eToro, interest rate that they can get on their local currency and the ability to convert easily FX from euro to dollars or pounds to dollars to efficiently trade also U.S. capital markets and then attach into that also the Visa debit card, we remove the need of a customer to actually take their money back to the bank.

So I think us as a financial super app, we're looking for customers to increase their share of wallet over time on eToro. We believe most of customer assets should be compounded towards capital markets in crypto markets and they should easily spend from that account without the need to actually take their money back into the bank. And we've seen that significantly improve basically attachment rates of customers, lifetime value of customers, which is why we're also providing great incentives at user Visa debit card with a 4% stock back.

So when you spend and we see a lot of our customers now posting on X when they're spending on a meal and then they get a 4% stock back into their portfolio. Again, why the stock back? Because we do believe that all of our customers would actually have most of their funds or the vast majority of their funds in capital markets and crypto markets, and that's the efficient way to compound wealth over time.

Great. Makes a lot of sense. Congrats again on a great quarter.

And our next question will come from Jamie Friedman of Susquehanna International Group.

Yoni, the press release indicates that the 16% growth in funded accounts was driven both by the user acquisition, but also the retention. I was hoping at a high level, you could unpack that those dimensions. And then if I could just sneak in another one, Meron. Can you remind us about the typical seasonality of the business as we build out our models?

Sure. So we currently don't break down win backs churn and retention, but we've been engaging significantly in going back into basically our database of funded accounts across time and making sure that they are kept up to date on all of the new product releases, whether it's, again, the debit card in Europe, whether it's futures trading, so or whether it's the new crypto wallet and the ability to use our crypto to buy stocks. So as we do that, we bring in also old customers into eToro sort of customers that churned in the past that are now joining back eToro for our new products. The second question, you can answer, Meron.

Yes. With regards to -- you touched about the breakdown, we do not provide it, but we can definitely see strong signs coming out of both the retention side as well as the acquisition as we aim -- as we discussed in the past, for a double-digit growth on the funded accounts on an annual basis.

Regarding seasonality, I would say, historically, we see strong Q1s and Q4s. It's mostly though related, I believe, to the market. So I would say we're enjoying usually seasons of the markets. And it seems, again, if I look at the last 3 years, Q1s and Q4s are usually good markets in both crypto and capital markets, but of course, we don't control the rain or the seasons.

Next question will be coming from Alex Kramm of UBS.

Just wanted a couple of follow-up questions. Hopefully, I didn't miss this earlier, but on the expense side, I think previously, it said flattish for the remainder of the year. Is that still right for the fourth quarter? And then just another housekeeping one on the interest income. I know there's a lot of moving pieces, but I think the implied rates -- interest rate actually went up quarter-over-quarter if you just use the interest earning assets. So again, I know there's a lot of things in there, but maybe just unpack what you're seeing on the interest income side?

Sure. I'll start on the first one, which was related to the expenses. So yes, definitely, we -- as we mentioned last quarter, we're aiming to keep our cost base the same quarter-on-quarter. And indeed, we came with a flat view. So we are roughly looking at staying within those lines also in Q4.

With regards to the -- what was the second question?

Second question, Daniel?

The interest income...

So we have seen like definitely, there is a decrease in the interest rate coming from the 2 rate cuts. But what we have witnessed in those periods is that actually customers balances in all different asset classes have actually grown. Now -- so even though there is a direct reduction expected in interest income. Over time, we do see those balances increase. And therefore, we should be able to grow also on the revenue, that also taking into consideration that customers are inclining when the interest rates are lower, to bring their assets more into a more riskier portfolios that will generate higher return for them than the lower interest rate in the market.

And we have no further questions. And for closing remarks, we'll bring it back to Daniel.

Thank you for attending our earnings call today. We're looking forward to seeing you at our upcoming investor conference during the quarter. These conferences are on our website that you can go see on the Investor Relations section. And thank you, and have a great day.

Thank you very much.

Thank you.

Thank you, everyone, for joining eToro's Second Quarter 2025 Earnings Call. My name is Daniel Amir, Head of Global Investor Relations. Here with me today are Yoni Assia, Founder and Chief Executive Officer; and Meron Shani, Chief Financial Officer. This morning at 7:00 a.m. Eastern Time, eToro released its second quarter 2025 results. In the Investors section of our website, you will find the earnings press release and presentation to accompany today's discussion.

This webcast is being recorded and will be available for replay in the Investors section of our website. Yoni and Meron will offer opening remarks and then open the webcast to Q&A. During the Q&A portion of the webcast, we will answer live questions from publishing research analysts, and we'll address the selection of the most up-voted questions previously submitted by eToro's shareholders.

As a reminder, today's webcast will contain forward-looking statements, which relate to our financial outlook and market positioning among other items. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from these expressed or implied in the forward-looking statements due to a variety of factors. These factors are discussed in more detail in the press release that we issued today and related earnings presentation and our filings with the SEC, including our prospectus dated May 13, 2025, as such factors may be updated from time to time in our filings with the SEC, which are or will be accessible on the SEC's website at www.sec.gov.

We do not undertake any obligation to update forward-looking statements. Throughout this webcast, we will also present and discuss non-GAAP financial measures. Reconciliation of our non-GAAP financial measures to their most directly comparable GAAP financial measures appear in today's earnings press release and presentation, which are available in the Investors section of our website.

And now I will turn the call over to Yoni, Founder and CEO.

Thank you, Daniel. And thank you to everyone joining us today for your interest in eToro, and welcome to our second quarter 2025 earnings call, our first earnings call as a public company.

After Meron and I conclude our prepared remarks, we'll open it up to analyst questions. Before sharing some highlights from our second quarter results, I would like to briefly introduce eToro for those of you who are new to our story. We founded eToro in 2007 with a vision of opening the global markets for everyone to trade and invest in a simple and transparent way. At that time, investing was largely the domain of traditional financial institutions catering to season investors with significant capital.

Retail investors face daunting barriers, complex platforms, high fees and a lack of educational resources. Our goal was to change that by using technology to level the playing field and create a platform that could empower millions to participate in the financial markets. Today, eToro provides a gateway to the global financial markets, offering a social and investment platform that empowers our users from around the world to trade, invest, save and spend in a way that suits their unique needs.

We've built a social investment network designed to provide users with educational resources and tools they need to grow their knowledge and wealth. We provide what retail investors around the world care about the most, simple access to the assets they want to invest in an intuitive and user-friendly mobile app and a trusted and transparent source for financial education and tools, including the ability to draw on the knowledge and insights of the top investors from all around the world.

On eToro's platform, users can invest in stocks for more than 20 different stock exchanges and trade over 130 different crypto assets alongside indices, commodities and currencies. We serve customers in 75 different countries and 20 different languages; users can trade directly invest in a portfolio or user patented copy trader technology to replicate the investment strategies of the top investors on our platform. eToro Money, our money management offering enables our customers to have a virtual bank account and a debit card and manage multiple balances as they trade both global and local stocks.

We also provide many valuable investment tools and services, including sophisticated charting and AI-powered tools. We've built a track record for identifying and adopting key investment and technology trends. We've been a pioneer in the crypto space since 2011 due to my own passion around blockchain technology. Crypto's underlying principles of transparency, security and inclusivity resonate deeply with eToro's mission. As one of the first global investment platforms to embrace crypto, we've helped millions of investors access this new market in a safe way. As technology continues to evolve so does our ability to create more inclusive financial systems, artificial intelligence holds immense potential to revolutionize investing.

Editorial, we're already using AI to provide users with personalized insights, identify trends and optimize their strategies, but this is just the beginning. We believe that the next wave of financial innovation will be driven by collaboration between people and technology. Editorial, we're committed to staying at the forefront of this transformation using technology to enhance the investing experience while keeping the human element of its core. Our goal is to create a platform that not only meets the needs of today's investors but also anticipates the opportunities and challenges of tomorrow.

Now let's move to the quarter results. We are very pleased with our strong second quarter results, which reflect the continued success of our goal to be the leading trading investment platform. Our net contribution for the quarter increased 26% year-over-year to $210 million, and our adjusted EBITDA increased 31% year-over-year to $72 million, while improving operating margins. In terms of geographic diversification, we recently expanded our global footprint, activating our license in Singapore. This milestone positions eToro to serve Asia's growing investor base from a key financial center as we continue to grow our global presence.

Over the past quarter, we also made real progress in advancing our product development across our 4 strategic pillars: Trading, Investing, Wealth Management and Neo-banking, delivering innovative features that strengthen user engagement and expand our addressable market. In Trading, we continue to enhance the trading experience by expanding access and flexibility for our users. We announced the expansion of 24/5 trading and on exchange futures, and we intend to expand this offering to provide our users around the world with the flexibility to trade on their own time.

The ongoing efforts to remove boundaries in trading and financial markets underpins our interest and focus in tokenization. Back in 2012, we wrote the colored coins white paper, a method for representing and managing real-world assets on top of the Bitcoin blockchain. We first offered tokenized assets back in 2019, following our acquisition of Smart contract start-up Firmo. Building on this heritage, we're launching tokenized stocks. We believe that blockchain technology will facilitate the greatest ever transfer of wealth as traditional assets move on to the blockchain.

As a platform that bridges between traditional trading and a blockchain-powered future, we believe we're very well positioned to participate in the transformation of financial markets and grow our business. In the U.S. recent regulatory development around crypto represents an important milestone and a great tailwind for our U.S. expansion.

As a result, in recent months, we've significantly expanded our crypto offering for our U.S. users and now offer the ability to trade over 100 different crypto assets. We'll continue to add more crypto assets and more features for our U.S. consumers and will be soon launching staking as well.

Turning to Investing. We continue to introduce innovative solutions that make investing simpler, smarter and more personalized. This quarter, we rolled out a suite of our Alpha Portfolios as part of our Smart Portfolio offering. These AI-powered long/short strategies are built using advanced analysis of multiple sources of data, including eToro's proprietary retail trading data. This gives our users access to exclusive quantitative trading strategies typically used by hedge funds and institutional investors only.

In addition, we also announced a partnership with Franklin Templeton to launch new portfolios focused on long-term target date investing. These efforts broaden our investment offering and personalized user experience to help our customers achieve their financial goals at each stage of their financial journey. As part of our efforts to provide a global platform with a localized experience, we've expanded our Wealth Management offering to provide access to long-term tax advances, savings and investment solutions.

In the second quarter, we expanded our savings from Australia and the U.K. to also France, launching retirement and life insurance products to give our users more ways to invest in the future. Additionally, we rolled out recurring investments and saving plans in crypto and stocks in the U.K., Europe and the UAE, enabling our users to automate their investments in making disciplined investing easier and more accessible.

Moving to our Neo-banking solutions. We recently launched the eToro Money card across Europe. This card turns everyday spending into investing by offering a 4% stock back reward on every purchase alongside premium benefits.

Before I conclude, I want to also address the topic of harnessing AI technology. eToro has been leveraging artificial intelligence for many years, but we believe that we are now at an inflection point. We are harnessing AI to redefine social investing. We're rolling out a suite of powerful AI-driven tools that empower popular investors with sophisticated professional capabilities.

With these tools, we're not democratizing only access to the markets and data. We're now democratizing quantitative trading and investing. Community is at the heart of everything we do, and these AI-powered tools will enable our popular investors to build apps and trading strategies that combine social trading with advanced execution capabilities, equipping them to innovate like the top hedge funds around the world and scale their impact within the eToro ecosystem.

In line with this vision, we recently launched Tori, our powerful AIS system, transforming how users interact with eToro, answering questions, surfacing personalized insights, guiding them into the platform and helping them make better decisions, all through natural conversation. Tori helps users make smarter decisions and navigate our platform based on the advanced models out there, including recently GPT-5. We truly believe that AI tools are a game changer for investors. I suggest you all try that.

Together, these product innovations and enhancements reflect our focus on empowering our users from around the world to trade, invest, save and spend in a way that suits their needs. We feel great about our product development velocity that's been accelerated by AI and the business result it is driving.

Looking ahead, I'm excited about the opportunities in front of us, and we are well positioned to execute on our growth initiatives to drive sustainable long-term growth.

With that, I will pass the call to Meron to discuss our financial results for the quarter.

Thank you, Yoni. Before we begin with an overview of this quarter's financial results, I would like to share some insights on eToro's financial philosophy. Our philosophy is focus on sustainable, profitable revenue growth, which is supported by 3 pillars.

First, diversification of revenue streams to complement transaction-based revenue, with a focus on growth in asset-based revenues, expansion of our eToro Money offering and the introduction of new revenue streams. Second, strategic investment to support growth in funded accounts and increase our share of the user's wallet, as we focus on product innovation, organic and inorganic growth and a dynamic approach to sales and marketing operations.

And third, disciplined cost management with a focus on streamlining operations, optimizing costs and improving efficiency across the organization, using technology, including leveraging AI by automating routine tasks optimizing resource allocation and enabling faster data-driven decision-making. We believe this financial philosophy will deliver best-in-class financial results and an increase in shareholder value.

Now turning to the quarter results. As Yoni mentioned, we are very pleased with our second quarter results, our first full quarter as a public company. Second quarter net contribution grew 26% year-over-year to $210 million and adjusted EBITDA grew 31% year-over-year to $72 million. In line with our focus on diversified profitable revenue growth, our adjusted EBITDA margin was 34%, expanding 140 basis points from a year ago. As our first quarter momentum continued into the second quarter, AUA for the quarter increased 54% year-over-year to $7.5 billion, while our funded accounts grew 14% year-over-year to $3.63 million. The growth was driven by customer acquisition efforts, supported by strong customer retention.

Let's take a closer look at our second quarter financials by segment compared to a year ago. Our net trading contribution from equities, commodities and currencies grew 37% year-over-year to $114 million as invested amount per trade grew 54% year-over-year due to elevated levels of trading activity in the capital markets during the quarter, especially in the month of April. Our net contribution from crypto grew 34% year-over-year to $27 million and was largely driven by higher invested amount per trade, partially offset by lower crypto activity, in line with the overall market.

Interest-earning assets contributed $46 million or up 1% year-over-year, largely driven by higher interest-earning assets that was partially offset by lower interest rates. Our eToro Money contribution grew 17% year-over-year to $18 million, largely driven by an increase in total money transfers. In the second quarter, adjusted OpEx was $138 million, our adjusted selling and marketing expense was $51 million or 24% of net contribution.

Our business model provides us flexibility in our selling and marketing expenses, where approximately 70% of our expense is dynamic. Our historical performance has proven that our marketing expense has consistently returned positive ROI within the first year of the investment and sustained commission growth over time. Adjusted R&D and G&A expenses were $36 million and $51 million, respectively. Our adjusted EPS for the quarter was $0.56 compared to $0.51 in the second quarter of 2024.

Moving to our balance sheet. We ended the quarter with $1.2 billion in cash, cash equivalents and short-term investment. And for the quarter, we generated $61 million in free cash flow from operations. During the quarter, we also announced a new credit facility of $250 million to increase liquidity optionality.

Now let me make some comments on the third quarter trends. Through the first month of the quarter, crypto activity has been higher than second quarter levels, while capital markets activity has returned to a more normalized level following the elevated levels of the second quarter. We are very pleased with the first quarterly financial results as a public company. This sets the foundation for future growth as we focus on increasing shareholder value.

With that, Daniel, let's move to Q&A.

Thank you, Meron. So okay, the first question in our Q&A session today comes from a list of questions that have been pre-submitted by our retail investor community. So Yoni, this question is for you. When does eToro plan to provide calls and puts options to European investors?

Thank you, Daniel. Our product rollout strategy is to continuously launch the products where we see the highest potential product market fit and revenue opportunities for eToro. With options, for example, we started in the U.S., we expanded into the U.K., and we plan to expand over the next 12 months also to Europe, UAE, Singapore and Australia. The same with futures that we recently launched in Europe and continue to expand it across the globe and with all of our products across the globe eventually offer to our customers in all of our regulated regions.

Thank you, Yoni. So operator, we'll now open it up to questions from our institutional analysts. Can you provide instructions.

[Operator Instructions] Our first question will come from the line of Dan Fannon with Jefferies.

I was hoping you guys could expand a bit upon just the cadence throughout the quarter since we don't get monthlies. I was hoping just to get a little more color. Obviously, April quite active from a macro perspective. So if you could talk to the change in environment as the quarter progressed? And then maybe expand a bit more upon July in terms of how that contradicts versus what we saw in the first quarter.

Sure. I'll let Meron answer that.

So obviously, as we saw with the market following the tariff announcement in April, we saw elevated trading activity of our customers on the platform. We saw invested amount growing per trade of 54%. We saw invested demand growing in general. And the Q2 revenue per trade also growing 54%. So pretty much aligned with the invested amount. What we saw is that those numbers normalize throughout July, as we moved from the spike in April and normalized towards the end of the second quarter as well. When you talk about crypto, we saw lower levels in the second quarter -- normalized also with the market and also taken into consideration the fact that our customers were actively trading on the capital markets, they diverted from trading on crypto. When we come to July, what we see on the crypto side is that customers following the outgoing Altcoin rally as well, they moved to a higher pace of trading than quarter 2.

[Operator Instructions] Our next question is going to come from the line of Devin Ryan with Citizens.

A question to start here just on kind of digging into the opportunity on the back of the launch of the tokenized stocks recently. And as we think about all the other types of assets that are going to come on chain over time, it would be great to just double-click into how you would quantify the revenue opportunity for eToro. How fast do you think other asset classes are going to move on chain, assets that are currently not available to eToro's customers? And then just the overall kind of bigger picture opportunity for this long-term because it seems like right now, it's stocked but a lot of other assets that are currently not available to eToro customers will be available. So I'd love to dig into that.

Sure. So we've been very early on for the concept of tokenizing real-world assets starting with the white paper of colored coins that we wrote together with Vitalik Buterin in 2012. We believe that the digitization and tokenization of assets is a very significant process that will take time, but we do expect $100 trillion of assets over the next 20 years to move on chain, now quoting the SEC Chairman talking about moving U.S. capital markets on chain. The biggest potential revenue opportunities there are, one, increasing the number of assets on eToro. We already support stocks from 22 different capital markets as tokenization happens across stock markets, bond markets, potentially real estate, people are talking about private shares.

And I do believe we'll see that significantly scaling up over the next sort of midterm of the next 3 years. Everybody are waiting, and we're waiting for regulatory clarity. So it was very hard to think of tokenizing real-world assets and securities without clarity on regulation with MiCA regulation now in Europe, that's a possibility, and we're talking to many participants in the market about various opportunities of tokenizing assets, as you probably have seen also the largest asset managers in the world are all involved in how can they tokenize their potential funds and products and then obviously list it on platforms like eToro to introduce them to retail investors. So we do see a very large opportunity, both in scaling up the investment universe in eToro over time as well as opening all those assets to 24/7 trading.

So we just recently launched both 24/5 trading and futures, which trade almost 24/5 and we do believe that by tokenizing assets, that will expand also liquidity over the weekend and will eventually enable customers to both transfer assets, 24/7, like crypto assets are transferable 24/7 and to actually trade on assets 24/7 continuously.

Our next question will be from the line of Bill Katz with TD Cowen.

Just maybe a couple of questions embedded. So first question would be, could you give us an update on any progress, you're making for a CopyTrader opportunity into the U.S.? And then secondly, just given all of the growth vectors in front of you, including what you laid out on the global webinar, how should we be thinking about marketing spend either in an absolute sense or as a percentage of contribution.

Sure. So I'll take the first question or maybe you can start actually with the second question, and I'll jump to the first question.

Sure. So when we think about marketing spend, we think about it as a percentage of net contribution, and we are normally around the 20% mark of net contribution investing into the growth coming out of new acquired customers.

Yes. Can you repeat again the first question just for clarity.

Yes, if you could just give us an update on any progress you're making on introducing CopyTrader into the U.S.

So as we announced, we've been able to significantly scale the number of assets on the platform from 3 crypto assets for U.S. customers to now 100 crypto assets in the U.S. We are also planning to introduce staking soon with clarity from U.S. regulators across staking, and we plan to launch a CopyTrader for U.S. customers on crypto and stocks later this year.

[Operator Instructions] Our next question will come from the line of Chris Allen with Citi.

I wanted to ask about account growth dynamics from about 8% year-to-date. Maybe you can give us a color on regional account growth, where you're seeing the fastest growth and best opportunities here.

So we manage that growth on a global scale. We see some growing regions for us, like we launched a couple of years back in UAE, and we see growth coming from there. But altogether, we see the growth coming from a very, call it, a balanced across the different regions that we are managing. There's no significant player in the regions that is significantly higher or lower than any of the others.

Our next question will come from the line of Craig Siegenthaler with Bank of America.

So my question is a simple one on growth. Funded account growth was 1.4% quarter-over-quarter. I'm wondering, is this a good go-forward organic run rate? Were there any unusual factors in the quarter, especially given that sharp correction we had in April. And I know M&A has aided your account growth rate historically, but I wanted your perspective on the organic trend.

Thank you. So we have proven in the last few years that we are able to grow our funded accounts on a double digits on a yearly basis. We did see a slower quarter in terms of the growth. However, I could definitely say that we see a better quality of customers, loading to the platform. They bring more share of their wallet onto the platform. And we could also note about the average account size that grew 34% year-on-year, thanks to customers loading more of their share of the wallet as well, as well as market gains that they got.

And also to say that in terms of marketing, as I mentioned before, we manage it as a percentage of net contribution, but we also manage it to bring the best quality. So we have the ability to be very flexible in how we invest. 70% of the investment is dynamic, so we could upscale and low scale as we see right coming out of the results, we are very comfortable about our ability to continue and deliver growth and continue to deliver great ROI returning the investment within the first year and growing over time.

When we come to growth of the funded accounts also in the future, we are seeing good numbers coming out of rolling out more products that serves as a good product market fit, as Yoni mentioned, that will drive not only better engagement of existing customers but also drive more growth of funded accounts.

[Operator Instructions] Our next question will come from the line of James Yaro with Goldman Sachs.

I just wanted to touch quickly on the net contribution per trade across both ECC as well as crypto. I think on the ECC side, it was up about 25% sequentially and crypto was up about 30%. Could you maybe just talk a little bit about the drivers of that and perhaps the outlook for take rates going forward?

Thank you. So the main correlation that we see, and we quoted also on the percentage is the growth of the invested amount per trade that grew 54% year-over-year and 20-plus percent also sequentially. So this is more or less aligned on the ECC side of how we see that the invested amount has elevated also the revenue per trade. We did launch introduce ticket fees outside of the U.S. and U.K., and that increased the invested amount and reduce some smaller transactions.

So there's some balancing of -- slightly reduced number of trades but comes with higher invested amount per trade. When we look into crypto, this is touched immediately to the invested amount per trade as we charge on a percentage basis. We saw slightly better ability to internalize our volume also in the second quarter, which resulted with slightly uptick in terms of the revenue per trade, but altogether, the growth of the invested amount is what drives the majority of that trend.

[Operator Instructions] Our next question is going to be from the line of Brian Vieten with Needham.

With the new licensing in hand, can you talk about the glide path for new funded accounts growth in the APAC region more near term and then aspirationally. And then just on that, can you talk about the geographic composition of the 40 million registered users. Is that in line with the funded accounts proportionally?

So historically, there is a proportion between the total registered users or funded accounts. It's worth noting that the total registered users is in a cumulative number since 2007. So it includes basically everybody who registered since then, not only the monthly active users of the virtual accounts and in our more mature growth markets, Europe, U.K., Australia, we are seeing obviously higher conversion rates than basically cross-border markets where we might see a lot of registrations that don't necessarily convert into funded accounts.

When we think of our growth opportunities, we definitely think that both Asia now through Singapore and the U.S. represents significant opportunities to grow as a percentage of the business over time. Right now, U.K. and Europe represents roughly 65% with Australia being a part of, of course, our strategy in Asia. But as we doubled down on our high potential growth markets, Asia, Latin America and of course, the U.S., we do believe represents a higher potential growth over the next couple of years.

[Operator Instructions] Our next question comes from the line of Joseph Vafi with Canaccord.

Congrats here on your first public earnings quarter. Just thought maybe we drill down a little bit more on the U.S. strategy now with more cryptos available, and it sounds like the platform is a little more robust. And with CopyTrader potentially coming, just how should we think about marketing spend in the U.S. moving forward versus where it's been and maybe an update if perhaps M&A still makes sense in the U.S. to kind of grow the platform materially here over the short term?

Sure. So as we've said during our road show, during the sort of pre-IPO era in the last administration, we took a step back from our growth strategy in the U.S. since the IPO, and obviously, very excited to see the new administration and SEC share talking about innovation in public markets and tokenization and getting capital markets on chain, which we believe we're positioned in a very good place to take part of that opportunity in the U.S.

So we'll continue to expand all of our products right now. I'd say about only 50% of our products that are operating globally or offered in the U.S. We do plan to aggressively, basically pursue and drive all of our product expansion into the U.S. in the next 12 to 18 months, including CopyTrader and looking at all of the additional global products that we have. And as we expand and add new products, we expect to see higher lifetime value, higher -- obviously, product market fit, which means more organic growth. And on top of that, we'll scale marketing budget as well.

So we are looking to invest more in the U.S. market, and we're looking to do this in a disciplined approach where we're looking at the investments part of the revenue potential and existing revenues in the U.S. We are looking and are opportunistic about M&A opportunities in the U.S. We believe there's a huge opportunity right now of many great fintech companies that have a great product and team in the U.S. but are subscale to be independent.

And we are also there thinking of doing this, obviously, in a disciplined approach looking at basically how this adds to the total KPIs and the growth opportunities in the U.S.

Our next question comes from the line of Brett Knoblauch with Cantor Fitzgerald.

Maybe just more broadly on kind of crypto trends during the quarter. Volume kind of declined, I would say, much more than global spot volumes. So anything to read to from that? And then as a follow-up on crypto in the U.S. meaningfully expanded the number of assets available to trade for U.S. users. Can you talk about the initial kind of uptake you're seeing as you broaden the U.S. breadth there?

Sure. So as Meron mentioned before, as a platform, which is actually quite uniquely positioned where if you look at the assets of our customers, roughly 50%, 50% stocks and crypto since we've been early into both. When we see exciting markets and capital markets as we've seen in April, we do see a transition of our active traders who are actively trading both crypto and stocks as they transition other accounts within Q1. We've actually seen our customers excited about European markets and the European defense stocks or that was the version of meme stocks in April, we saw a lot of our retail investors actually buying the deep, actually participate in capital markets, buying stocks that sometimes are related to crypto markets like NVIDIA and Tesla and others.

So we did see that cycle of increased basically capital markets versus crypto, obviously, coming to July, where we saw all-time high, not only in Bitcoin, but also a significant scale up in a lot of Altcoin activity generally. Since the IPO, just under roughly 3 months, we've managed to add a significant amount of crypto assets now 100 crypto assets actually reaching this week, and we have seen significant growth to our U.S. business, in the U.S. after those additions, obviously also driven by very good crypto markets environment in July.

Our next question will come from the line of Matthew O'Neill with FT Partners.

Share the congrats to the public markets that others have mentioned. I was just curious, how you guys are seeing your users utilizing stable claims. I feel like there's probably some interesting insights given the geographic diversity of your user base and would just love to kind of hear some anecdotes around that.

And then separately, I know it was asked, but maybe you could just dig a tiny bit deeper into the increase in the take rate on crypto. Was that driven by the kind of outsized activity we saw in April, mix shift, pricing dynamics, would just be helpful to kind of understand the drivers there.

Sure. So first of all, regarding the crypto take rate, then we charge 100 basis points. We actually recently launched also crypto fees that are separated from the spread, improving significantly both transparency of fees and understanding of users. Anything to add to that, Meron?

No. I think like we had a better ability to internalize some of the volumes. So that increased the take rate a bit in the second quarter, saying that this is still within the range that we offered in the history as well about our ability to enjoy this take rate.

Regarding stable coins, we just recently launched we're receiving the MiCA license in Europe, basically the ability to deposit crypto into eToro and then use crypto assets to buy stocks and invest in capital markets we're actually quite conservative in the past as there wasn't from our point of view, sufficient regulatory clarity. So we did notable customers to actually deposit stable coins or crypto into the eToro, into trading platform.

So with the new launch of enabling our customers across Europe, U.K. and expanding that to all of our global operations to now deposit crypto assets, including stable coins, we do believe this opens up a new user audience, which are the crypto-native user audience. So our platform originally is more capital markets rather than crypto. So we started before crypto and most of the activity on eToro historically was people funding their accounts, of course, with fiat money with either local currency in dollars and then trading crypto assets or stocks with it.

Now as we double down on crypto as well, we're now enabling that crypto to fiat. And so we are talking to some of the stable coin issuers to understand the various opportunities of partnerships there as well.

Our next question will come from the line of Dan Dolev with Mizuho.

Congratulations on a great first quarter with the public call. Really quick question on Tori. I've noticed that you're using that. Just wanted to ask a broader question about sort of AI use in investing for your funded accounts, and how they're perceiving it, how they're using it? And what are you seeing in the future, in terms of the use of Tori and AI for investing?

Sure. So first of all, I have to say I'm super excited about seeing the developments in AI, both from accelerating our ability to deliver products to making our organization more efficient. I myself now has an actual coding platform and writing things with AI on top of our APIs.

We just recently launched a very exciting announcements are Tori, the AI analyst, which is able to actually just 30 minutes ago, I checked, what's the AI's view on eToro's quarterly financials. So immediately basically see what's happening in the markets, analyze them. It's, by the way, a multi-model, so we can actually very easily switch in the back end, the different models. We already started testing with users GPT-5 as well as Gemini 2.5 and Grok, so very excited about the opportunities of -- on in investing.

And we've launched our API that's powered by AI and the marketplace to enable actually our popular investors to actually build apps on top of the eToro platform. I think this brings us to a future where retail investors can actually become significantly more sophisticated with their tools. They can basically build quantitative strategies related also, of course, to the rise of digital assets and crypto assets and 24/7 trading, even myself. I've been passionate about capital markets trading, investing my entire life, but I never had a 24/7 AI agent trading in my account.

So I have no doubt that these AI tools will help our customers both increase their velocity and engagement on the platform and become significantly more successful investors and more sophisticated investors with these tools at their hands. So this is, I think, still early days, but with a huge opportunity ahead of empowering retail investors with tools that just 1 or 2 years ago were really reserve just to the top quantitative hedge funds in the world.

Our next question is from the line of Craig Siegenthaler with Bank of America.

So my question is of the $114 million of net trading income from equities, commodities and currencies, I'm curious what was the percentage mix from CFD? And how has that mix been trending over the last year?

So as we mentioned before, we don't break it down really by the nature of the transaction, the type of the transaction, but we look into it more on a broader way of what is the asset class that is coming from. We offer both CFDs and futures on equities and commodities. So we don't really segregate the results by then. I think we mentioned in the past as well that we are aiming to get to a 20% mark within the 12, 18 months ahead. So that's still where we are aiming to get.

Our last question is going to come from the line of Charles Bennett with Rothschild & Co Redburn.

Just a follow-up, if I can, on the CopyTrader product in the U.S. Is there any update regarding licensing of U.S.-based popular investors? Are there any regulatory teething issues there? Are you expecting this to roll out pretty seamlessly?

We do expect, as I mentioned before, to roll it out this year as we also spoke during the road show that we believe that the CopyTrader technology could work and be translated into the U.S. markets relatively easily, and we've basically made more of a risk decision and not to launch it prior to the IPO regarding Smart Portfolios, we are working towards an RIA license to be able to launch our RIA -- our Smart Portfolios, which are basically our own strategies that we developed 120 Smart Portfolios from our customers.

Outside the U.S., we are seeing record high assets under Copy, so very excited about launching it later this year in the U.S.

So that was the last question, operator?

Yes, sir. I'm showing no further questions at this time.

Thank you very much. So quickly closing remarks, as we close our first quarter earnings call as a public company, it's clear we are entering a new era for both eToro and in the investing world at large. The future of investing will be defined by AI-powered intelligence that can process data at unprecedented speed, uncover insights, hidden in plain sight and personalize the investing journey for every user.

Editorial, we're harnessing these technologies to empower our community, enabling smarter decision market -- smarter decisions, more adaptive quantitative strategies and building their own apps now on top of eToro. Alongside this transformation, the global financial landscape is embracing digital assets as a core pillar of diversified portfolios from bitcoin and crypto assets to tokenized real-world assets.

The boundaries between traditional and digital markets are dissolving. eToro has set at this intersection since 2013, giving investors seamless access to both world with trust, simplicity and scale. We believe the combination of AI-driven investing and the continued rise of digital assets will reshape wealth creation for the next generation and we are committed to leading this change not just as a platform but as a global community, where anyone can trade and invest in a simple and transparent way. This is just the beginning; the age of intelligent investing is here and eToro is ready to lead it.

Thank you, Grok, for just writing this, and thank you all of us for joining us.

This concludes today's conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day.