Story Stocks^®

eToro Group (ETOR) is surging higher following its 4Q25 earnings report, as results handily cleared a very low bar and were reinforced by the announcement of a $100 mln increase to its share repurchase authorization, lifting the total program to $250 mln. Sentiment was deeply bearish heading into the print, with the stock down roughly 47% from its $52/share IPO price and trading near lows after weak Q4 results from peers like Robinhood Markets (HOOD) and Coinbase Global (COIN) further dampened expectations. Against that backdrop, ETOR’s diversified, multi-asset performance and resilient KPIs came as a clear positive surprise.

• Assets Under Management rose 11% yr/yr to $18.5 bln, driven by record net deposits and improving customer retention, highlighting continued engagement even amid a soft crypto backdrop.
• Funded accounts increased 9% yr/yr to 3.81 mln, reflecting disciplined, data-driven marketing and strong cohort economics, with newer cohorts showing faster payback and higher lifetime value.
• Capital markets trading (equities, commodities, FX) surged, with net trading contribution up 43% yr/yr, as users rotated away from crypto and into commodities like gold and silver amid heightened volatility.
• AI-powered tools remain a key differentiator, with ETOR embedding AI across product development and user experience, while preparing to launch new apps ahead of the rollout of its eToro App Store, which already has nearly 1,000 third-party and community-built apps in the pipeline.
• January metrics pointed to accelerating momentum: funded accounts climbed to 3.85 mln (+9% yr/yr), total trades jumped to 74 mln (+55%), driven by strong equity and commodity activity.
• Crypto activity, however, fell sharply, with crypto trades down about 50% yr/yr, reflecting lower volatility, reduced investor demand per trade, and tougher comps from last year’s crypto-heavy environment  -- underscoring the importance of ETOR’s diversified model.

Briefing.com Analyst Insight

Investors are reacting positively because ETOR delivered proof that its multi-asset strategy can generate growth and strong profitability even during crypto downturns. Solid AUM and funded account growth, accelerating January engagement, and disciplined cost control reinforced confidence in the durability of the business model. The expanded buyback authorization signals management’s confidence in long-term value creation and balance sheet strength, helping close the gap between operating performance and a deeply discounted stock price. With AI-driven innovation, new apps, and an improving engagement mix skewed toward higher-quality capital markets activity, investors appear increasingly focused on ETOR’s forward growth trajectory rather than backward-looking crypto weakness.