EToro Q1 crypto revenue falls to $2.1B from $3.5B as trading activity cools

EToro’s cryptoasset business just hit a speed bump. The social trading platform reported Q1 crypto-related cost of revenue of roughly $2.1B, down from $3.5B during the same period last year, a decline of about 40% as trading volumes softened across the industry.

The drop reflects a broader cooling in retail crypto speculation following the bullish phase that characterized much of late 2025.

What happened to eToro’s crypto business

EToro’s cost of revenue from cryptoassets fell by approximately $1.4B year-over-year. This is notable because crypto sales have accounted for the majority of eToro’s revenue in recent quarters. The platform had been riding a wave of crypto enthusiasm, with Q4 2025 net income reportedly reaching $68.7M, a 16% annual increase, largely fueled by digital asset trading.

The bigger picture: a market-wide slowdown

EToro isn’t suffering in isolation. The decline in trading activity has been visible across major exchanges, with volatility compressing and retail participation waning compared to the heights of the previous year’s rally.

EToro’s share price had surged 20.4% to $33.07 following its strong Q4 2025 earnings report, reflecting genuine market enthusiasm about the company’s crypto-driven growth trajectory.

The F-Prime Fintech Index, which tracks a basket of fintech and crypto-adjacent stocks, has recently outperformed major equity indices, highlighting the inherent volatility in this sector.

What this means for crypto investors and traders

For eToro specifically, the platform needs to demonstrate that its growth story extends beyond crypto volume cycles. The company has diversified offerings including equities and ETF trading, but crypto has been the headline act. As user growth stabilizes and trading frequency declines, the high-margin crypto trading income that powered its recent success becomes harder to sustain.

A company that grew net income by 16% year-over-year in Q4 2025 isn’t exactly in crisis mode. But the gap between $3.5B and $2.1B in crypto-related revenue is the kind of swing that forces a conversation about durability.

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