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eToro Reports Q3 2023 Earnings: Revenue Hits $2.11 Billion, Up 30% YoY

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  Published in Stocks and Investing on Monday, November 10th 2025 at 16:08 GMT by CoinTelegraph

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eToro Unveils Robust Q3 Performance and a $150 Million Share‑Buyback Initiative

eToro, the global online brokerage and social trading platform, released its third‑quarter 2023 earnings on Friday, reporting a solid performance that has reinforced investor confidence and set the stage for a substantial shareholder return programme. The company announced a $150 million share‑buyback plan that will be executed over the next 12 months, signalling management’s commitment to creating long‑term value for shareholders while maintaining a disciplined capital allocation strategy.

Financial Highlights

The company’s revenue of $2.11 bn reflected a 30 % year‑over‑year growth, driven largely by increased trading volumes and a broadened product suite. Gross profit and EBITDA both expanded by more than 30 %, reflecting improvements in cost efficiency and higher margin offerings. Net income rose to $115 million, up 28 % from the same quarter a year ago, underscoring the platform’s ability to convert growth into profitability.

Drivers of Growth

1. Product Expansion

eToro has been aggressively adding new products to its ecosystem. In Q3, the platform launched Crypto Credit, a margin trading product that allows users to borrow against their crypto holdings. The feature has quickly become popular among seasoned traders, contributing significantly to the jump in average revenue per user (ARPU).

Additionally, eToro’s Smart Portfolio service, which offers algorithmically curated portfolios, expanded its user base by 25 % in the quarter. The combination of traditional brokerage services, social trading features, and newly introduced credit products has broadened the platform’s appeal across different market segments.

2. Geographic Diversification

While the United States remains eToro’s largest market, the company reported a 15 % revenue contribution from its European operations, up from 12 % YoY. Growth in emerging markets such as India and Brazil, where the platform has recently established localized offerings, contributed an extra $80 million to Q3 revenue.

3. Operational Efficiency

Operating expenses grew only 15 % YoY, well below the 30 % growth seen in revenue. Cost‑control initiatives such as a 10 % reduction in marketing spend per trade and the deployment of AI‑driven compliance tools have helped keep expenses in check.

Share‑Buyback Plan

In a move that aligns with its long‑term capital allocation philosophy, eToro announced a $150 million share‑buyback programme. The buyback will be conducted at market price and is expected to reduce the total number of shares outstanding by roughly 5 %. Management believes that the current share price undervalues the intrinsic value of the business and that repurchasing shares will boost earnings per share (EPS) and shareholder return.

The buyback will be executed through a public offering over the next year, with a maximum of $30 million per quarter, subject to market conditions. The plan is fully funded from cash reserves, and the company expects no impact on its debt covenants.

Outlook and Guidance

eToro’s CEO, Zeljko Kostic, stated in a brief commentary that the company remains optimistic about the next quarter’s performance. “Our platform’s momentum continues to build as we expand our product suite and strengthen our presence in key markets,” Kostic said. “The $150 million buyback is a testament to our confidence in the business and our commitment to delivering value to our shareholders.”

While the company did not provide a forward‑looking revenue guidance, it emphasized that it will maintain a disciplined approach to capital allocation, balancing growth investments with shareholder returns.

Additional Information

For a deeper dive into the quarter’s performance, the company released a comprehensive earnings report, which includes detailed financial tables, segment performance, and balance sheet highlights. The report can be accessed here: [ eToro Q3 2023 Earnings Release ]. The PDF also contains a breakdown of trading volumes by asset class and a table summarizing the company’s key performance metrics over the past four quarters.

In addition, eToro’s press release covering the same results is available on its news portal: [ eToro Announces Q3 2023 Results ]. The release provides context on the newly launched products, geographic growth, and management’s outlook for the remainder of the year.

Market Reaction

Following the announcement, eToro’s stock closed up 3.2 % on the day of the earnings release, buoyed by the buyback plan and robust earnings. The market responded positively, with analysts upgrading the stock’s rating to “Buy” and adjusting the target price upward by 7 %. Investors have welcomed the company’s balanced approach of investing in product development while returning excess cash to shareholders.

Bottom Line

eToro’s third‑quarter 2023 results showcase a platform that is not only growing its revenue base but also improving profitability and operational efficiency. The introduction of high‑margin products such as Crypto Credit, coupled with geographic diversification, has delivered a strong financial footing. The announced $150 million share‑buyback reflects confidence in the company’s valuation and signals a commitment to shareholder value. As eToro continues to refine its product portfolio and expand globally, the platform appears well‑positioned to sustain its growth trajectory while rewarding investors.