May 12 (Reuters) – EToro topped Wall Street expectations for first-quarter profit on Tuesday, driven by a strong surge in commodities trading activity.
Shares of the retail trading platform, which rose 6.5% in premarket trading, have climbed 10% this year as of the last close.
Markets were extremely jittery in the first three months of 2026 as escalating tensions in the Middle East stoked inflation concerns and unnerved investors, triggering volatility across asset classes.
Periods of uncertainty often tend to bring in windfalls for trading platforms as investors increasingly rejig their portfolios to hedge against risks.
EToro’s net trading contribution from equities, commodities and currencies surged 71% to $166 million in the first quarter from a year earlier.
Commodities trading accounted for roughly 60% of trading commissions in the three months ended March 31, with volumes surging nearly fourfold from a year earlier.
EToro also bolstered its offering by introducing 24/7 trading for commodities, equities and indices in the quarter.
“Looking ahead, we continue to enhance our global product offering, deepen our investment in on-chain technologies, and grow our suite of AI-driven tools, which we believe will fundamentally reshape how retail investors engage with the markets and unlock new opportunities for growth,” CEO Yoni Assia said.
The company’s adjusted quarterly profit was $86 million, or 91 cents per share, compared with $67 million, or 77 cents per share, a year earlier. Analysts had expected profit of 73 cents per share, according to estimates compiled by LSEG.
Last month, eToro bought crypto wallet provider Zengo, deepening its digital asset capabilities.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shreya Biswas)
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