eToro Reports 74% Drop in Third-Quarter Profit to $15 Million

eToro's net income fell 74% year over year to $15 million in the third quarter, as lower cryptocurrency activity put pressure on the Nasdaq-listed trading platform's results.

Net contribution declined 13% to $186 million from $215 million a year earlier. Adjusted EBITDA dropped 56% to $34 million, and adjusted earnings of $0.26 per share missed the $0.32-per-share analyst estimate.

Crypto trades in October fell 62% from a year earlier to 2 million. The average amount invested per crypto trade declined 29% to $228. Activity across equities, commodities and currencies weakened too, with transactions down 22% to 48.2 million.

Funded accounts rose 18% to 4.39 million, while assets under administration were unchanged at $20.8 billion. Capital markets net contribution increased 21%, partially offsetting weaker crypto activity.

The company also announced a $250 million share repurchase program and an agreement to acquire LB Finanzas, an Argentina-based digital investment and payments platform, as part of its Latin American expansion.