eToro’s profit soars to $192M ahead of Nasdaq IPO
The Israeli fintech’s earnings surged as crypto trading fueled record revenue in 2024.
An initial prospectus submitted by Israeli fintech company eToro ahead of its New York IPO reveals the company's financial performance over the past year.
eToro reported a net profit of $192 million in 2024—a sharp increase compared to just $15.3 million in 2023 and a loss of $21 million in 2022. In terms of earnings per share, the company recorded a loss of $11.45 in 2022, turned profitable with $0.80 per share in 2023, and saw the figure rise to $9.85 per share in 2024.
According to the prospectus, eToro's revenue (total fees collected) reached $639 million in 2023 and $931 million in 2024. One of the key drivers behind the company's strong results was the surge in crypto trading. The company's EBITDA rose to $304 million in 2024, up from $117 million in 2023.
While eToro has not disclosed specific figures related to the offering, estimates suggest it will seek a valuation of at least $5 billion.
eToro initially attempted to go public in 2021 through a merger with a SPAC, a deal that was expected to be completed at a valuation of over $10 billion. However, the plan faced regulatory hurdles due to the company's active involvement in Bitcoin trading. While navigating discussions with the SEC, market conditions deteriorated as the high-tech bubble burst, forcing eToro to abandon the SPAC deal.
The company is led by CEO Yoni Assia, who founded eToro in 2007 alongside his brother Ronen Assia. Since canceling its IPO, eToro raised $250 million in a private funding round in 2023, at a valuation of $3.5 billion. The delayed public offering also led to workforce reductions, and the company now employs approximately 1,700 people, including about 1,000 in Israel.
In addition to its IPO ambitions, eToro has been expanding its offerings. In September 2023, the company acquired the Australian investment app Spaceship for approximately $55 million.
In the same month as the Spaceship acquisition, eToro settled charges with the SEC by agreeing to pay a $1.5 million fine. The regulator alleged that eToro operated as an unregistered broker and clearing agency in the U.S. since at least 2020, allowing customers to trade crypto assets classified as securities without adhering to federal registration requirements. While eToro did not admit or deny the allegations, the settlement’s restrictions apply only to its U.S. operations.
Goldman Sachs, Jefferies, UBS and Citigroup are the lead underwriters of the offering.
