eToro set for another round of layoffs as profits plunge and valuation slides
The Israeli trading platform is preparing to cut dozens of additional jobs, less than a year after eliminating approximately 105 positions. Its third-quarter net income fell 74% to $15 million, and its market value is now less than half its implied IPO valuation.
Israeli fintech company eToro is preparing for another round of layoffs in the coming weeks, which is expected to affect dozens of employees.
The company, which cut approximately 7% of its workforce, or around 105 employees, in January, is now preparing another round of reductions. More than half of the employees affected by the previous cuts were based in Israel. eToro has not provided a comment.
The latest move comes as the company faces mounting pressure on its financial performance and a steep decline in its market value since its Nasdaq debut. Its third-quarter 2026 results showed a sharp drop in both net contribution and net income, driven primarily by weaker cryptocurrency trading activity.
Founded in 2007 by Yoni Assia, Ronen Assia and David Ring, eToro operates a platform for trading and investing in securities and digital assets. It has undergone several rounds of layoffs over the years. In July 2022, the company cut approximately 6% of its workforce, or around 100 employees, including 55 in Israel. At the time, it employed roughly 1,700 people and said the decision was intended to bring expenses in line with market conditions following a period of rapid growth.
eToro initially announced plans to go public through a SPAC merger in March 2021, at a projected valuation of $10.4 billion. The deal was ultimately terminated in 2022, after its valuation had been revised downward. In March 2023, the company raised $250 million at a valuation of $3.5 billion. It eventually went public on Nasdaq in May 2025, with its shares priced at $52 and an implied valuation of approximately $4.4 billion. The offering generated around $620 million in gross proceeds, including shares sold by existing shareholders.
For 2025, eToro reported total revenue and income of approximately $13.8 billion, compared with $12.6 billion in 2024. However, most of this figure came from cryptoasset trading, where the reported revenue is largely offset by the cost of acquiring the assets. A more meaningful measure of the company's underlying business performance is Net Contribution, which rose 10% to $868 million in 2025, compared with $788 million the previous year. Net income increased 12% to $216 million, from $192 million in 2024.
The company's third-quarter 2026 results painted a considerably weaker picture. Net Contribution fell 13% year over year to $186 million, while net income dropped 74% to $15 million, compared with $57 million in the same quarter last year. eToro attributed the decline in Net Contribution primarily to weaker cryptocurrency trading activity. At the same time, the number of funded accounts continued to grow, rising 18% year over year to 4.39 million.
By mid-November 2026, eToro's market capitalization had fallen to approximately $1.8 billion, less than half its implied valuation at the time of its Nasdaq debut. Its shares, which were priced at $52 in the IPO, were trading at around $22.50 on November 13.
