Latest news with #YoniAssia
Associated Press
03-07-2025
- Business
- Associated Press
eToro Appoints Former SEC Commissioner Laura Unger and Wix CFO Lior Shemesh as Board Members
NEW YORK, July 03, 2025 (GLOBE NEWSWIRE) -- eToro Group Ltd. ('eToro', or the 'Company') (NASDAQ: ETOR), the trading and investing platform, today announced the appointment of Laura Unger and Lior Shemesh as Board Members. Both Ms. Unger and Mr. Shemesh will also join eToro's Audit & Risk Committee. Commenting on the appointments, Yoni Assia, Co-founder and CEO, said: 'As eToro enters this new chapter as a Nasdaq listed company, we are delighted that Laura Unger and Lior Shemesh will join eToro's Board. As leaders in their respective fields, they bring extensive knowledge and expertise to the Board. We look forward to benefiting from Laura's experience across regulatory governance and risk management, as well as Lior's financial and operational leadership as we continue to grow eToro's presence around the world, including our goal to expand our operations in the U.S.' Ms. Unger is a financial services regulatory, legislative, policy and strategy expert. She has held a variety of public and private sector roles and served on multiple corporate boards over the last twenty years, including Borland Software, MBNA, Merrill Lynch IQ Funds, Ambac Financial, CA Technologies, CIT Group and Navient Corporation. She is a former SEC Commissioner and Acting Chair, and former Counsel to the U.S. Senate Banking Committee. Ms. Unger currently serves as an independent director and Risk Committee Chair for the global investment bank Nomura Holdings Inc. (NYSE 'NMR') (Tokyo), as Audit Chair and director of its largest subsidiary, Nomura Holdings America, and director of its trading platform, Instinet. Ms. Unger began her government career as an SEC Enforcement Attorney in NYC and Washington, DC, followed by her service as Securities Counsel to the US Committee on Banking, Housing and Urban Affairs. She received a B.A. in Rhetoric from the University of California at Berkeley in 1983, and a J.D. from New York Law School in 1987. 'I'm pleased to join eToro's Board at such an exciting moment for the company and for the investing landscape more generally. I look forward to sharing my two decades of experience by providing capital markets, regulatory and governance insights. Beyond this, eToro and I share a passion for understanding technology's impact on capital markets. At a time when the pace of technological innovation is accelerating, I'm thrilled to be joining a company which prides itself on being at the forefront of compliant innovation,' said Ms. Unger. Lior Shemesh is an experienced CFO with a strong track record of shaping and leading the financial strategy and operations for technology companies. He has served as CFO of Nasdaq listed software company Wix since April 2013. Before joining Wix, Lior served as VP Finance and then CFO at Alverion Ltd., a provider of optimized wireless broadband solutions. Previously, he held senior finance roles at Veraz Networks Inc., a softswitch, media gateway and digital compression solutions provider, and ECI Telecom Ltd., a network infrastructure provider. From July 2012 to June 2021, Mr. Shemesh served on the board of directors of Aspen Group Ltd., where he was also on the compensation committee, financial statements committee, as well as Chair of the audit committee. Mr. Shemesh began his career as an accountant at Israel Aerospace Industries. He has a B.A. in Accounting & Economics and an M.B.A. from Bar-Ilan University. 'I'm honored to be joining the Board of eToro at such a pivotal time in its growth journey. I've spent years in the technology space and am deeply impressed by eToro's commitment to harnessing technology to empower individual investors around the world. I look forward to working with the Board and eToro's leadership team to support the company's mission and help drive its continued growth and success,' said Mr. Shemesh. About eToro eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we've created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media center here for our latest news. Cautionary Language Concerning Forward-Looking Statements This press release contains 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding eToro's financial outlook and market positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as 'outlook,' 'guidance,' 'expect,' 'anticipate,' 'should,' 'believe,' 'hope,' 'target,' 'project,' 'plan,' 'goals,' 'estimate,' 'potential,' 'predict,' 'may,' 'will,' 'might,' 'could,' 'intend,' 'shall' and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond eToro 's control. eToro 's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to market volatility and erratic market movements; failure to retain existing users or adding new users; extreme competition; changes in regulatory and legal framework under which eToro operates; regulatory inquiries and investigations; eToro's estimates of its financial performance; interest rate fluctuations; the evolving cryptoasset market, including the regulations thereof; conditions related to eToro's operations in Israel, including the ongoing war; risks related to data security and privacy and use of OSS; risks related to AI; changes in general economic or political conditions; changes to accounting principles and guidelines; the ability to maintain the listing of eToro's securities on Nasdaq; unexpected costs or expenses; and other factors described in 'Risk Factors' in eToro's Registration Statement on Form F-1, filed with the Securities and Exchange Commission (the 'SEC') on March 24, 2025, as amended, and declared effective by the SEC on May 13, 2025. Further information on potential risks that could affect actual results will be included in the subsequent filings that eToro makes with the SEC from time to time. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent eToro's views as of the date of this press release. eToro anticipates that subsequent events and developments will cause its views to change. eToro undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing eToro's views as of any date subsequent to the date of this press release. Contact Media Relations - [email protected] Investor Relations - [email protected] Photos accompanying this announcement are available at
Al Bawaba
27-06-2025
- Business
- Al Bawaba
eToro launches target-date portfolios in partnership with Franklin Templeton
Trading and investing platform eToro announced today the launch of six investment portfolios in partnership with Franklin Templeton, a global leader in asset management, to help users invest for future financial goals with target-date portfolios are built to help investors work towards a financial goal over a specific time horizon. The portfolios automatically adjust their asset allocation and resulting risk profile over the course of the investment Target Portfolios incorporate Franklin Templeton's tactical asset-allocation insights and comprise diversified ETFs across sectors and geographies. Targeting 2028, 2030, 2033 and 2035 respectively, each portfolio automatically calibrates the weights of its equity and fixed income allocations based on the remaining time period. As the target year nears, the equity exposure is gradually reduced and the fixed income allocation increased, targeting a smooth transition from growth-focused investing to capital preservation without the need for manual addition to four target date portfolios, users can invest in FixedIncome-FT, a conservative portfolio which invests in 90% fixed income and 10% equity, and Equity-FT, a growth-focused portfolio that prioritises capital appreciation with a 100% equity allocation without de-risking over Assia, CEO and Co-founder of eToro said: 'We're thrilled to introduce this new suite of target-date portfolios in partnership with Franklin Templeton's asset allocation expertise. Whether you're investing to buy a house or to build a nest egg, target-date portfolios offer a hands-off way to help you stay on track with your financial goals. This is another step in our commitment to providing retail investors with long-term investment solutions, wherever they are on their investment journey.'Jenny Johnson, President and CEO of Franklin Templeton said: 'We are excited to partner with eToro. By combining our deep expertise in target-date ETF portfolios with eToro's cutting-edge social investing platform, we are able to offer outcome-based investment solutions to a broader audience, including digital-native younger investors. This partnership underscores Franklin Templeton's commitment to expanding its client reach through innovative distribution platforms, thereby maintaining its position at the forefront of the global digital wealth ecosystem.' Initial investments in the target-date portfolios start from USD$1,000. Users who invest at least USD$2,000 in the Target2030-FT portfolio between 1 July and 31 December 2025 will receive full capital protection as long as they hold their investments until maturity on 30 June 2030. Terms and Conditions apply.
Finextra
26-06-2025
- Business
- Finextra
EToro launches target-date portfolios in partnership with Franklin Templeton
Trading and investing platform eToro announced today the launch of six investment portfolios in partnership with Franklin Templeton, a global leader in asset management, to help users invest for future financial goals with target-date strategies. 0 Target-date portfolios are built to help investors work towards a financial goal over a specific time horizon. The portfolios automatically adjust their asset allocation and resulting risk profile over the course of the investment period. eToro's Target Portfolios incorporate Franklin Templeton's tactical asset-allocation insights and comprise diversified ETFs across sectors and geographies. Targeting 2028, 2030, 2033 and 2035 respectively, each portfolio automatically calibrates the weights of its equity and fixed income allocations based on the remaining time period. As the target year nears, the equity exposure is gradually reduced and the fixed income allocation increased, targeting a smooth transition from growth-focused investing to capital preservation without the need for manual rebalancing. In addition to four target date portfolios, users can invest in FixedIncome-FT, a conservative portfolio which invests in 90% fixed income and 10% equity, and Equity-FT, a growth-focused portfolio that prioritises capital appreciation with a 100% equity allocation without de-risking over time. Yoni Assia, CEO and Co-founder of eToro said: 'We're thrilled to introduce this new suite of target-date portfolios in partnership with Franklin Templeton's asset allocation expertise. Whether you're investing to buy a house or to build a nest egg, target-date portfolios offer a hands-off way to help you stay on track with your financial goals. This is another step in our commitment to providing retail investors with long-term investment solutions, wherever they are on their investment journey.' Jenny Johnson, President and CEO of Franklin Templeton said: 'We are excited to partner with eToro. By combining our deep expertise in target-date ETF portfolios with eToro's cutting-edge social investing platform, we are able to offer outcome-based investment solutions to a broader audience, including digital-native younger investors. This partnership underscores Franklin Templeton's commitment to expanding its client reach through innovative distribution platforms, thereby maintaining its position at the forefront of the global digital wealth ecosystem.' Initial investments in the target-date portfolios start from USD$1,000. Users who invest at least USD$2,000 in the Target2030-FT portfolio between 1 July and 31 December 2025 will receive full capital protection as long as they hold their investments until maturity on 30 June 2030.
Zawya
26-06-2025
- Business
- Zawya
EToro launches target-date portfolios in partnership with Franklin Templeton
Dubai, United Arab Emirates: Trading and investing platform eToro announced today the launch of six investment portfolios in partnership with Franklin Templeton, a global leader in asset management, to help users invest for future financial goals with target-date strategies. Target-date portfolios are built to help investors work towards a financial goal over a specific time horizon. The portfolios automatically adjust their asset allocation and resulting risk profile over the course of the investment period. eToro's Target Portfolios incorporate Franklin Templeton's tactical asset-allocation insights and comprise diversified ETFs across sectors and geographies. Targeting 2028, 2030, 2033 and 2035 respectively, each portfolio automatically calibrates the weights of its equity and fixed income allocations based on the remaining time period. As the target year nears, the equity exposure is gradually reduced and the fixed income allocation increased, targeting a smooth transition from growth-focused investing to capital preservation without the need for manual rebalancing. In addition to four target date portfolios, users can invest in FixedIncome-FT, a conservative portfolio which invests in 90% fixed income and 10% equity, and Equity-FT, a growth-focused portfolio that prioritises capital appreciation with a 100% equity allocation without de-risking over time. Yoni Assia, CEO and Co-founder of eToro said: 'We're thrilled to introduce this new suite of target-date portfolios in partnership with Franklin Templeton's asset allocation expertise. Whether you're investing to buy a house or to build a nest egg, target-date portfolios offer a hands-off way to help you stay on track with your financial goals. This is another step in our commitment to providing retail investors with long-term investment solutions, wherever they are on their investment journey.' Jenny Johnson, President and CEO of Franklin Templeton said: 'We are excited to partner with eToro. By combining our deep expertise in target-date ETF portfolios with eToro's cutting-edge social investing platform, we are able to offer outcome-based investment solutions to a broader audience, including digital-native younger investors. This partnership underscores Franklin Templeton's commitment to expanding its client reach through innovative distribution platforms, thereby maintaining its position at the forefront of the global digital wealth ecosystem.' Initial investments in the target-date portfolios start from USD$1,000. Users who invest at least USD$2,000 in the Target2030-FT portfolio between 1 July and 31 December 2025 will receive full capital protection as long as they hold their investments until maturity on 30 June 2030. Terms and Conditions apply. eToro's Target Portfolios are not currently available to eToro users based in the US. About eToro eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we've created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media centre here for our latest news. Disclaimers: eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro is authorised and regulated by the Financial Conduct Authority in the UK, in Cyprus by the Cyprus Securities and Exchange Commission, by the Australian Securities and Investments Commission in Australia, licensed by the Financial Services Authority in the Seychelles and by the Abu Dhabi Global Market ('ADGM')'s Financial Services Regulatory Authority ("FSRA") in the UAE. This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been prepared without taking into account any particular recipient's investment objectives or financial situation, and has not been prepared in accordance with the legal and regulatory requirements to promote independent research. Any references to past or future performance of a financial instrument, index or a packaged investment product are not, and should not be taken as, a reliable indicator of future results. eToro makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication. Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk. If capital is withdrawn prior to the minimum holding period until 30 June 2030, your capital is at risk. Please see Terms & Conditions for further details on the associated risks. Other fees apply. Past performance is not an indication of future results. Middle East eToro (ME) Limited, is licensed and regulated by the Abu Dhabi Global Market ('ADGM')'s Financial Services Regulatory Authority ('FSRA') as an Authorised Person to conduct the Regulated Activities of (a) Dealing in Investments as Principal (Matched), (b) Arranging Deals in Investments, (c) Providing Custody, (d) Arranging Custody and (e) Managing Assets (under Financial Services Permission Number 220073) under the Financial Services and Market Regulations 2015 ('FSMR'). Registered Office and its principal place of business: Office 26 and 27, 25th floor, Al Sila Tower, ADGM Square, Al Maryah Island, Abu Dhabi, United Arab Emirates.
Zawya
12-06-2025
- Business
- Zawya
EToro reports first quarter 2025 results
Dubai, United Arab Emirates - eToro Group Ltd. ('eToro', or the 'Company') (NASDAQ: ETOR), the trading and investing platform, today announced financial results for the first quarter ended March 31, 2025. 'I am incredibly proud of the eToro team for producing strong first quarter results and the successful completion of our initial public listing. As a business that champions access to capital markets, we are excited to now be part of those markets. The retail investor of 2025 is informed and connected and we're encouraged to see their trading behavior enabling them to benefit from market opportunities. We believe that AI is turbo-charging the reshaping of the investing landscape and we're excited to be at the forefront of this transformation. As a global community that empowers retail investors, we are well positioned to drive sustainable growth and profitability over time, creating further value for our shareholders,' commented Yoni Assia, CEO and Co-founder of eToro. First Quarter 2025 Financial Highlights Net contribution increased by 8% year on year to $217 million, compared to $201 million in the first quarter of 2024, driven primarily by increased trading activity. Net income (GAAP) was $60 million, compared to $64 million in the first quarter of 2024 due to increased investment in marketing and growth in response to favorable market conditions. Adjusted EBITDA (non-GAAP) was $80 million compared to $87 million in the first quarter of the prior year reflecting the investments referenced above. Adjusted EBITDA margin was 37%, compared to 43% in the prior year period.1 Funded accounts increased 14% year on year to 3.58 million compared to 3.13 million in the first quarter of 2024. This was driven primarily by ongoing user acquisition and retention efforts, as well as the acquisition of Australian investing app Spaceship in 2024. Assets under Administration grew by 21% year on year to $14.8 billion, compared to $12.2 billion. Cash, cash equivalents and short term investments were $736 million as of March 31, 2025. 'Our results show strong business performance for Q1 with an increase in net contribution driven by increased trading activity and our continued focus on sustainable, profitable growth. In the first quarter, in response to the market environment, we increased investment in marketing and growth,' said Meron Shani, eToro CFO. Business Highlights eToro continued to focus on sustainable, profitable growth in Q1, launching products and services to support users at every stage of their investing journey. Trading: eToro continues to expand and develop the range of assets and tools users need to trade the global markets. In the first quarter, eToro launched futures in Europe and options in the UK. With the addition of 40 more tokens, eToro now offers trading in over 130 cryptoassets. The Company also extended trading hours by offering a number of stocks and ETFs for 24/5 trading. Investing: eToro added stocks from the Abu Dhabi and Hong Kong stock exchanges and now offers users the ability to invest in companies listed on more than 20 of the world's leading exchanges. It continued to grow its range of Smart Portfolios with the launch of a commodities portfolio in partnership with WisdomTree, and a portfolio offering 100% capital protection. As part of the Company's commitment to offer its users access to interest earning assets, eToro launched securities lending to users in Europe, and expanded crypto staking to include DOT and ATOM. See 'Non-GAAP Financial Metrics and Key Performance Indicators' below for additional information and a reconciliation to GAAP for all Non-GAAP financial metrics. Adjusted EBITDA margin is based on net contribution. Wealth management: As part of its long-term investment strategy, in the first quarter, eToro introduced a new self-directed offering as part of its UK ISA and introduced recurring investments for stocks, ETFs and crypto allowing users to make regularly scheduled investments. The Company also initiated the integration of Spaceship and the expansion of its Australian offering to include superannuation solutions. Neo-banking: In the first quarter, eToro began the roll out of crypto to fiat enabling users to transfer their crypto to eToro and diversify into other asset classes. As part of the expansion of the eToro Money offering, eToro partnered with local financial institutions to offer local virtual bank accounts in multiple countries. The Company also continued to expand the ability for users to trade local stocks using local currencies. Financial education and AI: eToro is committed to empowering its users to grow their financial knowledge with accessible and engaging content. The Company is leveraging AI to accelerate the production and translation of education materials and now offers more than 3,000 articles, videos, podcasts and webinars in 11 languages. Regulatory developments: In Q1, eToro was granted a MiCA permit by CySec which enables the provision of crypto services across the EU. As long-term supporters of crypto, this is a key milestone and eToro welcomes the regulatory clarity and uniform rules provided by MiCA which it believes will foster greater crypto adoption across Europe. The Company also achieved a SOC 2 Type II compliance certification which demonstrates its strong commitment to operational excellence throughout its crypto custody operations. Second Quarter 2025 Update The performance of the business through May 31, 2025 reflects continued progress and interest in trading and investing from retail investors in response to market events. As of May 31, 2025 eToro had 3.61 million funded accounts and $16.9 billion in Assets under Administration. Contact Media Relations - pr@ Investor Relations - investors@ About eToro eToro is the trading and investing platform that empowers you to invest, share and learn. We were founded in 2007 with the vision of a world where everyone can trade and invest in a simple and transparent way. Today we have 40 million registered users from 75 countries. We believe there is power in shared knowledge and that we can become more successful by investing together. So we've created a collaborative investment community designed to provide you with the tools you need to grow your knowledge and wealth. On eToro, you can hold a range of traditional and innovative assets and choose how you invest: trade directly, invest in a portfolio, or copy other investors. You can visit our media center here for our latest news. U.S. dollars in thousands March 31, December 31, 2025 2024 Unaudited Audited Assets Current assets: Cash and cash equivalents 660,060 575,395 Restricted cash 319 314 Short-term investment 76,000 65,000 Counterparties 240,842 224,867 Cryptoassets 99,761 113,279 Receivable from omnibus accounts 10,905 50,466 Other receivables and prepaid expenses 49,795 46,005 1,137,682 1,075,326 Non-current assets: Restricted cash 11,751 11,630 Right of use assets 43,054 44,406 Property and equipment, net 4,965 5,007 Goodwill and other intangible assets, net 45,564 46,346 Deferred taxes 12,708 8,647 118,042 116,036 Total Assets 1,255,724 1,191,362 Liabilities and equities Current liabilities: Accounts payable 5,768 4,201 Current maturities of long-term lease liabilities 4,940 4,758 Payable to users 115,290 103,493 Accrued expenses and other payables 176,718 193,115 302,716 305,567 Non-current liabilities: Employee benefit liabilities, net 1,202 1,253 Long-term lease liabilities 42,447 43,546 Deferred taxes liabilities 7,210 2,968 Other long-term liabilities 7,484 5,653 58,343 53,420 Equity attributable to equity holders of the company: Common share premium 479,036 474,469 Preferred share premium 397,019 397,019 Treasury shares (2,625) (2,625) Advanced Investment Agreement 9,091 9,091 Other capital reserve (361) 1,868 Retained earnings (accumulated deficit) 12,505 (47,447) 894,665 832,375 Total liabilities and equity 1,255,724 1,191,362 ETORO GROUP LTD. U.S. dollars in thousands ETORO GROUP LTD. U.S. dollars in thousands Three months ended March 31, Non-GAAP Financial Metrics and Key Performance Indicators This press release and the accompanying tables contain certain non-GAAP financial metrics which differ from results prepared in accordance with GAAP. These non-GAAP financial metrics include: Adjusted EBITDA, which is defined as net income (loss) adjusted to exclude finance and other expenses, net, taxes on income, share-based payment expense, depreciation and amortization, employee non-cash expense, one-time transaction costs and other expense (income). eToro believes that these non-GAAP financial metrics may be helpful to investors because they provide consistency and comparability with past financial performance. Additionally, eToro management regularly review certain key performance metrics and non-GAAP financial metrics to evaluate its business, measure its performance, identify trends, prepare financial projections and make business decisions. However, non-GAAP financial metrics are presented for supplemental informational purposes only, have limitations as an analytical tool, and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. Other companies, including companies in eToro's industry, may calculate similarly titled non-GAAP financial metrics differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of these non-GAAP financial metrics as tools for comparison. A reconciliation is provided below for the non-GAAP financial metrics to the most directly comparable financial metric stated in accordance with GAAP. Three months ended March 31, 2025 2024 Unaudited Unaudited Net income 59,952 64,110 Finance expense, net (517) 928 Taxes on income 10,589 9,516 Share-base payment expense 4,287 8,891 Depreciation, amortization, and impairment 3,010 2,590 Employee non-cash expense2 (1,049) 595 Transaction related costs3 2,091 247 Evaluation of contingent liability4 1,831 - Adjusted EBITDA 80,194 86,877 Employee non-cash expense is related to payroll expenses recorded in respect of the non-withdrawable amount ('NWA') over the employee's vesting period. Transaction related costs include transaction costs associated with the initial public offering. Evaluation of contingent liability is related to the commitment to issue shares as part of the Spaceship acquisition. Due to an increase in the share price, an evaluation was performed. Definitions of Certain Key Performance Indicators Adjusted EBITDA: Adjusted EBITDA is a non-GAAP financial metric that we define as net income (loss) adjusted to exclude finance and other expenses, net, taxes on income, share-based payment expense, depreciation and amortization, employee non-cash expense, one-time transaction costs and other expense (income). Assets under administration: Assets under administration ('AUA') are defined as the aggregate of the following: (i) the total fair value of all equities, cryptoassets, commodities, currencies and options held by users in their accounts, (ii) cash held by users in their accounts, (iii) eToro Money balances, (iv) users' cryptoassets held in the eToro digital wallet, (v) users' assets held by 3rd parties partners for execution or custody services. Funded Accounts: Funded Accounts are users who have completed KYC, AML and other onboarding processes, activated their account, deposited funds, executed at least one trade at any time and have a positive account balance (invested or uninvested). Funded Accounts represent the deepest level of our user acquisition funnel and are the users from whom we generate Total Commission. Interest Earning Assets: Interest Earning Assets are the average monthly balances of users' cash balances, corporate cash, users' total leveraged positions and stakeable cryptoassets. Net Contribution: Net Contribution reflects Total revenue and income, less the Cost of revenue from cryptoassets and Margin interest expense. We use Net Contribution to evaluate the net contributions of our users' activity on our platform before considering the overhead costs associated with our operations. Net Contribution consists of the following five components, each representing revenue or income divided across our products based on the distinct patterns upon which we monetize users' activity on the platform. We evaluate the performance of our business and our success in both diversification and risk management across these five components: Net Trading Contribution (Equities, Commodities and Currencies) is equal to our Net trading income from equities, commodities and currencies. Net Trading Contribution (Cryptoassets) is equal to Revenue from cryptoassets plus Net trading income (loss) from cryptoasset derivatives less Cost of revenue from cryptoassets, excluding the net contributions from blockchain rewards and staking activity. Net Interest Contribution represents Net interest contribution from users plus Other interest income plus the net contributions of staking activity, less Margin interest expense. eToro Money comprises the vast majority of our Currency conversion and other income. It represents the income earned from our money management services, including currency conversions, withdrawals, interchange on our debit card, transfers of cryptoassets, and fees relating to our cryptoasset wallet services. Subscriptions and Other is the remainder of Currency conversion and other income not attributable to eToro Money plus the net contributions of blockchain rewards. Net Income Net income represents the company's total earnings or profit for a given period, calculated as total revenue minus all expenses, including operating costs, depreciation, interest, taxes, and other income or expenses. It reflects the company's overall profitability according to GAAP standards. Cautionary Note Regarding Forward-Looking Statements This press release contains 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook and market positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as 'outlook,' 'guidance,' 'expect,' 'anticipate,' 'should,' 'believe,' 'hope,' 'target,' 'project,' 'plan,' 'goals,' 'estimate,' 'potential,' 'predict,' 'may,' 'will,' 'might,' 'could,' 'intend,' 'shall' and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward- looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond eToro's control. eToro's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to market volatility and erratic market movements; failure to retain existing users or adding new users; extreme competition; changes in regulatory and legal framework under which we operate; regulatory inquiries and investigations; our estimates of our financial performance; interest rate fluctuations; the evolving cryptoasset market, including the regulations thereof; conditions related to our operations in Israel, including the ongoing war; risks related to data security and privacy and use of OSS; risks related to AI; changes in general economic or political conditions; changes to accounting principles and guidelines; the ability to maintain the listing of our securities on Nasdaq; unexpected costs or expenses; and other factors described in 'Risk Factors' in our Registration Statement on Form F-1, filed with the SEC on March 24, 2025, as amended, and declared effective by the SEC on May 13, 2025. Further information on potential risks that could affect actual results will be included in the subsequent filings that eToro makes with SEC from time to time. Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent eToro's views as of the date of this press release. eToro anticipates that subsequent events and developments will cause its views to change. eToro undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing eToro's views as of any date subsequent to the date of this press release. Source: eToro Group Ltd.
