eToro Group Ltd.

Thank you, everyone, for joining eToro's second quarter 2025 earnings call. My name is Daniel Mir, head of global investor relations. Here with me today are Yoni Asya, founder and chief executive officer, and Mehran Shani, chief financial officer. This morning at 7 a.m. Eastern Time, eToro released its second quarter 2025 results. In the Investors section of our website, you will find the earnings press release and presentation to accompany today's discussion. This webcast is being recorded and will be available for replay in the Investors section of our website. Yoni and Miron will offer opening remarks and then open the webcast to Q&A. During the Q&A portion of the webcast, we will answer live questions from publishing research analysts and we'll address a selection of the most upvoted questions previously submitted by eToro's shareholders. As a reminder, today's webcast will contain forward-looking statements, which relate to our financial outlook and market positioning, among other items. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from these expressed or implied in the forward-looking statements due to a variety of factors. These factors are discussed in more detail in the press release that we issued today and related earnings presentation and our filings with the SEC, including our prospectus dated May 13, 2025, as such factors may be updated from time to time in our filing with the SEC, which are or will be accessible on the SEC's website at www.sec.gov. We do not undertake any obligation to update forward-looking statements. Throughout this webcast, we will also present and discuss non-GAAP financial measures. Reconciliation of our non-GAAP financial measures to their most directly comparable GAAP financial measures appear in today's earnings press release and presentation, which are available in the Investors section of our website. And now I will turn the call over to Yoni, founder and CEO.

Thank you, Daniel. And thank you to everyone joining us today for your interest in eToro. And welcome to our second quarter 2025 earnings call, our first earning call as a public company. After Mehron and I conclude our prepared remarks, we'll open it up to analyst questions. Before sharing some highlights from our second quarter results, I would like to briefly introduce eToro for those of you who are new to our story. We founded eToro in 2007 with a vision of opening the global markets for everyone to trade and invest in a simple and transparent way. At that time, investing was largely the domain of traditional financial institutions catering to seasoned investors with significant capital. Retail investors face daunting barriers, complex platforms, high fees, and a lack of educational resources. Our goal was to change that by using technology to level the playing field and create a platform that could empower millions to participate in the financial markets. Today, eToro provides a gateway to the global financial markets, offering a social and investment platform that empowers our users from around the world to trade, invest, save, and spend in a way that suits their unique needs. We've built a social investment network designed to provide users with educational resources and tools they need to grow their knowledge and wealth. we provide what retail investors around the world care about the most. Simple access to the assets they want to invest in, an intuitive and user-friendly mobile app, and a trusted and transparent source for financial education and tools, including the ability to draw on the knowledge and insights of the top investors from all around the world. On eToro's platform, users can invest in stocks from more than 20 different stock exchanges and trade over 130 different crypto assets alongside indices, commodities, and currencies. We serve customers in 75 different countries and 20 different languages. Users can trade directly, invest in a portfolio, or use our patented copy trader technology to replicate the investment strategies of the top investors on our platform. eToro Money, our money management offering, enables our customers to have a virtual bank account and a debit card and manage multiple balances as they trade both global and local stocks. We also provide many valuable investment tools and services, including sophisticated charting and AI-powered tools. We've built a track record for identifying and adopting key investment and technology trends. We've been a pioneer in the crypto space since 2011 due to my own passion around blockchain technology. Crypto's underlying principles of transparency, security, and inclusivity resonate deeply with eToro's mission. As one of the first global investment platforms to embrace crypto, we've helped millions of investors access this new market in a safe way. As technology continues to evolve, so does our ability to create more inclusive financial systems. Artificial intelligence holds immense potential to revolutionize investing. At eToro, we're already using AI to provide users with personalized insights, identify trends, and optimize their strategies. But this is just the beginning. We believe that the next wave of financial innovation will be driven by collaboration between people and technology. Eddie Toro, we're committed to staying at the forefront of this transformation, using technology to enhance the investing experience while keeping the human element at its core. Our goal is to create a platform that not only meets the needs of today's investors, but also anticipates the opportunities and challenges of tomorrow. Now, let's move to the quarter results. We are very pleased with our strong second quarter results, which reflect the continued success of our goal to be the leading trading investment platform. Our net contribution for the quarter increased 26% year-over-year to $210 million and our adjusted EBITDA increased 31% year-over-year to $72 million, while improving operating margins. In terms of geographic diversification, we recently expanded our global footprint, activating our license in Singapore. This milestone positions eToro to serve Asia's growing investor base from a key financial center as we continue to grow our global presence. Over the past quarter, we also made real progress in advancing our product development across our four strategic pillars, trading, investing, wealth management, and neobanking, delivering innovative features that strengthen user engagement and expand our addressable market. In trading, we continue to enhance the trading experience by expanding access and flexibility for our users. We announced the expansion of 24-5 trading and on-exchange futures, and we intend to expand this offering to provide our users around the world with the flexibility to trade on their own time. The ongoing efforts to remove boundaries in trading and financial markets underpins our interest and focus in tokenization. Back in 2012, we wrote the Colored Coins White Paper, a method for representing and managing real-world assets on top of the Bitcoin blockchain. We first offered tokenized assets back in 2019, following our acquisition of smart contract startup Firmo. Building on this heritage, we're launching tokenized stocks. We believe that blockchain technology will facilitate the greatest ever transfer of wealth as traditional assets move on to the blockchain. As a platform that bridges between traditional trading and a blockchain-powered future, we believe we're very well positioned to participate in the transformation of financial markets and grow our business. In the U.S., recent regulatory development around crypto represents an important milestone and a great tailwind for our U.S. expansion. As a result, in recent months, we've significantly expanded our crypto offering for U.S. users and now offer the ability to trade over 100 different crypto assets. We'll continue to add more crypto assets and more features for our U.S. consumers and we'll be soon launching staking as well. Turning to investing, we continue to introduce innovative solutions that make investing simpler, smarter, and more personalized. This quarter, we rolled out a suite of our alpha portfolios as part of our smart portfolio offering. These AI-powered long-short strategies are built using advanced analysis of multiple sources of data, including eToro's proprietary retail trading data. This gives our users access to exclusive quantitative trading strategies typically used by hedge funds and institutional investors only. In addition, we also announced a partnership with Franklin Templeton to launch new portfolios focused on long-term target date investing. These efforts broaden our investment offering and personalized user experience to help our customers achieve their financial goals at each stage of their financial journey. As part of our efforts to provide a global platform with a localized experience, we've expanded our wealth management offering to provide access to long-term tax advances, savings, and investment solutions. In the second quarter, we expanded our savings from Australia and the UK to also France, launching retirement and life insurance products to give our users more ways to invest in the future. Additionally, we rolled out recurring investments and saving plans in crypto and stocks in the UK, Europe, and the UAE, enabling our users to automate their investments and making disciplined investing easier and more accessible. Moving to our neo-banking solutions, we recently launched a Toro money card across Europe. This card turns everyday spending into investing by offering a 4% stockbroke reward on every purchase alongside premium benefits. Before I conclude, I want to also address the topic of harnessing AI technology. eToro has been leveraging artificial intelligence for many years, but we believe that we are now at an inflection point. We are harnessing AI to redefine social investing. We're rolling out a suite of powerful AI-driven tools that empower our popular investors with sophisticated professional capabilities. With these tools, we're not democratizing only access to the markets and data. We're now democratizing quantitative trading and investing. Community is at the heart of everything we do. And these AI-powered tools will enable our popular investors to build apps and trading strategies that combine social trading with advanced execution capabilities. equipping them to innovate like the top hedge funds around the world and scale their impact within the eToro ecosystem. In line with this vision, we recently launched Tori, our powerful AI assistant, transforming how users interact with eToro, answering questions, surfacing personalized insights, guiding them into the platform, and helping them make better decisions, all through natural conversation. Tori helps users make smarter decisions and navigate our platform based on the advanced models out there, including recently GPT-5. We truly believe that AI tools are a game changer for investors. I suggest you all try it out. Together, these product innovations and enhancements reflect our focus on empowering our users from around the world to trade, invest, save and spend in a way that suits their needs. We feel great about our product development velocity that's been accelerated by AI and the business result it is driving. Looking ahead, I'm excited about the opportunities in front of us and we are well positioned to execute on our growth initiatives to drive sustainable long-term growth. With that, I will pass the call to Moran to discuss our financial results for the quarter.

Thank you, Yanni. Before we begin with an overview of this quarter's financial results, I would like to share some insights on Itoro's financial philosophy. Our philosophy is focused on sustainable, profitable revenue growth, which is supported by three pillars. First, diversification of revenue streams to complement transaction-based revenue with a focus on growth in asset-based revenues, expansion of our Itoro money offering, and the introduction of new revenue streams. Second, strategic investment to support growth in funded accounts and increase our share of the user's wallet as we focus on product innovation, organic and inorganic growth, and a dynamic approach to sales and marketing operations. And third, disciplined cost management with a focus on streamlining operations, optimizing costs, and improving efficiency across the organization. Using technology, including leveraging AI by automating routine tasks, optimizing resource allocation, and enabling faster data-driven decision-making. We believe this financial philosophy will deliver best-in-class financial results and an increase in shareholder value. Now turning to the quarter results. As Yoni mentioned, we are very pleased with our second quarter results, our first full quarter as a public company. Second quarter net contribution grew 26% year-over-year to $210 million, and adjusted EBITDA grew 31% year-over-year to $72 million. In line with our focus on diversified profitable revenue growth, our adjusted EBITDA margin was 34%, expanding 140 basis points from a year ago. As our first quarter momentum continued into the second quarter, AUA for the quarter increased 54% year-over-year to $7.5 billion, while our funded accounts grew 14% year-over-year to $3.63 million. The growth was driven by customer acquisition efforts supported by strong customer retention. Let's take a closer look at our second quarter financials by segment compared to a year ago. Our net trading contribution from equities, commodities, and currencies grew 37% year-over-year to $114 million, as invested amount per trade grew 54% year-over-year to due to elevated levels of trading activity in the capital markets during the quarter, especially in the month of April. Our net contribution from crypto grew 34% year-over-year to $27 million and was largely driven by higher invested amount per trade. partially offset by lower crypto activity in line with the overall market. Interest-earning assets contributed 46 million or up 1% year-over-year, largely driven by higher interest-earning assets that was partially offset by lower interest rates. Our eToro money contribution grew 17% year-over-year to $18 million, largely driven by an increase in total money transfers. In the second quarter, adjusted OPEX was $138 million. Our adjusted selling and marketing expense was $51 million, or 24% of net contribution. Our business model provides us flexibility in our selling and marketing expenses, where approximately 70% of our expense is dynamic. Our historical performance has proven that our marketing expense has consistently returned positive ROI within the first year of the investment and sustained commission growth over time. Adjusted R&D and G&A expenses were $36 million and $51 million, respectively. Our adjusted EPS for the quarter was 56 cents compared to 51 cents in the second quarter of 2024. Moving to our balance sheet, we ended the quarter with $1.2 billion in cash, cash equivalents, and short-term investment. And for the quarter, we generated $61 million in free cash flow from operations. During the quarter, we also announced a new credit facility of $250 million to increase liquidity optionality. Now, let me make some comments on the third quarter trends. Through the first month of the quarter, crypto activity has been higher than second quarter levels, while capital markets activity has returned to a more normalized level following the elevated levels of the second quarter. We are very pleased with the first quarterly financial results as a public company. This sets the foundation for future growth as we focus on increasing shareholder value. With that, Daniel, let's move to Q&A.

Thank you, Mehran. So, okay, the first question in our Q&A session today comes from our list of questions that have been pre-submitted by our retail investor community. So, Yoni, this question is for you. When does eToro plan to provide calls and puts options to European investors?

Thank you, Daniel. Our product rollout strategy is to continuously launch the products where we see the highest potential product market fit and revenue opportunities for eToro. With options, for example, we started in the US, we expanded into the UK, and we plan to expand over the next 12 months also to Europe, UAE, Singapore, and Australia. The same with futures that we recently launched in Europe and continue to expand it across the globe. and with all of our products across the globe eventually offered to our customers in all of our regulated regions.

Thank you, Yoni. So, operator, we'll now open it up to questions from our institutional analysts. Can you provide instructions?

Thank you. As a reminder, to ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1-1 again. In fairness to all, we ask that you please limit yourself to one question before returning to the queue. One moment for our first question. Our first question will come from the line of Dan Fannin with Jefferies. Your line is open. Please go ahead.

Thanks. Good morning. I was hoping you guys could expand a bit upon just the cadence throughout the quarter since we don't get monthlies. Just to get a little more color, obviously April quite active from a macro perspective. So if you could talk to the change in environment as the quarter progressed and then maybe expand a bit more upon July in terms of how that contradicts versus what we saw in the first quarter.

Sure. I'll let Mehran answer that.

Thanks. So obviously, as we saw with the market following the tariff announcement in April, we saw elevated trading activity of our customers on the platform. We saw invested amount growing per trade of 54%. We saw invested amount growing in general and the Q2 revenue per trade also growing 54%. So pretty much aligned with the invested amount trend. What we saw is that those numbers normalized throughout July as we moved from the spike in April and normalized towards the end of the second quarter as well. When you talk about crypto, we saw lower levels in the second quarter as well. normalized also with the market and also taken into consideration the fact that our customers were actively trading on the capital markets, they diverted from trading on crypto. When we come to July, what we see on the crypto side is that customers following the altcoin rally as well, they moved to a higher pace of trading than quarter two.

Great, thank you.

Thank you, and one moment for our next question. Our next question's gonna come from the line of Devin Ryan with Citizens. Your line is open, please go ahead.

Great, good morning, everyone. Question to start here just on kind of digging into the opportunity on the back of the launch of the tokenized stocks recently. And as we think about all the other types of assets that are going to come on chain over time, it would be great to just double-click into how you would quantify the revenue opportunity for eToro, how fast you think other asset classes are going to move on chain, assets that are currently not available to eToro customers. And then the overall kind of bigger picture opportunity from this long-term, because it seems like right now it's stocked, but a lot of other assets that are currently not available to e-corporate customers will in the future be available. So I'd love to dig into that. Thank you.

Sure. So we've been very early on for the concept of tokenizing real world assets, starting with the white paper of colored coins that we wrote together with Vitalik Buterin in 2012. We believe that the digitization and tokenization of assets. is a very significant process that will take time. But we do expect $100 trillion of assets over the next 20 years to move on chain. Now quoting the SEC chairman talking about moving U.S. capital markets The biggest potential revenue opportunities there are, one, increasing the number of assets on eToro. We already support stocks from 22 different capital markets as tokenization happens across stock markets, bond markets, potentially real estate. People are talking about private shares. And I do believe we'll see that significantly scaling up over the next sort of midterm of the next three years. Everybody knows. are waiting and we're waiting for regulatory clarity. So it was very hard to think of tokenizing real world assets and securities without clarity on regulation. With MECA regulation now in Europe, that's a possibility. And we're talking to many participants in the market about various opportunities of tokenizing assets as you probably have seen also the largest asset managers in the world are all involved in how can they tokenize their potential funds and products and then obviously listed on platforms like eToro to introduce them to retail investors. So we do see a very large opportunity both in scaling up the investment universe in Toro over time, as well as opening all those assets to 24-7 trading. So we just recently launched both 24-7. five trading and futures, which trade almost 24-5. And we do believe that by tokenizing assets, that will expend also liquidity over the weekend and will eventually enable customers to both transfer assets 24-7, like crypto assets are transferable 24-7, and to actually trade on assets 24-7 continuously.

That's great, Kalar. Thank you.

Thank you. One moment for our next question. Our next question will be from the line of Bill Katz with TD Cowen. Your line is open. Please go ahead.

Great. Thank you very much. Just maybe a couple questions embedded. So first question would be, can you give us an update on any progress you're making for copy trader opportunity into the U.S.? And then secondly, just given all of the growth vectors in front of you, including what you laid out on the global webinar, How should we be thinking about marketing spend either in an absolute sense or as a percentage of contribution? Thank you.

Sure. So I'll take the first question or maybe you can start actually with the second question and I'll jump to the first question.

Sure. So when we think about marketing spend, we think about it as a percentage of net contribution. And we are normally around the 20 percent mark of net contribution investing into the growth coming out of new acquired customers.

Yeah. Can you repeat again the first question, just for clarity?

Yes. If you could just give us an update on any progress you're making on introducing copy trader in the U.S.

So as we announced, we've been able to significantly scale the number of assets on the platform from three crypto assets for U.S. customers to now 100 crypto assets in the U.S. We are also planning to introduce staking soon with clarity from U.S. regulators across staking. And we plan to launch a copy trader for U.S. customers on crypto and stocks later this year.

Thank you. And one moment as we move on to our next question. Our next question will come from the line of Chris Allen with Citi. Your line is open. Please go ahead.

Yeah, morning, everyone. I wanted to ask about account growth dynamics from about 8% year-to-date. Maybe you can give us any color on regional account growth, where you've seen the fastest growth and best opportunities here.

So we manage that growth on a global scale. We see some growing regions for us, like we launched a couple of years back in the UAE, and we see growth coming from there. But altogether, we see the growth coming from a very, call it a balanced across the different regions that we are managing. There's no significant player in the regions that is significantly higher or lower than any of the others.

Thank you. And one moment for our next question. Our next question will come from the line of Craig Siegenthaler with Bank of America. Your line is open. Please go ahead.

Hi. Thanks for taking my question. So my question is a simple one on growth. Funded account growth was 1.4% quarter per quarter. I'm wondering, is this a good go-forward organic run rate? Were there any unusual factors in the quarter, especially given that sharp correction we had in April? And I know M&A has aided your account growth rate historically, but I wanted your perspective on the organic trend. Thank you.

Thank you. So we have proven in the last few years that we are able to grow our funded accounts on a double digit on a yearly basis. We did see a slower quarter in terms of the growth. However, I could definitely... I'd say that we see a better quality of customers loading to the platform. They bring more share of their wallet onto the platform. We could also note about the average account size that grew 34% year on year, thanks to customers loading more of their share of their wallet as well, as well as market gains that they got. And also to say that in terms of marketing, as I mentioned before, we manage it as a percentage of net contribution, but we also manage it to bring the best quality. So we have the ability to be. very flexible in how we invest. 70% of the investment is dynamic. So we could upscale and low scale as we see right coming out of the results. We're very comfortable about our ability to continue and deliver growth and continue to deliver a great ROI returning the investment within the first year and growing over time. When we come to growth of the funded accounts also in the future, we are seeing good numbers coming out of rolling out more products that serves as a good product market fit, as Yoni mentioned, that will drive not only better engagement of existing customers, but also drive more growth of funded accounts.

Thank you.

Thank you. And one moment as we move on to our next question. Our next question will come from the line of James Yarrow with Goldman Sachs. Your line is open. Please go ahead.

Hey, just good morning and thanks for taking the questions. I just wanted to touch quickly on the net contribution per trade across both ECC as well as crypto. I think on the ECC side it was up about 25% sequentially and in crypto it was up about 30%. Could you maybe just talk a little bit about the drivers of that and perhaps the outlook for take rates going forward?

Thank you. So the main correlation that we see and we quoted also on the percentage is the growth of the invested amount per trade that grew 54% year over year and 20 plus percent also sequentially. So this is more or less aligned on the ECC side of how we see that the invested amount per has elevated also the revenue per trade. We did launch and introduce ticket fees outside of the US and UK, and that increased the invested amount and reduced some smaller transactions. So there's some balancing of a slightly reduced number of trades, but comes with higher invested amount per trade. When we look into crypto, this is attached immediately to the invested amount per trade as we charge on a percentage basis. We saw slightly better ability to internalize our volume also in the second quarter, which resulted with slightly uptick in terms of the revenue per trade. But altogether, the growth of the invested amount is what drives the majority of that trend.

Thanks so much.

Thank you. And one moment for our next question. Our next question is going to be from the line of Brian Vieten with Needham. Your line is open. Please go ahead.

Great. Thanks, guys. With the new licensing in hand, can you talk about the glide path for new funded accounts growth in the APAC region more near term and then aspirationally? And then just on that, can you talk about the geographic composition of the 40 million registered users? Is that in line with the funded accounts proportionally? Thanks.

So historically, there is a proportion between the total registered users or funded accounts. It's worth noting that the total registered users is an accumulative number since 2007. So it includes basically everybody who registers since then, not only the monthly active users of the virtual accounts. And in our more mature world, growth markets, Europe, UK, Australia, we are seeing obviously higher conversion rates than basically cross-border markets where we might see a lot of registrations that don't necessarily convert into funded accounts. When we think of our growth opportunities, we definitely think that both Asia now through Singapore and the U.S. represent significant opportunities to grow as percentage of the business over time. Right now, U.K. and Europe represent roughly 65 percent, with Australia being a part of, of course, our strategy in Asia. But as we double down on our high potential growth markets, Asia, Latin America, and, of course, the U.S., we do believe represents a higher potential growth over the next couple of years.

Great. Thank you.

Thank you. One moment for our next question. Our next question comes from the line of Joseph Vafi with Canaccord. Your line is open. Please go ahead.

Hi, Yoni and Mehran. Congrats here on your first public earnings quarter. Just thought maybe we'd drill down a little bit more on the U.S. strategy now with more cryptos available and it sounds like the platform's a little more robust and with copy trader potentially coming. How should we think about marketing spend in the U.S. moving forward versus where it's been and maybe an update if Perhaps M&A still makes sense in the U.S. to kind of grow the platform materially here over the short term. Thank you.

Sure. So as we said during our roadshow, during the sort of pre-IPO era in the last administration, we took a step back from our growth strategy in the U.S. since the IPO and obviously very excited to see the new administration and SEC chair talking about innovation in public markets and tokenization and getting capital markets on chain, which we believe were positioned in a Thank you very much. into the U.S. in the next 12 to 18 months, including copy trader and looking at all of the additional global products that we have. And as we expand and add new products, we expect to see higher lifetime value, higher, obviously, product market fit, which means more organic growth. And on top of that, we'll scale marketing budget growth. as well. So we are looking to invest more in the U.S. market and we're looking to do this in a disciplined approach where we're looking at the investments, part of the revenue potential and existing revenues in the U.S. We are looking and are opportunistic about M&A opportunities in the U.S. We believe there's a huge opportunity right now of many great fintech companies that have a great product and team in the U.S. but are subscaled to be independent. And we are also there thinking of doing this, obviously, in a disciplined approach, looking at basically how this adds to the total KPIs and the growth opportunities in the U.S.

Great. Thanks very much, Yanni.

Thank you. One moment for our next question. Our next question comes from the line of Brett Knobloch with Cantor Fitzgerald. Your line is open. Please go ahead.

Hi, guys. Thanks for taking my questions. Maybe just more broadly on kind of crypto trends during the quarter, volume kind of declined, I would say, much more than global spot volume. So anything to read to from that? And then as a follow-up on crypto in the U.S., meaningfully expanded the number of assets available to trade for U.S. users. Can you talk about the initial kind of uptake you're seeing as you broaden the U.S. breadth there?

Sure. So as Mehran mentioned before, as a platform, which is actually quite uniquely positioned where if you look at the assets of our customers, roughly 50-50% stocks and crypto since we've been early into both, when we see exciting markets in capital markets, as we've seen in April, we do see a transition of our active traders who are actively trading both crypto and and stocks as they transition their accounts. Within Q1, we've actually seen our customers excited about European markets and European defense stocks, or that was the version of meme stocks. In April, we saw a lot of our retail investors actually buying the deep stocks actually participate in capital markets, buying stocks that sometimes are related to crypto markets like Nvidia and Tesla and others. So we did see that cycle of increased basically capital markets versus crypto, obviously coming to July, where we saw all times high, not only in Bitcoin, but also a significant scale up in a lot of the altcoin activity generally. Since the IPO, just under roughly three months, we've managed to add a significant amount of crypto assets, now 100 crypto assets actually reaching this week. And we have seen significant growth to our U.S. business in the U.S. after those additions, obviously also driven by very good crypto markets environment in July.

Thank you.

Thank you. One moment for our next question. Our next question will come from the line of Matthew O'Neill with FT Partners. Your line is open. Please go ahead.

Yeah. Hi. Thanks for taking my question and share the congrats to the public markets that others have mentioned. I'm just curious how you guys are seeing your users utilizing stable coins. I feel like there's probably some interesting insights given the geographic diversity of your user base and would just love to kind of hear some anecdotes around that and then separately. I know it was asked, but maybe you can just dig a tiny bit deeper into the increase in the take rate on crypto. Was that driven by the kind of outside activity we saw in April? Mixed shift pricing dynamics would just be helpful to kind of understand the drivers there. Thanks so much.

Sure. So first of all, regarding the crypto take rate, then we charge 100 basis points. We actually recently launched also crypto fees that are separated from the spread, improving significantly both transparency of fees and understanding of users. Anything to add to that, Mehran?

No, I think we had a better ability to internalize some of the volume, so that increased the take rate a bit in the second quarter, saying that this is still within the range that we offered in the history as well about our ability to enjoy this take rate.

Regarding stablecoins, we just recently launched, we're receiving the Mika license in Europe, basically the ability to deposit crypto into eToro and then use crypto assets to buy stocks and invest in capital markets. We were actually quite conservative in the past as there wasn't, from our point of view, sufficient regulatory clarity. So we did not able customers to actually deposit stablecoins or crypto into eToro, into the trading platform. So with a new launch of enabling our customers across Europe, UK, and expanding that to all of our global operations to now deposit crypto assets, including stable coins, we do believe this opens up a new user audience, which are the crypto native user audience. So our platform originally is more capital markets rather than crypto. So we started before crypto. Crypto and most of the activity on eToro historically was people funding their accounts, of course, with fiat money, with either local currency and dollars and then trading crypto assets or stocks with it. Now, as we double down on crypto as well, we're now enabling that crypto to fiat. And so we are talking to some of the stable coin issuers to understand the various opportunities of partnerships there as well.

Thanks so much.

Thank you. And one moment for our next question. Our next question will come from the line of Dan DeLive with Mizuho. Your line is open. Please go ahead.

Hey, guys. Congratulations on a great first quarter with the public call. Really quick question on Tori. I've noticed that you're using that. Just wanted to ask a broader question about sort of AI use and investing for your funded accounts how they're perceiving it, how they're using it, and what are you seeing in the future in terms of the use of Tori and AI for investing? Thank you.

Sure. So first of all, I have to say I'm super excited about seeing the developments in AI, both from accelerating our ability to deliver products to making our organization more efficient. I myself now has an actual coding platform and writing things with AI on top of our APIs. We just recently launched a very exciting announcement. Our Tori, the AI analyst, which is able – to actually just 30 minutes ago, I checked what's the AI's view on eToro's quarterly financials. So immediately, basically, see what's happening in the markets, analyze them. It's, by the way, multi-model, so we can actually very easily switch in the backend to the different models. We already started testing with users GPT-5, as well as Gemini 2.5 and Grok. So very excited about the opportunities of AI in investing. And we've launched our API that's powered by AI and a marketplace to enable actually our popular investors to actually build apps on top of the eToro platform. I think this brings us to a future where retail investors can actually become significantly more sophisticated with their tools. They can basically build quantitative strategies related also, of course, to the rise of digital assets and crypto assets and 24-7 trading. Even myself, I've been passionate about capital markets, trading, investing my entire life, but I never had a 24-7 AI agent trading in my account. So I have no doubt that these AI tools will help our customers both increase their velocity and engagement on the platform and become significantly more successful investors and more sophisticated investors with these tools at their hands. So this is, I think, still early days, but with a huge opportunity ahead of empowering retail investors with tools that just one or two years ago we're really reserved just for the top quantitative hedge funds in the world.

Great stuff, and congrats again.

Thank you. One moment for our next question. Our next question is from the line of Craig Siegenthaler with Bank of America. Your line is open. Please go ahead.

Great. Thank you so much for taking the call. So my question is, of the $114 million, of net trading income from equities, commodities, and currencies. I'm curious, what was the percentage mix from CFD and how has that mix been trending over the last year?

So, as we mentioned before, we don't break it down really by the nature of the transaction, the type of the transaction, but we look into it more on a broader way of what is the asset class that is coming from. both CFDs and futures on equities and commodities. So we don't really segregate the results by then. I think we mentioned in the past as well that we are aiming to get to a 20% mark within the 12, 18 months ahead. So that's still where we are aiming to get.

Thank you.

Thank you. And one moment. Our last question is going to come from the line of Charles Bennett with Rothschild and CEO Redburn. Your line is open. Please go ahead.

Hi there, Yoni and Ron. Thank you for taking my question. Just a follow-up, if I can, on the copy trader product in the U.S. Is there any update regarding licensing of U.S.-based popular investors? Are there any regulatory teething issues there? Are you expecting this to roll out pretty seamlessly? Thanks.

We do expect, as I mentioned before, to roll it out this year. As we also spoke during the roadshow, that we believe that the copy trader technology could work and be translated into the US markets relatively easily. And we've basically made more of a risk decision not to launch it prior to the IPO. Regarding smart portfolios, we are working towards an RIA license to be able to launch our smart portfolios, which are basically our own strategies that we developed 120 smart portfolios from our customers. Outside the U.S., we are seeing record high assets under copy, so very excited about launching it later this year in the U.S. Thank you. So that was the last question, operator.

Yes, sir. I'm showing no further questions at this time.

Thank you very much. So quickly closing remarks. As we close our first quarter earnings call as a public company, it's clear we're entering a new era for both eToro and the investing world at large. The future of investing will be defined by AI-powered intelligence that can process data at unprecedented speed, uncover insights hidden in plain sight, and personalize the investing journey for every user. At eToro, we're harnessing these technologies to empower our community, enabling smarter decisions, more adaptive quantitative strategies, and building their own apps now on top of eToro. Alongside this transformation, the global financial landscape is embracing digital assets as a core pillar of diversified portfolios from Bitcoin and crypto assets to tokenized real-world assets. The boundaries between traditional and digital markets are dissolving. eToro has sat at this intersection since 2013, giving investors seamless access to both a world with trust, simplicity and scale. We believe the combination of AI-driven investing and the continuous rise of digital assets will reshape wealth creation for the next generation. and we are committed to leading this change, not just as a platform, but as a global community where anyone can trade and invest in a simple and transparent way. This is just the beginning. The age of intelligent investing is here, and eToro is ready to lead it. Thank you, Grok, for just writing this, and thank you, all of us, for joining us.

This concludes today's conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day.