eToro Group Ltd.

My name is Daniel Amir, Head of Investor Relations. This webcast is being recorded and will be available for replay in the Investors section of eToro's website. Our earnings press release, investor presentation, and October monthly spreadsheet is now available on our website at investors.eToro.com. Today, I'm joined by Yoni Astia, our CEO, and by Mehran Shani, our CFO. Following the prepared remarks, we will conduct a Q&A session and answer questions from both institutional research analysts and a selection of the most upvoted question previously submitted by eToro's retail shareholders. But before we begin, I want to note that today's discussion contains forward-looking statements, including statements about goals, business outlook, industry trends, market opportunities, expectations for future financial performance, and similar items, all of which are subject to risk, uncertainties, and assumptions. And you can find more information about these risks and uncertainties in the press release that we issued today and in the risk factors section of our filings at sec.gov. Actual results may differ and we take no obligation to revise or update any forward-looking statements. Finally, during today's meeting, we will discuss non-GAAP financial measures. These non-GAAP financial measures are in addition to and not a substitute for or superior to measures of financial performance prepared in accordance with GAAP. Definitions and reconciliation of GAAP to non-GAAP measures is available in our press release, investor presentation, and on the SEC.gov website as applicable. With that, I will pass the call to Yoni.

Thank you, Daniel. And thank you, everyone, for joining us today. Welcome to our third quarter's 2025 earnings call. After Mehran and I conclude our prepared remarks, we'll open it up for questions. We're proud to share another strong quarter that reflects eToro's continued momentum and growing strength as a global leader in trading and investing. This performance, with net contribution up 28% year over year to $215 million, and adjusted EBITDA rising 43% to $78 billion, delivering solid operating margins of 36%, is a testament to the vision, resilience, and scalability of our diversified business. What excites us most is the remarkable pace of innovation unfolding across eToro, with AI accelerating our product development. We're not only enhancing the platform that our users know today, we're reshaping the future of investing. we're expanding into new frontiers in crypto, tokenization, and AI, while also broadening our global reach to serve an ever-growing community of smart investors. This wave of innovation is delivering tangible results. record assets under administration, robust growth across all segments, and unprecedented engagement in copy trading. Together, these achievements underscore how our investment in technology is fueling growth, deepening client engagement, and bringing us ever closer to our mission, which is to empower everyone to trade and invest in a simple and transparent way. Our key performance indicators accelerated meaningfully this quarter. Funded accounts grew 16% year-over-year to 3.73 billion, with organic funded accounts expanding at a double-digit rate. This growth demonstrates the growing appeal of eToro's differentiated platform, the trust we've built with our global community of investors, and the success of our disciplined and data-driven marketing approach. Assets under administration reached an all-time high of $20.8 billion, up 76% year-over-year, fueled by growth in new deposits and strong user investment returns in both crypto and equities this year. The positive momentum in our KPIs has continued into Q4, as shown in the October results released today. These results show our strategy in action. We're democratizing investing by making it simple, accessible, and social, while combining multi-asset trading with smarter products like copy trading and smart portfolios to empower investors everywhere. As we execute on this vision, we're confident in our ability to deliver lasting value for our users and shareholders. To achieve the strong performance we delivered in Q3, we've remained focused on executing across our four strategic pillars of trading, investing, wealth management, and neobanking, while accelerating product innovation across the platform. Let me share a few highlights across each of these areas. In trading, we're continuing to expand market access globally. We continue to expect our 24-5 trading. We began offering retail investors access to stocks listed on Nasdaq Nord exchanges throughout our partnership with Nasdaq. This expansion comes amid rising retail investor interest in the global markets. Today, we offer access to 22 different exchanges worldwide and plan to increase to over 30 in 2026. We've expanded futures across Europe and launched spot-quoted futures in partnership with the CME Group. Retail participation continues to grow in these markets, and we are pleased to give local traders the ability to execute in more advanced and diversified strategies. Our expanded futures also establishes the infrastructure to support prediction markets in the future. In investing, we're bringing together the power of community and AI to drive deeper user engagement on eToro's platform and help investors make smarter decisions with AI. Our pro investor community has grown to over 4,000 investors globally, supported by our new pro investor program. This program is designed to support users on their journey to certify themselves as professional investors. Our pro investors gain exposure and grow their profile by sharing their expertise with eToro's global user base. In addition, over 130 pro investors now have north of $1 million assets under management, with our top pro investor growing from 50 million to over 250 million in 2025 alone. a milestone that reflects the growth and influence of our pro-investor program. Last month, we launched Copytrading in the US. We're excited to bring our flagship product to the world's largest capital market. Copytrading today is experienced across approximately a third of our users. With the launch of Copytrading in the US, we anticipate increased user engagement and platform traction. In AI, we're entering the next great leap in trading and investing, one that puts the power of professional-grade technology direct in the hands of every investor. With our newly launched eToro apps, users can build, share, and scale their own investment tools across our global community. What was once the privilege of sophisticated institutions is now being democratized. Our AI-driven insights from sentiment to decision analysis enable investors to think and act as institutional investors by creating their own strategies, dashboards, and innovations that shape the future of investing. In wealth management, we launched a new subscription model for the eToro Club, our loyalty and rewards program, offering members premium benefits and exclusive features. The subscription offers members smarter tools, monetary benefits, and more personalized support while driving incremental engagement. Furthermore, we've expanded eToro long-term savings offering for our UK users with the new eToro Cash ISA and cashback rewards and management and do-it-yourself ISAs. And in Australia, we advanced integration of Spaceship, giving users direct access to superannuation products through the eToro platform. These developments demonstrate our commitment to continuously enhancing wealth management offering, which is a multi-trillion dollar opportunity. With the Australian superannuation market valued at over $2.5 trillion and the UK individual savings account market exceeding $1.3 trillion. In EO Banking, we continue to enhance our global platform by delivering localized experiences that strengthen user trust, drive adoption, and support sustainable growth across our key regions. This quarter, we expanded our localization offering in the UAE, Singapore, and Australia. Furthermore, across the UK and Europe, on top of the 4% cashback in stocks, we now offer also a 1% cashback in stocks for new crypto deposits. We plan to expand this offering to more countries in the future. We're also very pleased with the strong traction we've seen with the Toro Money card, available today in Europe and the UK, which saw a 2.4 times increase in cards issued quarter over quarter. Looking ahead, we believe there are five key factors that will drive eToro's continued growth and advance our mission to open the global markets, connect users to leading investors, and give them tools they need to grow their knowledge and wealth. Number one, advancing at the forefront of innovation. Number two, continuing to expand globally. Number three, expanding our U.S. presence. Number four, broadening our product offering with AI. And number five is leading into inevitable lasting macro trends. We are focused on positioning our business to capture the significant growth opportunities presented by these five factors. First, advancing the platform at the forefront of innovation. From day one, product innovation has been at the core of who we are. We've built a strong track record of identifying early major trends like social trading and crypto and turning these trends into products that bring real financial utility to our users. Our social investing products continue to define who we are today as a company. From the outset 15 years ago, eToro set out to transform retail investing experience by pioneering the concept of social investing, empowering individuals to learn from one another and invest together. We believe there is a tremendous value in shared knowledge and collective insight. Over the years, we have led the industry with innovations such as our social network, copy trading, crypto investing, fractional shares, machine-learn-driven analytics, and our smart portfolios. Together, these capabilities make investing more inclusive, informed, and collaborative for our growing global community. Artificial intelligence is the next frontier in investing, and we're already seeing the impact across our business. Our AI analyst story launched last quarter has already been used by over a third of our club members, a strong sign of engagement and potential. As we expand our AI capabilities, we're giving an investor powerful tools to make smarter decisions, improve performance, and deepen their connection to our platform. Our vision is also centered on building open, tokenized, and borderless markets to help millions to build wealth. We're bringing U.S.-listed equities to the blockchain, enabling 24-5 trading of over 500 prominent stocks with plans to move forward to 24-7 as the market's involved. We're currently developing a crypto wallet that will open the opportunity for our users through decentralized finance to participate in innovations like on-chain prediction markets, lending, loans, and swaps of their assets of millions of different crypto assets, and connect our tokenized assets ecosystem and benefit from tokenization of real-world assets which will happen over time. We expect these more advanced crypto products to continue to increase our client engagement within the crypto industry. Second, continue to expand globally. We're proud to serve users in more than 75 different countries across the world. The diversification of our revenues across geographies is a core strength of eToro and a differentiator of our business. In Q2, we expanded our footprint in Asia by launching our capital market services license in Singapore, a meaningful step towards scaling our business in that region. Looking ahead, we plan to further localize our offering in key markets and continue to expand globally in regions where we're underpenetrated, as part of our broader strategy to solidify eToro's position as a truly global platform serving investors everywhere. Third, expanding our US presence. We're seeing solid growth in the US. Year to date, new funded accounts have already surpassed those of 2024, and we've achieved that growth while remaining disciplined and efficient in our marketing spend, consistent with our strategy. To continue this growth, we're focused on bringing the full product offering for which we are known globally into the U.S. market. For example, in the third quarter, we brought in a crypto offering in the U.S. to include more than 100 different crypto assets and introduced staking in the U.S. As a result, we saw three times increase in our crypto volumes quarter over quarter in the U.S. market. Additionally, last month, we announced the launch of copy trading in the US, a major milestone that lays the foundation for our next phase of expansion in this market. The copy trading product is a significant driver of user engagement with our platform, as reflected in the increase of the number of trades we've seen this year. We expect copy trading to be an important driver of growth in the US going forward. Fourth, broadening our products offering. In our core markets, we're focused on increasing engagement and share of wallet by broadening what we offer across our four strategic pillars. Trading, investing, wealth management, and neo-banking. We continue to expand each of these areas quarter after quarter. As mentioned, recent highlights include the launch of the savings products in the UK and France, expansion of the Toro money card across Europe, the role of futures and options across key European markets, and introducing localized trading and cash management capabilities in new regions as well. This approach has proven successful over time by driving both higher user retention and growth in assets per account. And fifth, leaning into lasting macro trends. Over the next 20 years, we will see the largest generational transformation of wealth in history, with over $150 trillion moving to younger generations globally. These younger generations are digital first, and they're far more engaged with equities and crypto than their parents. On their back end, we also expect to see $100 trillion moving on chain as capital markets transform into digital assets. Moreover, in many non-U.S. markets, retail participation remains below U.S. levels. We believe this gap will continue to narrow as younger generations, more inclined to invest in crypto and equities than their parents, enter the market, offering us a long runway for growth across our global franchise. These secular shifts are a powerful tailwind that will continue to support both assets under administration new account growth over the long term. Altogether, these five drivers give us a strong confidence in our ability to deliver sustainable, profitable growth and position eToro as the global broker of choice. Lastly, we announced today a $150 million share repurchase program, underscoring our confidence in eToro's long-term growth prospects and our continued commitment to delivering value for shareholders. We believe that our stock is undervalued, and given our significant cash generation, we have the flexibility to buy back shares. Our strong cash position also gives us the ability to consider M&A opportunities to drive inorganic growth. We're evaluating a range of opportunities, though we will remain disciplined in any transaction we pursue. In sum, this quarter's results and KPIs for October clearly demonstrate that our strategy is working. We're achieving double-digit growth in organic funded accounts, significantly increasing our assets under administration, expanding net contribution and adjusted EBITDA margins, and doing so while entering new markets and launching new products that strengthen our leadership for the future. With strong execution, financial discipline, and a relentless focus on innovation, we believe we're very well positioned to drive long-term value, and we're just getting started. With that, I will pass now along the call to Moron, our CFO, to discuss our financial results.

Thank you, Yanni. As Yanni mentioned, we are very pleased with our third quarter results. Third quarter net contribution grew 28% year-over-year to $215 million, and adjusted EBITDA grew 43% year-over-year to $78 million. In line with our focus on diversified profitable revenue growth, our adjusted EBITDA margin was 36%, expanding 370 basis points from a year ago. These results are consistent with our view that our long-term adjusted EBITDA margins will increase from these levels. Our momentum has accelerated in the third quarter. Assets add-on administration for the quarter increased 76% year-over-year to a record of $20.8 billion, while our funded accounts grew 16% year-over-year to $3.73 million. The growth was driven by strong user acquisition and retention efforts and ongoing discipline marketing. Let's take a closer look at our third quarter financials by business lines compared to a year ago. Our net trending contribution from crypto grew 229% year-over-year to $56 million, which was largely driven by higher invested amount per trade and increased crypto activity, especially in the month of July and August. Our net trading contribution from capital markets, equities, commodities, and currencies declined 21% year over year to $73 million as investors shifted activity between crypto and capital markets. The 15% rise in the number of trades was driven by strong momentum across copy trading with record inflows into copy, a clear reflection of growing customer engagement and platform strength. Net interest income contributed $62 million, up 44% year-over-year, largely driven by a 52% increase in higher interest earning assets due to an increase in customers' cash deposits, customers' margin book, staking, and corporate cash. Itoro money contribution grew 50% year-over-year to $21 million, largely driven by an increase in total money transfers. In the third quarter, adjusted OPEX was $137 million, flat quarter on quarter. Our adjusted selling and marketing expense was $47 million, or 22% of net contribution. Our business model provides us with flexibility in our selling and marketing expense, where approximately 70% of our expense is dynamic. Adjusted R&D and G&A and operating expenses were $36 million and $54 million, respectively. Our adjusted diluted EPS for the quarter was $0.60 compared to $0.51 in the third quarter of 2024. Moving to our balance sheet, we ended the quarter with $1.2 billion in cash, cash equivalents, and short-term investments, and generated $57 million in free cash flow from operations. Now, let me share a few comments on fourth quarter trends. As part of our quarterly results today, we also released our October monthly KPIs. Consistent with our commitment to greater transparency and enhanced disclosure, we will now begin publishing KPIs on a monthly basis. We've also made a detailed spreadsheet available on our website, which includes historical monthly data to help investors better track our performance over time. Our goal is to provide the investment community with the information and tools needed to more clearly understand, model, and evaluate our business. The month of October continues the strength that we saw in Q3. Our capital markets and crypto businesses saw significant year-over-year growth in both total number of trades and invested amount per trade. Assets under administration was $20.5 billion, up 72% year-over-year. and funded accounts were 3.76%, up 17% year-over-year. To summarize, we are very pleased with our strong Q3 performance and positive momentum, and we believe we are well-positioned to capture new opportunities, drive sustainable growth, and further strengthen eToro's leadership in global investing. With that, Danielle, let's move to Q&A.