eToro Group Ltd.

Hi, 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 January monthly spreadsheet is now available on our website at investors.eToro.com. Today, I'm joined by Yoni Asya, 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 questions 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 risks, uncertainties, and assumptions. And you can find more information about these risks and uncertainties in the press release that we issued today and the risk factors section of our filings at scc.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, joining us here today. Welcome to our fourth quarter 2025 earnings call. After Mehron and I finish our prepared remarks, we'll open the call for questions. 2025 was a defining year for eToro. We became a publicly traded company on NASDAQ. We accelerated innovation and AI adoption across our platform, broadened and localized our product offering, and expanded our presence in key markets such as the U.S., while continuing to strengthen our global footprint. More importantly, we made amazing progress towards the financial super app we're building, all while delivering growth across our primary KPIs. We're operating at a pivotal moment for financial services. AI is advancing at an unprecedented pace, reshaping how people access information, make decisions, and interact with markets. At the same time, financial services are continuing to move on chain, enabling a more continuous, transparent, and borderless global market infrastructure. Along these technological shifts, we're seeing a structural increase in retail participation in markets across the globe and the largest generational transfer of wealth in history. Together, these forces are driving demand for a seamless digital-first investing experience that is more personalized, more intuitive, and available at all times. At eToro, we're at the forefront of this evolving financial landscape, using technology and community to power our users to become better, more confident, and more engaged investors. Our focus is on expanding access to global markets, moving towards 24-7 trading, bringing financial assets on chain, broadening our crypto and decentralized finance offering, while continuing to provide the full suite of investing and savings products in traditional markets. enabling partners to build and trade through our eToro APIs and interact with eToro apps, leveraging AI to help users make smarter investment decisions. All of this is delivered through a simple and transparent investing experience, in line with our mission to democratize investing and give anyone, anywhere the tools they need to grow their knowledge and wealth. While we're proud of the progress we've made, we see a significant opportunity ahead. We are confident in our ability to capture this opportunity for the benefit of our shareholders, users, and partners. Turning to our results, we delivered a strong fourth quarter that reflects continued momentum and the strength of eToro's diversified offering. For the year, net contribution increased 10% to $868 million and rose 6% sequentially in the fourth quarter to $227 million. Adjusted EBITDA grew 4% year-over-year to $317 million and 11% quarter-over-quarter to $87 million, delivering a 38% adjusted EBITDA margin in the quarter. We achieved these results despite the current crypto market environment, underscoring the strength of our multi-asset model and the benefits of our global diversification across geographies and asset classes. We first offered crypto trading on eToro in 2013, And since then, we've been through several crypto market cycles. We've seen people write off crypto. We've kept building. Over time, we have built a truly global multi-asset platform spanning crypto, equities, commodities, and currencies. That breadth allows us to adopt as market activity shifts and to perform in any market condition. In 2025, we continue to execute across our four product pillars, trading, investing, wealth management, and neobanking. In trading, our focus remains on expanding product reach, flexibility, and global market coverage. Since 24-5 equity trading, we've seen very strong adoption, reinforcing our belief that investors around the world want the ability to engage with markets on their own time and terms. We now offer 24-5 trading across all S&P 500 and NASDAQ 100 stocks, which has contributed to a doubling of our total stock trading volume over the past two years. We continue to listen closely to our active traders across 75 different markets as we accelerate toward 24-7 trading and expanded margin capabilities. This quarter, we're introducing around-the-clock access to a selection of popular assets with plans to expand 24-7 trading across additional asset classes. We're already seeing traditional capital markets begin to follow the always-on 24-7 model pioneered by crypto. In Q4, we surpassed 150 supported crypto assets with plans to expand to more than 300 in the near term. In the US, we significantly broadened our crypto offering in 2025 to over 100 crypto coins, adding a wide range of new assets and enhancing our staking capabilities. These milestones mark an important progress in our localization strategy and broader asset expansion. By the end of 2026, we plan to support over 100,000 tradable assets across equities and crypto. In investing, we continue to broaden access to global markets. In 2025, we expanded coverage to include Hong Kong, Nordic and Middle East stock exchanges. And today, we provide access to 25 exchanges from across the world and over 12,000 assets on the platform. It was also a year of continued innovation in smart portfolios, with a focus on localization, partnerships, and alpha. This quarter, we launched two new smart portfolios in partnership with Amundi, Europe's largest wealth manager. These portfolios provide access to professionally managed strategies that combine broad market exposure with forward-looking investment themes available in local currencies. At the same time, our pro investor community continued to expand, growing from about 3,200 at the end of 2024 to now over 5,000, reflecting strong momentum in copy trading and community-driven investing. This caps the year in which we also introduced our alpha portfolios, our AI-powered quantitative strategies and established new partnership with Franklin Templeton, BlackRock and WisdomTree. Today, we have more than 127 smart portfolios on our platform. In Q4, we also expanded our stock lending program in the UK and margin trading in Europe, enabling users to earn additional buying power and yield on their equity holdings, thereby enhancing passive income opportunities. In wealth management, adoption of our long-term tax-adventure savings solutions continue to accelerate, expanding our presence across trillion-dollar addressable markets in Australia, UK and France. In the UK, we strengthened our ISA proposition, with assets under administration in Q4 increasing seven-fold year-over-year. In France, we launched new savings products, extending our reach into another large and structurally attractive tax advantage investment market. Together, these markets represent a multi-trillion dollar long-term opportunity. As we look ahead, we remain focused on further localizing and scaling our wealth offering to capture that opportunity. Turning to neobanking, momentum continues to build with eToro Money, which is now fully integrated into the core platform, delivering seamless end-to-end money management experience. The past year was a breakthrough year for eToro Money, with multiple product launches driving a 29% year-over-year increase in total money transfers. We also expanded our debit card footprint, and this past quarter we saw a 650% increase from Q4 2024 to Q4 2025 in transaction volume. We are rolling out our non-custodial crypto wallet, which bridges traditional finance and decentralized finance, enabling users to hold, stake, and transfer crypto, as well as accessing decentralized finance markets such as swaps of 100,000 different assets. As we discussed in our last earning calls, we see a consistent set of themes driving eToro's continued growth and supporting the democratization of investing. These themes continue to guide our strategy as we move on to 2026. Firstly, innovation. As I mentioned at the start, we're at a pivotal moment for financial services with the advance of AI and the move on chain progressing at rates we could not have anticipated a few years ago. Innovation has always been at the core of eToro. From the beginning, our goal has been to use technology to remove barriers, simplify investing, and give individuals access to opportunities that were previously reserved for institutions. That philosophy hasn't changed. What has changed is the scale of the opportunity and the power of the tools now available to us. We're committed to staying at the forefront of this revolution. We're now an AI-first company. We're embedding AI across our business to accelerate product development, to prove efficiency, and enhance how we operate at scale. AI is becoming a core part of our operating model helping our teams to move faster and focus on delivering the most impact. Processes that historically took months or even years are now achievable in a matter of days, if not hours. We're building now our eToro super app 100% with AI. All of the eToro apps are developed 100% by AI. But it's not just the code, rather the entire way how we operate and plan. AI means we can move 10 times faster. It is accelerating our growth, enabling us to innovate more rapidly without a corresponding increase in complexity or headcount. AI is now core to the eToro experience. It enables us to deliver smarter tools and more personalized insights at scale. Tori, our AI analyst, continues to evolve as new AI models come online, becoming an increasingly powerful companion for investors. Across the platform, AI helps users interpret market dynamics, assess portfolio performance and risk, and ultimately make better investment decisions. Through our public APIs and a suite of AI-powered tools, users and partners can build, share, and scale strategies and apps, creating a growing ecosystem. We are launching apps as part of our new upcoming launch of our App Store, which will bring and force capabilities into a retail trading experience. eToro apps will include additional AI tools like Base44 and OpenClan, and we already have nearly a thousand apps in the pipeline. In parallel, we're actively building as finance moves increasingly on-chain. With a long history, In crypto and tokenization, eToro is already part of this transition. Our holistic crypto offering positions us to continue bridging digital assets and traditional markets, supporting the evolution from crypto trading today to tokenized markets and new forms of financial participation over time. To be clear, this is not about or dependent on the spot price of crypto assets at any given point in the cycle. This is about building a platform that is poised to lead the inevitable shift to on-chain market infrastructure. This will unlock for our users new types of tokenized real-world assets already in 2026, such as tokenized private markets and real estate. Our non-custodial wallet is the gateway to Web3. Over time, the wallet will expand to support tokenized assets, swaps, lending, prediction markets, and perpetual, where applicable. Throughout the year, we plan to roll out a broad range of new products across these areas. Taken together, these innovations are about empowering, smarter investing. It's about leading the next evolution of investing, opening the global markets, connecting people to better tools and insights, enabling everyone anywhere to participate in a simple and transparent way. Secondly, global expansion. Our global footprint continues to be a key differentiator, and we remain focused on strengthening that advantage. We will continue to expand our product offering in existing regions while selectively entering new markets. By combining a global platform with a localized user experience, we're able to grow in markets where we're still early, while deepening engagement and increasing our share of wallet in more established regions. To this point, in 2025, we saw an 80% year-over-year trading volume in non-US stocks activity. In Asia, establishing Singapore as a regional hub last year provides a strong foundation to reduce more investors to eToro from the region. We expect to introduce additional products and increase targeted marketing activity as the year progresses. In Europe, where we already have a meaningful scale, our focus is on deepening relationships with existing users and increasing share of wallet. We continue to enhance our localized offering, particularly in savings and long-term investing, as we work to capture a greater share of wallet across our core European markets. In the U.S., the world's largest retail investing market, we are in the process of bringing the fully Toro experience to the U.S. As a global pioneer in social investing, we have spent more than a decade building community-driven tools such as CopyTrader, which enables investors to learn and invest alongside the smarter investors. Furthermore, we plan to roll out additional crypto products and smart portfolios to drive engagement and momentum over the coming quarters. More broadly, we continue to evaluate new market opportunities, prioritizing regions with strong financial literacy, digital adoption, and sustained demand for trading and investing. Thirdly, macro trends. We continue to align with powerful long-term market trends that are reshaping global investing. We are at the early stages of the largest wealth transfer in history, with more than $120 trillion expected to move to younger generations over the next 20 years. These investors are digital first, more self-directed and more engaged with equities and crypto than any generation before them. This shift aligns directly with our platform and positions eToro to support how the next generation builds and manages its wealth. At the same time, our global footprint provides meaningful exposure to structurally under-penetrated retail investing markets. In the United States, around 60% of households have some exposure to equities, while in Europe, retail participation remains significantly lower, with brokerage account penetration still in the single digits in some markets. This gap highlights the long-term opportunity ahead and reinforces why we believe eToro is well positioned to lead the next phase of global retail investing growth. To summarize, We delivered resilient net contribution and strong adjusted EBITDA performance in 2025. And in the fourth quarter, we continued to see positive KPI trends in January, largely driven by strength in commodity trading activity, demonstrating the strength of our diversified multi-asset model. Looking ahead to 2026, we're confident that our strategy, continuing to leverage technology to innovate, expanding globally, and aligning with long-term macro trends, position us to capture significant opportunities. We see 2026 as a year of accelerated momentum growth. We're uniquely positioned as both a native crypto company and a global equities trading platform and believe we're building a strong foundation for long-term, sustainable value creation for our shareholders, users, and partners. With that, I'll now turn the call over to Moran to walk us through the financial results.

Thank you, Yoni. Fourth quarter net contribution was $227 million, a 6% sequential increase, demonstrating the continued momentum and durability of our diversified business model. Adjusted EBITDA was $87 million, an 11% improvement quarter-over-quarter, reflecting strong execution and disciplined cost management. The year-over-year adjusted EBITDA decline was impacted by the crypto tailwind and unique market conditions that followed the previous year's U.S. presidential elections. In line with our focus on diversified profitable revenue growth, our adjusted EBITDA margin was 38%. AUA for the quarter increased 11% year-over-year to $18.5 billion. The increase was driven by record net deposits and improving customer retention metrics. Our funded accounts grew 9% year-over-year to $3.81 million. This growth reflects the strength of our multi-asset business model and our disciplined, data-driven marketing approach. Let's take a closer look at the fourth quarter financials by business lines compared to a year ago. Net trading contribution from capital markets, including equities, commodities, and currencies, increased 43% year-over-year to $116 million, driven by investor rotation between crypto and traditional asset classes, with particularly strong performance in commodities. This pattern is consistent with historical behavior and highlights the strength of our diversified multi-asset platform. In contrast, net trading contribution from crypto declined 72% year-over-year to $26 million due to the crypto tailwinds in the fourth quarter of 2024 that I had mentioned before. The decline was primarily driven by lower invested amount per trade and softer trading activity, particularly in November and December. As we have seen in prior crypto cycles, these periods of volatility are expected, and our diversified business model continues to demonstrate resilience across market conditions. Net interest income contributed $59 million, up 18% year-over-year, largely driven by a 29% increase in higher interest earning assets due to an increase in customers' cash deposits, customers' margin book, staking, and corporate cash. This growth was achieved despite a moderating interest rate environment, reflecting the strength of our balanced growth. Itoro Money's contribution declined 6% year-over-year to $23 million, largely driven by higher year-over-year cash redemption in crypto in 2024 due to market conditions we had mentioned before. In the fourth quarter, adjusted OPEX was in line with our expectations at $140 million. Our adjusted selling and marketing expense was $46 million, or 20% of net contribution. Our marketing strategy continues to generate strong and disciplined returns, with shorter payback periods delivering ROI within the same year and cohorts driving sustained commission growth over time. Notably, our 2024 cohort has already achieved a 1.8 times return on investment, while our 2020 cohort has delivered 5.6 return on investment, demonstrating the durability of our model. Importantly, we continue to see cohorts generating meaningful revenue, even after eight years, underscoring the long-term lifetime value of our customers. Given the strength of our cohort returns and our objective to accelerate growth in 2026, we plan to increase our sales and marketing investment from 21% scaling gradually to 25% of net contribution. Importantly, this spend remains highly flexible and can be adjusted based on market conditions and performance. We are making this decision from a position of confidence, as the ROI profile supports incremental investment, and we expect this increased spend to drive accelerated growth across our key KPIs in the year ahead. Adjusted R&D and G&A and operating expenses were $37 million and $57 million, respectively. Our adjusted diluted EPS for the quarter was 71 cents compared to 79 cents in the fourth quarter of 2024. Moving to our balance sheet, we ended the quarter with $1.3 billion in cash, cash equivalents, and short-term investments, and generated $42 million in free cash flow from operations. Furthermore, we do not have any material exposure to crypto or commodities on the balance sheet. In the fourth quarter, we repurchased 1.5 million shares with $59.5 million, pursuant to our previously communicated share repurchase program. Lastly, alongside today's earnings release, we announced an additional $100 million authorization under our share repurchase program, increasing total authorization to $250 million. To date, we have deployed $100 million under the program. This reflects our confidence in the long-term outlook and our commitment to driving shareholder value. Given our strong cash generation and balance sheet, we have the flexibility to continue executing buybacks while also evaluating selective M&A opportunities to support disciplined inorganic growth. Now let me share a few comments on our first quarter trends. As part of our quarterly results today, we also released our January monthly KPIs. The month of January saw improved KPIs versus November and December. Our capital markets business saw significant year-over-year growth in both total number of trades and invested amount per trade. This was largely driven by equities and commodities. Both our AUA at $18.4 billion and funded accounts at $3.85 million were up year-over-year. These solid KPIs are a testament to our multi-asset strategy's support of strong results despite a soft crypto pricing environment. To summarize, we are excited to start the year with solid January KPIs and are looking forward to driving meaningful profitable revenue growth in 2026. With that, Daniel, let's move to Q&A.