eToro Group (NasdaqGS:ETOR) opened 2026 earnings season with Q1 results framed against a recent run of large revenue quarters, including Q4 2025 revenue of US$3.8b and basic EPS of US$0.79 alongside trailing 12 month basic EPS of US$2.58 on revenue of US$13.7b. The company has seen revenue move between US$1.5b and US$5.8b per quarter since late 2023, while quarterly basic EPS has ranged from US$0.21 to US$0.85 over the same period. This gives a clear view of how the top line and per share earnings have scaled together as margins edge higher.

See our full analysis for eToro Group.

With the latest numbers in hand, the next step is to set this performance against the most common narratives around eToro Group, highlighting where the story lines up and where the figures tell a different angle.

Five year growth meets slower recent pace

• Over the last five years, earnings grew about 41.9% per year, while trailing 12 month earnings growth is 12.1%, so the long run record looks stronger than the most recent year.
• What stands out for the bullish view is that past earnings are described as high quality and still growing, yet the recent 12.1% earnings growth and the expected 12.49% annual growth are both lower than that 41.9% pace, which tempers the idea of an uninterrupted high growth story.
  • Support for the bullish angle comes from the trailing 12 month net income of US$215.7 million on US$13.7b of revenue, as well as consistently positive EPS across the last six reported quarters.
  • Against that, critics can point to Q2 2025 EPS of US$0.38 compared with US$0.79 to US$0.85 in several other quarters, plus the slower 12.1% recent earnings growth, as a sign that growth has already cooled from the earlier multi year surge.

Margins positive but still quite thin at 1.6%

• Net profit margin on a trailing 12 month basis is 1.6%, only slightly higher than 1.5% a year earlier, showing that most of the US$13.7b in revenue is still going to costs rather than profit.
• Bears argue that a margin profile like this leaves little room for error, and the data gives them some material to work with because profit remains a small slice of revenue, although the fact that margins are positive and described as supported by high quality earnings pushes back against the idea that the business model is fundamentally broken.
  • At the quarterly level, net income excluding extra items has stayed positive in every period shown, ranging from US$30.2 million to US$68.7 million, which challenges any bearish claim that profitability is unstable quarter to quarter.
  • However, the modest move from 1.5% to 1.6% margin means bears can reasonably say there is not yet clear evidence in the figures of a sustained shift to much higher profitability.

P/E of 13.9x and flagged revenue decline

• The stock trades on a trailing P/E of 13.9x, below both the peer average of 17.5x and the US capital markets industry average of 41.1x, while revenue in the forecasts is shown as expected to decline at about 106.1% per year over the next three years.
• Consensus style commentary around valuation often leans positive because the shares sit below both peers and industry on P/E and the provided DCF fair value of US$36.50 is close to the current price of US$37.61, yet the same dataset also highlights that revenue is forecast to fall sharply, which makes this a straightforward trade off between cheaper looking multiples and a challenging top line outlook.
  • The P/E gap versus peers and industry, combined with the 12.49% expected annual earnings growth figure, gives support to investors who see the stock as reasonably priced relative to its earnings profile.
  • At the same time, the projected 106.1% annual revenue decline over three years is a clear headwind that anyone using valuation ratios needs to factor in, because it directly questions how sustainable current earnings and margins might be if revenue does in fact fall that quickly.

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for eToro Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for eToro Group on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

Seen enough to sense the mood of this earnings story? If you want to move quickly and base your view on specifics, take a closer look at the 4 key rewards.

See What Else Is Out There

eToro Group combines thin 1.6% margins with a forecast revenue decline and slower earnings growth, so the earnings story carries clear pressure points.

If that mix of tight profitability and questioned future revenue makes you cautious, you could compare it with companies screened for stronger cash generation and resilience using the solid balance sheet and fundamentals stocks screener (46 results).

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.