Q3 2025 eToro Group Ltd Earnings Call

Speaker #1: 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.

Speaker #1: Our earnings, press release, investor presentation, and October monthly spreadsheet is now available on our website and investors.eToro.com. Today, I'm joined by Yoni Astia, our CEO, and by Miron Cheni, our CFO.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #1: 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.

Speaker #2: Thank you, Daniel. And thank you, everyone, for joining us today. Welcome to our third quarter's 2025 earnings call. After Miron and I conclude our prepared remarks, we'll open it up for questions.

Speaker #2: 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 was net contribution up 28% year over year to $215 million and adjusted EBITDA rising 43% to $78 million delivering solid operating margins of 36%.

Speaker #2: It's a testament to the vision, resilience, and scalability of our diversified business. What we're most excited about is the remarkable pace of innovation unfolding across eToro.

Speaker #2: 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 to conversation and AI while also broadening our global reach to serve an ever-growing community of smart investors.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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 a more advanced and diversified strategies.

Speaker #2: Our expanded futures also establish 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: A milestone that reflects the growth and influence of our pro-investor program. Last month, we launched copy trading in the U.S. We're excited to bring our flagship product to the world's largest capital market.

Speaker #2: Copy trading today is experienced across approximately a third of our users. With the launch of copy trading in the US, we anticipate increased user engagement and platform traction.

Speaker #2: In AI, we're entering the next great leap in trading and investing—one that puts the power of professional-grade technology directly in the hands of every investor.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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 a new eToro cash ISA and cashback rewards on management and do-it-yourself ISAs.

Speaker #2: 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.

Speaker #2: With the Australian superannuation market valued at over $2.5 trillion and the UK individual savings account market exceeding $1.3 trillion. In neobanking, 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.

Speaker #2: 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.

Speaker #2: 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 eToro MoneyCard, available today in Europe and the UK, which saw a 2.4 times increase in cards issued quarter over quarter.

Speaker #2: 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.

Speaker #2: Number one, advancing at the forefront of innovation. Number two, continuing to expand globally. Number three, expanding our US presence. Number four, broadening our product offering with AI.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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 the retail investing experience by pioneering the concept of social investing.

Speaker #2: 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 learning-driven analytics, and our smart portfolios.

Speaker #2: Together, these capabilities make investing more inclusive and 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.

Speaker #2: 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.

Speaker #2: As we expand our AI capabilities, we're giving investors 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.

Speaker #2: 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 markets evolve.

Speaker #2: 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.

Speaker #2: And connect our tokenized assets ecosystem and benefit from tokenization of real-world assets, which will help happen over time. We expect these more advanced crypto products to continue to increase our client engagement within the crypto industry.

Speaker #2: 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 it differentiates our business.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: 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.

Speaker #2: To continue this growth, we're focused on bringing the full product offering for which we've known globally into the US market. For example, in the third quarter, we brought in our crypto offering in the US to include more than 100 different crypto assets and introduced staking in the US.

Speaker #2: As a result, we saw three times increase in our crypto volumes quarter over quarter in the US 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.

Speaker #2: 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.

Speaker #2: We expect copy trading to be an important driver of growth in the US going forward. Fourth, broadening our product 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.

Speaker #2: Trading, investing, wealth management, and neobanking. 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 eToro 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.

Speaker #2: 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.

Speaker #2: Over the next 20 years, we will see the largest generational transformation of wealth in history. With over 150 trillion dollars moving to younger generations globally.

Our momentum has accelerated in the third quarter.

Assets are Administration for the quarter, increased 76%, year-over-year to a record of 20.8 billion dollars. While our funded accounts grew 16% year-over-year to 3.73 million.

The growth was driven by strong user acquisition, retention efforts, and ongoing disciplined 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 increased by 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.

That interest income contributed $62 million, up 44% year-over-year. This was 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.

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 expenses, where approximately 70% of our expenses are dynamic.

Adjusted R&D and GNA and operating expenses were 36 million and 54 million respectively, our adjusted diluted EPS for the quarter was 60 cents compared to 51 cents in the third quarter of 2024 moving to our balance sheet, we ended the quarter with 1.2 billion dollars in cash. Cash equivalents and short-term Investments and generated 57 million dollars 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. So significant year-over-year growth in both total number of Trades and invested amount per trade.

Assets and administration was 20.5 billion dollars up 72%.

And funded accounts were 3.76 up. 17% year-over-year.

To summarize. We're 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 Eternal's leadership in global investing with that. Danielle, let's move to Q&A.

Thank you moron. Uh, the first question here comes from a list of questions uh that have been pre-submitted by our retail investors. Uh this question is uh for Yoni.

Uh, so it Toro announced its new subscription offering. Uh, can you comment on why to decide it to launch the program and what is the opportunity?

Sure. Uh, we've built the Toro Club program to provide great, uh, premium benefits, uh, including unique features, better service, uh, as well as discounts to various parts in Toro, as well as the card, the cash back, and the crypto cash back. Uh, the club originally was based on the tiers of how much assets customers have, and we wanted to provide the same great benefits to people, uh, who want to subscribe to the new Toro subscription. This also consolidates, uh, two subscription models that we've had from...

Uh, Acquisitions that we've done in the past and we're very excited to see how the pickup is already to the new subscription model.

Thank you Yoni.

Operator.

For my.

As a reminder, to ask a question, you will need to press star 1 1 on your telephone and wait.

Please press star, 1 1 again, and please stand by while we compile our Q&A roster.

Our first question will be coming from Dan Fannon of Jeffrey. Your line is open again.

Ah, thanks. Good morning. Uh, wanted to talk about account growth and so, obviously, it's it's been good or, or quite strong. I was hoping you could talk about if there are regions or new markets that are are are contributing more and maybe the breakdown of that account growth here not just for the quarter but also October if there's any more granularity, that would be helpful.

Sure, we're on. Thank you, Dan. Uh, so with regards to our corn growth, um, like organically, as we discussed in the past, we have achieved double-digit growth. Um, we've seen great results coming out of the cohort of clients that we are bringing, increasing their level of deposits onto the platform and increasing their level also of engagement with the platform. So, overall, very good results. With regards to geographic, um, we are not breaking down geographically, but I could definitely tell you that we are seeing early but good signs coming up.

Out of the new regions that we launched in the um, uh, recently and in the last few years, as well as significant uh strength coming from our core markets.

And we have seen also a very uh good increase in the size of accounts coming into it Toro. So it's both new funded accounts growth in their first time deposit which is a very good indicator to the Future size of the accounts.

Great. Thank you.

And our next question.

Will be coming from Devin Ryan, a Citizens, your line is open.

Uh thanks uh, good morning everyone. Um, a question on artificial intelligence um implications here. So great to see 30% of the club.

Um, would be great to hear about anything. You can share on kind of the conversion uplift from doing research to actually trading and trade frequency. I know we're early days here but I'm just trying to think about that and the more broadly taking a step back, just some of the other types of offerings, you're planning to launch with artificial intelligence and just how you feel like that can maybe differentiate the E Toro offering uh in the market.

From just click to trade through the ux to eventually running automated strategies quantitative, uh, strategies of our users. And what we've built is the ability for our Pro investors to actually build those apps. Those strategies that includes dashboards and Analysis of how they generate their trades, and then actually provide an App Store. So, all of our customers can access that and we've seen some really amazing apps developed already by our Pro investors. This is a quick example. We've had 1 of our Pro investors actually creating the Persona of Warren Buffett. Benjamin Graham. Uh and I think it was Cathy wood basically ranking his stocks in his portfolio and suggesting how to rebalance the portfolio. So I do believe ai1 is an amazing tool for people who are not necessarily technical to actually bring in sort of their ideas on how to automate their strategies, how to make their

Strategies more professional on top of the eToro platform. I think over time that drives both higher returns, making our customers more successful, and actually higher velocity of trades in eToro.

That's great. Thank you.

And it's open. Craig.

Thanks for taking my question and hope everyone's doing well. Um, our question is on your strategic focus by geography. So, you know, please correct me if I'm wrong, but I see a company that is very focused on growth in the US in Asia and maybe widening geographically as new markets, but he tore his leading share in Europe with some scale. Um, and this Market also looks a lot less competitive than the US and Asia. So, my question is, why not focus on your first mover advantage in Europe and continue to deepen your investor base there, especially given that there are less regulatory restrictions on your coffee Trader model, uh, in Europe than in the US.

Sure. So, as we think of our growth strategy, first of all, we think of long-term growth. And we do want to build significant presence, uh, uh, in the US. And in Asia nonetheless, uh, on the day-to-day when we drive our marketing and most of our marketing is a data driven Performance Marketing approach. We always look at basically, the ratio between CAC 12 TV. Uh, so when we have a, a strong region and obviously, uh Europe, uh, some of our strongest regions in Europe UAE, Australia as well. We're actually doubling down on

On growth there as well. So we are focused on growing the business through a data-driven approach and making sure that where we see the highest return on investment, that's where we continuously grow and invest more. We are definitely focused on maintaining our leadership in Europe in the retail brokerage industry.

Thank you.

And our next question will be coming from James yarrow of Goldman Sachs, your line is open.

Good morning and thanks for taking the question. Um, could you help us think about the account growth algorithm here? What do you see? As achievable for account growth going forward, is it high single digits or double digit account growth on a yearly basis. And then in the press release, you talked about net new accounts in the first 3 quarters, being stronger, uh, than all 2024. But maybe, uh, any ability to comment more narrowly on the 3Q. 25 trends.

Sure. So, first of all, strategically, we are aiming towards double-digit growth of funded accounts. We believe, again, the total available market of new generations coming into the markets, the market itself will grow in double digits, and we believe we can outpace the market growth in all of our existing strong regions, uh, in Europe and beyond, as well as, obviously, new regions such as the U.S. The comment in the press release, I do believe, was regarding the U.S., uh, which post...

Post IPO, we actually started basically revamping both our product strategy, uh, in the US bringing all of it, Toro's Global products into the us, including now more than 100 crypto assets, staking that was launched in the US as well as very excited about launching copy Trader. Now, in the US, uh, so we do expect double digit, uh, growth, uh, in funded accounts moving forward, strategically across all regions.

Thanks so much.

You.

And our next question.

Hi guys, thanks for taking my question. Um, maybe to 1 on the crypto side, it was a really strong quarter in terms of crypto volumes. That

Thing, um, you guys bought into the out east Global Spot times by, you know, 2 to 1, if not more, can you point to how much of that was, maybe from what you did in the US and adding new, uh, tradeable Assets in the US? But maybe outside of the US and then as a follow-up, I think the ETC can be a bit below where we were expecting. Can you just talk about the Dynamics at play with with this order as well? Thank you.

Sure. So I'll I'll cover high level and then I'll, I'll let moron talk a bit about the numbers in the quarter. Uh, but first of all, uh, when you look, uh, at our numbers, uh, in the last, uh, 8 quarters. And you see that in the investor presentation, what we've seen over time is very clear. When 1 asset class is very strong, we see a shift towards the asset class from other asset classes. So every time crypto has a very strong momentum, we actually see the non-crypto revenues or Capital markets Revenue actually going down a bit and then as crypto goes down we see Capital markets uh significantly shift higher as well. And that is a dynamic that we did see in Q3 uh in addition to that within Capital markets, there are 2 segments. So there's currencies Commodities and then they see is basically future based and there's stocks and we did see more stock trading volumes uh increase in Q3 which led to the lower the lower basic

Ally take rate is take rate on stock, trading is lower than on Commodities indices, uh, nfx. Uh, regarding, uh, the crypto Market, of course. We've seen a couple of all times High during Q3 that always supports our crypto uh, um, revenues and trading activities in general. We do expect to continue and see a strong crypto Market with a very very positive us Administration uh towards the crypto industry. And a lot of new product uh rollouts for E Toro, within the crypto industry. Uh with that a bit about the actual numbers in Q3

Sure. So we can see definitely a sequential growth uh from uh Q2 uh in a very uh High Pace both on the number of Trades as well as the invested amount. We saw elevated activity coming in July and August as we released our kpis, also early September about the summer. So uh, very good attraction coming out of the uh, crypto uh, activities of customers in the summer. Uh, we did see uh, a slight uh, um, reduction in that in September but remains very and uh, and the same level also uh, in October, we're very happy about uh what we see in the industry and in general as uh, as it goes, to become more and more mainstream. We'll see the number of Trades and the number of customers, uh, tapping into crypto growing and together with that our revenues as well.

Thank you.

And our next question.

Will be coming from Chris Allen of City. Your line is open.

Yeah, morning everyone, thanks for the question. Um, maybe you could talk about Capital allocation priorities. Here, you announced the buyback, uh, this morning make some sense with a lot of expiration now, but you've also talked in the past about looking at inorganic growth opportunities particularly um, in the US to build it out. So um, help us think about the, the different uh, levers here from Tableau location perspective.

So uh, so first of all, we've added uh significant amount of cash flow uh already this year. So our our balance sheet Grew From a billion to 1.8 billion in total with 1.2 billion dollars, uh, in cash and short-term Investments. So, uh, we have a very strong balance sheet to look both at buyback. And, again, at these levels, we do believe, uh, the price, uh, is undervalued, which is why we're buying as well. Uh, and uh, of course, uh, leaves, uh, a significant amount of, uh, dry powder. Also to look at Acquisitions, uh, we have been talking to various, uh, potential targets. We're always excited to meet great teams, uh, of great founders with products that we believe add value to our customers and that are our products will add value to their customers. And we're actively, uh, exploring these opportunities across

A different regions. Uh, so and of course as we announced them, you'll know uh what are the actual targets.

Okay, and our next question.

Will be coming from Bill cats of TD Cohen. Your line is open bill.

Sorry about the uh, longer-term opportunity for the prediction and the event, uh, Market. I was wondering if you could maybe lay out your pathway of like how you get there. Is this an organic opportunity, is it inorganic? And then within that, I was just wondering if you could share your thoughts on just philosophically how you think about the sports or gambling opportunity within that thank you.

Sure. Uh, so, uh, prediction markets, uh, we're looking at, uh, basically both both Alternatives. So first of all, we've launched a Futures in Europe. Uh and the future rails that we've launched in Europe are the same rails uh that eventually enable basically uh to trade prediction markets uh in the US as well. Uh uh as as in addition, we are launching our crypto wallet which will enable our customers to engage with on-chain prediction markets such as polychain, uh, and others. So we're actually going towards both of those directions. Uh, we do believe that prediction markets on financial events on geopolitics, uh, on economic events have do create significant value in people thinking about their trading strategies or hedging? Uh, what they want to do and that initially will be our Focus to help our customers. Basically find those financial opportunities uh, that are related.

To their portfolios.

And our next question.

Is CRM.

WBS, your line is open Allen.

Yes, hello, good morning everyone. Um, just on copy Trader in the US. I know it's super early but maybe you can talk a little bit about how you looking to scale it in terms of marketing. You leaning in. I think you have 300,000 roughly accounts in the US. I think you said earlier, copy trade or globally is a third or so of your uh, clients uh, have update there. So just how should we be thinking about the opportunity? Now, click quickly against scale and uh, if if the if the third is kind of like a good Target for the us as well.

Sure. So, our our view holistically is always as we enter new markets to roll out all of the products that we offer globally in that market. And and of course, we look at the us as a huge opportunity with now. Uh, crypto backs, staking back, uh, and copy Trader now, launched alongside stocks and options trading, uh, as well. And the way we look at each product that we release is an attachment of a customer. So a customer engaging with copy Trader. Would we see over time is their increase in both? Uh, size of the wallet, or share of wallet, as well as over time, LTV increases significantly. So the way we view it is we continue basically to do what we do across the globe. Now, here in the US, which is promoting the co

Twitter feature within the app increased. The attachment rate of copy trading, building gradually more and more great investors that in the US. People can copy uh, and over time, we'll see that increasing LTV and enabling us to basically spend more or increase our tax in the marketing budget to bring in more users to the Toro platform. So it's all about bringing all of the products to our us product strategy. Then make sure that throughout the product, we create those attachment rates, that increase the lifetime value and share of wallet of our customers here in the US. Uh, and that obviously leads to us scaling up our marketing strategy here in the US in a profitable way.

From Jamie Freedman of South International Group. Your line is open.

To ask first about the funded accounts as well. Um, but is an impression.

We can't hear, uh, the line is a bit cut off. So we can't hear the question properly. Sorry.

oh,

Maybe try, try again, maybe now but there's a line was cut off.

Hey uh, can you guys hear me, okay? Uh better. Let's try again.

No, apologies. We we can't hear the line gets cut off. I apologize.

Let's move to the next question and then I'll come back. Uh uh uh, if we can get the better connection with him.

Certainly.

Our next question will be coming from John Darro of NEM. Your line is open, John.

On prediction markets with like a Kelsey or poly market. And then if I could get kind of the second question, it sounds like there is some, I don't know if you want to call it, cannibalization intra quarter between some of these trading products, as you mentioned, uh, we're crypto, uh, maybe goes up and some of the other markets, go down a little bit. How do you eventually get around that? Where they kind of, uh, are all kind of, um, up and up on, in the same quarter?

Sure. Uh, so first of all, uh, you know, we are talking to Kyle Street and poly Market uh, obviously the market leader in prediction markets and we are excited about exploring the path of our users uh to be able to to trade prediction markets on financial events. Uh uh uh on.

On the I'm sorry. You do want to take it? Yeah. The like the switching between the the product? Yes. I'm not, I'm not sure whether canalization is the right. Uh, way to describe when customers enter a quarter trade, different products. So, over time, when you look at the growth of the net contribution of trading both in crypto and capital markets, you see them growing over time and we think it's a great opportunity for people to actually reshuffle or rebalance their portfolios. We've seen by the, by the way, the same also between US stocks and European stocks earlier this year, as European stocks, uh, were very strong in a lot of our customers started, uh, buying basically defense stocks. We've seen, obviously, in the past, the same happening with meme stocks.

Later when we've seen it with ugh, meme coins. So again, as we bring in more products to our customers, we expect constant rebalancing, uh, of customers between different assets. And actually that's the strength of it Toro versus pure crypto companies, which don't have a stocks or a significant Capital markets, and it's a significant strength of e Toro. The fact that we covered today 22 different Global exchanges. So our customers can trade all of those different products alongside, of course, uh, both uh, on Exchange and off exchange. Derivatives, uh, like Futures and options. So we feel that the fact that customers are trading in between the different assets. That is a strength and something that we actually want to see with all of our customers.

That's great. Makes sense. Thank you.

And our next question.

Comes from Brian Videl of dochi Bank. Your line is open, Brian.

Great, great. Thanks for taking my question. Um, maybe just to go back to copy trading. Uh, the mechanics of that, in the US in particular, um, I I know there was, um, you know, some, some different regul, different regulatory regime in terms of, um, being able to offer. It was uh, the, I guess the, the, uh, you know, the, um advisory component, um, uh, being a critical, uh, component of being able to be paid. Can you just, um, go through the mechanics of, um, how, uh, this is operating in the US versus

Outside the US and uh, if it's if it's the same now or you know, when you expect to, um, you know, have that aligned with how it works, outside the US, and any commentary on initial take up, I know it's very early, of course, sure. So, first of all, it's very early to look at, uh, uh, a day creates an engagement. What we have seen, uh, already people being copied and people are copying uh, top investors here on the US platform which is great to see. Uh, second on the mechanics, the mechanics are quite similar from how it operates. So we can actually when you copy an investor it copies their entire portfolio into your portfolio in the amount you chose. So you copy somebody with a 000 it fractionalized stocks and crypto and basically opens those trades in your account. And every time they trade, they'll trade in your account at the same time, the same price and the same proportion. So the mechanics of copying works the same here in the US and outside the US, uh, we are

Are uh looking at right now outside the US we've actually just revamped our Pro investor program which is around how uh do the pro investors actually get paid here. We're still early stages will be building that as well. Uh uh uh as we move towards next year. The second copy product which is our smart portfolio's product where our Global Chief investment office actually curates. Uh specific portfolios about 120 different.

Smart portfolio is a across different strategies at that. Part will fall under an RA license. Uh, which uh, we are in the process and expect that to launch in H1 next year.

Great. Thank you.

Yeah, and our next question.

Will be coming from dandelo of Ms. Ms. Your line is open.

Stand here. Uh, congrats guys. Uh, great quarter. Great October. Uh I have a question on banking. Uh you know, a lot of uh State tech companies, view banking is the Holy Grail. Kind of, that's what everyone wants to do. So Yoni and uh, moron. Like how do you guys view? Sort of, like, banking services, you know, globally in the US Etc. In terms of the long-term opportunity for each of them. Thank you.

Sure. Uh, so I, I generally say, everybody's looking at the concept of of the super app, right? So we believe our core is actually helping our customers, uh, find beta and Alpha into their portfolio to generate over time returns and to compound wealth over time. So our view comes more from our core expertise, on trading and investing. Uh, what we've seen over time, uh, is basically expanding the business. Also, into savings the various pension, uh, uh, uh, uh, schemes around the world where we have already launched, uh, UK, Australia and France, uh, uh, recently including the Now, new launch of cache size as, uh, in the UK. And lastly, of course, Neo Banking, and what we wanted to see and what we're seeing in our strategy is basically when we provide our customers, the virtual bank account on it, Toro, uh, interest rate, uh, that they can get on their local currency, uh, and the ability to convert easily.

Fix from euro to dollars or Pound to Dollars to efficiently, trade also, US capital markets and then attach into that also the Visa debit card. We remove the need of a customer to actually take their money back to the bank. So I think, you know us as a financial super app, we're looking for customers to increase their share of wallet over time on it Toro. Uh, we believe most of customer assets, should be compounded, uh, towards Capital markets and crypto markets, and they should easily spend from that account without, uh, the need to actually take their money back into the bank. Uh, and we've seen that, uh, significantly improve, uh, uh, basically, uh, attachment rates of customers lifetime value of customers, which is why we're also providing great incentives. Uh, to use our Visa debit card with a 4% stock back. So, when you spend, and we see a lot of our customers, uh, now posting on X, uh, when they're

Spending uh, on a meal and then they get a 4% stock back into their portfolio. Again, why the stock back because we do believe that all of our customers would actually have most of their funds or the vast majority of their funds in capital markets, and crypto markets. And that's the efficient way to compound wealth over time.

Great, uh, makes a lot of sense. So congrats again, on a great quarter. Thank you, thank you.

and our next,

Group for follow-up. Your line is open. Jamie.

Hi uh thank you. Good evening. Um, you only the press release indicates that the 16% growth in funded accounts was driven both by

The user acquisition, but also the retention. I was hoping at a high level, you could unpack that those dimensions. And then, if I could just sneak in another 1, meron can you remind us about the typical seasonality of the business as we build out our models? Thank you.

Sure. Uh, so we currently don't break down, wind Beck's churn, uh, and retention. But we've been, uh, engaging significantly in going back into basically our database of funded accounts across time and making sure that they are kept up to date on all of the new product releases. Whether it's again the debit card, uh in Europe, whether it's Futures Trading, uh, so uh, or whether it's the new crypto wallet and the ability to use your crypto to buy stocks. So as we do that, we bring in also old customers uh into uh Toro sort of uh his customers uh that churned in the past that are now joining back e Toro uh for our new products. Uh, the second question you can answer them on.

Yeah, with regards to uh um so you touched about the breakdown. We do not provide it but we can definitely see uh uh strong signs coming out of both the retention side as well as the acquisition as we aim. As we discussed in the past uh for a double digit growth uh on the funded accounts, on an annual basis.

Q4's are usually good, uh, markets in both crypto and capital markets. But, of course, uh, we we don't control the rain, or the seasons.

Thank you.

Next question will be coming from Alex cra.

Of UBS. Your line is open, Alex.

Yeah. Hey guys. Hello again, just wanted a couple of follow-up questions. Hopefully I didn't miss this earlier. But uh, uh, on the expense side, I think previously it said flattish for the remainder of the year, is that still right for the fourth quarter and then just another housekeeping 1 on the interest income? I know there's a lot of moving pieces, but I think the implied rates, uh, interest rate actually went up quarter over quarter, if you just use the the the interest earning assets. So again I know there's a lot of things in there but maybe just unpack. What uh, what you're seeing on the interest income site. Thank you.

Sure, I'll start from the first 1, which was related related to the expenses. So yeah. Definitely. We uh as we mentioned uh uh, the last quarter, uh, we're aiming to keep our cost base uh the same quarter on quarter and indeed we came with a flat view. So we are roughly looking at uh uh staying within those, uh, lines also in Q4, um, with regards to, um,

The uh, what was the second question?

Second question. Daniel, uh, the interesting come, yeah interest. So um we have seen like a a a definitely. There is a decrease in the interest rate coming from the 2. But what we have witnessed in those uh uh in those uh uh period. Is that actually customers balances in all different asset classes have actually grown now. So even though there is a direct reduction expected in interest, uh, income over time, we do see those balances increase and therefore, we should be able to grow also on the revenue that also, uh, taking into consideration that customers are inclining. When the interest rates are lower to uh, bring their assets. More into a more riskier, uh, uh, uh, portfolios, that will generate higher returns for them than the lower interest rate in the market.

Thank you guys.

And for closing remarks, we'll bring it back to Daniel.

Thank you. Thank you, uh, for attending, uh, our earnings call today. Uh, we're looking forward to seeing you at our upcoming investor conference, uh, during the quarter. Uh, these conferences are on our website, uh, that you can go see in the Investor Relations uh, section. And, uh, thank you and have a great day. Thank you very much. Thank you.