eToro Stock (NASDAQ:ETOR) Cools Into Earnings: What To Expect

eToro Group (NASDAQ: ETOR) is set to release earnings report before the market opens today, with sentiment in the name having shifted slightly since the initial rally surrounding the May IPO.

Analysts are looking for an EPS of $0.51 alongside revenue of $194.7 million. With the company having only recently been made public, previous years are not available for comparison, but we can look forward to the next year's outlook.

Sales growth for FY26 is currently expected at 8.86%, with EPS expected to rise from $2.43 (for FY25) to $2.59 in 26.

With ETOR having pulled back 17.46% from the opening trade in May, there is clearly some hesitation leading into the print, even if the average price target on the street of $74.53 reflects considerable perceived upside from current price action.

eToro's journey to the public market has been closely followed. The company filed for its U.S. IPO in March, boasting a threefold increase in revenue for 2024, reaching $12.64 billion compared to $3.89 billion in 2023. Net profit also saw a substantial rise, climbing to $192.4 million from $15.3 million. The IPO, completed on May 14th, saw shares priced at $52.00, with the stock opening strong at approximately $72.00, valuing eToro at around $5.5 billion.

However, the initial euphoria cooled somewhat after the release of the first-quarter 2025 results on June 10th. While eToro reported a solid EPS of $0.69, exceeding analyst expectations of $0.59 to $0.61, the stock experienced significant volatility.

Margin compression was attributed to a 60% surge in marketing expenses, which rose to $61.2 million, largely due to promotional activities surrounding the IPO. Following the earnings announcement, the stock initially hit an all-time high of $79.96 but subsequently declined by nearly 12%. Volatility could be expected following this morning's print if the last report is any guide.

As earnings approach, EPS forecasts have been shifting, with sentiment improving in 1 analyst, and softening for 4.

Markets will likely be paying close attention to the company's revenue growth, profitability, user metrics, and outlook for the remainder of the year. The company's ability to manage its expenses, and continue to differentiate itself in a competitive market could prove key to long term.