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eToro’s <a href="https://xpertsstudio.com/why-did-the-clarity-act-fail-and-will-crypto-prices-crash-further/” title=”Why Did the CLARITY Act Fail and Will Crypto Prices Crash Further?”>crypto trading volume in August reached 5.3 million transactions, up 280% month-over-month but down 4% year-over-year. In its monthly report released on September 14, 2026, Goldman Sachs lowered eToro’s target price from $36 to $34, maintaining a Neutral rating. The current price is $30.35, offering 12% upside potential. Weak performance in ECC trading and eToro Money transfers offset the strong crypto trading activity.
Goldman Sachs analyst James Yaro noted in his report that August trends were mixed: crypto trading strengthened significantly, net interest income rose moderately, ECC trading and eToro Money transfers underperformed relative to the bank’s expectations, but both posted modest sequential growth. The bank lowered its net contribution forecasts for 2027 and 2028 by 1%, primarily reflecting weaker prospects for ECC and eToro Money.
Cryptocurrency trading increased by 280% month-over-month.
In August, cryptocurrency transactions reached 5.3 million, a 280% increase month-over-month and a 4% decrease year-over-year. ECC transactions totaled approximately 52 million, up 7% month-over-month and 31% year-over-year. Total transactions reached 57 million, up 14% month-over-month and 27% year-over-year, but 11% below the average of the prior 12 months.
In terms of commission income, total commissions in August amounted to $42.8 million, representing a 19.7% month-over-month increase and a 5.9% year-over-year increase. Revenue per trade was $0.75, up 4.8% month-over-month but down 16.6% year-over-year. Daily commission revenue totaled $2 million, up 25% month-over-month and 6% year-over-year, but 14% below the average of the prior 12 months. ECC commission daily revenue reached $1.7 million, up 11.7% month-over-month and 70.6% year-over-year. Cryptocurrency commission daily revenue was $200,000, up 278.6% month-over-month but down 65.9% year-over-year.
Account Growth and Asset Size
Goldman Sachs noted that net new accounts in August totaled 40,000, flat compared to July. Total accounts reached approximately 4.3 million at the end of August, representing an 18% year-over-year increase; after adjusting for the acquisitions of Zengo and Bit2C, the year-over-year growth was 15%, consistent with management’s long-term guidance of double-digit growth. Total accounts increased 1% sequentially.
Assets under management totaled $20.8 billion in August, up 9% month-over-month and 3% year-over-year. Interest-bearing assets amounted to $7.1 billion, up 4% month-over-month but down 7% year-over-year. Fund transfers reached $1.2 billion, up 33% year-over-year and 9% month-over-month, but 9% below the average of the prior 12 months. Goldman Sachs noted that the $1.7 billion month-over-month increase in assets under management was primarily driven by market appreciation and net deposits. The annualized growth rate of net new accounts was approximately 11%, unchanged from July.
App downloads and active users
In August, the app was downloaded 216,000 times, representing a 7% month-over-month increase but a 25% year-over-year decline, approximately 30% and 25% lower than the 2024 and 2025 average levels, respectively. In terms of geographic distribution of downloads, since 2026, the UK has accounted for 14% and the US for 9%, compared to 12% and 13% in 2025. Monthly active users decreased by 20% year-over-year, remained flat month-over-month, and are about 12% and 18% lower than the 2024 and 2025 average levels, respectively.
Goldman Sachs noted that approximately 95% of monthly active users are from outside the United States. The UK is the largest market, accounting for 21%, followed by Germany and Italy at 14% and 12% respectively. This geographic distribution supports eToro’s international positioning, but also indicates that execution risks related to expansion in the U.S. remain. Geographic diversification in downloads continues, with the UK’s share rising and the U.S. share declining. Goldman Sachs believes that download volumes and monthly active users remain below historical averages, reflecting that retail trading activity is still in a recovery phase.
Target price lowered to $34
Goldman Sachs lowered its adjusted EPS forecasts for 2026, 2027, and 2028 by 1%, 2%, and 1% respectively, primarily reflecting weaker prospects for ECC and eToro Money. The firm reduced its Q5 to Q8 P/E multiple from 9x to 8.5x and lowered its price target from $36 to $34. The 2026 EPS forecast was reduced from $2.56 to $2.54, the 2027 forecast from $3.47 to $3.41, and the 2028 forecast from $4.20 to $4.14.
Goldman Sachs maintains a Neutral rating, with downside risks including a negative shift in the retail trading cycle, lower interest rates impacting net interest income, delayed adoption due to lack of crypto regulation, and failed U.S. expansion execution. Upside risks include faster and cheaper U.S. expansion, stronger differentiation of CopyTrader, slower U.S. broker expansion, and renewed acceleration in crypto trading. Goldman Sachs believes that whether strong crypto trading can be sustained and whether weakness in ECC and eToro Money will persist will determine whether eToro can return to a growth trajectory.
This article is a compilation and interpretation by Chaoxiang Research of a third-party brokerage research report (Goldman Sachs, September 14, 2026), combined with publicly available market information. The ratings, price targets, earnings forecasts, and related judgments cited herein reflect the views of the brokerage’s analysts and represent the position of their respective institution only; they do not reflect the views of Chaoxiang Research nor constitute any investment advice.
The market carries risks; make decisions independently. This article should not be used as a basis for buying or selling any securities.
Source: www.kucoin.com