eToro Group Ltd. (NASDAQ: ETOR), a global trading and investing platform, has published its financial results for the first quarter ending March 31, 2025.

The company reported an 8% increase in net contribution year-over-year, reaching $217 million, up from $201 million in the same period last year. This growth was largely driven by elevated trading volumes across its platform.

eToro Boosts Spending Amid Growth

However, eToro’s GAAP net income declined slightly to $60 million, down from $64 million in the first quarter of 2024. The decrease was primarily due to higher marketing expenses and strategic investments focused on growth, reflecting the company’s commitment to expanding its market presence amid favorable trading conditions.

Adjusted EBITDA, a non-GAAP measure, also fell to $80 million from $87 million a year earlier. Correspondingly, the adjusted EBITDA margin narrowed to 37% from 43%, indicating increased spending to support expansion efforts.

“Our results show strong business performance for Q1 with an increase in net contribution driven by increased trading activity and our continued focus on sustainable, profitable growth. In the first quarter, inresponse to the market environment, we increased investment in marketing and growth,” said Meron Shani, eToro CFO.

Funded Accounts Rise 14%, Assets Grow

The number of funded accounts grew by 14% compared to the previous year, reaching 3.58 million. This growth was bolstered by user acquisition initiatives and the integration of the Australian investing app Spaceship, acquired in 2024.

Assets under Administration rose 21% year-over-year to $14.8 billion, up from $12.2 billion in the first quarter of 2024, highlighting continued inflows and platform engagement.

At the end of March 2025, the company held $736 million in cash, cash equivalents, and short-term investments, underpinning its financial stability.