eToro aims to generate $100 million in Latin American revenue within two to three years, CEO Yoni Assia told analysts yesterday (Tuesday). The company plans to build its presence on LB Finanzas, an Argentine investing and payments app it agreed to acquire for less than $20 million.
The price was disclosed during the third-quarter earnings call. CFO Meron Shani gave the figure in response to an analyst, adding that the deal would not be material to the balance sheet.
The target is more than half of eToro's third-quarter net contribution, its primary revenue measure, which was $186 million. Net income fell 74% year over year that quarter, while crypto trades in October were down 62% from a year earlier.
eToro shares dropped 7.6% on Tuesday, closing at $21.56, their lowest closing price since the company went public on Nasdaq in May 2025 at $52 per share.
London's trading industry is coming home!
Fourth Deal of the Year, Then a Pause
Founded in Rosario in 2018, LB Finanzas offers US stocks, ETFs, crypto and money market funds, as well as peso and dollar accounts.
eToro said the app is overseen by Argentina's National Securities Commission (CNV) and the Central Bank of the Argentine Republic (BCRA) when it announced the deal on November 4, without disclosing its terms.
The deal is eToro's fourth acquisition agreement this year. The company acquired self-custody wallet Zengo in April and Israeli crypto exchange Bit2C in May. In August, it agreed to pay about $225 million for US broker TradeZero, a deal it expects to complete in the first half of 2027.
Assia told analysts that eToro would now take time to integrate those businesses.
"We are going to slow down a bit to adjust and integrate," he said.
In June, Assia told the Financial Times that eToro was in talks with two wealth-technology firms and considering a banking license. He also said the industry was facing a major wave of consolidation.
Third Among Brokers in the Region
eToro enters Latin America with a larger online audience than most retail brokers, in a region that accounts for a small share of the market's traffic.
Latin America represented 4.6% of organic visits to retail FX and CFD broker websites in the third quarter. eToro ranked third in the region, with 488,800 visits, according to FM Intelligence's heat map. OANDA led with 1.3 million visits, while Deriv recorded 635,700.
All three saw traffic decline from the second quarter, with eToro down 30.9%. Visits to broker websites from Argentina fell 39.4% to about 501,000. FinanceMagnates.com's calculation puts eToro's share of the region's 7.1 million visits at about 7%.
Smart Portfolios Reach US Clients
Assia also told analysts that 26 smart portfolios had launched in the US under the company's investment adviser registration. eToro announced the launch on Tuesday, saying the thematic baskets have no management, performance or advisory fees.
“With Smart Portfolios, retail investors have a simple, transparent, and diversified way to invest in industries with long-term growth potential," Alain Tennekoon, Head of etoro US, commented. "Individual market leaders will come and go, but the broader trends driving these industries can continue for years. Smart Portfolios allow investors to participate in those trends without having to constantly figure out who the next winner will be.”
Assia said copy trading, the feature eToro is best known for in other markets, remains available only to club members in the US. He said more active and leveraged portfolios would follow once the TradeZero deal closes.
Assia said eToro plans to enter prediction markets in Latin America and selected Asian markets, while holding discussions with European regulators about the product.
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