eToro, a social trading platform based in Israel, plans to relaunch its initial public offering (IPO) in the United States. The company aims to raise between $460 million and $500 million, valuing itself at $3.7 billion to $4.0 billion. This is an important step for eToro as it looks to benefit from a stable market and a rise in fintech IPOs.
After delaying its IPO roadshow in early April due to market uncertainty caused by U.S. tariff announcements, eToro is now moving forward as equity markets recover.
The S&P 500 and Nasdaq have bounced back, creating better conditions for major listings. eToro is joining other fintech companies, like Klarna and StubHub, in revisiting their plans to go public.
eToro’s latest filings with the SEC show that the company is doing well. In 2024, eToro made $931 million in total commission revenue, up 46% from $639 million in 2023. Its net income grew to $192 million, compared to $15.3 million the year before.
A major reason for this growth is the increase in cryptocurrency trading, which brought in a lot of revenue. eToro’s EBITDA also rose to $304 million in 2024, up from $117 million in 2023, showing better efficiency and profitability.
The IPO is expected to value eToro between $3.7 billion and $4.0 billion, which is an adjustment from its 2023 valuation of $3.5 billion. It is also lower than the $10.4 billion target during its canceled 2021 SPAC merger attempt. Major investment banks like Goldman Sachs, Jefferies, UBS, and Citigroup are backing the offering, showing strong support for eToro’s market debut.
eToro’s choice to list in the U.S. is strategic. It wants to take advantage of the large pool of investors in American capital markets. The platform appeals to users with its mix of social trading features and access to various assets like stocks and cryptocurrencies.
As retail trading grows and fintech IPOs gain traction, eToro’s public listing is set to attract both institutional and retail investors interested in the future of digital finance.