eToro Targets $100 Million Latin America Revenue From Sub-$20 Million Argentine Deal

eToro wants $100 million in Latin American revenue within two to three years, its chief executive, Yoni Assia, told analysts yesterday (Tuesday). The base will be LB Finanzas, an Argentine investing and payments app the company agreed to buy for less than $20 million.

The price came out on the third-quarter earnings call. Chief Financial Officer Meron Shani gave the figure in reply to an analyst and said the deal would not be material to the balance sheet.

The target is more than half of eToro's third-quarter net contribution, its main revenue measure, of $186 million. In that quarter net income fell 74% year-over-year and October crypto trades dropped 62% from a year earlier.

eToro shares fell 7.6% on Tuesday to close at $21.56, their lowest close since the company listed on Nasdaq in May 2025 at $52 a share.

London's trading industry is coming home!

Fourth Deal of the Year, Then a Pause

LB Finanzas was founded in Rosario in 2018 and offers US stocks, ETFs, crypto and money market funds alongside peso and dollar accounts.

It is supervised by Argentina's National Securities Commission (CNV) and the Central Bank of the Argentine Republic (BCRA), eToro said when it announced the deal on November 4 without giving terms.

It is the fourth acquisition eToro has signed this year. The company bought self-custody wallet Zengo in April and Israeli crypto exchange Bit2C in May, and in August agreed to pay about $225 million for US broker TradeZero, a deal it expects to close in the first half of 2027.

Assia told analysts the company would now take time to fold those businesses in.

"We are going to slow down a bit to adjust and integrate," he said.

In June, he had told the Financial Times that eToro was in talks with two wealth-technology firms and weighing a banking license, and that the industry faced a large wave of consolidation.

Third Among Brokers in the Region

eToro starts with a bigger online audience in Latin America than most retail brokers, in a region that draws a small share of the market's traffic.

Latin America accounted for 4.6% of organic visits to retail FX and CFD broker websites in the third quarter, and eToro ranked third there with 488,800 visits, FM Intelligence's heat map shows. OANDA led with 1.3 million and Deriv drew 635,700.

All three lost traffic from the second quarter, eToro by 30.9%. Visits to broker sites from Argentina fell 39.4% to about 501,000. By FinanceMagnates.com's calculation, eToro's share of the region's 7.1 million visits was about 7%.

Smart Portfolios Reach US Clients

Assia also told analysts that 26 smart portfolios had gone live in the US under the company's investment adviser registration. eToro announced the launch on Tuesday and said the thematic baskets carry 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.”

Copy trading, the feature eToro is best known for elsewhere, is still limited to club members in the US, Assia said. He said more active and leveraged portfolios would follow once the TradeZero deal closes.

In prediction markets, eToro plans to start in Latin America and selected Asian markets, while it talks to European regulators about the product, Assia said.