eToro’s IPO Frenzy: 10x Oversubscription Signals Massive Market Confidence

eToro, the Israeli fintech powerhouse known for its social trading platform, is about to make a splash on Wall Street with one of the most anticipated IPOs of 2025. With order books closing earlier than planned due to overwhelming investor interest, eToro’s initial public offering is now over ten times oversubscribed, indicating a seismic wave of market enthusiasm. The IPO, initially expected to raise around \$500 million at a valuation just north of \$4 billion, may now exceed those numbers as underwriters prepare to increase the pricing range.

Led by Goldman Sachs and Jefferies, the IPO underwriters have reportedly informed participants that no new orders will be accepted, highlighting the urgency and scale of demand. This isn’t just a big moment for eToro—it marks a broader resurgence of investor appetite for fintech and digital asset platforms, especially after years of regulatory headwinds and cooling sentiment.

Founded in 2007, eToro allows users to trade stocks, crypto, ETFs, and more through a socially interactive platform that mimics elements of social media. After missing its chance to go public during the pandemic-era IPO boom due to concerns around cryptocurrency regulation, the company has now bounced back dramatically—timing its IPO amidst a global rally in tech stocks and a renewed political climate that favors deregulation.

The numbers back the hype: eToro posted \$192 million in net profit in 2024, a massive jump from \$15.3 million in 2023 and a turnaround from its \$21 million loss in 2022. Its revenue soared to \$931 million in 2024, up from \$639 million a year earlier. EBITDA followed suit, rising to \$304 million in 2024 compared to \$117 million in 2023. Earnings per share surged from a loss of \$11.45 in 2022 to a profit of \$9.85 in 2024.

Driving this growth is a sharp increase in crypto trading volume, with Bitcoin and other major tokens experiencing strong bullish momentum throughout 2024. eToro’s positioning as both a traditional and crypto trading platform has allowed it to ride this wave better than many of its peers.

As the company prepares to go public, analysts suggest its IPO success may inspire other fintechs to revisit shelved listing plans. With regulatory clarity improving and retail investor participation returning, eToro might be the first domino in a broader sector rebound.

What Undercode Say:

The eToro IPO situation represents more than just a financial event—it’s a signal of shifting market tides. Here’s what we’re analyzing behind the scenes:

Investor Behavior Shifts: A 10x oversubscription isn’t just rare—it’s a strong indicator that institutional investors are betting heavily on a tech resurgence. This kind of oversubscription ratio suggests FOMO (Fear of Missing Out) at institutional scale, potentially leading to inflated valuations in early trading.
Timing Is Strategic: eToro deliberately waited for the right macro-political environment. The return of Donald Trump to the White House in 2025, bringing a lighter touch on regulation, has clearly reignited interest in the crypto and fintech space. It’s a case study in strategic patience.
Revenue Quality: Revenue growth is impressive, but what’s more interesting is the conversion to net income and strong EBITDA. Many fintechs bleed cash even with revenue growth. eToro’s 2024 jump from \$15.3M to \$192M in net income shows efficient scaling and better margins—something public market investors reward.
Crypto as a Core Catalyst: Unlike traditional fintechs that treat crypto as a side offering, eToro treats it as a pillar. This year’s crypto rally has directly contributed to its profitability, suggesting eToro’s business model is closely tied to crypto cycles.
EPS Growth Is a Statement: Going from a loss of \$11.45 per share to a positive \$9.85 within two years is not just unusual—it’s rare in the pre-IPO phase. This will likely drive strong demand in secondary markets after listing.
IPO Valuation Still Conservative?: A \$4 billion+ valuation feels low for a company with nearly \$1B in annual revenue and triple