Cash conversion efficiency has improved markedly, with a free cash flow margin of 38.1% in 2026Q1 and an operating cash flow to net income ratio of 1.27, despite significant working capital outflows of $89.8 million.
| Cash from Operations | 314.13M | 262.52M | 268.58M | 111.83M | 346.98M | 0 | -60.49M |
| Operating CF Growth % | 79.07% | -2.25% | 140.16% | -67.77% | - | 100% | - |
| Net Income | 238.15M | 215.7M | 192.38M | 15.26M | -214.98M | -265.7M | 82.86M |
| Depreciation & Amortization | 13.18M | 12.97M | 11.34M | 12.26M | 9.33M | 0 | 5.88M |
| Deferred Taxes | 17.42M | 0 | 0 | 0 | 117K | 0 | 2.88M |
| Other Non-Cash Items | 143.11M | 60.67M | -3.45M | 0 | 66.1M | 56.23M | 12.34M |
| Working Capital Changes | -105.57M | -26.82M | 41.16M | 18.5M | 359.27M | 0 | -169.2M |
| Cash from Investing | -136.09M | -87.85M | -68.53M | -1.42M | -24.92M | 0 | -2.89M |
| Purchase of Investments | -459.5M | -427.76M | -546K | -996K | 0 | 0 | 0 |
| Sale/Maturity of Investments | 261.76M | 345.39M | 0 | 0 | 0 | 0 | 0 |
| Net Investment Activity | -197.74M | -82.37M | -546K | -996K | 0 | 0 | 0 |
| Acquisitions | 0 | 0 | -609K | 0 | -20.44M | 0 | 0 |
| Other Investing | 68.43M | 0 | -65M | 0 | -1.11M | 0 | -70K |
| Cash from Financing | 222.08M | 319.95M | -3.19M | -10.74M | -291.38M | 0 | -2.81M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -165.13M | -59.55M | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 388.71M | 384.07M | 929K | 2.34M | 0 | 0 | 0 |
| Net Stock Activity | 223.57M | 324.52M | 929K | 2.34M | 0 | 0 | 0 |
| Debt Issuance (Net) | -2M | 0 | -1000K | -1000K | -1000K | 0 | -1000K |
| Other Financing | 701.32K | -4.57M | 0 | -9.63M | 829K | 0 | -1.01M |
| Net Change in Cash | 381.47M | 489.31M | 187.06M | 103.75M | 22.03M | -71.12M | -66.08M |
| Exchange Rate Effect | -18.65M | -5.32M | -9.8M | 4.07M | -8.65M | 0 | 115K |
| Cash at Beginning | 1.08B | 583.66M | 388.33M | 284.58M | 262.56M | 71.12M | 137.19M |
| Cash at End | 1.05B | 1.07B | 575.39M | 388.33M | 284.58M | 0 | 71.12M |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | 306.97M | 257.68M | 266.21M | 111.41M | 342.75M | 0 | -63.31M |
| FCF Growth % | - | -3.2% | 138.95% | -67.5% | - | 100% | - |
Regulatory and sentiment volatility
According to recent financial statements, eToro's operating cash flow to net income ratio reached 1.27 in 2026Q1, indicating that the company is successfully converting its reported accounting profits into tangible cash, a notable improvement from the 0.74 ratio observed in 2025Q3.
The consistent ability to generate operating cash flow in excess of net income suggests that the company's earnings are not overly reliant on non-cash accruals. Investors should monitor whether this conversion efficiency persists, as historical fluctuations in the OCF/NI ratio may reflect underlying volatility in working capital requirements rather than pure operational strength.
As reported in quarterly filings, eToro's free cash flow margin climbed to 38.1% in 2026Q1, marking a significant recovery from the 1.0% margin recorded in 2025Q3 and highlighting a more disciplined approach to managing operational expenses relative to the company's core revenue generation.
This trajectory suggests that the platform is beginning to realize operating leverage as it scales, provided that the current revenue recognition remains stable. The sharp improvement in FCF margins warrants further investigation into whether this is driven by sustainable cost efficiencies or temporary reductions in marketing-related cash outflows.
Based on the provided cash flow data, eToro experienced a significant working capital outflow of $89.8 million in 2026Q1, which contrasts sharply with the $52.5 million inflow seen in 2025Q3, illustrating the highly cyclical nature of the company's cash management requirements.
These swings in working capital appear to be tied to the timing of client deposits and regulatory settlement requirements inherent in the brokerage business. Analysts should interpret these movements as a reflection of platform activity levels rather than a structural deterioration in the company's ability to manage its short-term obligations.
As indicated by recent financial disclosures, eToro utilized $101.1 million for share repurchases in 2026Q1, a substantial deployment of capital that underscores management's confidence in the company's liquidity position despite the inherent volatility of the retail trading sector.
The decision to prioritize buybacks over other forms of capital deployment suggests that management views the current valuation as attractive or is seeking to offset potential dilution. Investors should monitor whether this level of cash return remains sustainable if market volatility leads to a contraction in trading-related cash inflows.
Quick answers to the most common questions about buying ETOR stock.
eToro Group Ltd. (ETOR) generated $262.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
eToro Group Ltd. (ETOR) generated $257.7M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
eToro Group Ltd. (ETOR) spent $5.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, eToro Group Ltd. (ETOR) spent $59.5M on share repurchases. This shows the company's commitment to returning capital to its equity investors.