Freetrade, a British stock trading app, achieved breakeven earlier this year for the first time, reporting adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of £100,000 in the first quarter of 2024. This marked a significant improvement from the £8.3 million loss the company incurred in 2023, with revenues climbing to £21.6 million.
The news was well-received by Freetrade’s crowdfunding investors, who have been eagerly awaiting the company’s move towards profitability. Despite facing challenges in the market, Freetrade remains optimistic about its future growth and development, with plans to introduce a web platform in the upcoming year.
Freetrade, often considered as Britain’s answer to Robinhood, saw a surge in trading volumes and foreign exchange income in the first quarter. The platform’s performance was also boosted by increased retail investor activity in crypto-related stocks, despite not offering crypto trading. With competition heating up in the U.K. market, Freetrade remains confident in its ability to provide a comprehensive range of services to meet the needs of retail investors.
British stock trading app Freetrade achieved breakeven status for the first time in the first quarter of 2024, reporting adjusted EBITDA of £100,000 and revenue of £6.7 million. This milestone comes after incurring losses in 2023, though the company reduced its losses from £28.8 million in 2022 to £8.3 million in 2023. Freetrade’s CEO, Adam Dodds, expressed optimism for the future, citing strong growth and a clear path to profitability that was laid out during the company’s last fundraising round. The company’s performance in the first quarter was driven by higher trading volumes and foreign exchange income, with net inflows totaling £130 million and assets under administration reaching £1.8 billion. Freetrade, a competitor to Robinhood, remains focused on delivering a range of features and tax-wrappers to meet the expectations of local retail investors. The company also benefited from increased retail investor activity in crypto-related stocks in the first quarter, despite not offering crypto trading on its platform.
Overall, Freetrade’s move into profitability marks a significant milestone for the company and its equity crowdfunding investors, demonstrating solid growth and a clear path towards sustained success in the future.
Source link
