eToro Group Ltd. (NASDAQ: ETOR), a global trading and
investing platform, has published its financial results for the first quarter
ending March 31, 2025.
The company reported an 8% increase in net contribution
year-over-year, reaching $217 million, up from $201 million in the same period
last year. This growth was largely driven by elevated trading volumes across
its platform.
eToro Boosts Spending Amid Growth
However, eToro’s GAAP net income declined slightly to $60
million, down from $64 million in the first quarter of 2024. The decrease was
primarily due to higher marketing expenses and strategic investments focused on
growth, reflecting the company’s commitment to expanding its market presence
amid favorable trading conditions.
Adjusted EBITDA, a non-GAAP measure, also fell to $80
million from $87 million a year earlier. Correspondingly, the adjusted EBITDA
margin narrowed to 37% from 43%, indicating increased spending to support
expansion efforts.
“Our results show strong business performance for Q1 with an
increase in net contribution driven by increased trading activity and our
continued focus on sustainable, profitable growth. In the first quarter, inresponse
to the market environment, we increased investment in marketing and growth,”
said Meron Shani, eToro CFO.
Funded Accounts Rise 14%, Assets Grow
The number of funded accounts grew by 14% compared to the
previous year, reaching 3.58 million. This growth was bolstered by user
acquisition initiatives and the integration of the Australian investing app
Spaceship, acquired in 2024.
Assets under Administration rose 21% year-over-year to $14.8
billion, up from $12.2 billion in the first quarter of 2024, highlighting
continued inflows and platform engagement.
At the end of March 2025, the company held $736 million in
cash, cash equivalents, and short-term investments, underpinning its financial
stability.
This article was written by Tareq Sikder at www.financemagnates.com.
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