British stock trading app Freetrade has achieved a significant milestone by reaching breakeven in the first quarter of 2024, marking its first move into profitability after reporting losses the previous year. The company reported adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of £100,000 in the first quarter of 2024, as per unaudited financial statements shared with CNBC. This positive development comes after Freetrade generated a loss of £8.3 million in 2023, down from £28.8 million the year before, with revenues climbing to £21.6 million in 2023, showing a 45% increase from 2022.
Freetrade’s move into profitability will be welcomed news for its crowdfunding investors who have been eagerly waiting for updates on the company’s financial performance. Despite facing a challenging market environment that led to a 65% reduction in valuation during the latest equity crowdfunding round, Freetrade CEO Adam Dodds remains optimistic about the company’s future prospects. The company saw net inflows of £130 million in the first quarter, alongside reaching assets under administration of £1.8 billion, indicating significant growth in retail investor activity responding to resurgent markets and increased interest in the platform.
Looking ahead to the rest of 2024, Freetrade is focusing on major product developments to support its next phase of growth, with plans to roll out a web platform soon. The first quarter’s performance was driven by higher trading volumes and increased foreign exchange income, along with a surge in retail investor participation amid speculation over central bank rate cuts. Despite facing competition from the likes of Robinhood, which recently relaunched in the U.K., Freetrade is confident in its ability to provide customers with more choices and features as it continues to expand its market presence.
