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Freetrade's Debut Profit: Britain's Robinhood Rivalry

British stock trading app Freetrade achieved a breakthrough, reported adjusted earnings before interest, tax, and more
April 15, 2024

In a significant milestone for British stock trading app Freetrade, the company announced its first-ever move into profitability earlier this year. With adjusted earnings signaling a shift into the black, Freetrade's latest financial performance showcases resilience and growth in a competitive market landscape.

Freetrade's journey to profitability reached a pivotal moment in the first quarter of 2024, as the company reported adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of £100,000. This achievement marks a significant turnaround from previous years, where Freetrade grappled with losses, including £8.3 million in 2023. Despite challenges, Freetrade's revenue surged to £6.7 million in the first quarter, reflecting a robust performance amidst evolving market dynamics.

For Freetrade CEO and founder Adam Dodds, the latest financial results signify more than just numbers. They represent a triumph over adversity, with Freetrade defying market conditions to deliver healthy growth while significantly reducing losses incurred in previous years. The news is particularly welcome for Freetrade's crowdfunding investors, who have eagerly awaited updates on the company's path to profitability.

Freetrade's resilience amidst market fluctuations underscores its position as a formidable competitor to Robinhood, the U.S. stock trading platform. Despite Robinhood's recent relaunch in the U.K., Dodds remains unfazed, emphasizing the value of choice and competition in empowering retail customers. As Freetrade prepares for the future, major product developments and the rollout of a web platform signal the company's commitment to sustained growth and innovation.

Driving Freetrade's first-quarter performance were higher trading volumes and increased foreign exchange income. Additionally, a surge in retail investor activity, fueled by speculation over central bank rate cuts and a rally in crypto prices, bolstered Freetrade's momentum. While Freetrade does not offer crypto trading, increased investor interest in crypto-related stocks contributed to the platform's success.

Freetrade's journey from losses to profitability marks a significant achievement in the competitive landscape of stock trading apps. With a clear path to breakeven laid out and a commitment to innovation, Freetrade's latest financial performance signals resilience and growth in the face of market challenges. As the company navigates the road ahead, fueled by retail investor confidence and strategic developments, Freetrade continues to redefine the landscape of stock trading in the U.K. and beyond.

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