British stock trading app Freetrade has disclosed that it achieved breakeven earlier this year, marking its inaugural move into profitability following full-year losses in 2023.

According to unaudited financial statements provided to CNBC, Freetrade reported adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of £100,000 ($124,863) in the first quarter of 2024. Preliminary figures show revenue hitting £6.7 million during the same period.

Fiscal Progress: Loss Reduction and Revenue Increase

Despite this, Freetrade faced a loss of £8.3 million in 2023, an improvement from the £28.8 million loss recorded in the previous year. The company's revenues climbed to £21.6 million in 2023, marking an uplift of 45% from 2022.

Freetrade experienced a reduction of 65% in its valuation during its latest equity crowdfunding Crowdfunding Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding pro Crowdfunding is defined as funding of a project via raising smaller denominations of money across a large body of number of people.New businesses that need access to more capital may also conduct crowdfunding. Generally, crowdfunding is performed through an online community, social media, or crowdfunding websites such as Kickstarter, GoFundMe, and RocketHub. Depending upon which jurisdiction an investor resides within will dictate the sort of restrictions that are applied to the crowdfunding pro Read this Term round on Crowdcube in 2023, attributing the decline to a "different market environment" characterized by higher interest rates and inflation.

“We defied difficult market conditions and delivered healthy growth in 2023 while dramatically reducing losses in 2022," said Adam Dodds, the CEO and Founder of Freetrade. “Importantly for our crowdfunding investors, we laid out a clear path towards breakeven during our last fundraise.”

Competition Intensifies as Robinhood Re-enters the UK Market

In the first quarter of 2024, Freetrade saw net inflows totalling £130 million, driven by increased retail investor activity amid resurgent markets. Additionally, assets under administration reached £1.8 billion during the same period.

Freetrade, Britain's answer to Robinhood, posted its first quarterly profit https://t.co/2wgk29KtxN

— CNBC (@CNBC) April 15, 2024

Freetrade, often dubbed as Britain’s answer to Robinhood, faces competition from the US-based stock trading platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term. Robinhood recently relaunched in the UK in March, marking its third attempt to establish a foothold in the European market. Despite this competition, Freetrade's CEO expressed optimism: "more choice and competition are good for retail customers."