eToro has secured a $250 million revolving credit
facility from a syndicate of major global banks. The new facility is a three-year senior unsecured credit line. eToro entered the agreement reportedly without any outstanding debt and
with more than $736 million in cash, cash equivalents, and short-term
investments as of March 31, 2025.
Facility Arranged by Global Banking Consortium
According to the Monday announcement, the credit line was arranged by Citi, Bank Hapoalim,
Bank Leumi, Deutsche Bank, Goldman Sachs, Mizuho Bank, Sumitomo Mitsui Banking
Corporation, and UBS. The facility gives eToro access to additional capital if
needed while maintaining its current debt-free position.
“This facility provides eToro with enhanced financial
flexibility to support our long-term strategic growth initiatives. It further
solidifies our robust liquidity profile and ensures we are well-positioned to
execute on our plans for continued growth and expansion,” commented Meron
Shani, the CFO of eToro.
Related: eToro Adds Six New Portfolios with Franklin Templeton for Long-Term Retail Investors
eToro did not disclose specific use cases for the
funds but framed the facility as a move to provide financial headroom as it
explores new strategic initiatives.
The company stock has performed well lately. According to Google Finance data, eToro shares are up 5% in the past 5 days, currently trading above $66.
Financial Results Following IPO
Early last month, eToro published its financial results for
the first quarter ending March 31, 2025, as a public company. In the report, the fintech
giant posted an 8% increase in net
contribution year-over-year, amounting to $217 million, up from $201 million in
the same period last year. This growth was largely driven by elevated trading
volumes across its platform.
Besides that, 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, in response to the market environment, we increased investment in marketing and
growth,” said Shani.
eToro’s shares, under the symbol ETOR, debuted on Nasdaq around mid-May in a much-anticipated Wall Street listing. Initially, the shares were
priced at $52, but quickly soared after the listing.
This article was written by Jared Kirui at www.financemagnates.com.
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