After a strong 2024 year in which he recorded $931 million on the General Committee and net profit of $192 million, Etoro, bound by the IPO, is projected to have a lower net profit in the first quarter of $56 million to $60 million compared to last year's quarter, which earned $64 million.
Expenses on growth will bring in income
The Israeli trading platform explained that the expected decline in net profit was due to increased investments in marketing and growth. This was partially offset by a decrease in stock-based payment costs.
Adjusted EBITDA is also expected to be lower. Etoro reported $87 million in the first three months of 2024, but from January to March 2025, this figure is expected to fall between $76 million and $80 million.
“The expected decline is driven by increased investments in growth in response to positive market conditions, and is aimed at accelerating increased profits and customer acquisition,” Etoro said in its latest IPO submission.
Read more: Etoro's profits surge in 2024 13x, with Crypto contributing 38% of fee revenue
Yoni Ascia, CEO of Etro
The company did not detail how much it spent in the first quarter, but its marketing costs in 2024 were $147 million, up 27% from the previous year. However, in 2022, it spent $234 million on marketing.
Despite first quarter revenue expectations, the growth drive appears to be rewarding. The number of funded accounts rose to 3.58 million at the end of March 2025, up from 313 million at the end of 2024. Net contributions also improved from $214 million to $217 million compared to $2 million the previous year.
Search for “Add new countries” Etro
Etoro is expected to be released soon, at a valuation of between $3.7 billion and $4 billion. The company wants to raise $500 million, half of which will go to existing shareholders. After deducting costs and fees related to the IPO, Etoro expects to hold $227.7 million.
“The main purpose of this offering is to increase our capitalization and financial flexibility and create an open market,” the company said. “We intend to use net income from this offer for general corporate purposes, including working capital, operating expenses, and capital expenditures.”
Etoro also said it plans to use a portion of its IPO proceeds for acquisitions or other investments.
Etoro's $4 billion IPO – too expensive for Europe, a US bargain?
Currently, 70% of Etoro's funded accounts come from Europe and the UK, with 16% from the Asia-Pacific region, 10% from the Americas, and 16% for the rest of the Middle East and Africa.
While Europe and the UK remain important markets, Etro is actively expanding to other regions. It is expected to grow our user base in both existing and new markets. The company also highlighted that the acquisition could help tailor services to local needs and reduce the time it takes to launch in new markets.
“We hope to increase Etro's vast global footprint by entering new markets using a playbook established for the international expansion of organic and inorganic,” the IPO's outlook added. “We also see opportunities in uninvasive markets around the world and continue to explore adding new countries to our footsteps.”
