Commission-free trading platform Freetrade has unveiled its latest financial performance figures, marking a major turning point in its journey. The fintech company has achieved annualised revenues of £36 million and is now operating profitably, a dramatic improvement from its previous losses.
Key Financial Highlights
For November alone, Freetrade reported:
- £3 million in monthly revenue, reflecting robust growth in its user base and trading activity.
- £0.7 million in monthly profit, translating to an impressive 23% profit margin.
These numbers signal a significant shift for Freetrade, which in 2022 faced losses nearing £40 million annually on revenues of just £15 million. If current trends hold, Freetrade is projected to generate an estimated £10 million in net profit over the next year.
Retail Volumes Soar
Retail trading volumes also surged, reaching £4.4 billion for the year—a 40% increase compared to 2022. This growth highlights a resurgent appetite for retail investing and Freetrade’s effectiveness in capturing market share amidst challenging economic conditions.
A Resilient Recovery
Freetrade’s resurgence is particularly remarkable given its challenges during the post-pandemic downturn. Following the collapse of the 2021 fintech bubble, the company was compelled to raise funds through a down round, with its valuation dropping sharply. However, its last fundraising effort in 2023 via Crowdcube, which secured investment at a £225 million valuation, now appears increasingly conservative in light of its stellar performance.
The company’s revival has been attributed to a combination of strategic focus and innovation. One notable move has been its expansion into share lending, providing additional revenue streams while maintaining its commitment to commission-free trading.
What’s Next for Freetrade?
As Freetrade stabilises and strengthens its financial standing, questions are being raised about its valuation. Could its £225 million valuation during its most recent funding round now be an undervaluation? The results suggest a platform that is not only growing but is also poised to capitalise on a wider market recovery in retail investing.
The Bigger Picture
Freetrade’s transformation from a loss-making business to a profitable one underscores its resilience and ability to adapt. The achievement is also a testament to the team’s efforts in navigating turbulent markets and refining their business model.
With annualised revenues now soaring and profitability secured, Freetrade looks well-positioned for future growth, possibly setting its sights on new market opportunities and further innovations in the fintech space.
As the company continues to gain momentum, its story serves as an inspiring example of how perseverance and strategic shifts can turn a business around—even amidst challenging times.
