eToro Secures $250 Million Credit Facility After Successful US IPO ⋅ Crypto World Echo
eToro has secured a $250 million revolving creditfacility 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 andwith more than $736 million in cash, cash equivalents, and short-terminvestments 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 BankingCorporation, and UBS. The facility gives eToro access to additional capital ifneeded while maintaining its current debt-free position.
“This facility provides eToro with enhanced financialflexibility to support our long-term strategic growth initiatives. It furthersolidifies our robust liquidity profile and ensures we are well-positioned toexecute on our plans for continued growth and expansion,” commented MeronShani, 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 thefunds but framed the facility as a move to provide financial headroom as itexplores 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 forthe first quarter ending March 31, 2025, as a public company. In the report, the fintechgiant posted an 8% increase in netcontribution year-over-year, amounting to $217 million, up from $201 million inthe same period last year. This growth was largely driven by elevated tradingvolumes across its platform.
Besides that, adjusted EBITDA, a non-GAAP measure, also fellto $80 million from $87 million a year earlier. Correspondingly, the adjustedEBITDA margin narrowed to 37% from 43%, indicating increased spending tosupport expansion efforts.
“Our results show strong business performance for Q1 with anincrease in net contribution driven by increased trading activity and ourcontinued focus on sustainable, profitable growth. In the first quarter, in response to the market environment, we increased investment in marketing andgrowth,” 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 werepriced at $52, but quickly soared after the listing.
This article was written by Jared Kirui at www.financemagnates.com.
