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Introduction & Market Context
X Trade Brokers Dom Maklerski SA (WA:XTB) released its Q1 2025 financial results on May 15, 2025, revealing a mixed performance characterized by modest revenue growth but a significant decline in profitability. The company’s stock fell 1.95% following the announcement, closing at 88.16 PLN, as investors digested the impact of aggressive marketing expenditures on the bottom line.
XTB, a leading European online broker, continues to prioritize client acquisition and international expansion despite the pressure on short-term profits, highlighting its focus on long-term growth strategies in an increasingly competitive financial services landscape.
Quarterly Performance Highlights
XTB reported total operating income of 580.3 million PLN for Q1 2025, representing a 4.4% increase compared to the same period last year. However, net profit fell sharply by 35.9% year-over-year to 193.9 million PLN, while operating profit (EBIT) declined to 264.5 million PLN from 351.0 million PLN in Q1 2024.
As shown in the following consolidated financial data chart:
The company’s revenue structure continues to be dominated by Index CFDs, which accounted for 52.3% of total revenue in Q1 2025, followed by Commodity CFDs at 29.1% and Currency CFDs at 13.5%. The most popular instruments in terms of trading volume were US100 (42.3%), GOLDS (24.7%), and DE40 (11.4%), while the most profitable were DE40 (23.1%), US100 (21.9%), and NATGAS (16.1%).
The following breakdown illustrates the company’s revenue composition by asset class:
XTB’s quarterly revenue and operational metrics show consistent growth in total operating income over recent quarters, reaching a peak in Q1 2025:
Marketing Strategy and Client Acquisition
The significant decline in profitability can be largely attributed to XTB’s aggressive marketing strategy. Marketing expenses reached 141.0 million PLN in Q1 2025, representing 45% of the company’s total operating costs of 315.8 million PLN. These marketing investments appear to be yielding results in terms of client acquisition, with 194,304 new clients added during the quarter.
The following chart illustrates the relationship between marketing expenditure and client acquisition:
Salaries and employee benefits constituted the second-largest expense category at 95.0 million PLN, accounting for 30% of total operating costs. The company’s focus on growth is evident in its expense allocation strategy:
International Expansion and Product Development
Despite the pressure on short-term profitability, XTB continues to invest in international expansion and product development. The company obtained a securities agent license in Chile during Q1 2025, began the process of obtaining a license in Brazil, and opened a second office in Dubai.
On the product front, XTB introduced several new features in Q1 2025, including an eWallet service for clients in Poland, pending orders for Individual Retirement Accounts, and the launch of PEA (Plan d’Epargne en Actions) for customers in France. The company also conducted AI chat tests and modernized its mobile app architecture.
XTB’s product roadmap illustrates its commitment to innovation and expansion:
The company maintains a strong financial position to support these initiatives, with 2.2 billion PLN in cash and bonds as of March 31, 2025. XTB has also proposed a dividend of 5.45 PLN per share for 2024, representing 74.9% of net profit, with a payment date of June 25, 2025.
The following chart shows XTB’s cash position and dividend history:
Forward-Looking Statements
XTB’s financial instruments performance indicates which products are driving both volume and profitability:
Looking ahead, XTB plans to continue its product innovation with several initiatives in progress for 2025, including options trading, cryptocurrency offerings, and IKZE (Individual Retirement Security Accounts) in Poland. The company’s focus on digital transformation is evident in its platform usage trends, with mobile trading continuing to gain share.
While the significant increase in marketing expenditure has pressured short-term profitability, XTB’s management appears committed to a growth strategy focused on client acquisition, geographic expansion, and product innovation. Investors will be watching closely to see if this investment translates into sustainable revenue growth and a return to higher profitability levels in future quarters.
Full presentation:
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