Polish retail brokerage XTB reported a significant shift in its revenue composition during the first quarter of 2025, with index-based CFDs emerging as the dominant contributor while commodity and currency CFDs declined in relative importance.

Index CFDs Drive Revenue Shift as Client Base Expands

The publicly listed company's preliminary financial results (WSE: XTB), released yesterday (Tuesday), revealed that index CFDs accounted for 52.3% of total revenue, up from 41.9% in the same period last year. This change represents a substantial realignment in XTB's revenue structure as client trading preferences evolve.

“The first quarter of 2025, in terms of market characteristics, particularly the presence of long and distinct trends, was similar to the fourth and third quarters of 2024,” XTB stated in its report. The company noted that German DAX (DE40), US 100, and US 500 index CFDs were particularly profitable during the period.

Meanwhile, commodity-based CFDs saw their contribution shrink to 29.1% of revenue, down from 48.7% a year earlier, despite strong performance in natural gas, gold, and coffee contracts. Currency-based CFDs similarly declined to 13.5% of revenue from 23.2% in Q1 2024.

As a result, CFD revenues accounted for over 97% of all income generated by the fintech .

Q2 also started with record-breaking activity. As Filip Kaczmarzyk, Head of Trading and a member of XTB's Management Board, told FinanceMagnates.com, “At its peak on Monday, April 7, the number of active users was three times higher than what we observed during the announcement of the COVID-19 pandemic.”

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Client Behavior vs. The Reallocation

XTB’s client base continued to expand rapidly, growing by 49.8%, while active clients jumped 76.5%. The brokerage noted increased trading volumes across asset classes, but a disproportionate share of client activity appears to be concentrated in equity index markets.

“In the first quarter of 2025, CFDs based on indices were the leading contributor,” XTB added.

Transaction volumes in CFDs rose 24.9% in lots and 61.2% in nominal USD value, yet profitability per lot declined to PLN 277, from PLN 344 a year earlier. This may indicate margin compression from high-frequency or range-bound trading, especially in commodities and forex.

XTB’s rising reliance on index CFDs may signal a strategic tilt toward equity-driven trading activity—a shift that could prove vulnerable if equity markets stabilize or volatility declines. The broker’s income model is sensitive to macro conditions, with profitability closely tied to market activity and directional trends.

“The Group’s operating income and profitability may decline in periods of low activity on the financial and commodity markets,” the company said, adding that range-bound trading environments tend to generate more profitable trades for clients, reducing broker-side gains​.

The report was met with strong optimism by the market, and XTB shares are currently up nearly 6%, testing the level of PLN 83.80 and setting new all-time highs.

XTB Reports Record Client Growth but Profit Slides

XTB reported total operating income of PLN 580.3 million ($143.4 million) for the quarter, a 4.4% increase year-over-year. However, net profit fell to PLN 193.9 million from PLN 302.7 million in Q1 2024, primarily due to a 54.1% surge in operating expenses to PLN 315.8 million.

The company continued its aggressive client acquisition strategy, adding a record 194,304 new customers in Q1. Active clients grew to 735,389.

“The consolidated net profit achieved in the first quarter 2025 was mainly influenced by the record level of operating revenue, which resulted from the expansion of the customer base, combined with the anticipated increase in operating costs related to the dynamic growth of the XTB Group and the intensification of marketing activities,” the company explained.

Marketing expenses jumped 73.9% year-over-year to PLN 141 million as the company expanded advertising campaigns across multiple European markets. XTB's management expects marketing expenditures for the full year 2025 to increase by approximately 80% compared to 2024.

The company continues its transformation from a CFD broker into a comprehensive fintech platform, launching new services like the eWallet and specialized investment accounts. The shift is particularly visible in the French market, where only about 30,000 individuals are interested in CFDs, while over 7 million investors hold PEA investment accounts.

XTB also announced plans to introduce cryptocurrency trading and options in the future.

Looking ahead, management aims to acquire between 150,000 and 210,000 new clients per quarter in 2025 and has proposed a dividend of PLN 5.45 per share from its 2024 profits, representing a total payout of PLN 640.8 million.