British stock trading app Freetrade has disclosed that it achieved breakeven earlier this year, marking its inaugural move into profitability following full-year losses in 2023.

According to unaudited financial statements provided to CNBC, Freetrade reported adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of £100,000 ($124,863) in the first quarter of 2024. Preliminary figures show revenue hitting £6.7 million during the same period.

Fiscal Progress: Loss Reduction and Revenue Increase

Despite this, Freetrade faced a loss of £8.3 million in 2023, an improvement from the £28.8 million loss recorded in the previous year. The company's revenues climbed to £21.6 million in 2023, marking an uplift of 45% from 2022.

Freetrade experienced a reduction of 65% in its valuation during its latest equity crowdfunding round on Crowdcube in 2023, attributing the decline to a "different market environment" characterized by higher interest rates and inflation.

“We defied difficult market conditions and delivered healthy growth in 2023 while dramatically reducing losses in 2022," said Adam Dodds, the CEO and Founder of Freetrade. “Importantly for our crowdfunding investors, we laid out a clear path towards breakeven during our last fundraise.”

Competition Intensifies as Robinhood Re-enters the UK Market

In the first quarter of 2024, Freetrade saw net inflows totalling £130 million, driven by increased retail investor activity amid resurgent markets. Additionally, assets under administration reached £1.8 billion during the same period.

Freetrade, often dubbed as Britain’s answer to Robinhood, faces competition from the US-based stock trading platform . Robinhood recently relaunched in the UK in March, marking its third attempt to establish a foothold in the European market. Despite this competition, Freetrade's CEO expressed optimism: "more choice and competition are good for retail customers."