eToro has finalized a $250 million revolving credit facility from a consortium of major global banks, giving the financial services platform a significant buffer to support future growth initiatives.
The unsecured three-year credit line was disclosed on Monday, with eToro emphasizing its current strong financial standing. As of March 31, 2025, the company held more than $736 million in cash, cash equivalents, and short-term investments, and carried no outstanding debt.
The credit arrangement was facilitated by top-tier banks including Citi, Goldman Sachs, Deutsche Bank, UBS, Mizuho Bank, Bank Leumi, Bank Hapoalim, and Sumitomo Mitsui Banking Corporation.
CFO Meron Shani highlighted the strategic purpose behind the move.
“This facility provides eToro with enhanced financial flexibility to support our long-term strategic growth initiatives. It further solidifies our robust liquidity profile and ensures we are well-positioned to execute on our plans for continued growth and expansion,” he said.
While eToro didn’t outline specific plans for the funds, the arrangement serves as a precautionary measure to ensure sufficient capital availability as the company explores expansion and investment opportunities.
Strong Market Momentum Post-IPO
eToro’s credit deal follows its recent financial results and public market debut.
The company released its Q1 2025 earnings in early June, revealing an 8% year-over-year increase in net contribution, rising from $201 million to $217 million. This gain was largely fueled by higher trading volumes across its platform.
However, adjusted EBITDA declined from $87 million in Q1 2024 to $80 million this year, while the EBITDA margin also tightened from 43% to 37%, reflecting increased expenditures tied to marketing and expansion.
“Our results show strong business performance for Q1 with an increase in net contribution driven by increased trading activity and our continued focus on sustainable, profitable growth,” Shani added.
eToro shares, which trade under the symbol ETOR, debuted on Nasdaq in mid-May. Initially priced at $52, the stock quickly gained momentum and has climbed to over $66, marking a 5% increase in the past five days, according to Google Finance data.