eToro has secured a $250 million revolving credit facility from a syndicate of major global banks, the company announced Monday, bolstering its liquidity profile as it pursues long-term growth initiatives.

The three-year senior unsecured facility remains undrawn at closing. eToro enters the agreement without any outstanding debt and with more than $736 million in cash, cash equivalents, and short-term investments as of March 31, 2025.

Facility Arranged by Global Banking Consortium

The credit line was arranged by Citi, Bank Hapoalim, Bank Leumi, Deutsche Bank, Goldman Sachs, Mizuho Bank, Sumitomo Mitsui Banking Corporation, and UBS. The facility gives eToro access to additional capital if needed while maintaining its current debt-free position.

“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,” commented Meron Shani, CFO, eToro.

Related: eToro Adds Six New Portfolios with Franklin Templeton for Long-Term Retail Investors

eToro did not disclose specific use cases for the funds but framed the facility as a move to provide financial headroom as it explores new strategic initiatives. The decision to add the credit line while maintaining over $736 million in liquid assets underscores eToro’s conservative capital approach.

Financial Results Following IPO

Early last month, eToro published its financial results for the first quarter ending March 31, 2025, as a public company. In the report following its IPO, the fintech giant posted an 8% increase in net contribution year-over-year, amounting to $217 million, up from $201 million in the same period last year. This growth was largely driven by elevated trading volumes across its platform.

Besides that, adjusted EBITDA, a non-GAAP measure, also fell to $80 million from $87 million a year earlier. Correspondingly, the adjusted EBITDA margin narrowed to 37% from 43%, indicating increased spending to support expansion efforts.

“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. In the first quarter, in response to the market environment, we increased investment in marketing and growth,” said Shani.

This article was written by Jared Kirui at www.financemagnates.com.FinTechRead More

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