Plus500 reported a 13% quarter-over-quarter revenue increase in Q1 2025, prompting the company to raise its full-year outlook above current market expectation.

However, compared to the same period a year earlier, revenue was down by 5%. The pace of acquiring new customers and the number of active traders also declined.

Plus500 Q1 Revenue Climbs to $205.8 Million, Exceeding Estimates

The publicly listed fintech (LSE: PLUS) generated $205.8 million in revenue for the quarter ended March 31, up from $182.8 million in Q4 2024, though down 5% from the $215.6 million reported in the same period last year. EBITDA rose 23% from the previous quarter to $93.8 million, representing a 46% margin.

"Plus500 has made a strong start to the year achieving strategic progress across several important pillars of growth," said David Zruia, Chief Executive Officer. "With the excellent start we have made in 2025, the Board anticipates that the FY 2025 results will be ahead of current market expectations."

The company reported particularly strong momentum in its diversification efforts, with non-OTC business contributing approximately 12% of total revenue in Q1, up from 10% for full-year 2024. Management expects annualized revenue from non-OTC operations to reach approximately $100 million in fiscal 2025.

Table 1: Plus500 Key Financial Metrics (Q1 2025 vs Prior Periods)

Plus500's US futures business also saw substantial growth, with customer segregated funds reaching approximately $630 million as of March 31, representing an 80% increase since December 31, 2024.

Mehta Equities in India

The company recently announced the conditional acquisition of Mehta Equities in India, marking its entry into what it describes as "the largest retail futures trading market globally." According to Plus500, India's futures market saw over 150 billion contracts traded in 2024, representing more than 75% of global transaction volumes.

"Our futures business continued to expand with the recent acquisition of Mehta Equities in India, which will enable us to deliver valuable synergies with our US futures business as we continue to establish our global futures offering," Zruia said.

The company maintained a strong financial position with cash balances exceeding $885 million at quarter-end, despite allocating approximately $52 million to share repurchases during the period. Plus500 bought back 1,512,359 shares at an average price of £27.41 in Q1.

Fewer New and Active Clients

Other operational metrics showed mixed results. New customer acquisitions fell 26% from the previous quarter to 26,897, while active customers decreased 4% to 130,514. However, average revenue per user increased 18% to $1,577, and the company reduced its average user acquisition cost by 11% to $1,205.

Table 2: Plus500 Operational Metrics (Q1 2025 vs Prior Periods)

Customer deposits surged to $1.6 billion for the quarter, double the $0.8 billion recorded in Q4 2024. The average deposit per active customer jumped 106% to approximately $12,450, which the company attributes to "the high level of confidence that customers have in Plus500 and the Group's continued success in attracting higher value customers."

In addition to its Indian expansion, Plus500 obtained a new regulatory license in the UAE from the Securities and Commodities Authority in January, allowing it to enhance its local product offerings. The company also launched a multi-asset offering for the Japanese retail market comprising new OTC products based on indices, equities, and ETFs.