XTB Q3 Profit Drops 74% as Low Market Volatility Hits Revenue

XTB saw a sharp drop in third-quarter profit despite record client growth, as subdued volatility across financial markets reduced trading activity and revenue.

Profit and Revenue Decline

The Warsaw-listed broker reported a consolidated net profit of PLN 53.2 million, down 74% year-on-year from PLN 203.8 million. Revenue fell 20.1% to PLN 375.8 million, mainly due to lower CFD profitability per lot.

XTB said the decline reflected weak price movements in key financial and commodity markets. “For most popular instruments, price trends were more predictable and moved within narrow ranges,” the company noted.

Client Growth Accelerates

The broker added a record 221,762 new clients during the quarter, more than double the number from a year earlier. Active clients rose 75.9% to nearly 920,000, driving a 28.6% increase in the number of CFD contracts traded and a 60.8% jump in nominal turnover to USD 1.1 trillion.

Commodities-based CFDs were the top revenue driver, contributing 48.5% of total income, led by trading in gold, silver, natural gas, and cocoa. CFDs on stock indices accounted for 32.4%, while currency-based CFDs — including cryptocurrencies such as Bitcoin, Ethereum, and Ripple — made up 10.8%.

Rising Costs from Marketing and Expansion

Operating expenses climbed 54.7% year-on-year to PLN 322.7 million, reflecting higher marketing and employment costs. Marketing spend increased by PLN 69.9 million, while staff expenses rose PLN 26.1 million.

Quarter-on-quarter, costs grew by another PLN 29.7 million, driven by further investments in advertising and technology. XTB expects total operating expenses for 2025 to be about 40% higher than last year as it continues expanding globally.

Global Expansion and New Services

XTB continued to expand internationally, obtaining licenses in Indonesia and Brazil. Its Indonesian subsidiary has started onboarding clients and plans to launch CFDs in early 2026. In Brazil, XTB has regulatory approval but is reassessing its market approach amid local protectionist measures.

Earlier this year, XTB also introduced an eWallet — a multi-currency payment solution supporting 19 currencies including EUR, USD, and GBP. By the end of Q3, nearly 22,000 clients had activated the service.