Shares of Plus500 (LON:PLUS), the global multi-asset fintech group, have surged to new 52-week high today at 3,416p, extending an impressive rally that has seen prices gain 32.66% YTD. With the stock now in a period of price discovery, we take a look at some of the latest drivers of the move.
A strong operational start to 2025, positive forward guidance, and continued share buybacks have all supported sentiment. Despite a modest year-on-year decline in headline revenue and EBITDA, quarter-on-quarter improvements and management’s confidence in exceeding full-year expectations have fuelled bulls.
A key factor supporting Plus500’s share price has been its ongoing share buyback program. The company has actively reduced its share count, with shares outstanding falling by 8.85% year-over-year to 72.12 million. This capital return strategy not only reflects management’s confidence in the underlying business but also provides direct support to the stock price by enhancing per-share metrics and returning value to shareholders.
For the fiscal year 2024, Plus500 reported revenue of $768.3 million and EBITDA of $342.3 million, with 254,138 active customers and 118,010 new customers added during the period. While the Q1 2025 trading update revealed a modest year-on-year decline in revenue (-4.5% to $205.8 million) and EBITDA (-8.6% to $93.8 million), the company demonstrated resilience with quarter-on-quarter gains of 13% in revenue and 23% in EBITDA. Customer income also rose 4% year-on-year, pointing to sustained engagement and monetization across its platforms.
CEO David Zruia struck an optimistic tone in the latest update, emphasizing an “excellent start” to the year and signaling that full-year 2025 results are expected to exceed current market expectations. Notably, revenue from non-OTC business lines is projected to reach $100 million in 2025, highlighting successful efforts to diversify revenue streams beyond the core trading business.
Having previously focused exclusively on CFDs, Plus500’s proprietary technology-based trading platforms, are now combined with a broad product suite spanning OTC trading, share dealing, and US futures and options. This expansion both on product, and geographical presence have enabled it to capture a diverse and expanding customer base. The company’s inclusion in the FTSE 250 and STOXX Europe 600 indexes also helps cement its standing as a key player in the European fintech landscape.
With other Fintech firms, or retail brokers having recently IPO'd, and more rumoured to be on the horizon, sentiment in the sector is clearly building. The trajectory of Plus500 in recent years has given plenty for shareholders to smile about, as gains of 155% over the past 5 years help the name stand out in a crowded market.