The financial situation for a well-known Estonia-based retail forex and CFDs broker has deteriorated significantly in the first half of 2025. The company recorded revenues of just €13.3 million (approximately $15.5 million), marking a 19% decline compared to previous periods and reflecting a severe downturn from over €40 million in semi-annual revenues in the first half of 2022. This decline is the most substantial drop experienced by the firm, whose financial performance has been closely tracked since 2020.
Additionally, the company has reported a net loss of €5.9 million ($6.9 million) for the first half of 2025, which is its lowest financial result since data tracking began. Previously, the business was operating near breakeven, but the latest results indicate a challenging landscape for the broker in its core European markets. The decline in trading activity among clients has sharply impacted earnings.
The company has indicated a commitment to maintaining tight operational discipline and realigning its strategic focus. In 2024, it elected to suspend the onboarding of new clients from Europe in compliance with regulatory recommendations from Cyprus’ financial authority, CySEC. After making necessary adjustments, the broker resumed onboarding in the EU in March 2025, aiming to strengthen engagement in this critical market segment. User acquisition efforts were reported to have intensified during the second quarter of 2025, as the firm addresses the challenges resulting from the earlier suspension.
Financial statements reveal further details about the company’s performance, including its comprehensive income statement and balance sheet as of June 30, 2025. The balance sheet shows total assets of €72.6 million, a reduction from €79.8 million at the end of 2024, signaling a decrease in the company’s overall valuation. Cash assets remained steady at around €41.9 million, indicating stability in liquidity despite declining revenues.
Other asset categories also display notable shifts, with financial assets at fair value through profit or loss dropping to €910,000 from €1.2 million. Liabilities were listed at €9.99 million, slightly lower than the previous record, while total equity attributable to the owners of the parent company has declined from €69.3 million at the end of 2024 to €62.6 million.
In the income statement, it was reported that net gains from trading financial assets decreased significantly from €23 million to €14.1 million year-over-year. Additional revenue from brokerage and commission fees was also down, alongside an increase in expenses associated with trading activities. Overall, net income from trading fell dramatically to €13.3 million compared to €22 million in the previous year.
Operating expenses also posed a challenge, rising to €10.7 million while personnel expenses remained considerable, totaling around €6.1 million. This suggests that while revenue is declining, certain fixed costs are still substantial, contributing to the losses recorded.
The figures indicate a distillation of the adverse market conditions that the firm is navigating in the current economic landscape. Furthermore, the broker has experienced currency translation adjustments leading to losses, which could be symptomatic of broader market volatility affecting forex trading dynamics.
This evolving situation highlights the complexities in the retail forex and CFD brokerage industry and underscores the potential hurdles that can arise from both regulatory compliance and market performance. Moving forward, adjusting strategies and enhancing operational efficiencies will be critical for recovery and sustainable growth.