XTB shares (WSE:XTB) tumbled over 6% thismorning (Friday) after the Polish fintech broker published preliminary resultsthat disappointed investors, despite setting new records for client acquisitionand revenue growth. Althoughquarterly earnings appear satisfactory, they declined on a half-year basis by11%. Nevertheless, analysts believe this may be only a short-term correction.XTB Reports Net IncomeBelow Analyst ConsensusXTBreported netprofit of 216.1 million PLN for the second quarter, higher than 160 million PLN in the same period last year; however, it fell short ofanalyst consensus estimates of around 240-250 million PLN. While quarterlyprofits increased compared to Q1 2025, the first-half results showed a 11.4% decline compared to H1 2024.For thesix-month period, consolidated net profit reached 410.1 million PLN, down from 463.0 million PLN in the first half of 2024. This drop occurred despite record operatingrevenues climbing 23.8% year-over-year to 1.16 billion PLN.Thebroker's cost structure tells the story behind the profit decline. Operatingexpenses surged 48% to 608.7 million PLN in the first half, driven primarily bymarketing investments that jumped 69% to 264.4 million PLN as XTB pursuedaggressive client acquisition campaigns.Record Client Growth Failsto ImpressDespitemissing profit targets, XTB delivered impressive client metrics that mightnormally excite investors. The company added 361,643 new clients in the firsthalf - a 55.7% increase from the previous year. Active clients reached a record853,938, up nearly 70% year-over-year.Julycontinued this momentum with over 61,900 new clients joining the platform injust 30 days, suggesting the second quarter's client acquisition pace of167,339 wasn't an anomaly.However, MaciejMarcinowski, analyst of polish brokerage house Trigon, noted that clientacquisition slightly disappointed relative to expectations, with somesuggesting XTB should return to adding 180,000-190,000 new clients per quarterin Q3.“On onehand, our net profit forecast for 2025 needs to be revised down by 3–4 percent.However, if our assumption about a negative contribution from market makingthis quarter proves correct, our model indicates an upward revision offorecasts for the coming years,” Marcinowski commented on the preliminaryresults. Market Making MarginsUnder PressureThe revenuestory also may reveal why investors remain concerned despite strong toplinegrowth. Profitability per lot - a key metric for CFD brokers - declined to 251PLN from 289 PLN in H1 2024, reflecting challenging market conditions for thecompany's market-making operations.Marcinowskisuggested that market-making revenues may have actually turned negative in Q2,a significant shift for XTB's business model. "We would risk saying thatmarket-making revenues were even slightly negative this quarter versus ourexpectation of 58 million PLN," he noted.The declinein per-lot profitability occurred despite trading volumes surging 41.5% to 4.23million lots, highlighting how market conditions can compress margins even asactivity increases.Currency HeadwindsAdding toprofit pressures, XTB faced significant foreign exchange headwinds. Financialexpenses ballooned to 85.1 million PLN in the first half compared to just513,000 PLN in the prior year, largely due to negative currency differences ofapproximately 40 million PLN.“Operatingresults are 7 percent below forecasts, while net profit deviates moresignificantly due to PLN 40 million in negative exchange rate differences (wehad assumed PLN 20 million),” added Marcinowski.This foreximpact was roughly double what analysts had anticipated, contributing to thelarger-than-expected miss on bottom-line results.Investment Mode ContinuesCEO OmarArnaout emphasized that XTB remains in investment mode, prioritizing marketshare growth over short-term profitability. He is thus maintaining the strategyhe mentioned during the interview I conducted when I visited XTB's headquarterslast year. The company expects total operating costs could rise 40% in 2025compared to 2024, with marketing expenses potentially increasing 80%."Despitesignificantly higher marketing expenditures both in Poland and foreign markets,we maintain the average cost of client acquisition at a similar level,"Arnaout said. "I am also convinced that we will exceed the threshold oftwo million clients this calendar year."Related: XTB Co-Founder Jakub Zablocki Continues Liquidation: Sold $194M Worth of Broker SharesTechnical Picture Weakensand Mixed Analyst ReactionsFrom atechnical perspective, Friday's decline pushed XTB shares toward support at the70 PLN level, representing the lower boundary of an uptrend channel that hascontained the stock since May 2024. It created a visible downward gap on thechart as shares fell below the 200-day exponential moving average.Analystsentiment remains divided. While some view the results as neutral and see theselloff as a buying opportunity, others express concern about the trajectory ofprofitability metrics.According to Arkadiusz Jóźwiak, a Polish financial journalist and analyst, investors tend to react negatively to XTB’s earnings reports, although the company usually rebounds shortly afterward.“XTB has effectively reset all of this year's gains. However, if the stock doesn’t fall below the current level of around 70 złoty, it could present a buying opportunity at far more attractive prices than the over-90 złoty seen in May. Especially when we look at the company’s price history over recent years. Since the pandemic lows, its value has increased by more than 2,500%, with nearly uninterrupted growth," Jóźwiak commented.MikołajLemańczyk from mBank noted that while client KPIs remained strong, "theresults remind us that sometimes there are weaker quarters in terms ofprofitability per lot, and this must be taken into account in long-term companyanalysis."XTB'stransformation from a traditional CFD broker to a comprehensive fintechplatform continues, but Friday's market reaction suggests investors want to seethis evolution translate into sustained profit growth alongside the impressiveclient metrics.XTB shares were also negatively affected in early July by an alleged hack described by one of the platform’s clients. Although XTB did not confirm the incident, the company responded to the publicity by strengthening its security measures and announcing plans to introduce mandatory two-factor authentication (2FA).You may also like: XTB Targets 7 Million PEA Long-Term Investors Over 30,000 CFD Traders in FranceThis article was written by Damian Chmiel at www.financemagnates.com.