How to Invest in Revolut

Is Revolut publicly traded?

Revolut wasn't a publicly traded company as of late 2024. It had yet to complete an initial public offering.

When will Revolut IPO?

As of late 2024, Revolut didn't have an IPO on the calendar. However, the financial technology (fintech) company was preparing to go public after finally getting its U.K. banking license in July 2024. The company was evaluating whether to go public in the U.K. or list its stock on a U.S. exchange. It could go public as early as 2025.

How to buy Revolut stock

You can't buy shares of Revolt in a brokerage account yet because it's not a publicly traded company. However, investors interested in the fintech company do have options. Here are three Revolut investment alternatives:

1. Nu Holdings

Nu Holdings (NYSE:NU) is a digital financial service company. It offers savings, investing, borrowing, and insurance solutions to more than 110 million customers in its home country of Brazil and in Mexico and Columbia.

The company's growth potential has caught the eye of well-known investor Warren Buffett. His company, Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B), was an early shareholder of Nu Holdings.

2. PayPal Holdings

PayPal Holdings (NYSE:PYPL) is a leader in digital payments. The company's technology serves as a backbone for enabling people to make digital payments to merchants and other PayPal users. As of late 2024, it had more than 432 million users. PayPal is a highly profitable company that generates significant free cash flow, most of which it returns to investors through share repurchases.

3. SoFi Technologies

SoFi Technologies (NASDAQ:SOFI) is a financial services company. It provides customers with bank accounts, credit cards, brokerage accounts, mortgages, student loans, and insurance. The company is expanding fast as more consumers sign up for its growing list of financial products and services.

Step 4: Place an order

Once you've opened and funded a brokerage account, set your investing budget, and researched the stock, it's time to buy shares. The process is relatively straightforward. Go to your brokerage account's order page and fill out all the relevant information, including:

• The number of shares you want to buy or the amount you want to invest to purchase fractional shares.
• The stock ticker (NU for Nu Holdings, PYPL for PayPal, or SOFI for SoFi Technologies).
• Whether you want to place a limit order or a market order. The Motley Fool recommends using a market order since it guarantees you buy shares immediately at the market price.

Once you complete the order page, click to submit your trade and become a shareholder of one of these Revolut alternatives. Investors would follow a similar process to buy an IPO stock like Revolut when it goes public. Once shares become available, select Revolut's chosen stock ticker to buy shares through your brokerage account.

Is Revolut profitable?

Private companies like Revolut don't have to report quarterly earnings like public companies. However, with the company gearing up for an IPO, it reported financial results in its annual report for 2023.

According to its report, the company generated $2.2 billion in revenue in 2023, a 95% increase from 2022. Meanwhile, profit before tax was $545 million, and net profit was $428 million, with a net profit margin of 19%. CEO Nik Storonsky noted in the report that 2024 marked the company's third consecutive profitable year.

The company expected that trend to continue. Storonsky said the company "remains poised for exponential growth in 2024 and beyond, continuing to redefine the financial services landscape as we've known it."

Continued profit growth will be important for Revolut as it seeks to go public. Over the long term, earnings growth has historically been the primary driver of stock price appreciation.

Should I invest in Revolut?

Since Revolut isn't publicly traded yet, investors have lots of time to research the company to determine whether they want to buy shares when it eventually completes its IPO. Here are some factors that could lead you to buy shares when the company goes public:

• You're a fan of Revolut and use its products.
• You think Revolut could disrupt the traditional banking sector.
• You believe Revolut can continue growing its revenue briskly and deliver even faster earnings growth.
• You think Revolut deserves a high valuation, given its growth prospects.
• You understand the risks of investing in IPO stocks, including that the shares could be volatile and lose value.

On the other hand, here are some reasons you might decide not to invest in Revolut's IPO:

• You don't use Revolut or prefer a competitor's platform.
• You're concerned about Revolut's competition, which could affect its ability to grow.
• You're more of a value-focused investor and think Revolut's valuation ($45 billion post-money value as of late 2024) is high for a company generating about $2.2 billion in revenue and around $400 million in annual earnings.

ETFs with exposure to Revolut

Revolut is still a private company that has yet to complete an IPO, so investors can't get passive exposure to the fintech company through an exchange-traded fund (ETF).

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