Shares in FTSE 250 trading platform operator IG Group fell by as much as 27% on Friday after the company warned Q3 revenue would be down 14% year-on-year and cut its revenue growth expectations for 2026.

IG said weaker-than-expected revenue retention in its over-the-counter (OTC) derivatives business would hit third-quarter revenue and lead to a downgrade to its full-year growth outlook.

The firm, which offers spread betting, contracts for difference (CFDs), stockbroking and other trading services to retail and professional investors, expects total revenue for the three months to 30 September to be around £240m, down 14% from £280.1m a year earlier, with net trading revenue falling to about £210m from £249.5m.

OTC derivatives revenue retention was around 70%, below the roughly 80% average recorded since the group introduced market-making optimisation measures in the second half of 2025.
The weaker retention came despite underlying customer income increasing by around 8%, with OTC net trading revenue down approximately 18% year-on-year to £155m.

Shares were down to around 960p in early morning trading.

IG now expects total revenue growth for 2026 to be in the mid-single-digit percentage range, although it said it remained confident in its medium-term guidance beyond this year, arguing that "the underlying business remains strong".

Customer activity continued to grow, with organic first trades up more than 25% year-on-year and organic active customers rising around 17%. US sports betting and prediction-markets business Underdog also continued to perform strongly, with third-quarter net revenue increasing more than 100% to approximately $105m.

CEO Breon Corcoran said: “Growth in first trades and active customers remained strong in Q3 2026. Lower Q3 revenue reflected reduced OTC revenue retention in less supportive market conditions, and I remain confident in meeting our medium-term guidance.”

IG expects around £30m of non-recurring costs in 2026 related to its redomicile to Jersey and organisational restructuring. Excluding these costs and expenses related to the Underdog acquisition, the group expects its 2026 operating profit margin to be in the low-40s percentage range.

The group will provide further detail on its Q3 performance and strategy on 22 October.

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