Investing.com -- British online trading platform IG Group shares fell as much as 27.2% to, their lowest level since April 2025, after the company said it expected third-quarter revenue of about £240 million, down 14% from a year earlier, as it retained less revenue from customer trading losses in its over-the-counter (OTC) derivatives business.
The company said OTC revenue retention was about 70% in the quarter, below the roughly 80% average since it introduced changes to its market-making operations in the second half of 2025.
IG said those changes are expected to lift OTC revenue retention over the medium to long term, although quarterly results are likely to fluctuate more in the near term.
The weaker retention prompted IG to cut its 2026 revenue growth outlook to a mid-single-digit percentage range year-on-year.
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Third-quarter net trading revenue is expected at about £210 million, down from £249.5 million a year earlier. OTC net trading revenue fell about 18% to £155 million, while OTC customer income rose about 8%.
Customer activity remained strong, with organic first trades increasing more than 25% year-on-year and active customers rising about 17%.
IG's Underdog business also performed strongly, with third-quarter net revenue more than doubling to about $105 million. The result comes ahead of the seasonally important fourth quarter, which accounted for more than a third of Underdog's revenue in 2025.
"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," Chief Executive Breon Corcoran said in a statement.
IG expects about £30 million of non-recurring costs in 2026 related to moving its domicile to Jersey and restructuring following its new organisational model announced in July. It recorded £16.4 million of those costs in the first half.
Excluding those costs and expenses related to the Underdog acquisition, which are conditional on completion, IG expects its 2026 EBITDA margin to be in the low-40% range.
Original Article
IG Group shares plunge 27% as Q3 revenue expected lower on weaker OTC retention
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