REG - IG Group Hldgs plc - First Quarter Trading Update

IG groupAnnouncement

Thu 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20250925:nRSY7113Aa&default-theme=true

RNS Number : 7113A  IG Group Holdings plc  25 September 2025

25 September 2025

LEI No: 2138003A5Q1M7ANOUD76

 

IG GROUP HOLDINGS PLC
First Quarter Trading Update

 

'Good strategic progress led to organic growth in active customers against a
tough prior year comparative, strong customer income retention and excellent
performance at Freetrade, full year guidance confirmed'

 

IG Group Holdings plc ("IG", "the Group"), today issues its scheduled trading
update for the three months to 31 August 2025 ("Q1 FY26") covering the first
quarter of the fiscal year ending 31 May 2026 ("FY26").

 

Business performance in Q1 FY26

Variances described below refer to organic performance in Q1 FY26, excluding
Freetrade. Active customers and first trades are presented on revised
definitions with net trading revenue reallocated accordingly, as announced on
19 September 2025(1).

 

Net trading revenue of £231.9 million declined 4% on the prior year and 8% on
the prior quarter, as strong OTC customer income retention was offset by lower
trading activity in less supportive market conditions.

 

Average monthly active customers increased 3% on the prior year and remained
stable on the prior quarter which were demanding comparatives. First trades
increased 42% on the prior year and 2% on the prior quarter reflecting
increased marketing activity, greater marketing effectiveness and the early
results of strategic initiatives to close products gaps and simplify our
propositions to broaden customer appeal.

 

 

 Revenue (£ million)              Q1 FY26  Q1 FY25  % YoY  Q4 FY25  % QoQ

 OTC derivatives                  182.7    194.4    (6%)   205.6    (11%)
 Exchange traded derivatives(*)   36.9     38.9     (5%)   36.0     2%
 Stock trading & investments      18.5     8.7      112%   14.1     31%
 - of which Freetrade(**)         6.5      -        -      3.7      -
 - of which organic               12.0     8.7      38%    10.4     15%
 Spot crypto                      0.3      0.1      nm     0.1      Nm
 Net trading revenue              238.4    242.1    (2%)   255.8    (7%)
 - of which organic               231.9    242.1    (4%)   252.1    (8%)
 Net interest income              29.5     36.8     (20%)  29.7     (1%)
 - of which organic               28.0     36.8     (24%)  28.7     (2%)
 Total revenue                    267.9    278.9    (4%)   285.5    (6%)
 - of which organic               259.9    278.9    (7%)   280.8    (7%)

*Includes revenue of £4.5 million attributable to Spectrum in Q1 FY25 which
was exited in Q2 FY25

**Freetrade consolidated on 1 April 2025 providing two months of revenue
contribution in Q4 FY25 and three months in Q1 FY26

 

tastytrade net trading revenue increased 16% on the prior year and 5% on the
prior quarter to $54.7 million (Q1 FY25: $47.1 million; Q4 FY25: $52.0
million). On a reported GBP basis, trading revenue increased 11% on the prior
year and 3% on the prior quarter to £40.7 million (Q1 FY25: £36.6 million;
Q4 FY25: £39.4 million). As a result of IG's revised customer metrics,
tastytrade net trading revenue has been allocated across exchange traded
derivatives, stock trading & investments and spot crypto to better reflect
its more diversified revenue streams.

 

Net interest income of £28.0 million was down 24% on the prior year, in line
with the Group's expectations, reflecting lower interest rates and greater
pass-through to customers. Customer cash balances at the end of Q1 FY26 were
£4.7 billion (31 May 2025: £4.4 billion; 31 August 2024: £4.1 billion)(2).

 

Total revenue of £259.9 million declined 7% on the prior year and 7% on the
prior quarter.

 

 Customer metrics ('000s)(*)       Q1 FY26  Q1 FY25  % YoY  Q4 FY25  % QoQ

 Average monthly active customers  739.1    270.6    173%   742.2    -
 - of which Freetrade              460.2    -        -      461.9    -
 - of which organic                278.9    270.6    3%     280.3    -
 First trades                      31.7     16.7     89%    28.6     11%
 - of which Freetrade              7.8      -        -      5.4      46%
 - of which organic                23.9     16.7     42%    23.2     2%
 Funded customers                  1,315.3  545.9    141%   1,298.3  1%
 - of which Freetrade              728.5    -        -      723.7    1%
 - of which organic                586.8    545.9    7%     574.6    2%

*Active customers and first trades have been adjusted to remove the customers
who are active in more than one product category (multi-product customers) to
provide unique counts for the Group

 

Freetrade delivering rapid growth

The Group completed the acquisition of Freetrade on 1 April 2025 and it
sustained rapid growth in Q1 FY26. Strong performance was supported by the
rollout of new products and features, including the first phase of its mutual
fund offering.

 

Net trading revenue of £6.5 million increased 32% on the prior year on a pro
forma basis, assuming the acquisition took place on 1 June 2024 and therefore
including Freetrade for the entire comparative period. Net interest income of
£1.5 million increased 8% on a pro forma basis as strong growth in customer
cash balances offset lower interest rates. Total revenue of £8.0m increased
27% on a pro forma basis.

 

Assets under administration in IG's stock trading and investments business
increased to £7.6 billion (31 May 2025: £7.0 billion; 31 August 2024: £3.9
billion), of which £3.0 billion was attributable to Freetrade (31 May 2025:
£2.6 billion; 31 August 2024: £2.0 billion).

 

Deploying capital into accretive acquisitions and buybacks

As announced on 19 September 2025, the Group is pleased to have reached an
agreement to acquire Independent Reserve, a leading cryptocurrency exchange
based in Australia. The transaction accelerates IG's entry into cryptocurrency
markets in Asia Pacific and complements the strategic progress we are making
to enhance our crypto offerings organically. Completion is subject to
regulatory approvals and currently expected in early 2026.

 

The Group announced a new share buyback programme of £125 million on 24 July
2025. This began on 4 September 2025 and is expected to complete by 30 January
2026. As of 23 September 2025, 1.5 million shares had been repurchased at a
cost of £16.8 million. An extension to the share buyback programme will be
considered later in FY26, subject to share price performance and other demands
on capital.

 

As at 31 May 2025, Group regulatory capital resources were modestly in excess
of the upper bound of IG's management buffer of 160-200% of minimum
requirements, stated pro forma for the £125 million share buyback and the
acquisition of Independent Reserve. Pro forma regulatory capital resources are
stated prior to cash generation in FY26.

 

Outlook

The Group continues to expect FY26 performance in line with market
expectations for total revenue and cash EPS. Within total revenue, net
interest income is still expected to be approximately £100 million.

 

Consensus can be found on the IG Group investor relations website.

 

 

Notes:

(1. ) A presentation explaining changes to the Group's definitions of active
customers and first trades and the corresponding reallocation of net trading
revenue across product categories is available on IG's investor relations
website, accompanied by figures for prior quarters based on revised
definitions. There is no impact on Group net trading revenue or total revenue.

(2. ) Includes Freetrade customer cash balances of £202 million at the end
of Q1 FY26 (31 May 2025: £190 million).

 

 

Enquiries

 

IG Group Investor Relations

Martin Price

020 7573 0020

investors@iggroup.com (mailto:investors@iggroup.com)

 

Media

Sodali & Co

020 7100 6451

iggroup@client.sodali.com (mailto:iggroup@client.sodali.com)

 

About IG

 

IG Group (LSEG:IGG)
(https://eur01.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.iggroup.com%2F&data=05%7C01%7CSimon.Wright%40ig.com%7Cfa58780cb4c445598c5a08da3f12df38%7C4b4cca9cedaf42f38e219070c5d9d76b%7C0%7C0%7C637891647530086156%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C3000%7C%7C%7C&sdata=ZopP0pt%2Bpil6u7sT7JRD8OjvetOm4sSxJJ%2FDPRvXU2A%3D&reserved=0)
provides online trading platforms and educational resources to empower
ambitious customers around the globe. Headquartered in the UK, IG Group is a
FTSE 250 company that offers customers access to c.19,000 financial markets
worldwide.

 

APPENDIX I

Net trading revenue by division and product(1)

 

 Net trading revenue (£ million)             Q1 FY26     Q1 FY25     % YoY     Q4 FY25     % QoQ

 UK & Ireland:
 OTC derivatives                             67.0        64.2        4%        74.6        (10%)
 Exchange traded derivatives                 0.3         0.1         nm        0.3         nm
 Stock trading & investments                 13.4        5.2         160%      9.2         45%
 - of which Freetrade(2)                     6.5         -           -         3.7         77%
 - of which organic                          6.9         5.2         34%       5.5         25%
 Spot crypto                                 0.1         -           -         -           -
 UK & Ireland total                          80.8        69.5        16%       84.1        (4%)
 - of which organic                          74.3        69.5        7%        80.4        (8%)

 APAC & Middle East:
 OTC derivatives                             60.2        74.1        (19%)     64.4        (6%)
 Stock trading & investments                 1.1         1.1         (2%)      1.0         15%
 APAC & Middle East total                    61.3        75.2        (18%)     65.4        (6%)

 United States:
 OTC derivatives                             3.4         4.2         (19%)     4.5         (24%)
 Exchange traded derivatives                 36.7        34.3        7%        35.8        3%
 Stock trading & investments                 3.8         2.2         70%       3.5         8%
 Spot crypto                                 0.2         0.1         nm        0.1         nm
 United States total                         44.1        40.8        8%        43.9        -

 Europe:
 OTC derivatives                             31.0        30.3        2%        38.6        (20%)
 Exchange traded derivatives(3)              --          4.5         nm        --          nm
 Europe total                                31.0        34.8        (11%)     38.6        (20%)

 Institutional & Emerging Markets (EM):
 OTC derivatives                             21.0        21.6        (3%)      23.4        (10%)
 Stock trading & investments                 0.2         0.2         5%        0.4         (51%)
 Institutional & EM total                    21.2        21.8        (3%)      23.8        (11%)

 Group total                                 238.4       242.1       (2%)      255.8       (7%)
   - of which organic                        231.9       242.1       (4%)      252.1       (8%)

 

 

Notes:

(1. ) Some numbers and period on period percentages have been rounded or
adjusted to ensure consistency with the underlying figures. This may lead to
differences between subtotals and the sum of the individual numbers presented.

(2. ) Freetrade consolidated on 1 April 2025, providing two months of revenue
contribution in Q4 FY25 and three months in Q1 FY26

(3. ) European exchange traded derivatives business, Spectrum, exited in Q2
FY25

 

 

APPENDIX II

Average monthly active customers by division and product(1)

 

 Average monthly active customers ('000)  Q1 FY26     Q1 FY25     % YoY     Q4 FY25     % QoQ

 UK & Ireland:
 OTC derivatives                          32.2        31.5        2%        33.4        (4%)
 Exchange traded derivatives              1.2         0.2         nm        1.0         nm
 Stock trading & investments              519.5       58.4        nm        519.9       1%
 - of which Freetrade                     460.2       -           -         461.9       -
 - of which organic                       59.4        58.4        2%        58.0        2%
 Spot crypto                              0.5         -           -         -           -
 UK & Ireland total                       547.4       85.1        544%      548.8       -
 - of which organic                       87.3        85.1        3%        86.9        -

 APAC & Middle East:
 OTC derivatives                          35.5        38.1        (7%)      36.9        (4%)
 Stock trading & investments              29.2        28.6        2%        28.9        1%
 APAC & Middle East total                 62.9        65.0        (3%)      64.0        (2%)

 United States:
 OTC derivatives                          5.6         5.0         11%       5.5         3%
 Exchange traded derivatives              47.3        43.5        9%        46.6        1%
 Stock trading & investments              72.1        62.3        16%       70.5        2%
 Spot crypto                              9.2         6.7         37%       8.5         9%
 United States total                      97.0        86.4        12%       95.1        2%

 Europe:
 OTC derivatives                          22.4        21.8        2%        24.0        (7%)
 Exchange traded derivatives(2)           -           3.0         -         0.1         -
 Europe total                             22.4        24.3        (8%)      24.0        (7%)

 Institutional & EM:
 OTC derivatives                          8.4         9.0         (6%)      9.5         (11%)
 Stock trading & investments              1.0         0.9         10%       0.9         8%
 Institutional & EM total                 9.3         9.8         (5%)      10.3        (9%)

 Group total                              739.1       270.6       173%      742.2       -
 - of which organic                       278.9       270.6       3%        280.3       -

 

Notes:

(1. ) Divisional and Group total active customers have been adjusted to
remove the customers who are active in more than one product category
(multi-product customers) to provide unique counts by division and for the
Group. Some numbers and period on period percentages have been rounded or
adjusted to ensure consistency with the underlying figures. This may lead to
differences between subtotals and the sum of the individual numbers presented.

(2. ) European exchange traded derivatives business, Spectrum, exited in Q2
FY25

 

 

 

APPENDIX III

First trades by division and product(1)

 

 First trades ('000)              Q1 FY26  Q1 FY25  % YoY  Q4 FY25  % QoQ

 UK & Ireland:
 OTC derivatives                  2.6      1.8      46%    3.2      (19%)
 Exchange traded derivatives      0.5      0.3      37%    0.5      (4%)
 Stock trading & investments      11.2     1.0      nm     8.4      33%
 - of which Freetrade             7.8      -        -      5.4      46%
 - of which organic               3.5      1.0      245%   3.0      17%
 Spot crypto                      0.9      -        -      -        -
 UK & Ireland total               13.5     2.5      443%   11.2     20%
 - of which organic               5.7      2.5      128%   5.8      (2%)

 APAC & Middle East:
 OTC derivatives                  4.5      3.4      32%    3.2      39%
 Stock trading & investments      1.0      0.7      50%    0.7      47%
 APAC & Middle East total         5.2      3.9      36%    3.7      41%

 United States:
 OTC derivatives                  1.7      1.0      78%    1.7      2%
 Exchange traded derivatives      6.8      5.3      27%    6.5      4%
 Stock trading & investments      6.0      4.5      33%    6.6      (10%)
 Spot crypto                      1.8      0.4      348%   1.6      16%
 United States total              10.1     7.4      37%    10.1     -

 Europe:
 OTC derivatives                  2.0      1.5      28%    2.4      (17%)
 Exchange traded derivatives(2)   -        0.9      -      -        -
 Europe total                     2.0      2.2      (10%)  2.4      (17%)

 Institutional & EM:
 OTC derivatives                  0.8      0.8      1%     1.2      (32%)
 Stock trading & investments      -        -        -      -        -
 Institutional & EM total         0.8      0.8      1%     1.2      (32%)

 Group total                      31.7     16.7     89%    28.6     11%
 - of which organic               23.8     16.7     42%    23.3     2%

 

 

Notes:

(1. ) Divisional and Group total first trades have been adjusted to remove
the customers trading for the first time in more than one product category to
provide unique counts by division and for the Group. Some numbers and period
on period percentages have been rounded or adjusted to ensure consistency with
the underlying figures. This may lead to differences between subtotals and the
sum of the individual numbers presented.

(2. ) European exchange traded derivatives business, Spectrum, exited in Q2
FY25

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTKZGZLVDRGKZM