IG Group (LON: IGG), which offers over-the-counter (OTC) derivatives trading to customers, saw its shares tumble around 24% in early Friday trade as it said third-quarter revenue fell about 14% to roughly £240m and now expects 2026 revenue growth in the mid-single digits. The company set out the numbers in its Q3 trading update at 7am today.
The shares closed yesterday at 1,279p, down 3.47% from 1,325p the session before and the lowest close of the past three months. It is currently at 980.5p.
Revenue for the three months to the end of September compares with £280.1m a year earlier. Net trading revenue was about £210m against £249.5m.
IG attributed the fall to lower OTC revenue retention, the share of OTC trading flow it keeps as revenue. Retention was about 70%, against an average of about 80% since the market-making optimisation measures introduced in the second half of 2025.
OTC net trading revenue was about £155m, around 18% lower, while OTC customer income rose about 8%. The board remains confident the measures will structurally raise retention over the medium to long term, but expects greater short-term variability.
Customer numbers held up. Organic first trades rose over 25% and organic active customers about 17%. Underdog grew net revenue by over 100% to about $105m, ahead of its seasonally important fourth quarter, which made up more than a third of its 2025 revenue.
Chief executive Breon Corcoran put the quarter this way:
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.
Breon Corcoran, CEO of IG Group
IG now expects 2026 total revenue growth of mid-single-digit per cent. It expects an EBITDA margin (earnings before interest, tax, depreciation and amortisation, as a share of revenue) in the low-40s per cent, excluding about £30m of non-recurring costs and Underdog acquisition expenses that depend on the deal closing.
Of the £30m, £16.4m was reported in the first half, tied to the Jersey redomicile and the restructuring from the organisational model announced the 8th of July. The board says it remains confident of its medium-term guidance beyond 2026.
Further Q3 detail follows on the 22nd of October, alongside a strategy update. A virtual Underdog seminar for institutional investors and analysts takes place next Thursday.