IG Group Revenue Slips as Customers, Freetrade Surge

IG Group Holdings plc (LSE: IGG) reported weaker first-quarter results for fiscal 2026, with lower trading activity weighing on revenue despite continued growth in its customer base and momentum from its recent Freetrade acquisition.

The FTSE 250-listed firm said net trading revenue slipped 4% to £231.9 million, down from £242.1 million a year earlier, as “less supportive market conditions” dampened activity. Total revenue fell 7% year-on-year to £259.9 million, while net interest income dropped 24% to £28.0 million, reflecting softer interest rates and greater pass-through benefits to customers.

IG Group managed to expand its client base, with average monthly active customers rising 3% to 278,900. First trades surged 42% year-on-year to 23,900, reflecting improved onboarding and the contribution from Freetrade, the UK commission-free stock trading app IG acquired in April for £160 million.

Management reaffirmed full-year guidance for revenue and cash EPS, expressing confidence in meeting market expectations.

IG Group Revenue Slips as Customers, Freetrade Surge

The Freetrade acquisition provided an immediate boost, contributing £6.5 million in net trading revenue and adding 460,200 active customers. Assets under administration across IG’s stock trading unit rose to £7.6 billion, including £3.0 billion from Freetrade.

Group stock trading and investments revenue climbed 38% organically, supported by Freetrade’s rollout of new products such as mutual funds. IG said the integration is progressing smoothly, with Freetrade retaining operational independence while benefiting from IG’s infrastructure.

Regional results highlighted diverging trends.

• UK & Ireland: Revenue rose 7% to £74.3 million, supported by OTC derivatives growth and Freetrade’s contribution.
• APAC & Middle East: Revenue fell 18% to £61.3 million, as derivatives trading slowed amid regional volatility.
• United States: Revenue climbed 8% to £44.1 million, driven by growth at tastytrade.
• Europe: Revenue slipped 11% to £31.0 million.
• Institutional & Emerging Markets: Revenue edged down 3% to £21.2 million, with the company having exited its Spectrum exchange-traded derivatives business earlier this year.

September proved active for IG Group, with several notable initiatives:

• Announced the A$178 million acquisition of Independent Reserve, an Australian cryptocurrency exchange, expanding its regulated crypto footprint in Australia and Singapore.
• Launched a white-label trading platform via IG Prime, with an international banking group already signed as its first client.
• Initiated a £125 million share buyback programme, repurchasing £16.8 million worth of stock in the first month.

Despite revenue headwinds, IG’s ability to expand its customer base, integrate new acquisitions, and diversify geographically underpins its confidence in delivering on FY26 targets. Analysts expect the Freetrade acquisition and Independent Reserve deal to help broaden IG’s reach among younger retail investors and crypto traders, offsetting cyclical trading slowdowns in traditional derivatives markets.

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