IG Group plunges after disappointing quarterly update and lowered guidance. IG Group shares have plunged 23% to 990 pence in London after a disappointing trading update. The trading platform generated sharply lower Q3 revenue amid less favorable market conditions, prompting it to reduce its 2026 revenue outlook. Published on 10/02/2026 at 08:07 am EDT MarketScreener.com Disappointing Q3 performance The British group reported this morning that revenue contracted by around 14% y-o-y in Q3 2026, to approximately £240m. Revenue therefore came in 23% below the VA consensus, according to RBC Capital Markets. The Canadian bank attributed this disappointing performance to "lower revenue retention on over-the-counter (OTC) products, which stood at 70% in the quarter, compared with an average of 80% since the change in risk management policy implemented in the second half of 2025." RBC also highlighted Underdog's net revenue, which more than doubled y-o-y to reach $105m in Q3, but came in below the average quarterly run rate of $125m recorded in H1 2026, based on total revenue of $250m. Management remains confident in its medium-term targets... "Growth in the number of new clients making their first transaction and in the number of active clients remained strong in the third quarter of 2026," CEO Breon Corcoran noted, while remaining confident in IG Group's ability to achieve its medium-term targets. In numerical terms, the number of new clients making their first transaction and the number of active clients increased organically by more than 25% and more than 17%, respectively, compared with the year-earlier quarter. ...but less so for the current fiscal year While it says it remains confident in its medium-term targets, IG Group is less optimistic about the current year, now anticipating total revenue growth at a rate "in the mid-single-digit range" compared with 2025, versus a 14% consensus estimate, according to RBC. In addition, nonrecurring costs related to the transfer of the group's headquarters to Jersey and the restructuring associated with the new organizational model announced on July 8, 2026, are expected to amount to approximately £30m in 2026, of which £16.4m had already been recognized in the first half of 2026. Excluding these nonrecurring costs and expenses related to the acquisition of Underdog, which depend on the completion of the transaction, the group expects its EBITDA margin to be slightly above 40% in 2026. Stock plunges, but RBC maintains an "outperform" rating The announcement was met with a glacial reception from investors, as reflected by the 23% plunge in the stock price this Friday. That has not, however, prevented RBC from maintaining its "outperform" rating and its 1,850 GBX price target on the stock. "The stock market reaction places too much emphasis on regulatory uncertainties and does not sufficiently reflect the intrinsic value of the DFS business, or the significant long-term upside offered by prediction markets," the Canadian bank said. RBC also noted that IG Group trades at an estimated 2026 P/E multiple of 9.5x, a valuation it considers "undemanding given the group's attractive financial profile, characterized by high margins and strong cash generation, as well as its solid medium-term growth prospects." (C) MarketScreener.com - 2026

Underdog has appointed Nick Lundgren as Chief Legal Officer as the sports gaming company expands its prediction market offerings. Lundgren previously served as Chief Legal Officer of Crypto.com and CEO of its CFTC-regulated division, where he certified the first sports entries in any US prediction market. Underdog is the first sports company to hold the complete prediction market licence stack, including a CFTC-registered Designated Contract Market, Derivatives Clearing Organization, and Futures Commission Merchant registration. In March, the company acquired a federally regulated derivatives exchange and clearinghouse from Aristotle Inc. Founded in 2020, Underdog currently offers prediction markets, fantasy sports games and a media network. The company provides access to prediction markets through exchanges including Crypto.com and Kalshi, with plans to expand under its own exchange.