IG Group (IGG) Investor update summary

Trading update

• Organic active customer growth was 17% YoY in Q3; OTC revenue retention averaged 80% from implementation of the July 2025 measures through Q3 2026.

• Q3 results were disappointing due to customer positioning, while management said outcomes were consistent with its modeled scenarios.

Underdog performance and proposition

• Q3 net revenue was $105m, up 118% YoY, with $1,075m handle and estimated average monthly active users of 705k; 2026 YTD net revenue was ~$355m, up 30% YoY.

• Q3 handle per customer increased 165% and deposits per customer increased 109%; revenue growth benefited partly from the sporting calendar and unusually weak margins at the end of Q3 last year, and remains exposed to sports outcomes.

• Marketing spend was down more than 30% YTD during a product rebuild; management cited strong early NFL-season engagement and plans to enter the busiest sports quarter with its strongest product. Q4 represented over one-third of 2025 revenue.

• Revenue grew from $9m in 2021 to $441m in 2025; the business has more than 5.5m deposited customers.

Product, economics and regulation

• One app, account and wallet use an orchestration layer to route orders across venues and regulatory frameworks; offerings include singles, combinations, player and team markets, Drafts, Pick’em and Rips.

• Fantasy Pick’em was limited to player picks in ~36 states; prediction markets expand the sports experience to 46 states under a single federal regulator, the CFTC.

• Underdog secured FCM capability and DCM/DCO licenses in H1 2026, launched UDX in July and integrated Kalshi via FCM in September; it said it is the only sports-first operator live with an FCM, DCM and DCO.

• Full-stack ownership can capture economics across trade execution; in-house technology and licenses provide flexibility and faster product changes.

• Management expects potential regulatory clarity next year; the product can pivot between prediction markets and DFS, with a return of authority to states moving most sports flow to DFS.