iFOREX H1 2026 revenue rebounds, but currency headwinds cut reported earnings

The key figures

iFOREX Financial Trading Holdings has reported improving underlying trading in the first half of 2026, although a sharp foreign exchange headwind is set to obscure much of that progress in its reported earnings.

The online trading platform expects revenue of approximately $27.0 million for the six months ended 30 June 2026. That is slightly below the $27.6 million generated in H1 2025, but 25% ahead of the weaker $21.5 million recorded in H2 2025.

The contrast matters. On a sequential basis, revenue has recovered strongly, supported by elevated client activity across iFOREX's core markets. Compared with the same period last year, however, the top line remains around 2% lower.

H1 2026 measure	Performance
Expected revenue	Approximately $27.0 million
Revenue versus H1 2025	Down from $27.6 million
Revenue versus H2 2025	Up 25% from $21.5 million
Adjusted EBITDA at constant currency	Approximately $4.2 million
Reported adjusted EBITDA expected	$2.4 million
Period-end net cash	Approximately $12 million
Debt	None

Adjusted EBITDA, which is earnings before interest, tax, depreciation and amortisation with certain items removed, is expected to be approximately $4.2 million on a constant currency basis. This strips out the effect of exchange-rate movements and was in line with the board's expectations.

On the actual exchange rates used for reporting, adjusted EBITDA is expected to be only $2.4 million. That implies a sizeable $1.8 million currency impact during the half.

Client numbers show underlying improvement

There are encouraging signs within iFOREX's operating data, particularly when H1 2026 is compared with the second half of last year.

Against H1 2025, new client onboarding increased by 19% and active clients rose by 8%. Average revenue per user, commonly shortened to ARPU, fell by 9% over the same comparison.

Against H2 2025, the picture is stronger across all three measures:

• New client onboarding increased by 22%
• Active clients increased by 9%
• ARPU increased by 17%

This suggests the business entered 2026 with improved customer momentum and stronger monetisation than it achieved during H2 2025. The lower ARPU compared with H1 2025 still deserves attention, though. Client growth is valuable, but the revenue generated from each active user also affects the quality and profitability of that growth.

iFOREX operates a proprietary online and mobile platform offering contracts for difference, or CFDs. These products allow clients to speculate on asset-price movements without owning the underlying asset. The company offers access to more than 870 financial instruments.

Why currency has become the main issue

The biggest negative in this update is the strengthening of the Israeli shekel against the US dollar.

iFOREX reports its results in US dollars, but most of its operating costs are incurred in Israeli shekels. When the shekel strengthens, those costs become more expensive after translation into dollars, even if the underlying local-currency expense has not changed.

The company said the USD/ILS exchange rate reached its lowest level since 1993 during the period. Although the rate has strengthened slightly from the low reached in mid-May, the board is taking a cautious approach for the remainder of the year.

As a result, full-year operating costs are now expected to be approximately $2 million higher in US dollar terms than anticipated at the start of 2026.

This is not evidence that client activity has weakened or that operational spending has suddenly run out of control. It is a reporting and cost-translation problem. Nevertheless, it has a real effect on reported profitability and cannot simply be ignored.

The gap between approximately $4.2 million of constant-currency adjusted EBITDA and the expected reported figure of $2.4 million demonstrates how material the issue has become.

A strong balance sheet provides some protection

iFOREX ended the period with approximately $12 million of net cash and no debt.

That leaves the group in a stronger position to absorb the currency pressure while continuing to invest in regulatory expansion and technology. It also reduces the financial risk that would come from servicing borrowings during a period of lower reported earnings.

The announcement did not disclose details of dividends, cash generation during the half or planned investment expenditure. Investors should receive a fuller financial picture when the interim results are published, which is expected in September 2026.

UAE licence application marks a growth step

The group has formally submitted its application for a Category 5 licence with the UAE's Capital Market Authority.

Management described the submission as a significant milestone in expanding iFOREX's presence in the Middle East. However, the announcement did not disclose when a decision is expected, what further approvals may be required or how much revenue the licence could eventually support.

It is therefore best viewed as strategic progress rather than a guaranteed source of near-term growth. Regulatory approval could broaden the company's addressable market, but investors will need to watch for confirmation that the licence has been granted and evidence that it can be converted into client and revenue growth.

Technology and leadership changes

Daniel Shalom has been appointed chief operating officer to support the group's plans to scale and accelerate the use of artificial intelligence across its operations.

The stated goal is to improve efficiency and the client experience. No cost-saving target, implementation timetable or financial contribution was disclosed, so the benefits cannot yet be quantified.

iFOREX has also launched a new corporate website, which management believes will improve its digital capabilities and help the business respond more quickly to changing market conditions.

These initiatives fit the group's technology-led strategy, but their value will ultimately need to show up in measurable outcomes such as lower operating costs, higher client retention or improved ARPU.

What investors should watch next

The H1 update contains a reasonably clear split between operational progress and reported financial pressure.

The positives are the 25% revenue rebound from H2 2025, higher client onboarding, more active clients, improved sequential ARPU and a debt-free balance sheet. The UAE licence application also provides a potential route for longer-term expansion.

The negatives are that revenue remains slightly below H1 2025, year-on-year ARPU declined by 9%, and currency movements are expected to reduce adjusted EBITDA from approximately $4.2 million at constant currency to $2.4 million on a reported basis. The expected $2 million increase in full-year dollar-denominated operating costs means foreign exchange is likely to remain central to the investment case during H2.

September's interim results should provide the detail needed to assess margins, cash generation and the durability of the client recovery. For now, iFOREX appears to be making underlying progress, but the strong shekel is turning that operational improvement into a much less impressive reported profit outcome.