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This article covers information on iFOREX Financial Trading Hldgs Ltd.
LON:IFRXiFOREX’s first annual results as a newly listed business are a classic case of decent underlying trading getting a bit buried under IPO disruption and extra costs. Revenue was broadly steady at US$49.1 million, but profit took a heavy knock as marketing spend jumped, the London listing was delayed, and the group absorbed US$4.1 million of IPO-related costs plus a US$3.7 million non-cash share-based payment charge.
That is the big picture here. The business did not fall off a cliff operationally, but 2025 was clearly an expensive transition year. The more encouraging bit is that management says FY26 has started positively, helped by higher market volatility and healthy profitability.
| Metric | FY2025 | FY2024 | Change |
|---|---|---|---|
| Revenue | US$49.1 million | US$50.1 million | (2.0%) |
| Adjusted EBITDA | US$4.3 million | US$9.7 million | (55.7%) |
| Adjusted EBITDA margin | 8.8% | 19.0% | (53.7%) |
| Adjusted profit before tax | US$1.6 million | US$5.9 million | (US$4.3 million) |
| Reported profit/(loss) before tax | (US$3.2 million) | US$6.0 million | (153%) |
| Dividend per share | US$0.055 | Not disclosed | – |
Adjusted EBITDA is a profit measure that strips out interest, tax, depreciation and amortisation, then excludes one-off items such as IPO costs and share-based payments. It is useful here because the reported numbers were heavily distorted by listing-related charges.
The headline revenue decline of just 2.0% does not look too dramatic on its own. The real issue was costs. Selling and marketing expenses rose to US$42.5 million from US$35.9 million, while administrative and general expenses climbed to US$10.8 million from US$6.6 million.
Management points to three main reasons. First, the delayed IPO meant roughly US$3.5 million of marketing spend in Europe was pushed out ahead of Admission but did not get the expected listed-company halo effect in time. Second, IPO-related costs totalled US$4.1 million. Third, non-cash share-based compensation jumped to US$3.7 million from US$0.3 million.
That explains why operating profit of US$7.6 million last year became an operating loss of US$4.2 million this year. In plain English, this looks more like a cost-surge problem than a broken business model problem.
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There was also a poor tactical call in the second half. The company says it launched a short-term revenue initiative during a low-volatility period, found it ineffective, and reversed it quickly. Credit for honesty, but it does show management did not get every move right in 2025.
Under the bonnet, the operating data is mixed. Total trading volume rose 1.5% to US$470.8 billion, which shows clients were still active. Average revenue per user edged up to US$1,746 from US$1,737, so monetisation held up.
But active clients fell 2.5% to 28,141 and new client onboarding was basically flat at 13,579 versus 13,632. Worse, average client acquisition cost shot up to US$695 from US$401. That is a nasty move and lines up with the story of front-loaded, inefficient marketing around the delayed flotation.
There are still some encouraging operational signs. iFOREX says 37% of new clients were onboarded without human intervention, showing automation is improving. System uptime also increased to 99.985%, which matters for a trading platform where downtime can seriously damage trust.
For anyone new to the sector, CFDs are contracts for difference – leveraged products that let clients speculate on market moves without owning the underlying asset. It is a fast-moving business, and volatility usually helps trading activity. That matters because iFOREX is effectively telling investors that market conditions, especially volatility, are a major short-term earnings driver.
One of the more reassuring parts of the results is the balance sheet. The group ended 2025 with net cash of US$6.2 million and no debt. In a market-facing financial business, being debt-free is a genuine positive.
Operating cash flow also held up better than the income statement might suggest. Net cash generated from operating activities was US$3.6 million, compared with an outflow of US$54,000 in 2024. Cash fell overall because the company paid US$5.9 million of dividends and US$0.4 million of lease repayments.
Net assets edged up to US$10.3 million from US$10.0 million. Then, after the year end, the IPO added another boost, with iFOREX raising £8.75 million at 195p per share when it joined the Main Market on 25 February 2026.
The board has declared a final dividend of US$0.055 per share. Key dates are:
One small wrinkle: the dividend declaration says the payment currency is USD, while the annual report narrative elsewhere says dividends are denominated in Pounds Sterling. Based on the formal dividend timetable in the announcement, the declared dividend is US$0.055 per share and payment is stated as USD.
Looking ahead, the board says dividends from FY2026 are expected to be set at around 50% of adjusted net profits, subject to conditions and capital needs. That gives investors a clearer framework, which is helpful.
Revenue remains geographically diversified. Rest of Asia was the largest contributor at US$18.7 million, followed by Middle East and Africa at US$14.7 million and South Asia at US$9.4 million.
South Asia was the standout growth region, rising from US$8.4 million to US$9.4 million. Europe fell to US$1.9 million from US$2.6 million, which the company says reflects its limited EEA-regulated client base. Management is also exploring geographic expansion, including the UAE, which could become a medium-term growth lever if licensing goes to plan.
The company says FY26 has started well, with elevated market volatility supporting healthy profitability and encouraging client KPIs. That is clearly positive, but it also highlights a risk – earnings are closely tied to how lively markets are. If volatility fades again, trading activity can cool quickly.
My take is that these results are better than the statutory loss first suggests, but not clean enough to call brilliant. The good news is the core platform appears resilient, the balance sheet is solid, there is no debt, and the IPO is now done. The bad news is marketing efficiency deteriorated sharply, margins got hit hard, and investors have to trust management to convert all that spending into better growth.
So, this feels like a transition-year set of numbers rather than a verdict on the business. If FY26 really does deliver stronger profitability without a repeat of the IPO-related noise, the market may start to look through the 2025 mess. For now, the key watchpoints are client acquisition costs, active client growth, and whether the early FY26 momentum actually sticks.
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