IG Group Launches Strategic Review After Record Results

Divisional standouts

• UK & Ireland net trading revenue up 18% to £333.4 million; organic growth 11% as OTC and stock trading improved. Freetrade is now embedded in the region.
• United States up 18% to £186.7 million, helped by higher payment-for-order-flow rates and double-digit customer growth.
• Europe up 9% to £136.7 million, with strong OTC growth after the exit from Spectrum.
• APAC & Middle East up 1% to £302.5 million – steady, with improved stock trading propositions.
• Institutional & South Africa up 5% to £45.2 million, despite the South Africa exit.

Strategic review: what IG is weighing and why you should care

The Board will evaluate routes to maximise shareholder value, including:

• Acquisitions to accelerate growth.
• IG’s domicile, legal entity structure and listing venues to unlock capital and enhance flexibility.
• Potential combinations of parts of the Group with other industry participants.

In plain English: IG might buy more, reorganise itself to free up capital, and consider selective divestments or joint ventures. With strong cash generation, surplus capital and a platform spanning trading, stock investing and crypto, there are several levers to pull. A clearer structure and a larger, simpler equity story could also help valuation. We get the conclusions in autumn 2026.

Q3 trading (to 28 Feb 2026) and product momentum

Q3 was solid: total revenue up 2% to £274.2 million; net trading revenue up 5% to £247.2 million. First trades surged 92% to 50.6k (57% organic). Active customers reached 753.0k, up 176% (10% organic). Assets under administration on the IG platform rose to £19.5 billion by February, up 7% since December – a key driver of recurring revenue from subscriptions, cash interest and ongoing trading activity.

• Freetrade expanded into zero-commission mutual funds (760+ funds across 40 managers) and launched free SIPPs, with over £250 million in pension transfers in the pipeline.
• Crypto capability stepped up with the acquisition of Independent Reserve on 30 January 2026 and a spot-crypto launch in Australia in March; Singapore and UAE to follow in H2 2026.

2026 outlook and medium-term guide

• Revenue for the three months to 31 March 2026 expected at approximately £300 million, up around 7% year-on-year.
• From a higher 2025 base, IG now expects 2026 organic total revenue growth towards the top end of its mid-to-high single-digit range (excluding Freetrade and Independent Reserve).
• Reported 2026 revenue will include a full 12 months of Freetrade (2025 pro forma: £32.2 million) and around 11 months of Independent Reserve (2025 pro forma: £19.3 million).
• Group net interest income expected to be approximately £110 million based on current rate expectations.
• EBITDA expected broadly in line with consensus of £538.1 million; management is comfortable with consensus adjusted EPS of 119.5 pence.
• Beyond 2026, IG targets organic revenue growth towards the top end of guidance and EBITDA margins sustained in the mid‑40s as AI, digital servicing and automation lower cost to serve.

Capital returns and balance sheet strength

Shareholders are getting both dividends and buybacks:

• Proposed final dividend of 28.12 pence per share for the seven months to 31 December 2025.
• New £125.0 million share buyback programme announced, expected to complete within 12 months subject to conditions.
• £320.8 million returned in the 12 months to 31 December 2025 via dividends and buybacks; the share count is down over 16% since 31 May 2022.

Regulatory capital resources were £808.2 million versus a requirement of £298.6 million, giving £509.6 million of headroom and a solvency ratio of 270.7%. Liquidity remains robust. IG also notes it will enter the FTSE 100 on 23 March 2026.

Quality-of-earnings points worth noting

• Interest-sensitive: net interest income fell 16% year-on-year and is guided to about £110 million in 2026. If rates move lower or pass-through rises, this line could soften further.
• Investment phase: marketing spend rose 31% and legal/professional costs 78% in 2025, depressing margins near term. The trade-off is faster customer growth and product velocity.
• OTC retention: measures taken in late 2024 improved OTC customer income retention by more than four percentage points to over 83%. Management flags some quarter-to-quarter variability as a result – fair warning for those watching short-term prints.

Risks and watch‑outs

• Legal matters: a class action in Australia covering 2017–2023 OTC derivative sales and a separate claim in Japan relating to nickel trade reversals are ongoing. No provisions have been recognised.
• Execution risk: integrating Freetrade and Independent Reserve while rolling out an integrated multi‑asset platform demands flawless delivery.
• Regulatory and market volatility: changes in rules or sharp moves in markets can impact revenue and capital requirements.

My take for investors

This is a strong update. Trading revenue growth of 10%, surging customer acquisition, and a rapidly scaling stock trading and investments arm show the strategy is biting. The new £125.0 million buyback, a solid dividend and hefty capital headroom add support. The strategic review is the potential kicker – optimising the structure, adding targeted M&A and clarifying the portfolio could unlock a higher multiple if executed well.

The counterpoints are clear: lower interest income, elevated operating costs while IG invests, and legal overhangs. But with EBITDA margins still in the high‑40s and guidance pointing to top‑end organic growth in 2026, the balance of evidence remains positive.

In short: IG is leaning into scale, broadening its revenue mix beyond OTC, and arming itself for the next leg of growth. If management delivers on the plan it set out today, there is room for value creation from both earnings growth and corporate action. For the detail-minded, the presentation and consensus figures are available on the investor relations site at iggroup.com/investor-relations.