IG Group suffers biggest one-day share fall in decade

By the Editorial Team · Saturday, October 3, 2026

Shares of IG Group plummeted by up to 27 percent after the company reported a 14 percent drop in third-quarter sales and lowered its full-year revenue growth forecast to mid-single digits, marking the largest one-day decline since 2016. This sharp downturn reflects challenges from strategic changes in pricing and revenue retention, although IG's recent acquisition of US firm Underdog Sports Holdings showed strong growth, signaling potential for future expansion in prediction markets.

Shares of IG Group, a London-based online trading firm and the world’s first spread-betting company, experienced their steepest one-day decline in a decade following a surprise downward revision to the company’s revenue growth forecast. On Tuesday, the FTSE 100-listed company reported that third-quarter sales declined 14 percent year-on-year to approximately £240 million, leading to a sharp drop in its share price.

IG now expects full-year revenue growth in the mid-single-digit percentage range, significantly below its earlier target of 10 to 15 percent growth set in May. In early trading, the company’s shares fell by as much as 27 percent, marking the biggest single-day decline since 2016, before closing down 23 percent at 990 pence — their lowest level since April of the previous year. This downturn was mirrored across the online trading sector, with shares of competitors Plus500 and CMC Markets also falling by up to 14 percent and 9 percent respectively.

Chief Executive Breon Corcoran attributed the decline to “less supportive market conditions” during the third quarter, despite broader market turbulence that often increases trading activity on such platforms. Factors including rising global borrowing costs, oil price volatility, and currency market interventions typically drive higher user engagement, but IG faced headwinds from changes to its pricing and hedging strategies. These adjustments, aimed at enhancing revenue retention from “over-the-counter” (OTC) trading flows, resulted in a drop in retained revenue from approximately 80 percent to around 70 percent.

IG’s revised outlook reflects a strategic shift in its market-making operations. The company has been implementing these changes for more than a year. Corcoran noted that while first trades and active customer numbers continued to grow strongly, the reduced revenue retention had a negative impact on overall revenues in the quarter. Additionally, IG disclosed one-off costs of about £30 million related to its recent decision to redomicile in Jersey, a move announced in July.

In parallel to the challenges in its core spread betting and OTC business, IG has been expanding its presence in the US prediction markets. In the summer, it completed the acquisition of Underdog Sports Holdings for approximately $1.3 billion. Underdog, the third-largest regulated platform in the US behind Kalshi and Robinhood, delivered strong performance in the third quarter, with net revenue more than doubling year-on-year to roughly $105 million.

Founded in 1974 by Stuart Wheeler, IG began as Investors Gold Index, allowing clients to speculate on gold prices without physically owning bullion—a practice initially restricted by UK exchange controls. The company grew steadily, joining the London Stock Exchange in 2000 and expanding into foreign exchange and sports betting markets.

Despite recent volatility and strategic adjustments, IG remains confident in meeting its medium-term targets, according to Corcoran, who assumed leadership in 2024 and guided the company’s entry into the FTSE 100 earlier this year.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.