IG Group (LON:IGG) Releases Quarterly Earnings Results

IG Group (LON:IGG) announced its earnings results on Thursday. The company reported GBX 68.90 earnings per share for the quarter, Digital Look Earnings reports. IG Group had a net margin of 43.07% and a return on equity of 26.63%.

Here are the key takeaways from IG Group’s conference call:

• IG will acquire Underdog, a U.S. daily fantasy sports and prediction-markets operator, for $1.1 billion upfront plus a performance-based earn-out. The deal gives IG access to a fast-growing market, nearly 1 million monthly active users, and a vertically integrated brokerage, exchange, clearing, and market-making infrastructure.
• Underdog reported $466 million of net revenue for the 12 months ended June 2026, up 21% year over year, while monthly active users increased 39%. IG expects the combined group to grow faster than its standalone target of at least 10% annual organic revenue growth.
• Management expects the acquisition to be broadly neutral to adjusted EPS in year one and double-digit percentage accretive by year three, with return on invested capital exceeding IG’s weighted average cost of capital by that point.
• The transaction is expected to close in late 2026 or early 2027, subject to regulatory and antitrust approvals. IG said Underdog’s prediction-market activity is still early, with less than 1% of handle currently coming from prediction markets, although management expects that mix to become dominant over time.
• IG plans to pause its current share buyback, with a possible resumption in 2027 after the acquisition and proposed redomiciliation are completed. The transaction will be funded with new equity and debt, though management expects pro forma gross leverage to remain below 2x EBITDA at the end of 2026.

IG Group Trading Down 11.0%

LON:IGG opened at GBX 1,518 on Friday. The stock has a market cap of £5.01 billion, a price-to-earnings ratio of 14.44, a PEG ratio of -1.44 and a beta of 0.53. The company has a quick ratio of 2.40, a current ratio of 215.53 and a debt-to-equity ratio of 31.16. The company’s 50 day moving average price is GBX 1,820.81 and its 200-day moving average price is GBX 1,564.17. IG Group has a 52 week low of GBX 1,016 and a 52 week high of GBX 1,956.

Analyst Ratings Changes

IGG has been the topic of several research reports. Royal Bank Of Canada lifted their price objective on IG Group from GBX 1,600 to GBX 1,850 and gave the company an “outperform” rating in a research report on Wednesday, May 20th. Deutsche Bank Aktiengesellschaft restated a “buy” rating and issued a GBX 2,000 target price on shares of IG Group in a research note on Friday. Finally, Jefferies Financial Group restated a “buy” rating and set a GBX 1,250 price target on shares of IG Group in a research report on Friday. Five analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, IG Group presently has an average rating of “Buy” and an average price target of GBX 1,338.

IG Group Company Profile

IG Group Holdings plc (“IG”) is a FTSE 100 financial technology company operating at the intersection of retail trading, technology and capital markets. Through its trusted brands – IG, tastytrade, Freetrade and Independent Reserve – the Group serves over 1.3 million customers worldwide, providing leveraged trading, stock trading and investments, and cryptocurrency trading via its proprietary platforms. For more information, visit www.iggroup.com.