IG Group (LON:IGG) Releases Earnings Results

IG Group (LON:IGG) posted 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 return on equity of 26.63% and a net margin of 43.07%.

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 Stock Down 14.4%

Shares of LON IGG opened at GBX 1,460 on Friday. The stock has a market capitalization of £4.82 billion, a P/E ratio of 13.89, a PEG ratio of -1.44 and a beta of 0.53. The stock’s fifty day moving average is GBX 1,813.17 and its 200 day moving average is GBX 1,563.44. IG Group has a 52 week low of GBX 1,016 and a 52 week high of GBX 1,956. The company has a debt-to-equity ratio of 31.16, a quick ratio of 2.40 and a current ratio of 215.53.

More IG Group News

Here are the key news stories impacting IG Group this week:

• Positive Sentiment: Royal Bank of Canada reaffirmed its “outperform” rating and set a GBX 1,850 price target, indicating expected upside from current levels. Digital Look broker ratings
• Positive Sentiment: Deutsche Bank maintained its “buy” rating with a GBX 2,000 target, while Jefferies also retained a “buy” recommendation. These endorsements suggest some analysts remain confident in IG Group’s long-term outlook. Broker ratings
• Neutral Sentiment: IG Group reported quarterly earnings of GBX 68.90 per share, alongside a 43.07% net margin and 26.63% return on equity. However, the available report does not provide enough detail to determine whether results exceeded market expectations. IG Group earnings report
• Negative Sentiment: IG Group plans to acquire U.S. prediction-market operator Underdog in a deal valued at approximately $1.1 billion to $1.3 billion. The transaction offers access to a rapidly growing market but raises concerns about the purchase price, funding, regulatory approval and integration execution. IG Group Underdog acquisition

Analyst Upgrades and Downgrades

Several analysts have weighed in on IGG shares. Jefferies Financial Group reiterated a “buy” rating and issued a GBX 1,250 price objective on shares of IG Group in a research note on Friday. Deutsche Bank Aktiengesellschaft restated a “buy” rating and set a GBX 2,000 target price on shares of IG Group in a research report on Friday. Finally, Royal Bank Of Canada reaffirmed an “outperform” rating and set a GBX 1,850 target price on shares of IG Group in a report on Friday. Five research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, IG Group presently has a consensus 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.