Plus500 Sees 20% Margin on Its US Business, Double What Its CEO Calls Market Practice

Plus500 expects its US futures and prediction-markets operation to generate profit margins of at least 20%, Chief Executive David Zruia told analysts on Monday, double what he described as typical market practice of around 10%. It is the first time the company has given a public profitability view of the business, which is not broken out in its interim accounts.

The non-OTC unit, which also includes share dealing, produced roughly $70 million in revenue in the first half of 2026, close to 15% of group revenue and about 30% higher than a year earlier. Management is targeting about $140 million on an annualised basis for 2026, implying roughly $28 million of profit at the 20% margin level. Zruia did not say whether the figure was before or after tax, and the company stressed it is a management expectation rather than a reported result.

Chief Financial Officer Elad Even-Chen described four institutional revenue streams in the prediction-markets business: software fees, clearing fees, order-routing fees and interest on omnibus accounts. Retail customers pay commission, while the older CFD business charges spreads and overnight financing. Hedge funds are among institutions clearing the contracts, which Plus500 extended into sports in June, and some introducing brokers hold clients on opposite sides of the same commodity, leaving the book naturally hedged, Even-Chen said.

Plus500 competes with Kalshi, which holds about 60% of prediction-market share and runs its own venue, while Kraken-owned NinjaTrader added an AI role in July. Plus500 owns its clearing and execution infrastructure and sells those services to other firms; it signed Wealthsimple in Canada in July and announced a partnership with Brazil's Nelogica on Monday.

Zruia also said the company plans to launch a one-stop-shop "super app" next year and is looking for bolt-on acquisitions to obtain the licences and capabilities it still needs. The Mehta Equities purchase in India closed in February but has yet to be included in near-term plans or numbers, he said, adding that Latin America remains "quite untapped" and that staffing is being increased there.

Full-year guidance remains in line with market consensus, achievable on the second-quarter run rate alone. July and early August trading was not quantified. In the first half, revenue rose 12% year on year and EBITDA increased 1%. Of the roughly $860 million in cash held at June 30, about $550 million was tied up in regulatory capital, working capital, clearing funds and risk balances, leaving about $310 million of surplus. The US business may require additional capital, Even-Chen said. Plus500 announced $182.5 million of dividends and buybacks with the results, bringing its 2026 announced returns to $370 million.