"We Are Disappointed": iFOREX Cuts EBITDA Outlook After July Income Falls 77%

CFD broker iFOREX has reduced its full-year 2026 adjusted EBITDA outlook to $0.5 million-$2.5 million after July trading income plunged by about 77% year over year. The company generated roughly $720,000 in trading income for July, down from approximately $3.1 million in the same month a year earlier, it said on Wednesday.

The drop was linked to joint US-Japan currency intervention that took place on July 30-31. iFOREX said the yen's sharp appreciation moved against its net client exposure. Japan's Ministry of Finance confirmed it bought yen in coordination with the US Department of the Treasury, following the yen's slide to a 40-year low against the dollar.

Guidance Implications

Using the company's $2.4 million adjusted EBITDA estimate for the first half, the new full-year range implies second-half adjusted EBITDA of between a $1.9 million loss and a $0.1 million profit, assuming the H1 figure is unchanged when interim results are reported. The interim report is scheduled for September 24.

In its July 27 update, iFOREX did not provide a numerical full-year range, saying H1 progress was in line with board expectations despite the stronger Israeli shekel increasing the US dollar value of costs.

Client numbers were still positive in July. New customers rose 40% from a year earlier, while total deposits increased 8%. That follows an H1 pattern in which new client onboarding grew 19% and active clients rose 8%, although average revenue per user fell 9%. August has also started slowly, with iFOREX saying low market volatility has kept trading income below expectations.

Chief executive Itai Sadeh said management was disappointed to issue an update so soon after its H1 statement. The company also faces a currency translation effect in Japan, where client accounts are funded in yen; a weaker yen reduces the US dollar value of income from those accounts.

Net cash was about $10 million on August 17, down from roughly $12 million at June 30, with about $4 million ringfenced for regulatory purposes. iFOREX has been listed on the London Stock Exchange's Main Market since its IPO in February.

The profit warning stems from losses related to net client exposure rather than weaker customer activity, distinguishing iFOREX from some listed peers. Plus500 reported a 12% rise in H1 2026 revenue to $462.9 million, although EBITDA grew only 1% due to higher customer acquisition costs. CMC Markets posted a 15% year-over-year increase in FY 2026 net operating income, helped by high volatility in its second half.