iFOREX cut its FY 2026 adjusted EBITDA outlook to $0.5 million to $2.5 million today (Wednesday). Monthly trading income fell 77% year over year to about $720,000, the company said.
Using the $2.4 million adjusted EBITDA estimate for the first half, the range implies second-half adjusted EBITDA between a $1.9 million loss and a $0.1 million profit. That calculation assumes the H1 estimate remains unchanged when iFOREX reports interim results.
The company had not published a numerical full-year range in its July 27 update. At the time, it said underlying H1 progress was in line with board expectations despite the stronger Israeli shekel raising the US dollar value of its costs.
Yen Intervention Moves Against Client Exposure
iFOREX attributed the July decline to joint US-Japan currency intervention on July 30 and 31. The company said the yen’s sharp appreciation moved against its net client exposure.
Japan’s Ministry of Finance confirmed that it bought yen in coordination with the US Department of the Treasury on July 31, US Eastern Time. The action followed the yen’s slide to a 40-year low against the dollar.
iFOREX generated about $720,000 of trading income in July, down from approximately $3.1 million a year earlier. That is a 76.8% decrease, according to a FinanceMagnates.com calculation.
August also started slowly. iFOREX said low market volatility kept trading income below its expectations through the date of the update.
Itai Sadeh, chief executive officer of iFOREX, said: “We are disappointed to be issuing this update so soon after our H1 update.”
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The company also faces a translation effect in Japan. Clients fund their accounts in yen, so a weaker currency reduces the US dollar value of the income generated from those accounts.
FinanceMagnates.com could not independently verify iFOREX’s trading income, net exposure or the size of the intervention-related effect.
Customer Growth Fails to Offset the Income Drop
Several customer indicators still increased in July. New customers rose 40% from a year earlier, while total deposits were 8% higher, according to iFOREX.
The customer figures continue a pattern from the first half, when new client onboarding rose 19% and active clients increased 8% year over year. Average revenue per user fell 9% over the same period.
iFOREX reported a $3.2 million net loss for FY 2025. Adjusted EBITDA declined 55.7% year over year to $4.3 million as IPO and share-based payment costs affected the statutory result.
Exposure Separates iFOREX From Listed Peers
iFOREX’s update centers on a loss tied to its net client exposure, not only lower customer activity. That sets it apart from peers whose recent reports described broader income gains during periods of higher trading demand.
Plus500 reported a 12% year-over-year rise in H1 2026 revenue to $462.9 million in July, although EBITDA grew only 1% as customer acquisition spending increased. New customer sign-ups fell 12% year over year in the second quarter.
CMC Markets posted a 15% year-over-year increase in FY 2026 net operating income in June. CMC said high volatility during its second half supported the result.
Monthly outcomes can be positive or negative because of changes in client trading and iFOREX’s exposure, the company said. Interim results are due on September 24.
Net cash stood at about $10 million on August 17, compared with roughly $12 million at June 30. About $4 million of the latest balance is ringfenced for regulatory purposes.
iFOREX has traded on the London Stock Exchange’s Main Market since completing its IPO in February.
This article was written by Damian Chmiel at www.financemagnates.com.
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