Plus500 shares fell 15% after its H1 2026 trading update as investors focused on weaker quarterly revenue, rising customer acquisition costs and lower EBITDA margins, despite record customer income and maintained guidance.
Plus500 Shares Fall 15% in One Day After Trading Update
Shares in Israeli contracts for difference (CFD) broker Plus500 (London Stock Exchange tickerLON:PLUS) fell 15% on 13 July 2026, closing at £42.00 after the company released its trading update for the first half of 2026. This marked the shares’ lowest level since early April 2026. At the time of publication, the stock remained up 15% since the beginning of 2026, but was 24% below its 52-week high of £55.35.
Although the trading update was headed “Record H1 2026 performance… revenue up 12% year on year”, the market focused more closely on the company’s quarter-on-quarter performance and interpreted the figures differently. (Source: Plus500, H1 2026 Trading Update, published: 2026-07-13.)
Quarter-on-Quarter Revenue Decline Triggers Sell-Off
According to the figures disclosed in the trading update, Plus500 generated total revenue of US$462.9 million during the first half of the year, representing year-on-year growth of 12%. However, most of the growth was concentrated in the first quarter. Q1 revenue was US$242.1 million, while second-quarter revenue was approximately US$220.8 million, representing a quarter-on-quarter decline of about 9%, with year-on-year growth slowing to approximately 5%. This deceleration raised investor concerns about the company’s future growth prospects.
Rising Customer Acquisition Costs and Margin Pressure Prompt Caution
Plus500 stated that it had deliberately increased investment in customer acquisition during the reporting period. Although average revenue per user remained relatively stable, investors were concerned that the cost of attracting new customers could continue to rise in an industry known for relatively high customer churn.
The increase in customer acquisition expenditure was reflected directly in margins. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) reached US$187.5 million in the first half, representing year-on-year growth of only 1%, while the EBITDA margin declined from 45% in the corresponding period of the previous year to 41%. In addition, foreign-exchange headwinds caused by the appreciation of the Israeli shekel further increased reported costs denominated in US dollars. (Source: Plus500, H1 2026 Trading Update, published: 2026-07-13, Financial and Operational KPIs.)
In terms of customer acquisition, the number of new customers rose 17% year on year to 65,723 during the first half. However, approximately 25,856 new customers were added in the second quarter, below the 29,268 recorded in the corresponding period of the previous year, indicating weaker quarterly acquisition momentum.
Comparison of Key Financial and Operational Data
The following table summarises the principal financial indicators disclosed in Plus500’s latest trading update and their year-on-year changes, highlighting the difference between quarterly and half-year performance.
| Indicator | H1 2026 | H1 2025 | Year-on-Year Change |
|---|---|---|---|
| Revenue | US$462.9 million | US$415.1 million | +12% |
| Customer income | US$460.8 million | US$371.5 million | +24% |
| EBITDA | US$187.5 million | US$185.1 million | +1% |
| New customers | 65,723 | Approximately 56,175 | +17% |
Business Mix Evolves While Full-Year Guidance Remains Unchanged
In terms of revenue composition, Plus500’s non-over-the-counter, or non-OTC, businesses generated approximately US$70 million in revenue during the first half, representing year-on-year growth of about 30%. Their contribution to total group revenue increased from approximately 13% in the corresponding period of the previous year to around 15%, with the US business identified as a source of growth. The company also advanced several strategic initiatives during the reporting period, which can be summarised as follows:
US prediction markets business: Plus500 launched prediction market products for retail customers in February 2026 and introduced sports event contracts regulated by the US Commodity Futures Trading Commission (CFTC) in June 2026.
North American expansion: Plus500’s localised OTC platform has commenced operations in the Canadian market.
Product expansion: The company introduced 24-hour trading, five days a week, for shares and exchange-traded funds (ETF).
Regarding the full-year outlook, the Plus500 board reiterated that revenue and EBITDA for the 2026 financial year were expected to be in line with current market expectations. Chief Executive Officer David Zruia commented on the company’s first-half performance. (Source: Plus500, H1 2026 Trading Update, published: 2026-07-13, CEO Statement.)
“The first half of 2026 delivered our strongest customer income in five years and our highest revenue in three years, reflecting the quality of our customer base, the strength of our proprietary technology and the expanding breadth of our global platform.”
Market reactions to the unchanged guidance were mixed. Some analysts noted that, after the company had raised expectations several times previously, its decision not to increase full-year guidance again was viewed by some investors as slightly underwhelming, particularly given the current macroeconomic environment and the shares’ performance since the beginning of the year. Plus500 is expected to publish its full interim results on 10 August 2026.
Frequently Asked Questions About the Plus500 Trading Update
What Was the Main Reason for the Decline in Plus500’s Share Price?
Although first-half revenue increased by 12% year on year and reached its highest level in three years, the market focused more closely on the quarter-on-quarter figures. Second-quarter revenue was approximately US$220.8 million, representing a decline of about 9% from the first quarter. Together with higher customer acquisition spending and a lower profit margin, this triggered investor selling.
How Did Plus500’s Revenue and Profit Perform in the First Half?
Revenue for the first half of 2026 was US$462.9 million, representing year-on-year growth of 12%, while customer income increased by 24% to US$460.8 million. However, EBITDA rose by only 1% to US$187.5 million, and the EBITDA margin declined from 45% to 41%.
Why Did the EBITDA Margin Decline?
The company deliberately increased its investment in customer acquisition to support new customer growth. At the same time, foreign-exchange headwinds caused by the stronger Israeli shekel increased reported costs denominated in US dollars. Together, these factors placed pressure on the EBITDA margin.
How Is Plus500’s Non-OTC Business Developing?
The non-OTC business generated approximately US$70 million in revenue during the first half, representing year-on-year growth of about 30%. It accounted for approximately 15% of total group revenue, compared with around 13% in the corresponding period of the previous year. The US prediction markets and futures businesses were among the principal sources of growth.
Did Plus500 Change Its Full-Year Guidance?
No. The company’s board reiterated that revenue and EBITDA for the 2026 financial year were expected to remain in line with current market expectations. As Plus500 had previously raised expectations several times, the decision to maintain rather than increase the guidance was interpreted by some investors as slightly underwhelming.
