IG Group Holdings shares plunged after the online trading platform lowered its 2026 revenue forecast, months after upgrading it, as third-quarter revenue fell 14%.

Shares sank 24% to 976.18 pence in early morning European trading, the lowest level since April 2025. The stock has dropped 25% year to date. Shares in peer Plus500 were down 9.8%.

IG Group said in an unscheduled trading update on Friday that it expects third-quarter revenue to fall 14% to around 240 million pounds ($316.7 million). The company now expects 2026 revenue growth in a mid-single-digit percentage range.

In May, IG Group raised its 2026 revenue guidance to between 10% and 15% growth, having previously guided for a high single-digit-percentage rise from the 2025 base of 1.12 billion pounds.

Analysts had seen 2026 revenue of 1.26 billion pounds, an increase of 12% from 2025, according to the company-compiled consensus.

Within over-the-counter derivatives, IG said revenue retention in the third quarter was around 70%, below the 80% averaged since the second half of 2025.

"We highlight the lower retention rate follows a relatively recent decision to hedge less of the OTC book, which may now attract some focus," RBC Capital Markets' Ben Bathurst wrote in a note.

IG said its underlying business remains strong, as over-the-counter customer income increased by 8%, despite an 18% fall in over-the-counter net trading revenue to around 155 million pounds.

The company added that it expects non-recurring costs from redomiciling to Jersey and restructuring to be around 30 million pounds for 2026--of which 16.4 million was reported in the first half.

Excluding non-recurring costs and expenses related to the purchase of U.S. sports-gambling and prediction-market company Underdog, IG expects the group earnings before interest, taxes, depreciation and amortization margin to be in the low-40s percentage range, down from 47.3% in 2025.

The middle of the guided 2026 range suggests Ebitda between 490 million pounds and 500 million pounds, RBC said, which would be at least 13% lower than the analyst consensus of 573.4 million pounds.

"The board remains confident of meeting its medium-term guidance beyond 2026, reflecting customer growth, driven by investment in product and brand, together with higher OTC revenue retention," IG said.