iFOREX Cuts First-Half Adjusted EBITDA Estimate to $1.4 Million

iFOREX Financial Trading Holdings Ltd. has reduced its first-half adjusted EBITDA estimate to approximately $1.4 million, down from the $2.4 million guidance issued less than two months ago, according to a company update on Thursday. The London-listed CFD broker attributed the revision to a review of its interim accounts, which identified a higher liability for amounts owed to clients at June 30 than previously booked, along with a related non-cash expense.

This marks the second downward revision since a July update that had put first-half revenue at about $27 million and adjusted EBITDA at $2.4 million on a reported basis. The company said revenue and net cash at the end of June remain unchanged from that earlier update.

iFOREX maintained its full-year adjusted EBITDA guidance at $0.5 million to $2.5 million. It stated that the accounting effect had "largely reversed" after the period ended, making the full-year impact immaterial. That range was set on August 19, when the company cut its outlook after July trading income fell 76.8% year over year to about $720,000. The decline was blamed on a joint US-Japan currency intervention on July 30 and 31, which moved the yen against its net client exposure.

The board said trading conditions "remain challenging" but noted that August performed slightly better than expected. No August figures were provided. Chief Executive Itai Sadeh had previously said: "We are disappointed to be issuing this update so soon after our H1 update."

iFOREX joined the Main Market of the London Stock Exchange on February 25 at 195 pence per share, following an eight-month delay in pricing the offering. Three weeks later, the stock had barely traded, with founder Eyal Carmon holding 58.91% of shares under a 12-month lock-up. A thin free float has provided investors with few price signals as the updates arrived.

The company's financial performance was under pressure before the listing. Adjusted EBITDA fell to about $4 million in 2025 from $9.7 million a year earlier, while revenue slipped to $48.8 million from $50.1 million. The shekel added a separate drag this year: most costs are incurred in Israeli shekels but reported in dollars, and the currency's rise opened a $1.8 million gap between first-half EBITDA on a constant-currency and reported basis, according to the July update.

iFOREX plans to publish full interim results on September 24, as previously scheduled. It did not quantify the post-period reversal. Net cash stood at about $12 million at June 30 with no debt. By August 17, it had fallen to roughly $10 million, of which about $4 million is ring-fenced for regulatory requirements, the company said in its August update.

iFOREX Europe is authorized by the Cyprus Securities and Exchange Commission (CySEC), and iFOREX also holds a license from the Financial Services Commission in the British Virgin Islands. It offers CFDs on more than 870 instruments, according to the company.