Shares in Plus500 (PLUS) hit a new all-time high after the spread betting platform issued a positive FY26 outlook. Thanks to strong FY25 trading and recent strategic deals, the board sees FY26 earnings above market expectations.
| Share price: £47.73 (+5.7%) | PE: 16.6x |
| Market cap: £3.3bn | Yield: 2.1% |
‘Accelerated progress’
Reflecting on overall trading, 2025 marked ‘a year of accelerated strategic progress for Plus500’, said CEO David Zruia. ‘We successfully scaled our non-OTC business into a key growth driver and continued to deliver a strong financial performance.’
Revenue for the year rose 3% to $792 million while EBITDA rose 2% to $348 million, both ahead of forecasts. Moreover, EPS rose 10% to $3.93 thanks to disciplined cost management and zero debt interest.
Average deposits per active customer more than doubled to $26,900, while ARPU (average revenue per customer) rose 8% to $3,268. On the other hand, active customer number declined 5% and new customer numbers declined 11%.
Since the start of this year, the firm has increased its offering with a couple of strategic deals. In India, it acquired Mehta Equities, increasing its geographic reach and enhancing its global B2B and B2C futures offering.
It also entered into a clearing deal with Kalshi in the US to offer ‘event contracts’ on its platform. The global prediction market was worth $47 billion last year and is forecast to grow strongly this year.
Above expectations
The firm said the ‘significant operational and financial momentum’ of FY25 had continued into FY26. Trading has been bolstered by positive trends across global markets, leading to ‘strong operational gains’.
The Mehta and Kalshi deals have also set ‘a strong foundation’ for the year. As a result, the board now expects the group’s FY26 performance to be ahead of current market forecasts.
The firm also announced a $187.5 million return of cash through a $100 million buyback and $87.5 million of dividends.
Spread-betting and speculation generally aren’t our thing, but you have to take your hat off to Plus500. The company continues to over-deliver both in terms of results and its share price.
Investors have also been rewarded with healthy dividends and share buybacks over the years. Its recent move into prediction markets opens up a whole new source of revenue and returns for shareholders.
Read the press release here: https://investors.plus500.com/
Related news: https://sharesify.com/plus500-surges-on-prediction-market-move/
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