iFOREX Reports $27 Million Revenue in H1 2026 Amid Currency Challenges and UAE Licence Application

Revenue Growth Fueled by Increased Client Activity Across Core Markets

iFOREX recorded H1 2026 revenue of roughly $27.0 million, a significant 25% rise from $21.5 million in H2 2025, though slightly below the $27.6 million reported in H1 2025. This sequential growth reflects heightened trading activity among clients in established markets, demonstrating resilience amid challenging macroeconomic and regulatory environments affecting the fintech sector globally. The company’s proprietary online and mobile CFD trading platform, offering access to over 870 financial instruments, continues to attract and retain users, supporting this revenue momentum.

If H1 2026 revenue levels persist into H2 2026, the full-year revenue could approximate $54 million. However, management cautioned that currency headwinds, particularly the Israeli shekel's unexpected strength versus the US dollar, are projected to increase operational costs by about $2 million on a dollar basis for the full year compared to initial 2026 guidance. This suggests that reported revenue and profitability in the second half of 2026 may be materially affected, and investors should closely follow the interim results scheduled for September 2026 to evaluate the impact of ongoing foreign exchange pressures on cash flow and shareholder returns.

Adjusted EBITDA Impacted by Unprecedented Israeli Shekel Appreciation

On a constant currency basis, iFOREX reported adjusted EBITDA of approximately $4.2 million for H1 2026, aligning with board expectations and reflecting strong operational leverage. However, on a reported basis without currency adjustment, adjusted EBITDA declined sharply to $2.4 million, a 43% decrease attributable to the exceptional strengthening of the Israeli shekel against the US dollar during the period.

The USD/ILS exchange rate hit its lowest level since 1993, an unprecedented currency movement that significantly affected the translation of operational expenses, mostly incurred in Israeli shekels, into US dollar reporting currency. Management acknowledged this currency headwind and adopted a cautious stance on exchange rate assumptions for the remainder of 2026. The board’s decision to raise full-year operational cost expectations by roughly $2 million underscores the substantial impact of foreign exchange volatility on reported profitability, highlighting a structural currency mismatch risk due to the company’s Israel-based operations and dollar-denominated reporting.

Client Acquisition and Engagement Grow Despite ARPU Decline

iFOREX saw new client onboarding increase 19% year-on-year and 22% sequentially, while active clients grew 8% year-on-year and 9% sequentially. These figures demonstrate the effectiveness of the company’s marketing and acquisition strategies across annual and half-year periods. The fintech broker’s competitive position in the multi-asset CFD market is supported by its digital offerings, including free training, support, and educational resources for retail clients across the European Economic Area, British Virgin Islands, and other jurisdictions.

Average revenue per user (ARPU) declined 9% compared to H1 2025 but rose 17% sequentially versus H2 2025. This suggests that new clients acquired in H1 2026 generated lower trading volumes or commissions than the prior year, potentially due to changes in client quality, market volatility, trading behavior, or competitive pricing. Conversely, the sequential ARPU increase indicates improved monetization relative to the second half of 2025. Investors should monitor ARPU trends closely in upcoming reports to assess client engagement sustainability and unit economics.

Robust Balance Sheet Enables Strategic Investments and Capital Flexibility

At the end of H1 2026, iFOREX held approximately $12 million in net cash with zero debt, providing substantial flexibility for technology investments, regulatory expansion, and potential acquisitions or shareholder returns. The absence of debt eliminates refinancing risks and covenant constraints, an advantage in the regulated fintech sector where capital adequacy is critical.

This strong cash position reflects disciplined capital allocation and positive operating cash flow since the company’s IPO. Management indicated that this financial strength supports the company’s scalable operating model and growth ambitions, particularly amid regulatory expansion efforts such as the UAE Category 5 licence application, which may require upfront compliance and client acquisition investments. Investors may view this balance sheet robustness as a mitigating factor against currency headwinds and operational cost pressures.

UAE Category 5 Licence Application Advances Middle East Expansion Strategy

During H1 2026, iFOREX formally submitted a Category 5 licence application to the UAE Central Bank and Markets Authority, marking a key step in its Middle East growth strategy. This licence category typically allows a broader range of financial services, potentially enabling iFOREX to offer CFD trading and related services to retail and institutional clients across the UAE and Gulf Cooperation Council region, a market with favorable demographics and wealth characteristics for online trading platforms.

The application reflects management’s commitment to regulatory expansion outlined at IPO. Obtaining the licence would diversify iFOREX’s geographic revenue beyond Europe and the British Virgin Islands, reduce concentration risk, and open growth opportunities in an underserved Middle Eastern market. The announcement did not specify a timeline for approval or expected revenue contributions from UAE operations. Investors should watch for updates on the licence progress and management’s outlook in future trading and interim reports.

COO Appointment Highlights Focus on AI Integration and Operational Growth

iFOREX appointed Daniel Shalom as Chief Operating Officer in H1 2026 to support scaling growth and accelerate artificial intelligence integration across operations. This leadership addition acknowledges the complexity of managing a multi-jurisdictional fintech platform amid regulatory compliance, client experience, and data security demands.

The COO role is linked explicitly to embedding advanced AI technologies to enhance operational efficiency and client experience. This aligns with fintech industry trends leveraging machine learning for client onboarding, fraud detection, customer support, personalized trading recommendations, and efficiency. The company did not disclose Mr. Shalom’s background or experience. Investors seeking details on his qualifications should consult regulatory announcements or investor relations communications. The focus on AI may appeal to technology-focused investors, though competitive and regulatory risks related to AI remain unaddressed.

New Corporate Website Enhances Digital Client Engagement

iFOREX launched refreshed corporate websites at www.iforex.com and www.iforex.eu during H1 2026, enhancing digital capabilities and enabling agile responses to market changes. The update improves brand presentation, client communication, and user experience, reflecting a commitment to modern digital standards and regional regulatory compliance through separate domain extensions for global and European Economic Area clients.

While specific technical features or user metrics were not disclosed, the website refresh supports the company’s broader technology transformation, including AI integration and advanced trading tools across 870+ financial instruments. Investors interested in digital investment effectiveness should monitor future reports for client acquisition and engagement data linked to the platform update.

Cautious Foreign Exchange Outlook Reflects Continued Currency Volatility and Cost Pressures

Management adopted a cautious stance on foreign exchange assumptions for the remainder of 2026, noting that although the USD/ILS rate has slightly strengthened since mid-May, the Israeli shekel remains historically strong. The board increased full-year operational cost estimates by approximately $2 million on a US dollar basis, anticipating ongoing translation headwinds due to the shekel’s elevated level.

This currency outlook is significant for investors as it directly affects reported profitability and earnings per share, regardless of operational performance. The structural currency mismatch from Israel-based costs and US dollar reporting creates persistent headwinds. Management’s caution suggests low confidence in near-term currency normalization, implying reported earnings may remain suppressed through 2026. Investors should consider adjusting valuation models to reflect this divergence between constant currency and reported results.

Upcoming Interim Results and H2 2026 Outlook to Provide Key Insights

iFOREX will publish detailed interim results for H1 2026 in September 2026, offering investors a comprehensive view of financial performance, cash flow, and management commentary on H2 2026 expectations. This report will expand on the trading update figures, including balance sheet details, tax impacts, and any guidance revisions. The timing allows completion of audit and regulatory processes.

The interim results represent a near-term catalyst for share price reassessment by providing clarity on statutory profitability, cash generation, and management’s outlook amid currency and operational challenges. Management’s transparency regarding the $2 million currency-related cost increase signals financial discipline, but investors should evaluate the company’s ability to meet H2 profitability targets. The update will also shed light on client acquisition, ARPU trends, platform engagement, UAE licence progress, and AI integration initiatives.