Plus500 US margin is expected to exceed 20%, Chief Executive David Zruia said on Monday, giving the first public sign of what the company expects from its US futures and prediction markets business.
Zruia said market practice is about 10%. However, Plus500 does not report a separate profit figure for that unit in its interim accounts. The company treats the whole group as one operating segment.
The US non-OTC business includes futures, prediction markets, and share dealing. It generated about $70 million in the first half, or roughly 15% of group revenue. Plus500 is targeting about $140 million on an annualized basis for 2026.
A margin of 20% on that revenue would imply about $28 million. However, the company did not say if the margin refers to profit before or after tax. It also said the figure is a management expectation, not a reported result.
Plus500 US Margin and Revenue Mix
Chief Financial Officer Elad Even-Chen said the institutional prediction markets business has four revenue lines. Partners pay a software fee and a clearing fee. Firms that use Plus500 for execution pay for order routing. The company also earns interest at the omnibus account level.
Retail clients pay a commission instead. By contrast, the older CFD business earns from spreads and overnight financing, Even-Chen said. He also said hedge funds are among the institutions clearing the prediction market contracts that Plus500 extended into sports in June.
Even-Chen added that some introducing brokers bring clients with opposite positions in the same commodity. As a result, he said the book is naturally hedged. Meanwhile, Plus500 owns its clearing and execution setup and sells those services to other firms.
Expansion Plans and Capital Position
The company signed Wealthsimple in Canada in July. It also announced a tie-up with Brazil’s Nelogica on Monday. Zruia said Plus500 plans to launch a “super app” next year and is seeking bolt-on acquisitions to add licenses and other needed layers.
Its latest purchase, Mehta Equities in India, closed in February. However, Zruia said Plus500 has not included that business in its near-term plans or numbers yet. He added that Latin America is “quite untapped,” and the firm is adding marketing and operational staff there.
Plus500 said full-year revenue and EBITDA should match market consensus. Even-Chen said the second-quarter run rate alone reaches that level, without improvement. He also said the US business may need more capital.
At June 30, Plus500 held about $860 million. Of that, about $550 million was tied to regulatory capital, working capital, clearing funds, and risk balances. Surplus capital stood at about $310 million, while the company announced $182.5 million in dividends and buybacks alongside the results.
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Source: Finance Magnates
