GAIN Capital releases Q3 2019 results, GAAP net revenue is $66.7m

Gain Capital

The global provider of online trading services GAIN Capital Holdings, Inc.  (NYSE: GCAP) has announced its financial results for the third quarter of 2019. The US retail FX provider reported lower revenues in Q3, revealing GAAP net loss of $2.1 million, or loss of $0.06 per share (same period last year: net income of $10 million).

More key financial results for Q3 2019 include:

  • GAAP net revenue of $66.7 million
  • Adjusted net loss of $2.8 million, or loss of $0.07 per share
  • Adjusted EBITDA of $6.0 million

GAIN reported an increase in retail trailing 3-month direct active accounts. Marketing investment drove new direct account growth of 97% YoY and 32% compared to Q3 2018. Pockets of volatility in US equity markets helped grow Futures average daily contracts 24% YoY.

A summary of GAIN’s financial results can be seen on the company’s official website.

Glenn Stevens new

Glenn Stevens

Glenn Stevens, CEO of GAIN Capital, commented on the news:

The third quarter continued to show positive signs of client engagement as our Retail trailing 3-month direct active accounts increased for a third consecutive quarter, providing evidence that our marketing efforts are helping to grow active accounts, even amid the unusually low volatility environment.

In addition, we delivered direct new account growth, which was up 97% over Q3 2018 and 32% sequentially, further evidencing the effectiveness of our marketing.

In Futures, average daily contracts increased 24% as we saw pockets of volatility in the US equity markets. With growing interest and activity from our new customers, we feel well positioned to benefit from a return to more normalized market conditions.

GAIN focused on returning capital to shareholders through dividends in Q3, which amounted to approximately $2.2 million.

GAIN’s Board of Directors declared a quarterly cash dividend of $0.06 per share of the Company’s common stock. The dividend is payable on December 17, 2019 to shareholders of record as of the close of business on December 10, 2019.

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