Gain Capital Q3 revenues drop 17%, profits dive 73%


GCAP’s magical Q2 was (as expected) not replicated in Q3, although margins remained strong.

Forex broker Gain Capital (NYSE:GCAP), which operates the retail Forex.com and institutional Gain GTX brands, reported decent Q3 financial results although well below Gain’s Q2 blowout record numbers. If you recall, Gain reported its best ever quarter for revenues, EBITDA, and net profit in Q2 — for example Gain’s Q2 revenues, at $73 million, were up 47% over Q1.

Since reporting Q2 results, GCAP shares have gone on a tear, up from $5.61 in early August to top Gain’s $9 IPO price, and now sit at $11.25 per share — more than double their pre-Q2 price. We’ll see how Gain shares react today to Q3’s results.

But back to the present. In Q3, Gain’s revenues totaled $60.6 million — still Gain Capital’s second best ever quarter, but well off the $73 million revenues reported in Q2. And the drop in revenues has hit the bottom line hard. Net profit for Q3 dropped to $4.7 million, down from a whopping $17 million in Q2.

GCAP revenues profits Q3

The good news? Gain Capital’s margins (pips earned per round-trip trade) remained strong in Q3, despite slower volumes, hitting 2.6 pips in its retail business and 0.28 in its GTX institutional business, as per the charts below.

GCAP pips retail Q3

GCAP pips instit Q3

For the complete Gain Capital Q3 results press release click here.

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Gain Capital Q3 revenues drop 17%, profits dive 73%

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