Gain Capital reports Q2 2011 quarterly results – Net Revenue up 38%

BEDMINSTER, N.J., July 28, 2011 – GAIN Capital Holdings, Inc. (NYSE: GCAP), a leading global provider of online trading services,

BEDMINSTER, N.J., July 28, 2011 – GAIN Capital Holdings, Inc. (NYSE: GCAP), a leading global provider of online trading services, today announced its results for the second quarter ended June 30, 2011.

“We are pleased to report solid financial and operating results for the second quarter. Improved revenue capture enabled us to increase net revenue by 38% sequentially, and our second quarter adjusted net income margin of 20% demonstrates the significant operating leverage inherent in GAIN’s business model,” commented Glenn Stevens, Chief Executive Officer.

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“We remain confident in our plan for the second half of the year. GAIN operates in an industry with an average daily turnover of $4 trillion whose fundamentals remain strong, and we will continue to build upon our leadership position. To do this, we are actively investing in geographic expansion, with a focus on increasing our presence in the high-growth EMEA and Asian markets. The new release of our retail platform, FOREXTrader PRO, provides customers with automated trading capabilities, while our growing mobile offering includes solutions for Android and iPhone devices, with our iPad application due for release in the third quarter. At the same time, we are continuously evolving our institutional product offerings, and recently launched new products and features on GAIN GTX. We also have a strong pipeline of complementary M&A opportunities and strategic alliances under review,” Mr. Stevens concluded.

Financial Highlights

  • Net revenue up 2% to $55.6 million, compared to $54.7 million in Q2 2010; up 38% compared to Q1 2011
  • Adjusted net income* and net income of $11.2 million and $10.0 million, respectively, compared to $2.5 million and $1.4 million in Q1 2011. Year-over-year comparisons to $13.0 million and $13.8 million, respectively, in Q2 2010 reflected increased investment in institutional business, indirect sales channel and new geographies in Q2 2011
  • Adjusted diluted EPS* of $0.29 compared to $0.06 in Q1 2011 and $0.35 in Q2 2010
  • Diluted EPS of $0.26 compared to $0.04 in Q1 2011 and $0.37 in Q2 2010

Operating Highlights

  • Traded retail accounts of 36,868 in Q2 2011, up 8% compared to Q2 2010
  • Funded retail accounts of 78,395 at June 30, 2011, up 20% compared to June 30, 2010
  • Client assets of $293.1 million at June 30, 2011, up 32% compared to June 30, 2010

(*See below for reconciliation of non-GAAP financial measures)

Conference Call:

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GAIN Capital will host a conference call today at 5:00 p.m. ET. Those wishing to listen to the call should dial 1.866.700.6067 in the United States or +1.617.213.8834 from elsewhere, and enter the passcode 87114523# at least 10 minutes prior to the start of the call. A live audio webcast of the call, as well as PDF copies of this release and an accompanying presentation, will also be available on the Investor Relations section of the GAIN Capital website.

The audio replay will be available for one week after the call by dialing 1.888.286.8010 in the United States or +1.617.801.6888 from elsewhere, and entering passcode 64029435#. The replay will be available starting approximately two hours after the completion of the conference call.

About GAIN Capital

GAIN Capital Holdings, Inc. (NYSE: GCAP) is a global provider of online trading services. GAIN’s innovative trading technology provides market access and highly automated trade execution services across multiple asset classes, including foreign exchange (forex or FX), contracts for difference (CFDs) and exchange-based products, to a diverse client base of retail and institutional investors.

A pioneer in online forex trading, GAIN Capital operates FOREX.com®, one of the largest and best-known brands in the retail forex industry. GAIN’s other businesses include GAIN GTX, a fully independent FX ECN for hedge funds and institutions, and GAIN Securities, Inc. (member FINRA/SIPC) a licensed U.S. broker-dealer.

GAIN Capital and its affiliates have offices in New York City; Bedminster, New Jersey; London; Sydney; Hong Kong; Tokyo; Singapore and Seoul. For company information, visit www.gaincapital.com.

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