NAGA Group's EBITDA fell 40% to EUR 1.35 million in the third quarter from the second, the Hamburg-based broker said today (Thursday). It raised marketing spending by 32% over the same period ahead of a planned app launch.
Group revenue slipped to EUR 12.7 million from EUR 13.3 million in the second quarter, while net revenue rose 2.2% to EUR 12.1 million. The EBITDA margin narrowed to 10.6% from 16.8%.
London's trading industry is coming home!
In the first half, NAGA cut marketing and branding costs by 26% and reported its first half-year in profit.
Marketing absorbed 40.5% of revenue in that half, down from 46.5% a year earlier, FM Intelligence data show.
NAGA One Heads the Fourth-Quarter Plan
The company named the launch of NAGA One, a single app for trading, investing, crypto and payments , as its main priority for the fourth quarter. It also plans to widen its crypto offering and social trading features.
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NAGA first said in September 2025 that NAGA One would be available for download in the fourth quarter of that year. The first version was to replace the NAGA Pay app with personal IBAN accounts and debit cards, with crypto services added later.
Rivals are also spending to win clients. XTB Chief Executive Omar Arnaout said in June that the Polish broker would spend more on marketing in Germany than at home this year.
Plus500 added 65,723 new customers in the first half, up 17% from a year earlier, after raising its acquisition spending.
Fewer Sign-Ups, More Funded Accounts
NAGA said first-time depositors rose 4.4% from the second quarter even though registrations fell. The share of sign-ups that went on to fund an account rose to 7.8% from 7.3%.
Customer deposits grew 4.8% quarter over quarter to EUR 23.6 million, and trading volume jumped 52% to EUR 57.8 billion, according to the company.
Octavian Patrascu, the chief executive, said the lower EBITDA reflected seasonality and "our deliberate decision to increase marketing investment ahead of Q4."
Trading picked up across the retail market earlier in the year. Combined volume at the 199 brokers in FM Intelligence's tracker rose 45% in the second quarter from the first.
What the Full-Year Range Requires
NAGA said nine-month EBITDA of EUR 5.9 million already exceeds the EUR 3.7 million its audited accounts showed for all of 2025. Revenue for the nine months reached EUR 40.5 million.
Quarterly revenue has slipped in each period this year, from EUR 14.4 million in the first quarter, according to the company's figures.
On October 14, when it raised its first-half net income to EUR 1.1 million in final figures, NAGA kept its 2026 forecast of EUR 68 million to EUR 75 million in revenue and EUR 10 million to EUR 15 million in EBITDA. The third-quarter release does not mention it.
Reaching that revenue range would take EUR 27.5 million to EUR 34.5 million in the fourth quarter, or 2.2 to 2.7 times the third-quarter figure, by FinanceMagnates.com's calculation.
On the same arithmetic, the EBITDA range implies EUR 4.1 million to EUR 9.1 million for October to December, compared with EUR 1.35 million in the third quarter.
In October, NAGA raised $8 million from Presto and MDream through a convertible bond, which the company said gives it additional financial flexibility.
If NAGA does not reach consolidated revenue of at least $75 million and operating cash flow of at least $13.5 million in the 13th to 24th months after issuance, the holders may choose repayment or conversion at $1.50 a share, according to the company's announcement.
In an August 6 note, NuWays analyst Simon Keller cut his 2026 sales forecast for NAGA to EUR 60 million from EUR 64.4 million, below the bottom of the company's range.
