Underdog Doubles Revenue as IG Group Falls Back in Q3
United Kingdom.- 7 October 2026 | www.zonadeazar.com IG Group has issued a financial update showing sharply contrasting performances ahead of completing its acquisition of Underdog.
While the US company posted more than 100% year-on-year growth in third-quarter 2026 net revenue, IG Group expects its own quarterly revenue to fall by around 14%.
Underdog Reaches $105 Million
Underdog generated approximately $105 million in net revenue during Q3 2026.
That represents growth of more than 100% year-on-year.
The performance is particularly notable ahead of the fourth quarter, which accounted for more than one-third of Underdog’s annual revenue in 2025.
IG Group Acquisition
IG Group agreed to acquire Underdog at an initial enterprise value of approximately $1.1 billion.
The transaction also includes up to $200 million in additional consideration linked to Underdog’s performance, taking the potential value to around $1.3 billion.
Completion is expected in late 2026 or early 2027.
US Strategic Shift
Underdog operates both daily fantasy sports, DFS, and prediction-market products.
Since the acquisition was announced, the company has exited DFS operations in seven states that determined operators could not combine state-licensed fantasy sports with federally regulated event contracts.
State Legal Disputes
Underdog subsequently filed lawsuits against several states challenging those restrictions.
The company argues that state authorities should not be able to prevent the offering of certain event contracts operating under the federal framework.
Those disputes remain ongoing.
Prediction Markets Gain Importance
The developments have increased attention on the role prediction markets may play in Underdog’s future strategy.
When announcing the acquisition, IG Group highlighted both Underdog’s DFS franchise and its potential within prediction products.
IG Group Revenue Declines
In contrast with Underdog’s growth, IG Group expects to report approximately £240 million in Q3 2026 revenue.
That would represent a decline of around 14% year-on-year.
The company has attributed part of the weakness to less supportive market conditions and lower revenue retention from customer trading activity.
Share-Price Reaction
IG Group shares initially moved lower following the update.
Early trading in London saw the stock fall from around £9.79 to as low as £9.58.
It later recovered and traded at approximately £9.88.
UK and European Outlook
The acquisition is also generating interest around the longer-term potential for prediction markets outside the United States.
In the UK, the Financial Conduct Authority has been considering whether consumers should gain wider access to certain investment products.
Future regulatory developments could influence whether companies such as Underdog can extend aspects of their model into new jurisdictions.
Next Steps or Impact
IG Group is due to hold a dedicated Underdog presentation for institutional investors and analysts, where further details on the strategic rationale of the acquisition are expected.
Underdog’s rapid growth stands in contrast with IG Group’s weaker quarter and increases focus on how much the US business could contribute to the group’s growth once the transaction is completed.
Editó: @fonta
