Industry News: GAIN Capital Revenue Continues to Suffer with $2.1M Net Loss

One of the United States’ biggest retail and institutional Forex brokers, GAIN Capital (NYSE:GCAP) reported 3Q 2019 key financial and reporting metrics yesterday and showed continued weakness in net revenues with a GAAP net loss of $2.1M following a slow second quarter of this year.

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.