NAGA's Core Earnings Fall 40% as It Spends 32% More on Marketing
NAGA Group's third-quarter EBITDA dropped 40% to EUR 1.35 million as the Hamburg-based broker increased marketing spending by 32% ahead of a planned app launch.
NAGA Group's third-quarter EBITDA fell 40% to EUR 1.35 million compared to the second quarter, the Hamburg-based trading platform announced Thursday. The decline coincided with a 32% increase in marketing spending as the company prepares for its NAGA One app launch. Group revenue slipped to EUR 12.7 million from EUR 13.3 million in the previous quarter, while net revenue rose 2.2% to EUR 12.1 million.
The EBITDA margin narrowed to 10.6% from 16.8% in the second quarter. Despite the earnings drop, NAGA reported positive developments in customer acquisition and trading activity. First-time depositors grew 4.4% from the second quarter, and trading volume jumped 52% to EUR 57.8 billion.
Customer deposits increased 4.8% quarter-over-quarter to EUR 23.6 million. The share of sign-ups that converted to funded accounts also improved, rising to 7.8% from 7.3%.
Strategic Marketing Investment
Octavian Patrascu, CEO of NAGA Group, attributed the lower EBITDA to seasonality and "our deliberate decision to increase marketing investment ahead of Q4." The company had previously reduced marketing and branding costs by 26% in the first half of 2026, when it reported its first half-year in profit.
Marketing absorbed 40.5% of revenue in the first half, down from 46.5% a year earlier, according to FM Intelligence data. The increased spending comes as rivals also intensify their marketing efforts. XTB's CEO Omar Arnaout revealed in June that the Polish broker would spend more on marketing in Germany than at home this year.
our deliberate decision to increase marketing investment ahead of Q4
NAGA One Launch
The company's main priority for the fourth quarter is the launch of NAGA One, a single app combining trading, investing, crypto, and payment services. NAGA first announced in September 2025 that NAGA One would be available in the fourth quarter of that year, with the initial version replacing the NAGA Pay app and later adding crypto services.
The intensified marketing push comes amid broader growth in the retail trading market. Combined volume at the 199 brokers tracked by FM Intelligence rose 45% in the second quarter from the first. Plus500 added 65,723 new customers in the first half, up 17% from a year earlier, after increasing its acquisition spending.
Annual Targets and Financing
Despite the quarterly decline, NAGA's nine-month EBITDA of EUR 5.9 million already exceeds the EUR 3.7 million reported for all of 2025. Nine-month revenue reached EUR 40.5 million. However, quarterly revenue has declined each period this year, from EUR 14.4 million in the first quarter.
NAGA maintains its 2026 forecast of EUR 68 million to EUR 75 million in revenue and EUR 10 million to EUR 15 million in EBITDA. To reach the revenue range, the company would need EUR 27.5 million to EUR 34.5 million in the fourth quarter, or 2.2 to 2.7 times the third-quarter figure. The EBITDA range implies EUR 4.1 million to EUR 9.1 million for October to December.
In October, NAGA raised $8 million from Presto and MDream through a convertible bond, providing additional financial flexibility. However, if the company doesn't 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, bondholders may choose repayment or conversion at $1.50 per share.
NuWays analyst Simon Keller cut his 2026 sales forecast for NAGA to EUR 60 million from EUR 64.4 million in August, below the bottom of the company's range.
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