NAGA Group's third-quarter EBITDA fell 40% from the previous quarter to €1.35 million after the company increased marketing spending by 32% ahead of the planned launch of its NAGA One app. Revenue declined from €13.3 million in the second quarter to €12.7 million, while net revenue increased 2.2% to €12.1 million. The EBITDA margin narrowed from 16.8% to 10.6%.
The figures show NAGA accepting higher customer-acquisition costs as it prepares to expand its business. Chief Executive Officer Octavian Patrascu said the quarterly decline in EBITDA reflected seasonal factors and the company's deliberate decision to raise marketing investment ahead of the fourth quarter.
NAGA One takes centre stage in Q4
NAGA has identified the launch of NAGA One as its main fourth-quarter initiative. The app is designed to combine trading, investing, cryptocurrency and payments in a single platform, while the company also plans to expand its crypto offering and social-trading features.
NAGA previously said NAGA One was initially scheduled to launch in the fourth quarter of 2025. The early version was intended to replace NAGA Pay and offer personal IBAN accounts and a debit card, with cryptocurrency services to be added later. The latest disclosure indicates that the platform integration remains central to NAGA's efforts to attract customers and increase cross-selling.
Competition among brokers for new customers is also intensifying. XTB CEO Omar Arnaout said in June this year that the broker planned to spend more on marketing in Germany than in its home market of Poland. Plus500 added 65,723 customers in the first half of the year, an increase of 17%, after raising customer-acquisition spending.
Fewer registrations, but more funded clients and trading volume
NAGA said registrations declined in the third quarter, but the number of first-time funded clients rose 4.4% from the second quarter. The share of registered users who ultimately funded an account increased from 7.3% to 7.8%, indicating a higher conversion rate among new users.
Customer deposits increased 4.8% quarter on quarter to €23.6 million, while trading volume jumped 52% to €57.8 billion. For CFD and online-trading platforms, trading volume and funded-client numbers typically have a direct bearing on commissions, spreads and other trading-related revenue. The improvement in these metrics alongside the quarterly profit decline mainly reflects the pressure that higher marketing costs placed on margins.
Activity across the retail-trading market had already recovered earlier this year. Industry tracking covering 199 brokers showed aggregate trading volume rising 45% in the second quarter from the first. Whether that rebound in activity can translate into sustained revenue and cash flow for NAGA will depend on customer retention, trading frequency and the return generated by its marketing spend.
Nine-month EBITDA already exceeds 2025 total
Despite the weaker third quarter, NAGA generated €5.9 million in EBITDA during the first nine months, exceeding the €3.7 million recorded for full-year 2025 in its audited financial statements. Revenue for the first nine months was €40.5 million.
Quarterly figures released by the company show revenue falling consecutively this year: €14.4 million in the first quarter, €13.3 million in the second and €12.7 million in the third. When NAGA published its final figures on October 14, it set first-half net profit at €1.1 million and maintained full-year 2026 guidance of €68 million to €75 million in revenue and €10 million to €15 million in EBITDA. The third-quarter announcement did not state whether that guidance had been changed.
Based on the current figures, NAGA would need fourth-quarter revenue of €27.5 million to €34.5 million to meet its full-year revenue guidance, or 2.2 to 2.7 times third-quarter revenue. Reaching its full-year EBITDA target would require €4.1 million to €9.1 million in the fourth quarter, compared with €1.35 million in the third quarter.
Convertible debt adds flexibility but raises performance thresholds
In October, NAGA raised $8 million through a convertible bond issued to Presto and MDream. The company said the financing would increase its financial flexibility. Under the terms disclosed by NAGA, if the company does not achieve consolidated revenue of at least $75 million and operating cash flow of at least $13.5 million during months 13 to 24 after issuance, bondholders may elect either to demand repayment or convert the bonds into shares at $1.50 per share.
The financing gives NAGA additional funds to support the product launch and customer acquisition, while placing its future revenue and operating-cash-flow performance against more explicit thresholds. In a report dated August 6, NuWays analyst Simon Keller cut his 2026 sales forecast for NAGA from €64.4 million to €60 million, below the lower end of the company's full-year guidance. The next financial reports will show whether the NAGA One launch and increased marketing investment can turn customer growth, trading volume and higher deposits into stronger revenue.