Plus500 CEO David Zruia disclosed Monday that the company’s US futures and prediction markets operation is running at profit margins exceeding 20 percent, double the 10 percent industry standard he cited. The non-OTC US business, covering futures, prediction markets, and share dealing, generated approximately 70 million dollars in first-half revenue, representing 15 percent of group sales. Plus500 targets 140 million dollars annualized revenue from this division by 2026, which would translate to roughly 28 million dollars in profit at the stated margin.
CFO Elad Even-Chen revealed the company monetizes institutional prediction markets through four revenue streams: software fees, clearing fees, order routing charges, and omnibus account interest. Hedge funds are among institutional clients using Plus500’s clearing services, which extended into sports prediction markets in June. The company competes against Kalshi, which holds 60 percent market share, and Kraken-owned NinjaTrader. Zruia announced plans for a super app launch next year, with bolt-on acquisitions underway to secure necessary licenses.
FXnCO Insight
Plus500’s premium margin profile in US prediction markets signals strong competitive positioning as institutional adoption accelerates ahead of major product expansion.
Source: Finance Magnates