GAIN Capital Holdings, Inc. (NYSE: GCAP), a leading global provider of online trading services, announced financial results for the third quarter of 2018.

Key Financial Results for the Third Quarter (all amounts reflect continuing operations)

• GAAP net income of $10.0 million, or $0.22 per share, yielding a 10% margin
• GAAP net revenue of $95.5 million, up 30% year-over-year
• Adjusted net income of $13.5 million, or $0.30 per share
• Adjusted EBITDA of $30.5 million, yielding a 32% adjusted EBITDA margin

Operating Highlights

• New direct accounts increased 28% year-over-year and 23% quarter-over-quarter
• Futures segment margin doubled to 14% for the first nine months of 2018 as compared to 7% for the nine months ended September 30, 2017
• Subsequent to quarter end, GAIN commenced a "modified Dutch auction" tender offer to purchase up to $50 million of its shares

A summary of GAIN's financial highlights is included in the chart below (all amounts are from continuing operations).

"While overall low market volatility continued to weigh on retail trading volumes during the quarter, our diverse product offering enabled strong revenue growth," commented Glenn Stevens, Chief Executive Officer of GAIN Capital. "Volatility in emerging markets, along with trade tensions, prompted high trading activity in emerging market currencies, as well as certain metals and index products, which helped to generate overall revenue capture of $164 per million for the quarter. In addition, our continued focus on organic, direct account growth and marketing initiatives helped deliver strong operating results in Q3, with new direct accounts up 28% year-over-year. As reiterated through our recently announced $50 million tender offer, we are firmly committed to executing a balanced capital allocation strategy to enhance shareholder value."

Capital Return and Dividend

In the third quarter, GAIN:

• focused on returning capital to shareholders through dividends, which amounted to approximately $2.7 million.
• repurchased 451,624 shares of stock at an average price of $7.20.
• returned a total of $5.9 million to shareholders in the form of share repurchases and dividends which brings the year-to-date total return to $19.6 million.

GAIN's Board of Directors declared a quarterly cash dividend of $0.06 per share of the Company's common stock. The dividend is payable on December 18, 2018 to shareholders of record as of the close of business on December 11, 2018.

Launch of Tender Offer

On October 9, 2018, GAIN commenced a "modified Dutch auction" tender offer to purchase up to $50 million of its outstanding shares at the maximum price of $7.94 and minimum price of $7.24. The tender offer is scheduled to close on November 6, 2018, unless otherwise extended by GAIN. The Company believes the tender offer is a prudent use of financial resources given available liquidity, including proceeds from the sale of GTX, and the current market price of its shares.

About GAIN

GAIN Capital Holdings, Inc. provides innovative trading technology and execution services to retail and institutional investors worldwide, with multiple access points to OTC markets and global exchanges across a wide range of asset classes, including foreign exchange, commodities, and global equities. GAIN Capital is headquartered in Bedminster, New Jersey, with a global presence across North America, Europe and the Asia Pacific regions. For further company information, visit www.gaincapital.com.