flatexDEGIRO AG

Reported Q2 revenue growth was 11% year over year, with commission income up 28% year over year and interest income down 10% year over year and 2% sequentially. Net income rose 28% year over year in Q2; for H1, revenues were up 15% or EUR 37 million and net income was up 34% or EUR 21 million. Q2 settled transactions were 17.9 million, up 18% year over year; gross customer additions were approximately 103,000, up 22% year over year; assets under custody were more than EUR 83 billion, up 37% year over year and 10% quarter over quarter. The company raised full-year 2025 guidance to revenue growth of 4% to 8%, or EUR 499 million to EUR 518 million, and net income growth of 15% to 25%, or EUR 128 million to EUR 139 million. Management also said they now expect H2 trends to normalize and want to beat H2 2024 rather than H1 2025.

Oliver Behrens framed the quarter as evidence that flatexDEGIRO can capture periods of market volatility and convert them into operating leverage. He emphasized that the business is not assuming the same volatility-driven tailwinds in H2, calling the guidance prudent rather than extrapolative. He also highlighted strategic execution: management changes, the SE conversion, crypto rollout progress, securities lending, and IT/operations harmonization as building blocks for 2027 growth plans.

Benon Janos focused on the financial mechanics behind the beat: Q2 revenue up 11%, net income up 28%, and H1 revenue up 15% with net income up 34%, all on a fully reported basis. He said personnel expenses rose from EUR 26 million to EUR 31 million in Q2 due to wage inflation and provisions, marketing was EUR 7 million versus EUR 12 million in Q1, and other administrative expenses fell 20% year over year to EUR 12.9 million; he reiterated a goal to reduce admin expenses from EUR 61 million last year to slightly above EUR 50 million this year. He also noted cash under custody exceeded EUR 5 billion, net cash inflows were EUR 2.5 billion in Q2 and EUR 5.6 billion in H1, and the company cut margin loan rates by about 50 bps on July 1, with average rates now around 5.5% to 5.75%.

Analysts pressed on commission per trade, where management said the main driver was higher U.S. trading and bigger notional trade sizes, with crypto adding only about EUR 0.02 to Q2 commission per trade and flatex seeing a more noticeable pickup than DEGIRO. They also asked about personnel costs and headcount; management said the personnel line should not grow this year and headcount is not planned to rise. On securities lending, management said revenue will be shared with clients under market/regulatory rules and that the product is meant to create more recurring income. On crypto timing, management said the international rollout is expected after summer, roughly 4 to 6 weeks out, though timing depends on partner regulatory approval.