This article first appeared on GuruFocus .
Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Flatexdegiro SE ( FNNTF ) reported a 55% increase in net income for Q2 2026, reaching EUR 61 million, showcasing strong financial performance.
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The company experienced a 20% increase in the number of trades, benefiting from volatile market conditions and structural customer growth.
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Customer assets under custody surpassed EUR 100 billion for the first time, driven by strong net inflows and positive market performance.
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Operating expenses declined slightly during the quarter, demonstrating effective cost management while achieving significant revenue growth.
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Flatexdegiro SE ( FNNTF ) increased its full-year guidance for net income to up to EUR 230 million, reflecting confidence in continued strong performance.
Negative Points
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Net cash inflows in Q2 2026 were EUR 2.0 billion, below the exceptionally high level of EUR 2.5 billion in Q2 2025, indicating a potential slowdown.
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The company faces intensified competition in the German market, which could impact customer acquisition and pricing strategies.
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There is uncertainty regarding the impact of the German pension reform on short-term profitability, as the contribution to revenues is expected to be minor initially.
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Flatexdegiro SE ( FNNTF ) acknowledged challenges in communicating the benefits of securities lending to customers, which may affect the growth of this revenue stream.
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The company noted that market volatility could impact trading activity, which is a key driver of their business model, posing a risk to future performance.
Q & A Highlights
Q: Could you provide the mix of U.S. share trading in Q2 and how it compares to Q1 2026 and the full year 2025? Also, how has consumer behavior evolved in July, particularly regarding U.S. share dealing? A: During Q1 2026, there was a shift from U.S. equities to European equities, with U.S. exchanges' share moderating to around 15% by the end of Q1. However, in Q2 2026, the volume of stocks traded at U.S. exchanges increased, with the share rising to an average of roughly 20%. The average trade size also increased, benefiting FX revenues. The average trade size for the first half of 2026 was approximately EUR6,400, up from EUR5,600 in 2025.
Q: Could you provide more color on the volumes and revenues in securities lending and third-party deposits in Q2? Are you still happy with the 20-basis-point net margin from securities lending? A: We have not disclosed all revenue details but aim for 5% to 10% of recurring income by 2027. Securities lending results are on track with our planning, despite underestimating the effort required to communicate benefits to customers. We plan to offer securities lending in Germany through our Dutch subsidiary. In terms of deposits as a service, we have around $11 billion to $12 billion in total volume, with the Hamburg Commercial Bank collecting deposits since March.
Q: How should we think about the evolution of personnel expenses and the overall OpEx space in Q3 and Q4? Are there any lumpy pieces, and how should we think about marketing spend? A: We expect business as usual in the second half of the year, with reduced personnel spending compared to last year. We anticipate total costs of $100 million to $105 million, with variable compensation not reaching last year's levels. No major surprises are expected in administration costs. Marketing expenses have normalized, and we expect this trend to continue, with no negative surprises anticipated.
Q: Can you provide more color on competition in Germany and any pricing pressure on existing products? A: We do not see significant price pressure. The PFOF ban was already in place in most markets, and we are at the low side of pricing. Some competitors offering zero-cost services struggle to make money. The introduction of PFOF in Germany will create more transparency in pricing and execution, which we have always adhered to.
Q: What progress have you made on the De Giro integration, and what additional cost savings might you extract from it? What's the outlook for headcount growth into 2027? A: The integration of the De Giro platform is progressing well, with completion expected by the end of 2027. We anticipate stable headcount into 2027, with no appetite for significant increases. We plan to provide more clarity on these matters in our capital markets communication in February 2027.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
