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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Leonteq AG ( XSWX:LEON ) returned to profitability in the first half of 2026, aligning with their guidance.
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The company achieved double-digit growth in turnover and fee income, driven by growth across all regions.
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Leonteq AG significantly reduced its cost base, reflecting the success of its cost program.
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The closure of all regulatory legacy matters has removed a key constraint on growth.
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Net income grew by 10% year-on-year to $96.8 million, with a 37% increase in group net profit year-on-year.
Negative Points
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Total operating income decreased by 10% year-on-year, despite improvements in the quality of earnings.
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Turnover generated with Tier 1 partners decreased by 17% year-on-year.
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The net trading result was lower compared to the prior-year period, impacted by previous market volatility.
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Operating expenses increased by 4% compared to the second half of 2025, driven by normalization of accrued variable compensation.
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The CET1 capital ratio slightly decreased to 16.5% from 16.9% at the end of the previous year.
Q & A Highlights
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Q: Now that you have resolved your regulatory issues, what are the immediate opportunities to accelerate growth, and what are your expectations for the growth of the AMC product? Also, can you refine your guidance for the full year? A: (CEO) We have seen an improvement in client sentiment and activity following the closure of regulatory matters. We expect to do more business with our existing client base and grow through targeted market expansions. Regarding AMC products, we see strong demand and expect significant growth. As for guidance, we reiterate our expectation of a positive pre-tax result for 2026, focusing on strategic execution and expansion.
Q: Can you provide an indication of the magnitude of client engagement post-regulatory closure and a breakdown of the net trading result? Also, does the shareholder distribution imply a 100% payout ratio for 2026? A: (CEO) While it's hard to quantify, we've seen increased client engagement and interest in high-value products post-regulatory closure. (CFO) The treasury carry was minus $8.2 million, and hedging contributions were $21.6 million positive. Regarding payouts, assuming a positive net result and maintaining a CET1 ratio above 15%, we plan a dividend and share buyback totaling 100% of net profit.
Q: What are your views on margin evolution, and how quickly do you expect the retail flow business in Germany to contribute to revenue? A: (CEO) Margins are influenced by product mix and client demand. We focus on overall business quality and profitability rather than specific margin targets. Our scalable platform allows us to prioritize volume and revenue growth. For the retail flow business in Germany, we aim for a meaningful start, though we are not providing specific revenue projections.
Q: What is your expectation for the CET1 ratio for the full year, and what does "sustainable basis" mean for the share buyback? A: (CEO) We aim for a CET1 ratio meaningfully above 15%. We are gaining experience with the FRTP framework and monitoring capital ratio stability. The board will consider a share buyback once we are confident in the framework's stability.
Q: What are the most important tasks left for Leonteq to achieve its goals? A: (CFO) We aim to deliver across our strategic pillars, particularly in expanding AMCs and QIS offerings. We see significant potential in Asia and plan to leverage our digital platform, Lynx, further. We also aim to increase our sales force and improve our front-to-back office ratio.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
