First Read flatexDEGIRO SE Q2:26 - 14% cost-led EBITDA beat; FY26 guidance raised again

Research evidence excerpt

First Read flatexDEGIRO SE Q2:26 - 14% cost-led EBITDA beat; FY26 guidance raised again

ate environment. Operating

12/27E 2.46 2.33

expenses fell 25% QoQ (and -8% YoY) largely due to more controlled costs within 12/28E 2.98 2.71

personnel expenses and reduced marketing expenses (Q2:26 CAC of €96 vs. Q1:26

CAC of €170), while total revenue grew +26% YoY resulting in an improvement in Amit Jagadeesh

Q2:26 EBITDA margin of 58.8% (vs. 47.9% in Q2:25 and 50.2% in Q1:26), 610bps Analyst

higher than consensus. amit.jagadeesh@ubs.com

+44-20-7567 9705

Q: Has the company's outlook/guidance changed? Haley Tam

AnalystA: The company raised its FY2026 net income guidance (€200-230m vs. €200m

haley.tam@ubs.com

previously) again and have reaffirmed it FY26 revenue guidance (€650m). This comes +44-20-7567 6176

after the company recently increased its FY26 guidance in an ad-hoc release last month

(see here), following a strong H1:26 performance. Assuming the mid-point, the Michael Werner

Analyst

upgraded FY2026 net income guidance is 2% above consensus estimates.

michael.werner@ubs.com

+44-20-7568 8086

Q: How would we expect investors to react?

A: At 15.5x 2027e PE, flatexDEGIRO trades above its historical trading range, but at a

18% discount to peers. We expect the shares to respond positively due to upgraded

guidance, reduced CAC, and the 14% EBITDA beat driven by better-than-expected NII,

other operating income, and lower expenses. flatexDEGIRO will host a conference call to

discuss its Q2:26 results on Thursday, 23 July, at 9:00am UKT/ 10:00am CEST (link).

Highlights (€m) 12/23 12/24 12/25 12/26E 12/27E 12/28E 12/29E 12/30E

Revenues 391 480 560 656 742 861 1,000 1,143

EBIT (UBS) 118 164 245 311 366 444 533 622

Net earnings (UBS) 82 117 177 222 263 319 383 448