Frankfurt-based online brokerage FlatexDEGIRO SE has updated its outlook for the full year 2026 after reporting robust business momentum in the first half, the company said in a statement Friday. Management increased its topline and profitability expectations and indicated that previously announced 2027 financial targets will be reached one year earlier than planned.
The firm now anticipates Revenues of around 650 million for 2026, revised up from prior guidance that implied roughly 588-616 million based on 5-10 percent growth. Net Income guidance was also lifted, with the company expecting approximately 200 million, compared with the earlier range corresponding to 5-15 percent growth or roughly 168-184 million.
Despite the upgraded outlook, shares of FlatexDEGIRO were trading lower, down 3% as of 05:34 ET (09:34 GMT) on Friday.
Management framed the stronger guidance as the result of several operating trends. In its statement, the company cited higher customer cash balances in a more positive interest rate environment, an expanding margin loan book, and a more active treasury strategy. Management also pointed to continued customer acquisition and product expansion, and said that costs remain well under control.
"Only sixteen months ago, we set ourselves the ambitious objective of almost doubling Net Income by 2027 to around 200 million. Achieving this target a full year ahead of schedule demonstrates the strength of our platform, the execution of our strategy and the structural growth opportunities that continue to emerge across the European wealth market," said CEO Oliver Behrens in the company's statement.
"We expect to convert approximately 16 percent Revenue growth into approximately 25 percent growth in Net Income," added CFO Dr. Benon Janos.
The company noted that an expected 200 million in Net Income in 2026 would represent the third consecutive year in which annual profitability increased by at least 40 million. Management said it plans to present updated medium-term ambitions together with preliminary full-year 2026 results in February 2027, and that those targets will be set from a "higher starting point than previously anticipated."
Summary of the revision and near-term timeline:
- Revised full-year 2026 Revenue target: around 650 million.
- Revised full-year 2026 Net Income target: around 200 million.
- Company expects to hit its 2027 Net Income objective one year earlier than planned.
- Preliminary full-year 2026 results and new medium-term ambitions scheduled for February 2027.
The company attributed its upgraded outlook to a combination of interest income, trading activity, customer growth and treasury measures. Management emphasized controlled costs and continued product and customer expansion as supporting elements for margin improvement and profit growth.