flatexDEGIRO SE (FTKn.DE) Post 2Q26 Review Strong print evidencing commercial momentum and operating leverage, Buy

Equity Research 23 July 2026 | 5:58PM BST

flatexDEGIRO SE (FTKn.DE): Post 2Q26 Review: Strong print evidencing commercial momentum and operating leverage, Buy

We update our forecasts to reflect flatexDEGIRO’s 2Q26 results (July 22, Oliver Carruthers, CFA | post-market), which included a 10% EBIT beat vs consensus expectations, and Goldman Sachs International comments from management on the earnings call today. Overall, reflecting stronger Anshika Mehrotra cost dynamics and supportive forward rates, our net income estimate comes up by | 7% for FY26E and 4% on average for FY27-28E. Our new estimates sit mildly above Goldman Sachs India SPL

the middle of the group’s newly increased net income range for FY26 at €220mn, and Tom Ferguson | we see scope for low-single-digit earnings upgrades to pre-results Goldman Sachs International company-compiled consensus for FY26. More broadly, we believe these results reflect strong ongoing momentum in the business and reinforce our Buy thesis. First, Naimeh Sabourian | we continue to see evidence of a broadening revenue base beyond trading activity, Goldman Sachs International with management highlighting initial contributions from the expansion of Deposits-as-a-Service following the onboarding of Hamburg Commercial Bank in early March, supporting a 41% YoY rise in other operating income for 2Q, alongside continued progress in securities lending. Second, the quarter demonstrated the operating leverage embedded in the business, with current personnel expenses declining YoY on lower headcount despite continued revenue growth. We view this as supportive of our margin expansion thesis, underpinned by strong top-line growth, disciplined cost control, and the ongoing integration of the group’s technology infrastructure. At 15x FY27 P/E, we see the current entry point as attractive for a pan-European retail platform with strong growth and medium-term profitability upside.

We also update our model to reflect the group’s adoption of IFRS 18, which introduces a more granular presentation of revenues (including a split of commission income between transaction-related and other commission income), and associated direct costs with the previous COGS line split and allocated to the respective revenue streams. In addition, the group will report operating profit as its primary earnings metric, broadly comparable to the previous EBIT measure. We believe the new presentation provides a more effective representation of the underlying economics of the business, improves comparability, and brings the group’s disclosure more closely in line with other listed retail investment platforms. In terms of the moving parts, our interest income increases by 5% for FY27-28E, reflecting the latest interest rate expectations, while we lower our current personnel expenses for FY26 in line with the 2Q beat and FY26 guidance of €100-105mn. That said, we continue to bake in a normalisation in trading activity through 2H26, with our transaction per client estimate 14% below the levels seen in 1H, reflecting a moderation in customer activity from the elevated levels seen during the 1H. As such, any sustained period of

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Goldman Sachs flatexDEGIRO SE (FTKn.DE)

market volatility and trading activity will represent upside risk to our estimates.

Going forward and incremental to these results, we expect investors will focus on: (i) the pace of customer growth, particularly in Germany ahead of the planned introduction of the German pension reform in Jan-27, and the evolution of customer acquisition costs and competitive intensity; (ii) the trajectory of trading volumes through the remainder of the year, with management…