FlatexDEGIRO AG reported a rise in H1 25 revenue numbers driven by growth in number of customers, market volatility, and cost consciousness. With the strategic rollout of crypto trading across European markets, the company is broadening its product portfolio and reinforcing its reputation as a top pan-European broker committed to democratizing access to diverse wealth-building opportunities. This expansion positions FlatexDEGIRO at the forefront of fintech innovation, enabling greater customer reach and establishing a foundation for continued growth in accessible financial solutions.
FlatexDEGIRO AG is a leading online brokerage firm German company, founded in 1988, and headquartered in Frankfurt, serving over 3 million customers across 16 countries. The company enables retail investors to trade stocks, ETFs, and other securities via its proprietary platforms, processing over 60m transactions annually and maintaining a reputation for technological innovation and a fully integrated value chain. The company operates through two divisions, including flatex (49.2% of H1 25 revenue) and DEGIRO (50.8%).
FlatexDEGIRO released its H1 25 results on July 22, 2025, and reported a 15.2% y/y increase in revenue, reaching €278.4m, driven by 19.3% y/y growth in transactions and 14.3% y/y increase in no. of customer accounts. In addition, customers’ assets under custody rose by 36.6% y/y to €83.5bn. EBIT increased by 31.3% y/y, reaching €112.9m. Net income reported 34.1% y/y increase, reaching €81.5m, with margins expanding from 25.3% to 29.3%.
During H1 25, the company had a cash inflow of €5.6bn, reflecting a robust 75% y/y growth, supported by €74.8m cash flow from operations. In addition, the volume of securities under custody rose to €78.4bn and assets under custody with deposits reached 83.5bn, reflecting solid portfolio performance.
On September 8, 2025, FlatexDEGIRO launched crypto trading in four additional markets: Austria, France, the Netherlands, and Spain. This move offers 24/7 trading to over 2 million customers with access to 20 cryptocurrencies, including Bitcoin and Ethereum, starting from a minimum order size of €1. With major emphasis on transparency and predictability, this service offers fixed spreads, fixed commissions, and no custody fees, placing it competitively against less transparent crypto platforms.
This diversification is anticipated to boost the company’s market position as a leading online broker in Europe. With an aim to become the go-to platform for wealth building in Europe, this rollout would enable the FlatexDEGIRO to broaden digital asset investor base. In addition, these initiatives are expected to strengthen both customer retention and acquisition in DEGIRO’s core markets, driving greater trading volumes and supporting revenue growth.
FlatexDEGIRO has demonstrated robust performance over FY 21-24, achieving a revenue CAGR of 5%, reaching €469m in FY24. This growth was primarily driven by higher trading activity, robust customer acquisition, and rapid expansion across European markets. In addition, enhanced digital offerings and diversified products led to rise in transaction volumes and fee income.
Furthermore, EBIT registered a CAGR of 29.3%, reaching €161m. Consequently, margins improved by 1106bp to reach 23.8%. Net income rose at a CAGR of 29.4% to €112m.
Over FY 21-24, the company experienced growth in cash flow from operations, rising to €683m from €391m. In addition, the cash and cash equivalent increased from €1.6bn to €3.3bn and total debt declined from €181m to €160m, consequently the gearing ratio improved, declining from 36.2% in FY 21 to 21.2% in FY 24.
In comparison, Interactive Brokers Group, Inc., a global peer, achieved a revenue CAGR of 23.6%, reaching $5.2bn over FY 21-24. EBIT grew at a CAGR of 27.7% to $3.7bn, with margin expanding by 605bp to 65.5%. In addition, net income rose at a CAGR of 34.8%, reaching $755m in the same period.
FlatexDEGIRO’s stock rose sharply by 127.9% over the past year, indicating robust performance and significant investor gains over the period. In comparison, Interactive Brokers delivered returns of 100.3%.
FlatexDEGIRO is currently trading at P/E of 21.1x, based on FY 25 estimated EPS of €1.3, which is higher than its 3-year historical average of 12.7x but lower than that of Interactive Brokers (30.3x). The company is currently trading at PBR of 3.4x, which is higher than its 3-year historical average of 1.7x but lower than that of Interactive Brokers, which is trading at 5.3x.
The stock is monitored by 10 analysts with six having ‘Buy’ ratings and four having ‘Hold’ ratings for a target price of €28.5, reflecting a 4% upside potential over the current market price.
Analysts project a revenue CAGR of 9.3% for FY 24-27, reaching €626.9m. EBIT is estimated to rise at a CAGR of 20.9% to €276.7m, with margin expanding by 1150bp to 44.1% in FY 27. Net income is projected to rise at a CAGR of 20.6%, reaching €195.7m, with margin expanding by 798bp to 31.2%. Likewise, for Interactive Brokers, the EBIT is estimated to increase at a CAGR of 10.1%, reaching $5bn and net income is projected to increase at a CAGR of 14.1%, reaching $1.1bn over the same period.
Overall, FlatexDEGIRO has delivered consistent growth over the years, driven by broadening customer base and trading activity. With a positive momentum supported by improving efficiency and growing demand for services, the company is set for long-term growth. Looking ahead, enhancement in product offerings is expected to drive further market expansion and deliver greater value to its shareholders.
However, the company faces potential risks from continued global market volatility, which may not sustain the recent surge in trading activity, and from liquidity challenges related to managing large customer cash balances and potential refinancing costs in stressed scenarios. In addition, evolving geopolitical tensions, interest rate risks, and changes in customer behavior could impact future growth and profitability.
