Swissquote shares fall 10% after 2026 guidance cut amid crypto downturn
Swiss online bank cuts long-term profit forecast as cryptocurrency market weakness weighs on revenue outlook.
Shares in Swissquote Group Holdings slumped 10% on Tuesday after the online bank reduced its 2026 profit guidance, citing a prolonged slump in cryptocurrency markets that has eroded trading volumes and fee income.
The Swiss financial services provider, which operates in digital asset trading and traditional banking, lowered its earnings per share target for 2026 to CHF 14-16 from a prior range of CHF 18-20. The revision reflects weaker-than-expected client activity in crypto markets, which have remained under pressure since late 2024 amid regulatory uncertainty and reduced speculative trading.
Swissquote reported first-half 2024 revenue of CHF 275 million, down 12% year-over-year, with crypto-related income declining 35%. Traditional banking and wealth management segments partially offset the decline, growing 4% and 6% respectively. The company attributed the crypto slowdown to lower client deposits and reduced trading frequency, particularly in Bitcoin and Ethereum-linked products.
Chief Executive Officer Marc Bürki acknowledged the challenges in a statement, noting that while traditional banking remains resilient, the crypto business has not recovered as anticipated. "The current market environment has been more persistent than we initially modeled," Bürki said. "We are taking a conservative approach to our medium-term outlook until visibility improves."
The guidance cut follows a broader industry trend, with peer firms such as SEBA Bank and Sygnum also reporting subdued crypto revenue in recent quarters. Swissquote, however, emphasized its diversified revenue streams, highlighting growth in forex and multi-asset trading as key stabilizers.
The stock, which had gained 15% in the first half of 2024, retraced those gains following the announcement. Analysts at UBS downgraded the shares to 'neutral' from 'buy,' citing valuation risks and prolonged crypto headwinds. The bank maintained a CHF 120 price target, below the current market price of CHF 115.
Swissquote’s market capitalization now stands at approximately CHF 1.8 billion, down from CHF 2.1 billion at the start of the year.
Priya covers listed equities and corporate earnings, reading quarterly results and guidance for what they signal about sector health and forward valuations.
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