Swissquote slashes annual outlook as crypto trading revenue plunges 66%

Swissquote (SQN) saw its shares tumble approximately 14% after the online banking group lowered its full-year net revenue and profit guidance, citing a sharp decline in cryptocurrency trading activity during the first half of the year. The company’s crypto segment reported net revenue of 14.6 million Swiss francs ($18.0 million), a 66.2% drop from the same period last year, while crypto trading volumes fell 63.5% to 2.58 billion francs.

Guidance revision and market conditions

The Swiss financial services provider now expects full-year net revenue of around 730 million francs, roughly 30 million francs below its previous forecast. In its earnings statement, Swissquote attributed the revision to a “weaker-than-expected crypto market environment” that persisted through the first six months. The company also recorded an additional 5.3 million-franc loss from marking down crypto inventory held to support its in-house exchange, SQX.

Despite the crypto weakness, overall revenue remained flat year-over-year, supported by growth in other business segments. Client assets rose approximately 20% to 96.3 billion francs, indicating continued strength in traditional banking and brokerage operations.

Implications for the crypto brokerage sector

Swissquote’s results highlight the ongoing volatility and reduced retail participation in cryptocurrency markets, which have struggled to regain momentum after a series of regulatory and macroeconomic headwinds. The company’s experience mirrors broader industry trends, where trading volumes and revenue from digital assets have contracted significantly compared to the boom periods of previous years.

For investors, the guidance cut signals that even established financial institutions with diversified business models are not immune to crypto market cycles. The additional inventory write-down underscores the risks associated with maintaining liquidity and market-making operations in a downturn.

What this means for shareholders and clients

The sharp share price reaction reflects market disappointment and uncertainty about when crypto trading activity might recover. Swissquote’s ability to offset weakness in crypto with growth in other areas provides some buffer, but the reduced outlook raises questions about the near-term earnings trajectory. Clients and investors will likely watch for signs of stabilization in crypto volumes and any further adjustments to guidance in the coming quarters.

Conclusion

Swissquote’s lowered outlook underscores the challenging environment for crypto-related businesses in 2025. While the company’s diversified model has helped mitigate the impact, the significant drop in crypto revenue and the inventory loss have pressured its financial performance and investor sentiment. The coming months will be critical in determining whether the crypto market stabilizes and whether Swissquote can regain its growth momentum.

FAQs

Q1: Why did Swissquote’s shares drop 14%?
The shares fell after the company cut its full-year net revenue and profit outlook due to weak crypto trading results in the first half, leading to investor concerns about future earnings.

Q2: How much did Swissquote’s crypto revenue decline?
Crypto segment net revenue fell 66.2% year-over-year to 14.6 million Swiss francs, while trading volumes dropped 63.5% to 2.58 billion francs.

Q3: What is Swissquote’s revised revenue forecast?
Swissquote now expects full-year net revenue of approximately 730 million francs, about 30 million francs lower than its previous guidance, citing a weaker-than-expected crypto market environment.