Leonteq (LEON) H2 2025 earnings summary

Executive summary

• Reported a net loss for 2025 due to lower net fee income and trading result, impacted by challenging market conditions, legacy issues, and lower activity from historic partners, though client momentum improved in H2.

• Transition to a new regulatory regime was completed ahead of schedule, strengthening the CET1 ratio to 16.9% by year-end.

• Strategic focus in 2025 was on resizing and optimizing; 2026 will prioritize expansion and growth initiatives, with a positive pre-tax result expected.

• Leadership changes include the nomination of Felix Oegerli as proposed new independent chairman for AGM 2026.

Financial highlights

• Net fee income declined 17% to CHF 178.5 million in 2025, and net trading result fell to -CHF 3.1 million from CHF 21.5 million in 2024.

• Total operating income dropped 28% year-over-year to CHF 172.3 million.

• Underlying pre-tax loss was CHF 21.5 million; IFRS net loss was CHF 33 million, including CHF 11 million in non-recurring charges.

• Operating expenses reduced by 16% to CHF 193.8 million (underlying), with significant cost reductions below guidance.

• Shareholders' equity fell 14% to CHF 692 million; total assets increased to CHF 11.2 billion, driven by higher trading financial assets.

Outlook and guidance

• Positive pre-tax result expected for H1 and full year 2026; revenue growth anticipated from recurring fee income, market expansion, and increased client share of wallet.

• Midterm financial targets reaffirmed for 2028.

• 2026 operating expenses projected at CHF 200 million, reflecting investments in business expansion and normalization of variable compensation.

• No dividend for 2025; share buyback planned for early 2027 if CET1 remains meaningfully above 15%.