Deutsche Börse ETR: DB1 opened 2026 with what CEO Stephan Leithner called “a strong” first quarter, supported by continued structural growth drivers and a volatility-driven pickup in market activity in March. Management said the group handled “new record volumes without an issue,” and reiterated its full-year guidance, while also highlighting strategic progress in digital assets and ongoing work toward its planned acquisition of Allfunds.
First-quarter results and profitability
Leithner said net revenue grew 12% excluding treasury results, with double-digit growth (excluding treasury) in five of eight business areas. Total net revenue rose 9% to €1.64 billion, while total EBITDA increased 10% to more than €1 billion, producing an EBITDA margin of 61%, which management described as a first-quarter record.
CFO Jens Schulte said operating costs increased 4% to €626 million, including about €13 million of exceptional costs related to the Allfunds acquisition. Excluding those items, underlying operating cost growth on a constant-currency basis was 3%, which he said was in line with guidance and reflected inflation and investment spending.
Schulte added that the result from financial investments was negative €5 million, including a €10 million impairment of a minority stake, which also affected segment reporting in Investment Management Solutions.
Treasury result inflects; updated assumptions behind guidance
Leithner said treasury results “inflected positively,” reaching €204 million in the quarter, the first sequential increase since 2024, driven by higher cash balances at the beginning of the year. Schulte told analysts the company upgraded its treasury expectations primarily due to a changed interest rate outlook rather than volume assumptions.
Responding to a question from Deutsche Bank’s Benjamin Goy, Schulte said the revised treasury assumptions include:
- No U.S. rate cuts in 2026, versus prior expectations
- A further rate hike in the eurozone, “moving these rates slightly up”
Schulte said the company now expects the 2026 treasury result to exceed €700 million, adding that headwinds from lower rates are expected to continue fading through the year.
Segment performance: strength in trading, clearing, funds, and custody
In Investment Management Solutions, net revenue rose 5% to €313 million, or 10% on a constant-currency basis. Schulte said Software Solutions delivered 16% annual recurring revenue (ARR) growth, with the Americas contributing 39% ARR growth. Software Solutions net revenue increased 15% year-over-year on a constant-currency basis to €168 million, helped by SaaS expansion and renewals, including a larger renewal with an American pension provider that lifted licensed revenues.
Schulte noted ESG and Index faced headwinds from prolonged sales cycles and FX, but still delivered 5% constant-currency net revenue growth, including 15% growth in index licensing revenue. Leithner added that the next phase of U.S. index expansion is tied to completing a “global buy side family” in Q2 and building on ISS’s client overlap in the U.S.
Trading and Clearing posted what Schulte called an “outstanding quarter,” with net revenue (excluding treasury) up 14% and EBITDA (excluding treasury) up 22%. He highlighted broad-based gains, including:
- Financial derivatives: net revenue up 17%
- Fixed income: revenues up 31% overall; exchange-traded fixed income derivatives up 26% with March volumes at record levels
- OTC clearing: revenues up 37%, with market share rising to 24%; Schulte said only 18% of onboarded EU buy-side clients are active, leaving “significant growth potential”
- Repo: revenues up 67% amid volatility and regulatory demand
- Equity derivatives: net revenue up 9%, driven by product mix and pricing measures rather than volume
- Commodities: net revenue up 14% on record power and gas activity, though Schulte cautioned the intensity is “unlikely to repeat” and volumes began normalizing in Q2
- Cash equities: net revenue up 9% with higher volatility and demand for European equities and ETFs
- FX: average daily volumes surpassed €200 billion for the first time
In Fund Services, net revenue excluding treasury rose 14% and EBITDA excluding treasury increased 18%, driven by record assets under custody and settlement activity in fund processing and higher assets under distribution. In Security Services, net revenue excluding treasury increased 15% and EBITDA excluding treasury rose 18%, supported by record assets under custody, collateral management outstandings, and settlement activity. Schulte singled out a 32% increase in collateral management outstandings.
On the mix inside Security Services, Leithner said custody revenue growth was 13% and settlement revenue growth was 24%, with revenues of about €197 million in custody and €48 million in settlement. Schulte added that repo and collateral management contributed, but said the “core custody” business also grew similarly.
Strategy updates: digital assets, retail participation, and Allfunds
Leithner pointed to digital assets and tokenization as an area where Deutsche Börse has invested “for years,” and said the company’s $200 million strategic investment in Kraken is intended to combine Kraken’s crypto capabilities with Deutsche Börse’s infrastructure and regulatory positioning. When asked about milestones, Leithner cited initiatives linking Kraken into the Clearstream platform for collateral benefits, progress on stablecoin connectivity partnerships, and an upcoming milestone around “digital Eurobond space,” following work on joint data standards.
Schulte said digital assets revenue is already present but “on a rather moderate level,” adding that the company expects “significant revenues beyond 2028,” depending largely on institutional client uptake.
On retail participation, Leithner said Deutsche Börse has been discussing rising retail activity for “two or three years,” with a shift toward more structural drivers such as ETF growth. He also pointed to increased direct access for neo-brokers as an accelerating factor, supporting both cash markets and areas like structured retail products that can feed into the index business.
Regarding Allfunds, Leithner said the transaction remains on track after a favorable shareholder vote and the start of the European Commission pre-notification phase, with other approvals also being pursued. The company continues to expect completion in the first half of 2027. Leithner also noted Allfunds’ Q1 net revenue (excluding treasury income) grew 10%, and acknowledged the “sudden and tragic passing” of Allfunds founder Juan Alcaraz.
On capital returns, Leithner said a €500 million share buyback launched earlier in the year is “progressing well,” with about 42% executed to date. Following shareholder approval at the May 13 AGM, the company plans to pay a dividend of €4.20 per share.
Outlook reaffirmed; financing update
Management reiterated 2026 guidance, noting that volatility and activity levels normalized in April after March’s spike. Schulte reaffirmed a 3% operating cost increase for 2026 excluding Allfunds-related exceptional items.
Schulte also said Deutsche Börse completed a bond issuance in March to finance the buyout of the ISS STOXX minority stake held by General Atlantic. As a result, he expects a €5 million increase in the financial result per quarter starting in Q2 2026.
About Deutsche Börse ETR: DB1
Deutsche Börse AG operates as an exchange organization in Europe, America, and the Asia-Pacific. The company operates through four segments: Data & Analytics; Trading & Clearing; Fund Services; and Securities Services. It engages in the trading of derivatives, electricity and gas products, emission rights, foreign exchange, and commodity products; operating EEX and 360T over the counter trading platform for financial instruments, such as foreign exchange, money market, and interest rate products; and operating as a central counterparty.
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