Equita Group (EQUI) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 reached €4.7 million, a 53% increase year-over-year, marking the strongest first quarter since IPO, driven by strong Global Markets performance and higher revenues across all business lines.

• Net revenues rose 37% to €23.4 million compared to Q1 2024, with Global Markets contributing 67% of total revenues.

• Growth attributed to investments, diversification in offerings, and strengthening of the team with new senior professionals.

• Return on Tangible Equity (ROTE) stood at 22%, and the cost/income ratio improved to 72% from 76% a year earlier.

• The Group maintained a robust capital position, with an IFR Ratio of 3.7x.

Financial highlights

• Net revenues: €23.4 million (+37% YoY); Global Markets: €15.7 million (+55% YoY); Investment Banking: €5.4 million (+25% YoY); Alternative Asset Management: €2.3 million (-13% YoY).

• Personnel expenses increased 42% to €11.4 million, reflecting higher variable compensation and increased headcount.

• Operating expenses rose 8% to €5.3 million, mainly due to higher professional consultancy and IT costs.

• Profit before tax: €6.7 million (+60% YoY); Net profit: €4.7 million (+53% YoY); net margin at 20% (vs 18% in 1Q'24).

• Shareholders' equity at €109.8 million as of March 31, 2025; cash and cash equivalents at €56.5 million, down 27% from December 2024 due to increased investments.

Outlook and guidance

• Positive performance continues into 2Q'25, confirming growth trajectory for 1H and full year 2025.

• The Group plans to expand Global Markets access, broaden Investment Banking offerings, and continue product development in Alternative Asset Management.

• 2025 to benefit from full consolidation of EQUITA Debt Advisory, increased asset management and equalization fees, and a strong investment banking pipeline.

• Economic and financial results for H1 2025 will depend on market trends and macroeconomic conditions, with ongoing focus on social, environmental, and cultural initiatives.