Crypto Revenue Plummets 66%: Swissquote Slashes Guidance, Shares Dive 14%

Woofun AI reports that Swissquote Group (SQN) shares plunged 14% after the Gland, Switzerland-based firm slashed its full-year revenue and profit forecasts, driven by a severe contraction in digital asset performance.

The financial strain stems from a 66.2% collapse in first-half net crypto income, which fell to 14.6 million Swiss francs ($18 million). Consequently, the net revenue outlook for the year was cut by around 30 million francs to 730 million francs.

Woofun AI data shows the company also booked a 5.3 million-franc loss on crypto inventory held to support trading on its SQX exchange. Despite these headwinds, client assets rose nearly 20% to 96.3 billion francs, keeping overall revenue broadly flat.

Structurally, the downturn was fueled by a 63.5% drop in crypto trading volume to 2.58 billion Swiss francs. Bitcoin (BTC) fell 33% in the six months ended June 30, while Ether (ETH) dropped 47% and the CoinDesk 20 Index (CD20) lost 40%. These price declines across most cryptocurrencies caused the business to miss its initial assumptions.

"The revised guidance now reflects a weaker-than-expected crypto environment," Swissquote wrote. This marks a stark divergence between asset growth and profitability, highlighting the volatility inherent in crypto-dependent banking models.