Crypto Revenue Plunges 66% as Swissquote Slashes Outlook Amid Volatility

Woofun AI reports that Swissquote (SQN) shares tumbled approximately 14% following the announcement of lowered full-year net revenue and profit guidance, a direct consequence of the sharp decline in cryptocurrency trading activity observed during the first half of the year.

The financial impact on the digital asset division was severe, with the crypto segment reporting net revenue of 14.6 million Swiss francs ($18.0 million), representing a 66.2% drop from the same period last year.

Concurrently, crypto trading volumes fell 63.5% to 2.58 billion francs, illustrating a stark contraction in market liquidity and user engagement within this specific business unit.

Structurally, the firm now projects full-year net revenue of around 730 million francs, roughly 30 million francs below its previous forecast, citing a "weaker-than-expected crypto market environment" that persisted through the first six months.

Woofun AI data shows an additional 5.3 million-franc loss was recorded from marking down crypto inventory held to support its in-house exchange, SQX, further eroding the bottom line.

Notably, overall revenue remained flat year-over-year, buffered by growth in other business segments that insulated the broader entity from the digital asset downturn. Client assets rose approximately 20% to 96.3 billion francs, indicating continued strength in traditional banking and brokerage operations despite the headwinds facing the crypto division.

A more critical variable is the broader industry context, where ongoing volatility and reduced retail participation in cryptocurrency markets 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.

This marks a clear signal that established financial institutions with diversified business models are not immune to crypto market cycles, exposing the risks associated with maintaining liquidity and market-making operations. With market disappointment and uncertainty prevailing, the challenging environment for crypto-related businesses in 2025 suggests that regaining growth momentum will require sustained stabilization in crypto volumes.