Warsaw Stock Exchange Q2 2025 slides: Record revenues and profits amid surging equity turnover

The Warsaw Stock Exchange (WSE:GPW) reported robust Q2 2025 financial results, achieving record revenues of PLN 144.1 million (+19.2% YoY) and a 42.9% surge in net profit to PLN 57.7 million, largely driven by a nearly 49% year-over-year increase in cash equity turnover, outperforming European peers. This strong performance, reflected in WSE's all-time high share price and the WIG index surpassing 100,000 points, is underpinned by strategic initiatives such as the Personal Investment Account (OKI) and the upcoming WATS trading platform, positioning the exchange for sustained growth despite anticipated higher operating costs in H2 2025 due to technology investments.

Analysis

The Warsaw Stock Exchange (WSE:GPW) reported exceptional Q2 2025 results, demonstrating significant operational momentum and outperformance relative to European peers. Revenue growth accelerated to 19.2% year-over-year, reaching a record PLN 144.1 million, while net profit surged by 42.9% to PLN 57.7 million. This performance was primarily fueled by a nearly 49% year-over-year increase in cash equity turnover, which drove a 45% rise in equity trading revenue. The Commodity Market segment also contributed robustly, with gas trading revenue increasing 51.2%. Profitability metrics were particularly strong, with the EBITDA margin expanding to 43.3% from 31.3% a year prior, indicating effective cost management even as operating expenses rose 8.1%. The company's strategic initiatives provide a clear path for future growth; the launch of the proprietary WATS trading platform in November 2025 promises technological enhancements, while the introduction of the tax-incentivized Personal Investment Account (OKI) presents a significant long-term catalyst to boost domestic equity market participation from its current low base of 26% of GDP. While the outlook for H2 2025 is supported by continued strong turnover in July and August, management has flagged that higher costs and capital expenditures related to the WATS implementation will be a feature of the second half.

Key Decisions for Investors

• Investors should recognize the strong top-line momentum and margin expansion as key bullish signals, supported by continued high trading volumes in July and August which suggest the positive trend is extending into H2 2025.
• The introduction of the Personal Investment Account (OKI) and the new WATS trading platform are significant long-term catalysts that could provide structural growth, warranting consideration for investors with a longer time horizon.
• It is crucial to monitor operating expenses in H2 2025, as management has guided for increased costs and capex related to the WATS platform, which could temporarily pressure margins despite the strong revenue growth.
• Given that the stock price recently achieved an all-time high of PLN 58.0, investors should assess whether the strong performance and positive outlook are already reflected in the current valuation before establishing new positions.