Hypoport SE (HYQ) Q1 2026 Earnings Call Transcript

Today on Seat 11A, we are joined by Ronald Slabke of Hypoport SE to present the company's Q1 2026 financial results. In this presentation, investors will receive an update on business developments across Hypoport's platform ecosystem, including mortgage finance, real estate, insurance, and corporate finance activities, as well as management's view on the current market environment and outlook for the year ahead. We are very pleased to have him here today. Ronald, the floor is yours.

Welcome to the update for the Q1 financial figures of Hyperport SE here on CT11a. We had a good start to the year. We delivered 12 million in EBIT in line with our expectation. All three segments delivered growth, contributed to this success. So if you exclude geopolitical environment, this was a really good start in 2026. So deep dive into segments. We start with the homeownership market and the mortgage market here. Volatile interest environment, this always leads positive, fast financial application process to consumers. And with this, we could achieve a similar transaction volume like last year, where we had even a stronger change in interest rates. And thanks to, at this time, the additional funding and debts that our new government announced, at this time it was the Iran war and inflation risk interest rate went up and a lot of consumers closed their mortgages faster. This is in the market environment where the supply side is strong. We see a lot of properties coming to the market, which is unusual for the last 10 years in Germany, where for a long time there was close to nothing coming to the market. There are properties on the market you can buy. Prices are, I would say, all unstable over the last six to nine months. First quarter saw a slight increase in prices again. I think the interest rate environment played here a certain role. We saw a cost for new constructions coming down. This is helpful. And because of this, we see an additional need for funding of new constructions, something essential for the German housing market that we build more because we otherwise demand will drive prices even farther. What is weak and stays weak and is actually contributing to the home ownership market is the renting environment, heavily regulated already, new regulation introduced in the first quarter, massive new regulation, you need to say, and more and more landlords, private landlords want to sell now. And so we expect the process of switching from a renting market to a home ownership market here in Germany to accelerate in the upcoming quarters, because it's really unattractive to rent anymore in Germany in this regulatory environment. And to deregulate, I don't see this coming. So we had a 62 billion mortgage market when we trust in the data of Bundesbank in the first quarter. This is roughly the same like in the first quarter last year. We saw strong growth of the brokers in this market environment because they act faster, they compare, offer faster changing interest rates and with this in a volatile environment take market share. cooperative banks and savings banks kept the market share stable and we were able to achieve in both more penetration and a growth in both sectors especially in the savings banks area plus 15 percent in the in the first quarter where we roll out a new integration with our opening partner finance informatic the it service provider to make sure that it's even easier for them to migrate their volume to europa's who lost market share in the first quarter are private banks especially deutsche bank the long time one partner of us allocates is equity different right now so their focus is to shrink the mortgage portfolio and they are successful with this means private banks leave market share behind and let brokers prosper here from the perspective of what we finance the acquisition of the existing homes the purchase market is strong we are there on the record high level in in euro see that there is a potential in front of us with the migration from the renting market to the home ownership market beside market share gains that we have we see for the first time four billion in new constructions again this is it took a long time for the market to come back to this volume and when you see price changes then you understand that we are still rough half of this what we saw four or five years ago we still don't see investments in the household stock for energy efficiency and we still don't see refinancing on the platform. Refinancing will by certain come back in 2027 because of duration of the mortgage portfolio here in Germany. Energy efficiency investments depends from political environment and this is too instable right now. Big success segment was that Value AG, our valuation platform for the first time since more than five years turned break-even. So a long way of bringing this business to a success in the first quarter finally paid back and Valuage is on the path of being a strong product integrated in the platform and delivering a solution end-to-end for consumer and banks, which is not met by anything else in the market. So heavy investments we did here, lots of losses we accumulated here, first quarter break even, and this lifts up the segment as well in total, so that we see a very strong first quarter for this segment.

Outlook, we expect double-digit growth here over the year, and outperformance of EBIT with an incremental increase in EBIT margin, which we saw now already in Q1, even compared to the very strong first quarter in 2025.

So financing platform, I will highlight our activities in the housing association market. So the social housing renting market in Germany, our strategy to provide central ERP system for the housing associations with all the other platforms for financing, management of deposits and insurance linked to this is on track of a strong growth path so the core won another 33 percent of units under contract so 710 000 units we are getting closer to break even here with our platform business based on this and based on the penetration we can sell more and more solutions of the other platforms surrounding this core application a big win in april actually areal bank strongest payment and deposit provider for the housing associations here in Germany and a long-time owner of the core competitor of our ERP system, Arion, opened up and cooperates now with us so that housing associations, when they migrate to our platform, don't need to switch their payment operator anymore and can keep their deposits of their rentees where they are. This is a huge message as well to the industry that the old mother of our rival bets that it's necessary to be to team up with us to go forward as well the german middle stand provided a certain level of growth in the first quarter and this all ends up with a good start for the financing platform segment in this year with a 2 million ebit contribution to the group after a week in 2025 to be fair so we grow here even when german gdp is not growing so and last insurance platform as well the platform side strong growth on a usage of our platforms with some volatility in the surrounding business models we still achieved in the first quarter growth and stayed profitable and we are looking forward to continue this through the year in total for hyperport as expected we are on growth track and we deliver an outperformance on profitability. 12 million first quarter is exactly in line with our ambition for this year to deliver a record year. Last record year was 2021 with 48 million. The math is simple. We are on track to go there. Even when Q2 and Q3 will be weaker, Q4 is usually our strongest quarter. So all is fine. What you need to be informed about, all these P&L numbers includes massive investments in our platforms. In all three segments, we spend money to develop right now new products, often based on AI. We do this for the last nine years. You have here on CD11a some deep dives for this to understand how a platform business is profiting from AI and how we are able to monetize on the new technology available. It will make our products even more appealing more sticky more unbeatable by any potential new competitor in the market and the product development are surrounding this this is our focus on our current value chains our current platforms and our cost efficiency which we are keep focused on we will deliver strong growth on EBTA margin side. We expect this to double until the end of 2029 and so from there expect HyperPort to not just grow in top line but as well in bottom line. So for this year 40 to 55 million we are on track and long-term double digit. Use the deep drives here on CT11a and we will see again for our half-year report in the beginning of August.

See you then. to welcoming you back soon on Seat 11a.

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