Indexa Capital Group, S.A. (INDXA) Earnings Call Transcript & Summary

Good morning, everyone. My name is Unai Ansejo, and I am one of the 3 co-founders of Indexa Capital Group. On behalf of the entire team of Indexa, I would like to thank you for taking the time to join today's video conference on the presentation of Indexa Capital Group results for the first half of 2026. Before we begin, a few housekeeping points. First, the documents are available on the group's website, including this presentation and the annual accounts. You can subscribe there to get any documents directly on your inbox. Second, there is a chat on the right side where you can enter your name and ask any questions. And third, we will answer your questions at the end of the presentation, which will last approximately 20 minutes. The plan for today is as follows: First, we are going to see an executive summary. Then we will go through the details of our key performance indicators. Then we are going to see the main results for this first half of 2026. Then we will continue with our main achievements in this period. And finally, we will see the next steps that we have ahead of us. So the revenue growth is accelerating at Indexa Capital Group, plus 52% and the net profit is taking off, plus 109%. The revenues for the first half of 2026 have gone from EUR 4.2 million to EUR 6.38 million in the first half of 2026. We are accelerating from plus 33% that we had in growth in 2025. The net profit is taking off plus 109% in this first half year. The net profit has gone from EUR 0.92 million to EUR 1.94 million. Indexa Capital Group has launched a new share buyback program of up to EUR 300,000 in July 2026. And the numbers that we are going to show you are under IFRS EU. The accounting reporting has changed. In this slide, you can find the executive summary of the presentation. I'm not going to go into details because we are going to develop each point in the next slides. Here, you can see a visual presentation of the main financials that I have just presented, plus 52% in consolidated revenues and plus 109% in net profit. As a result, the ratio of net profit to revenues has gone from 22% in the first half of 2025 to 30.4% in the first half of 2026. So a huge increase in our margin, revenues and profit. If we -- zooming out, the growth over the last 4 years has been very strong as well. Revenues have increased 232%, which means plus 35% in a compounded annual growth rate. And the net profit has increased 488%, which is equivalent to a growth of 56% growth rate. The net profit, the ratio of net profit to revenues has gone from 17% 4 years ago to 30.4% in this first half year. And then I'm going to pass the word to François, who will comment in detail the results of Indexa Capital AV.

Thank you, Unai. Indexa Capital AV, our main subsidiary has been growing its AUMs, asset under management 66% from June 2025 to June 2026. So that's a very strong increase. Most of it is coming from new investment from our clients. So we passed from EUR 3.5 billion end of June 2025 to EUR 5.8 billion end of June 2026. EUR 1.4 billion is coming from new investments and EUR 873 million is coming from a market evolution. If we look at the KPIs on the right side in the table, most of it are stable or showing a positive increase. We have a slight increase in client acquisition cost, the CAC, but still with a very low payback period. So we could afford actually to spend more on marketing and to increase the client acquisition cost. Also a significant increase in the average investment per client. You see that we have passed from EUR 30,000 in total per client 1 year ago to EUR 35,000 on average per client. So stable or improving KPIs, all good and a very strong growth of the average asset per client. If we look at the returns of the portfolios, we see that the average portfolio, the portfolio #8 got a 4.5 percentage point average return above benchmark per annum. So it's 4.5 percentage points per annum above benchmark. And the benchmark in this case is the average return of comparable Spanish mutual funds. So that's a huge annual difference. And if you compound it, you see that on the total difference is close to 90% now above benchmark. So that makes that -- our clients are quite happy with the returns, they recommend us, and it helps us to keep growing. You have this data on the statistics page of Indexa Capital with a daily update. If we look at the net inflows, we see that they are still very stable, always positive even in the market downturns. We had a record of net inflows in December, last December of EUR 170 million in 1 month. December is every year our record year. We are still around EUR 150 million net inflows per month in the last month, and we expect to have a new record in probably in November and then in December. If we look at the cohorts, so those are the customer cohorts, and they show us that after 10 years, the clients on average have invested more than EUR 100,000. That's only net investment. It doesn't include the market evolution. So it means that after 10 years, they have with returns much more than EUR 100,000, but they have invested EUR 160,000 on average with us. Also, so on the graph, the longest line is -- are the clients from 2016, our first complete year and the shorter line are the most recent cohorts. And we can see that the most recent cohorts are comparable as good as the first one. So that's a good news, meaning that we are acquiring clients that keep investing on average EUR 10,000 at the beginning on average and on average, are investing more than EUR 400 per month every month through the years. If we look at the competition, there is a big news. We've passed to the -- we've climbed one position in the discretionary asset managers ranking in Spain, and we are now the sixth largest in the country. In the graph, you can see the evolution of all the top 12 players in discretionary portfolio management in Spain. Most of them are banks. Indexa is the only independent player in the top 12. It's also the fastest growing. We have the blue line starting at the bottom and fast growing on the right. Last year, we passed Bankinter. This year, we have passed Ibercaja. And next year, we hope to pass Banco Sabadell. I'm not sure I told it right at the beginning, if I mentioned Sabadell or Ibercaja. But the conclusion is last year, Bankinter and this year, Ibercaja and next year, we hope to surpass Sabadell Banco. And now Ramón is going to tell you a bit more about Bewater Asset Management.

Thank you, François. Bewater is the subsidiary we are -- where we invest in private equities at the group level. As you can see, the assets under management grew by 30% compared to last year. We were able to invest in one more company. We were also able to divest very successfully in one company. And we are pretty sure that we're going to have good news looking forward to the end of the year with this subsidiary. Indexa Caravel is the -- our French subsidiary is where we care for our French clients. I remind the audience that this is the merger between the former company that we had in France and Caravel that we acquired some quarters ago. As you can see, the assets under management grew by 63%. The net losses slightly grew by 9%. This is driven by the fact that we are investing both in marketing and sales in the country. I also remind the audience that we plan to continue losing money on this subsidiary for a few years, but we believe it makes sense given that France is approximately 3x the size of Spain in terms of savings. We are happy with the development of the subsidiary and the subsidiary is developing according to plan. After talking about the subsidiaries, now I'm going to talk a little bit about the consolidated results of the company. As you can see, the revenues grew by 52%. The consolidated net profit grew by 109%. In our opinion, this shows the scalability of the business model. And also, as I mentioned at the beginning of the presentation, the consolidated net profit over revenues margin went from 22% 1 year ago to 30.4% in the first half of 2026. Needless to say that we are happy with the development of the results. Now we're going to take a look at the balance sheet of the company. In this case, we are comparing the end of the year 2025 with the first half of 2026. So we are only comparing 6 months development. So the main things about the balance sheet is that the assets grew by 22%. This is driven by basically the development of the business with our client. We barely have net financial debt. And also, you can see in the balance sheet that the -- we are a cash flow generating company. The excess cash of the company is growing. You can see that in the line, which is named portfolio valued at fair value with changes -- sorry, yes, portfolio valued at fair value with changes in equity. This is where we invest the excess cash that we have in monetary funds. So after reviewing the results, okay, now we're going to talk about our main achievements for each of the companies of the group. So at Indexa Capital Group, I would like to mention that we launched a share buyback program of up to EUR 300,000. We also plan to move to the continuous market to the main market in Spain before year-end. The share price development has had a positive development. It was plus 28% in 2026 as of September 11, 2026. The stock has been included for the first time in the index, IBEX Growth Market 15, which is the most selective index of the market where we are right now. And we also had an increase in liquidity that we're going to talk about in the next slide. Indexa Capital AV, which is our main subsidiary, as the audience probably knows, we lowered the minimal investment for fund portfolios. We launched a new life insurance risk in this case with CNP Iberia, giving our clients the choice between 2 suppliers. We launched also a new private markets fund of funds. And also, we were able to reduce as we normally do every year, the cost of 2 Vanguard funds, thanks to the development of our scale. At Bewater Asset Management, the main things to mention is that we were able to invest in one company. In this case, it's Locker in the City, and we were also able to divest very successfully in one company, which is basically LICO Cosmetics. At Indexa Caravel, we were also able to launch a new life insurance savings product for basically our French market, which is the main product in terms of savings in the market. We're also happy to say that in terms of the share, okay, there's been an increase in price of plus 19% since the end of the year. There is also -- there has also been an increase in liquidity. As you can see, it's a very, very large increase in liquidity. Basically, we multiplied the liquidity of the company basically by 10. And there are some reasons for it. So what do we do? So basically, we had more conversations with institutional investors. We had an increase in the coverage of the share by professional analysts. And also, there's been a significant increase in the free float of the company. We went from a 9% free float to a 14% free float, and this was largely driven by a block trade of 5% that we had at the beginning of the year. And with this, I'm going to give back the word to Unai, who is going to talk to remind the audience about snowball effect.

Thank you, Ramón. So now we are going to talk about the future, our next steps. The first and most important one is continue growing. And I want to remind the audience about our snowball effect. We're pretty sure that in the future, we are growing -- we're going to grow a lot because there are 5 revenue growth drivers that are very, very predictable. The first one is that we get the revenue from current assets, and we begin the year with the assets of the previous year. The second one is that our clients add more funds, on average, 80% of them. Happy clients bring referrals, 50% of our new clients bring -- come with an invitation or recommendation from a previous client. Market grows over time in the long term, above inflation. And we keep expanding the product offering, adding new financial insurance products as we have seen in the previous slides. So we are on track to meet our EUR 30 million annual recurring revenues objective by 2030 in a conservative scenario as the reality has been more positive that a conservative scenario. We are ahead of the plan. We are sure on track to meet this EUR 30 million annual recurring revenues, as you can see in the plot there. So sorry, here -- so the revenue of Indexa Capital Group is accelerating. We are growing and we are accelerating our growth. As Francois has mentioned, in Spain, we are consolidating our leadership position. We are now the sixth biggest discretionary portfolio manager in Spain, and we are very well positioned to act as a sector consolidator in Europe when the opportunity arises. So thank you very much for your attention. And now we are going to be more than happy to answer any questions that you should have.

Thank you, Unai. So we already have some questions. For all of you, you can just introduce your name if you haven't done so and start typing any question or comment you have in the chat area on the right side of the screen. We have a first question from Marisa regarding the share buyback program, if we are going to amortize the shares. So I think that's an easy one. We had a first program beginning of the year that we finished beginning of July, that was of EUR 200,000, and that was a program in order to remunerate directors, Board members, advisers. And so those shares are not going to be amortized. Those shares are going to be used to pay part of the remuneration or salaries in shares instead of cash. The new program we launched in July of EUR 300,000 is going to be -- is an acquisition program in order to amortize the shares. So those shares are going to be amortized. It's -- we are totaling for EUR 140,000. So almost half of the program and the program is going to be completed in the -- probably in the next month. That was Marisa's question. Beatrice's question is regarding the continuous market and the timetable. I don't know.

Yes, I can take this one. The plan is to go to the first market before year-end. And the next steps is that in the next weeks, we will send notification to investors for a general shareholders' meeting.

And then we have a connected question from David Carmona from Finect, asking regarding if there is any risk of delay or slipping to 2027? Or what are the risks? What could make us postpone the move to the continuous market?

There is always a risk because the passing of the share to the main market depends also on the conversations that we have with the CNMV. So we -- this requires approval by the regulator. And therefore, there is always a timing risk, yes.

Okay. And part of the question from David is what are the next steps or the missing steps that we still have to take before moving to the continuous market? So what is...

I'm not sure we can -- we need to register the folleto, folleto is...

Prospectus.

The prospectus. In order to register the prospectus, we need to fill out a few things about governance and by different subjects. And all these things take time. All these things are to be supervised by the regulator. And yes, there is the possibility that we have a time difference.

Okay. Thank you, Ramón. A question from [ Dieter ] regarding the minimum investment that we have reduced on our funds -- mutual funds portfolio. So previously, it was EUR 2,000 minimum investment for new clients. Now it's EUR 1,000. And [ Dieter ] is asking if we plan to keep reducing it, for instance, down to EUR 500 in order to take on more potential clients, younger clients or early-stage investors. The calculation we make in order to define the minimum investment is that we calculate the marginal cost we have on the accounts, on the clients. And we aim of covering the marginal cost with the minimum investment. So we are continuously optimizing our cost, getting to scale effects. And as far as we manage to optimize the cost, we are able to reduce the minimum investment. So for now, the costs are covered with an investment around EUR 1,000. So that's okay. It means that we don't lose money on any account. If we manage to keep reducing the cost per account, then we would reduce the minimum investment. But I don't think it will happen in the short term because it's better to reduce the minimum once every few years than reducing slowly. There is a strong communication effort every time we change. So we -- the next move will probably be down to EUR 500, but it will come probably in a few years. Question -- another question from Marisa regarding the international projects and how is it going? And when do we expect Caravel France to break even and which market is next?

We are happy with the development of the international markets. We are happy with France. We are happy with Belgium. They are both growing strongly. Are we going to lose money in France or when are we going to break even? Well, we don't have a deadline for that. But what we know is that we need a few years before France is breakeven. Our idea, our objective is that every year, we lose a little bit less money than the previous year. But as I mentioned in the presentation, we believe that the bet we are taking in France is worthwhile taking it because the size of the market is 3x the size of Spain. With regards to the next market, there are no very short-term plans for a next market, okay? So what we want to do is basically to develop both the markets where we are right now, which are basically Belgium, France and Spain.

Yes. And a question -- so you answered also the question from [ Dieter ] regarding the next markets. And [ Dieter ] was also asking about how is it going in Belgium? So maybe I comment on this. In France, we have a local team and France is growing well. If we look at the last 12 months, we are growing 66% year-on-year. In Belgium, we are growing without a local team, and we are growing at the same pace, 66% as well. So it's -- Belgium is doing well, and it's an interesting case because in Belgium, we are managing to grow with no local team and actually with the work done from the French team or Spanish or the team located in Spain. Regarding the -- there is a question back to the minimum investment. [ Leire ] is asking if it had an impact on the number of clients and on the average investment per client? So we looked at that. It's a little early to draw conclusions because we reduced the minimum investment amount end of June. So we need a month to have a more solid conclusion. But the first data shows that we have an increase of the accounts opening around 20%. So we are opening around 20% more accounts than we were previously. And there is no impact on the average investment per client. Actually, in the last month, in July and August and what we -- in the first part of September, we see that the average investment per client is still increasing. So it looks like that it will have a positive -- significantly positive impact in number of accounts without reducing the average account. New question from...

Maybe I can read the one on [ Javier ] because you're going to have to answer. I think it's better if you answer it. So Javier mentions congratulations on an outstanding semester and a particularly strong second quarter. I have 2 questions. One, while OpEx has grown by 20% over the last 12 months, general expenses in the first half of 2026 have risen well above that, okay? You mentioned an extraordinary marketing expense in the first quarter, but I noticed that this increased spending has partially carried over into the second quarter, okay? What is the rationale here? And just to mention that I'm not sure we mentioned it's extraordinary, okay? But I will let you answer it.

Well, it's extraordinary in the sense that it's significantly higher than previous quarters. So marketing, we have increased marketing significantly -- marketing spending significantly this year. We plan to keep increasing it because we are acquiring clients at a good cost, and we see that we can acquire more clients. So when we see that we can accelerate growth and when we see that the payback on the investment is low because it's below 24 months. We are currently at 13 months. We keep increasing the marketing spend. When we increase the marketing spend, it has a direct effect on cost, of course, and on the net result of the year, and it will have a positive impact on the results of next year and the year after. So we are -- yes, we are ready to invest more. We are ready to reduce a little bit the short-term reserves in order to maximize the long-term results.

There is a second question by Javier related to the previous one, which is, is it related to competition, the increase in marketing expenses? Are you capitalizing on market weakness to offset the downturn with new customer acquisition? How should we expect this to evolve going forward?

Well, it's always related to competition. I mean, the acquisition, we are competing for the same customers with the others. But we accelerate or slow down the marketing investment regarding our own metrics. And our metric is that at the moment in 2026, we can acquire clients at a very reasonable client acquisition cost with a very reasonable payback so that it moves us to keep increasing the marketing investment. Regarding the downturn, I'm not sure we see a downturn. Portfolios are doing well. Clients are very, very happy. Most of the clients, almost 100% of the clients are -- have a positive balance on their accounts with us. So they keep recommending us and the snowball keeps rolling.

Yes, I would like to mention that related to competition, our main competitors are basically the big banks are Banco Santander, BBVA, La Caixa. That's where the money of the clients is today, and that's where the market share is today.

I'm jumping one question and then we get back. [ Dieter ] asking if we accelerate the marketing effort, how will we scale our operational capacity without reducing the current customer support quality?

I can take that one. We have no doubt that we will be able to scale our operational capacity as we have been doing in the last few years. So as an example, we have increased 50% our clients in the last 12 months, and we have just added 2 persons in the customer service at Indexa Capital Group. So -- and also with the introduction with the artificial intelligence, this has enabled us to be even more scalable. The number there is that more than 40% of the communications with our chat are handled by the chatbot. And we believe this will continue -- this number will continue growing. So no problem there.

Thank you, Unai. [Jorge ] is asking if we have plans for shareholder dividends.

We don't have a plan for shareholder dividends as long as we have projects ahead of us that can provide a return to the shareholders higher than the -- significantly higher than the return on capital required by the shareholders. We're not going to distribute the dividend. If the situation evolves in the future, we will reconsider this policy.