Evli released its result for the period January-March 2026. The year got off to a favorable start – both net revenue and operating profit increased. The growth was driven by higher fund management fees as well as performance-based fees earned through successful portfolio management. Despite the challenging market environment, net subscriptions to traditional mutual funds were approximately EUR 130 million. Interest in alternative funds remained high, with new capital raised totaling approximately EUR 80 million during the first quarter of the year.
Financial performance January-March 2026 (comparison period 1–3/2025)
- Net revenue was EUR 34.8 million (EUR 27.7 million).
- Operating profit was EUR 16.1 million (EUR 11.4 million).
- Operating result of the Wealth Management and Investor Clients segment increased to EUR 17.2 million (EUR 10.1 million).
- Operating result of the Advisory and Corporate Clients segment decreased to EUR -0.1 million (EUR 1.3 million).
- At the end of March, net assets under management amounted to EUR 21.5 billion (EUR 19.0 billion), including assets managed by associated companies. Assets under management excluding the associated companies amounted to EUR 19.0 billion (EUR 16.7 billion).
- Return on equity was 33.6 percent (28.0%).
- The ratio of recurring revenue to operating costs was 127 percent (130%).
- Earnings per share, fully diluted, were EUR 0.39 (EUR 0.27).
The war in Iran led to a complete reversal for a positively started year
The year 2026 got off to a positive start, buoyed by favorable global economic growth expectations, low interest rates, and rising earnings forecasts. Equity prices rose broadly until the end of February, when the war launched by the United States and Israel against Iran triggered a sharp reversal in the markets.
“Fears of slowing growth, higher energy prices, constrained commodity availability, accelerating inflation, and rising interest rates prompted investors to reduce their risk exposure. The situation was compounded by Iranian retaliatory strikes on oil and gas production facilities in the Persian Gulf and the closure of the Strait of Hormuz to maritime traffic, which drove crude oil prices higher and reduced delivery volumes,” says CEO Maunu Lehtimäki.
Beyond geopolitical risks, investors have also been pricing in the threat that the rapid advancement of artificial intelligence (AI) poses to companies' future business prospects. As AI displaces manual labor and renders numerous products obsolete, earnings outlooks are at particular risk in the SaaS and software industries, as well as in knowledge-intensive sectors. Share prices in the software sector have as a result fallen sharply, and the private credit funds financing these companies have also encountered significant difficulties as redemption requests have increased. By contrast, the broader benefits that AI advancement stands to deliver through improvements in the quality and efficiency of corporate operations have yet to be reflected in analysts' earnings forecasts and equity valuation multiples.
“At Evli, we are also investing in leveraging AI in the development of new services, reporting, and processes. We view AI primarily as an excellent tool for broadening and deepening the analysis and coverage of our investment universe,” Lehtimäki says.
Returns across major asset classes fell well short of expectations
Global equity markets declined in the first quarter by 1.5 percent as measured by the MSCI World index and by 2.7 percent as measured by the S&P 500 index. In Europe, equity prices fell by 1.1 percent as measured by the STOXX 600 index. Emerging market equities rose by 1.1 percent.
The U.S. dollar strengthened against the euro by 1.6 percent, and the price of gold rose by 8 percent. The yield on Germany's 10-year government bond rose by 15 basis points to 3.0 percent. Corporate bond spreads widened by 16 basis points in the investment grade category and by 60 basis points in the high yield category. Overall, returns across major asset classes fell well short of expectations during the quarter.
Evli's net revenue increased by 26 percent and operating profit by 41 percent
Evli Group's net revenue increased by 26 percent year-on-year in the first quarter to EUR 34.8 million (EUR 27.7 million).
“The best-performing areas were fee income from traditional and private equity funds and performance-based fees, all of which grew compared to the previous year. Advisory fees, brokerage revenues, and returns from the Group's own balance sheet items were below the prior year level,” Lehtimäki describes.
The Group's operating profit increased by 41 percent in the first quarter to EUR 16.1 million (EUR 11.4 million). The growth in operating profit was driven by higher fund fee income and performance-based fees recognized during the period, which were significantly higher than in the comparison period. Evli's return on equity from the beginning of the year was 33.6 percent (28.0%), and the ratio of recurring revenue to operating costs was 127 percent (130%). The Group's solvency and liquidity were at an excellent level.
“Evli's strategically important areas, international sales and alternative investment products, developed reasonably well during the review period, taking into account the market turbulence towards the end of the quarter. Net subscriptions from international clients amounted to approximately EUR −29 million, and the share of international clients in Evli's total fund capital, including alternative investment products, was 24 percent (21%),” Lehtimäki says.
Assets under management were in line with year-end levels
Assets under management were broadly in line with 2025 year-end levels at EUR 21.5 billion (EUR 19.0 billion). Evli Fund Management Company's mutual fund capital, including alternative investment products, amounted to EUR 16.4 billion (EUR 13.8 billion). Net subscriptions in traditional mutual funds during the quarter amounted to approximately EUR 130 million. Net subscriptions and investment commitments in alternative investment products during the quarter totaled EUR 80 million (EUR 70 million). Assets under management in alternative investments stood at EUR 3.4 billion at the end of the quarter.
”In times of uncertainty, Evli's ability to operate steadily even in exceptional market conditions comes to the fore. Our business is not built on isolated decisions or short-term maneuvers, but on long-term commitment, a clear strategy, and a strong corporate culture. This creates the foundation upon which Evli can continue to build, even in a changing and uncertain operating environment,” Lehtimäki adds.
Outlook for 2026
The beginning of the year has been turbulent on the investment markets, and the operating environment is expected to remain uncertain and difficult to predict. The expansion of geopolitical risks and concerns about the sustainability of economic growth are increasing uncertainty in the markets. The weakening of investor confidence and the decline in market values could have a negative impact on Evli's commission income as well as the return on its own investment portfolio.
Despite the challenging operating environment, Evli has succeeded in strengthening its market position. Growth has been supported by a wide range of products and a broad client base. With a strong market position and positive growth prospects, we estimate the operating profit to be clearly positive.
