Flow Traders 3Q 2025 Trading Update

Core Insights - Flow Traders reported a significant decline in net trading income and total income for 3Q25 compared to 3Q24, with net trading income at €78.3 million, down 27%, and total income at €80.5 million, down 29% [4][6] - Despite the quarterly decline, year-to-date figures show growth, with net trading income increasing by 15% to €362.0 million and total income up 12% to €359.5 million [6][9] - The company secured a $200 million private credit facility and a $75 million revolving credit facility to support its strategic growth agenda [6][20] Financial Overview - Net trading income for 3Q25 was €78.3 million, down from €107.3 million in 3Q24, while total income decreased to €80.5 million from €114.6 million [4][6] - Year-to-date net trading income reached €362.0 million, a 15% increase from €313.9 million in the previous year, and total income was €359.5 million, up 12% from €320.4 million [6][9] - EBITDA for 3Q25 was €19.4 million, a 62% decrease from €50.9 million in 3Q24, with an EBITDA margin of 24% compared to 44% in the previous year [6][7] Trading Capital and Expenses - Trading capital stood at €848 million at the end of 3Q25, reflecting a 27% increase from €668 million at the end of 3Q24 [6][10] - Fixed operating expenses increased by 14% to €51.2 million in 3Q25, primarily due to higher employee and other expenses [6][7] - Total operating expenses decreased by 4% to €61.0 million in 3Q25, attributed to lower variable employee expenses [6][7] Market Environment - In Europe, equity trading volumes increased year-on-year but declined compared to the previous quarter, with market volatility showing a similar trend [12] - The U.S. equity trading volumes saw a double-digit increase year-on-year but were flat or slightly lower compared to the previous quarter [14] - In Asia, trading volumes were mixed, with increases in Hong Kong and China, while Japan experienced declines [16] Strategic Initiatives - The company is focused on expanding its trading capital and enhancing its technology capabilities to support greater volumes and improve operational efficiency [20][21] - Flow Traders aims to maintain and grow its market share in the traditional ETP industry while exploring innovations in products and distribution channels [20][21] - In the digital assets space, the company is involved in the tokenization of real-world assets and is preparing for 24/7 trading capabilities across various markets [22][23]