Core Insights - Flow Traders Ltd. reported a decline in net trading income and total income for 4Q25 compared to 4Q24, with net trading income at €123.8 million, down 20%, and total income at €121.0 million, down 24% [4][5] - For the full year 2025, net trading income increased by 4% to €485.8 million, while total income remained flat at €480.5 million [4][5] - The company experienced a significant increase in ETP value traded, with a 22% rise in 4Q25 to €516 billion and a 26% increase for the full year to €1,940 billion [4][7] Financial Performance - Fixed operating expenses rose by 17% to €52.4 million in 4Q25, primarily due to increased employee and technology expenses [4] - Total operating expenses decreased by 6% to €71.8 million in 4Q25, attributed to lower variable employee expenses [4] - EBITDA for 4Q25 was €49.2 million, a decrease of 41% year-on-year, with an EBITDA margin of 41% compared to 52% in 4Q24 [4][5] Profitability Metrics - Net profit for 4Q25 was €35.1 million, down 44% from €63.2 million in 4Q24, resulting in basic and diluted EPS of €0.81 and €0.78, respectively [4][5] - Full year net profit decreased by 16% to €133.6 million, with basic EPS of €3.07 and diluted EPS of €2.98 [4][5] Regional Revenue Breakdown - In 4Q25, revenue from Europe was €76.9 million, down 12% year-on-year, while the Americas saw an 11% increase to €20.2 million, and Asia experienced a 56% decline to €23.9 million [2][6] - For the full year, European revenue increased by 3% to €281.7 million, while revenue from the Americas decreased by 18% to €76.8 million, and Asia's revenue increased by 9% to €122.0 million [2][6] Market Environment - European equity trading volumes increased in 4Q25 compared to the previous year and the third quarter, with average volatility remaining relatively flat [10] - In the Americas, equity trading volumes on Nasdaq and NYSE also saw increases year-on-year and quarter-on-quarter, while fixed income trading volumes decreased quarter-on-quarter but increased year-over-year [13] - Asian equity trading volumes showed mixed trends, with increases in Hong Kong and Shanghai but declines quarter-on-quarter [14] Strategic Initiatives - The company is focusing on expanding its global ETP leadership and enhancing its trading infrastructure through investments in technology and AI [17][18] - Flow Traders has launched operations in China, aiming to tap into this growth segment aligned with its ETP strengths [19] - A strategic partnership with Dinari has been established to provide 24/7 trading of tokenized U.S. equities, reflecting the company's commitment to innovation in digital assets [23]