Company Overview - Stack Capital Group Inc. reported its financial results for the quarter ended June 30, 2025, with all amounts in Canadian Dollars [1] - The Company aims to invest in growth-to-late-stage private businesses, providing shareholders with exposure to a diversified private investment portfolio [7] Financial Performance - As of June 30, 2025, the Book Value of the Company was $157.6 million, and the Book Value per Share was $14.34, an increase from $12.06 as of March 31, 2025 [3][5] - The Company marked up its investment in CoreWeave by US$25.7 million, reflecting a closing price of US$163.06 [5] - An additional US$3 million was invested in SpaceX during Q2-2025, with SpaceX's valuation increasing from US$350 billion to US$400 billion post-quarter [5] Investment Portfolio - The breakdown of Book Value per Share as of June 30, 2025, includes significant investments in various companies: - CoreWeave, Inc. (AI hyper-scaler): $4.25 - SpaceX: $2.47 - Locus Robotics, Inc. (autonomous robots): $1.26 - Canva, Inc. (graphic design): $1.23 - Omio, Inc. (travel & leisure): $1.05 - Hopper, Inc. (travel & leisure): $1.03 - Newfront Insurance, Inc. (insurance & benefits): $1.02 - Prove Identity, Inc. (cyber-security): $0.98 - Bolt Financial, Inc. (e-commerce): $0.48 - Shield AI, Inc. (military defense): $0.39 - Varo Money, Inc. (neo-banking): $0.13 - Cash: $0.50 - Net other assets: $(0.45) [4] Market Environment - The CEO of Stack Capital noted a robust IPO environment and strong momentum in private markets, particularly among disruptive companies in AI, LLMs, and robotics [3] - The Company remains focused on backing category-leading businesses that can deliver long-term value for shareholders [3]

Financial Data and Key Metrics Changes - The company ended the quarter with a net asset value (NAV) of $156.8 million or $6.66 per share, a slight decrease from $6.68 per share at the end of the previous year [19][37] - The decrease in NAV per share was primarily driven by a net investment loss, offset by an increase in unrealized appreciation of investments [37] Business Line Data and Key Metrics Changes - OpenAI announced a $40 billion funding round at a $300 billion post-money valuation, significantly up from its previous $7 billion round [9] - CoreWeave completed a $1.5 billion IPO at a valuation of approximately $23 billion, and its stock price increased over 35% post-IPO [11][13] - Canva reported annualized revenue exceeding $6 billion, marking an increase of over 30% year-over-year [15] Market Data and Key Metrics Changes - The Nasdaq experienced its worst quarterly performance since 2022, impacting private market valuations [6][7] - The S&P 500 saw significant volatility, with a drop of up to 12% before rebounding slightly [8] Company Strategy and Development Direction - The company is focused on AI infrastructure and applications, with significant investments in companies like OpenAI and CoreWeave [24] - The management believes the portfolio is well-positioned for future growth, particularly in AI and fintech sectors [23][42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the portfolio's positioning despite ongoing market volatility and uncertainties [8][24] - The company is seeing more investment opportunities than ever, particularly in AI and fintech [42] Other Important Information - The company made a $5 million investment in Plaid, which is expected to be its last private financing before going public [16] - The company has a note repurchase program for its 6% notes due 2026, having repurchased $35.3 million in aggregate principal [34] Q&A Session Questions and Answers Question: Plans for ServiceTitan position post-lockup expiration - Management indicated that they do not view themselves as holders of public securities and would exit the position in normalized market conditions [42] Question: Discount for unregistered shares - The discount applied to CoreWeave and ServiceTitan shares is due to their unregistered status, which will be removed once they are registered [48] Question: Return of capital to shareholders - Management stated that if net realized gains are achieved by year-end, a distribution would be made by then or early in the next quarter [52] Question: OpenAI's valuation and investment mark-up - Management clarified that the investment mark-up reflects a less than 100% increase due to the nature of the valuation adjustments [55]

Financial Data and Key Metrics Changes - The company ended the quarter with a net asset value (NAV) of $156.8 million or $6.66 per share, a slight decrease from $6.68 per share at the end of the previous year [20][38] - The decrease in NAV per share was primarily driven by a net investment loss, offset by an increase in unrealized appreciation of investments [38] Business Line Data and Key Metrics Changes - The top five positions as of March 31 accounted for approximately 46% of the investment portfolio at fair value, with the top 10 positions representing about 70% [21] - CoreWeave's stock price increased over 35% since its IPO, significantly outperforming broader market indices [14] - Canva reported over $6 billion in annualized revenue, marking an increase of more than 30% year-over-year [16] Market Data and Key Metrics Changes - The first quarter of 2025 saw significant declines in major indices, including the Nasdaq, Russell 2000, and Dow Jones Industrial Average, due to ongoing global trade tensions and new tariffs [6][7] - The S&P 500 experienced extreme volatility, with a drop of as much as 12% before rebounding [8] Company Strategy and Development Direction - The company is focused on AI infrastructure and applications, with significant investments in companies like OpenAI and CoreWeave, which are positioned for future growth [24] - The company continues to explore opportunities in fintech and consumer sectors, with a strong emphasis on AI and AI-adjacent companies [42] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the portfolio's positioning despite market challenges, highlighting the ongoing commitment of major tech companies to capital spending [8] - The company believes its portfolio is well-positioned for when the IPO window reopens, with many companies building fundamental momentum [8] Other Important Information - The company made a $5 million investment in Plaid, which is expected to be its last private financing before going public [17] - The company has a note repurchase program for its 6% notes due 2026, having repurchased $35.3 million in aggregate principal amount [35] Q&A Session Summary Question: Plans for ServiceTitan position post-lockup expiration - Management indicated that they do not view themselves as holders of public securities and would exit the position in normalized market conditions [42] Question: Discount applied to unregistered shares - The discount is related to the shares not being registered at the time of reporting, and it will be removed once the shares are registered [48] Question: Return of capital to shareholders - Management stated that if net realized gains are achieved by the end of the year, a distribution would be made by year-end or early in the next quarter [52] Question: OpenAI's valuation and investment mark-up - The investment in OpenAI was marked up approximately 60%, reflecting a more complex valuation increase than a simple doubling [56]