Flat Capital (FLAT) Q3 2024 earnings summary

Executive summary

• Net asset value (NAV) increased to 393 MSEK as of September 30, 2024, up 6.1% quarter-over-quarter, driven by upward revaluations in several portfolio holdings following new capital rounds.

• Profit for Q3 2024 was 22,482 KSEK, a significant turnaround from -29,053 KSEK in Q3 2023, mainly due to unrealized gains in portfolio companies.

• Investments during Q3 totaled 38,809 KSEK, including new stakes in SpaceX, Hemla, and a US-based AI hardware company.

• A rights issue of up to 80 MSEK was announced, 69% secured, to support further investments.

Financial highlights

• NAV per share rose to 8.00 SEK from 7.55 SEK in the previous quarter.

• Operating expenses for Q3 were 1,130 KSEK, representing 1.19% of average NAV annualized, down from 1.39% a year earlier.

• Profit per share for Q3 was 0.46 SEK, compared to -0.80 SEK in Q3 2023.

• For Jan–Sep 2024, profit after tax was -20,009 KSEK, an improvement from -57,831 KSEK in the same period last year.

• Net cash at quarter-end was 86,147 KSEK, or 1.76 SEK per share.

Outlook and guidance

• Management remains optimistic about Flat’s future, citing strong deal flow, positive momentum in AI-related holdings, and a robust cash position to pursue new investments.

• The rights issue is expected to further strengthen the company’s ability to invest in both new and existing portfolio companies.