Flow Capital (FW) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 rose 30% year-over-year to CAD 4.2 million, driven by loan interest, royalty income, and prepayment fees from early loan repayments.

• Free cash flow increased 88% to CAD 1.66 million, with free cash flow per share up 96% to CAD 0.06.

• Book value per share grew 14% to CAD 1.34, and equity book value increased to CAD 39.3 million.

• Net income for Q2 2026 was CAD 1.63 million, compared to a net loss of CAD 1.47 million in Q2 2025.

• Portfolio remains healthy with over 40 holdings, including both debt and equity positions.

Financial highlights

• Loan interest and royalty income grew 30% year-over-year to CAD 4.2 million in Q2 2026.

• Free cash flow rose to CAD 1.66 million from CAD 884,000 year-over-year.

• Book value per share reached CAD 1.34, up from CAD 1.17.

• Equity book value increased from CAD 35.7 million to CAD 39.3 million.

• Earnings per share (diluted) for Q2 2026 was CAD 0.055, up from a loss of CAD 0.048 per share in Q2 2025.

Outlook and guidance

• Deployment activity was zero in Q2, but over CAD 9 million has been deployed in Q3 to date.

• Pipeline is strengthening with higher quality deals, indicating a potential rebound in recurring revenue growth.

• Management highlighted the redeployment of capital from early loan repayments into new opportunities, supporting future growth.

• Management expects stabilization and improvement in deployment trends.

• Forward-looking statements caution about risks and uncertainties that may impact future results.