Flow Capital (FW) Q4 2025 earnings summary

Executive summary

• Revenue for the year ended December 31, 2025, reached CAD 13.2 million, up 41% year-over-year, marking the highest in company history, with Q4 revenue up 33% to CAD 3.6 million.

• Recurring free cash flow increased 79% to CAD 3.4 million, or CAD 0.11 per share, with Q4 recurring free cash flow up 66% to CAD 900,000.

• Achieved 10 consecutive quarters of revenue growth, with total investments growing 22% to CAD 73.5 million by year-end.

• Book value per share rose to CAD 1.27 from CAD 1.20 at the prior year-end.

• Portfolio IRR over the past seven years stands at 24%, reflecting strong risk management and underwriting.

Financial highlights

• Loan interest income for 2025 was CAD 12.6 million, up from CAD 8.7 million in 2024.

• Net income for 2025 was CAD 947,703, compared to a net loss of CAD 852,537 in 2024.

• Earnings per share (diluted) improved to CAD 0.031 in 2025 from (CAD 0.028) in 2024.

• Q4 2025 saw CAD 4.5 million in new investments, up from CAD 2.5 million in Q4 2024.

• Repayments totaled CAD 12 million across four deals, with CAD 470,000 in early prepayment fees.

Outlook and guidance

• Management expects pricing pressure in the private credit market to ease in coming quarters, potentially supporting continued capital deployment.

• Anticipates slower growth rate in the near term due to selective deployment and industry headwinds.

• Expects deal volume for minimally dilutive growth capital to recover over the coming quarters.

• Management highlighted continued revenue growth and strong recurring free cash generation, emphasizing ongoing investment activity.

• Forward-looking statements caution that actual results may differ due to risks and uncertainties.