Flow Traders (FLOW) Q2 2024 earnings summary

Executive summary

• Net trading income and total income rose sharply year-over-year in Q2 2024, with net profit reaching €12.8m and EPS at €0.30, reversing a prior-year loss.

• ETP value traded increased 4% year-over-year, with digital assets showing strong annual growth but declining sequentially due to lower U.S. spot Bitcoin ETF flows.

• Maintained leading ETP liquidity provider status, supported U.S. spot Bitcoin ETF launches, and expanded digital asset and China operations.

• Trading capital expanded to €624m, with a multi-layered plan including dividend suspension and new debt funding.

• Continued focus on growth, diversification, and operational efficiency despite subdued volatility and mixed trading conditions.

Financial highlights

• Total income for Q2 2024 was €161.9m, up from €76.2m in Q2 2023.

• EBITDA for Q2 2024 was €21.1m, with margin reported between 13% and 28% depending on calculation.

• Net profit amounted to €12.8m; basic EPS was €0.30, up from a loss in Q2 2023.

• Fixed operating expenses were €44.9m, flat year-over-year; total operating expenses rose 15% to €55.2m.

• €5.3m in shares repurchased during the quarter as part of a €15m buyback program.

Outlook and guidance

• Fixed operating expenses for FY24 expected to remain in line with FY23, with headcount flat to down, offset by technology investments and inflation.

• Strategic review concluded significant opportunity for further growth, with a focus on expanding trading capital.

• Industry ETP AUM projected to double to $25 trillion by 2030; fixed income ETF AUM expected to triple to $6 trillion.

• Digital assets seen as a long-term growth opportunity, with regulatory developments and institutional adoption accelerating.

• Continued focus on operational and cost efficiencies while pursuing growth and diversification strategies.