Flow Traders (FLOW) Q3 2024 earnings summary

Executive summary

• Q3 2024 marked the best third quarter in company history, with strong growth in ETP and total value traded year-over-year, driven by increased market activity and volatility.

• Net Trading Income rose 59% year-over-year to €107.3m, and Total Income increased 69% to €114.6m.

• Net profit surged to €37.5m, nearly six times higher than Q3 2023, with EBITDA margin reaching 44%.

• Strategic capital expansion, including a €25m bank loan and dividend suspension, enabled rapid response to market volatility.

• Completed €15m share buyback program and increased trading capital to support growth.

Financial highlights

• Total income reached €114.6m, up 69% year-over-year; Net Trading Income was €107.3m.

• EBITDA was €50.5m, a four-fold increase year-over-year, with a margin of 44%.

• Net profit was €37.5m, with basic EPS of €0.87, nearly six times higher than Q3 2023.

• Trading capital rose 7% to €668m, the second highest in company history.

• Fixed operating expenses were €45.3m, down from 3Q23 due to absence of one-off costs.

Outlook and guidance

• Fixed operating expenses for FY24 expected to remain in line with FY23, with headcount stable and continued tech investment.

• Company positioned to deliver consistent results in muted markets and strong upside in volatile periods.

• Multi-layered trading capital expansion plan underway to capture growth opportunities.

• Board to seek further debt financing to expand trading capital and accelerate growth.

• Well-prepared for upcoming market events, including the U.S. election, with scenario planning and capital allocation strategies.