Flat Capital (FLAT) Q1 2026 earnings summary

Executive summary

• Net Asset Value (NAV) per share fell 47% quarter-over-quarter to SEK 7.35, mainly due to Klarna's share price decline, while unlisted holdings showed positive development and were written up by 104 MSEK, a 13% increase from the previous quarter.

• Major divestments of passive AI and software-related holdings generated 719 MSEK in proceeds and a realized profit of 525 MSEK, with a 3.7x MOIC and +130% IRR over the holding period.

• A new CEO, Rickard El Tarzi, was appointed, and significant board changes were made, including the addition of Johan Söör.

• Refinancing of a 1.1 BSEK loan with a new, more flexible 100 MUSD credit facility secured investment capacity for future opportunities.

Financial highlights

• NAV as of March 31, 2026: 3,659.5 MSEK, down from 6,926.9 MSEK at year-end 2025.

• Profit for the period: -3,267.6 MSEK (Q1 2025: -9.4 MSEK), driven by unrealized losses on listed holdings, primarily Klarna.

• Operating expenses: 8.4 MSEK (Q1 2025: 2.4 MSEK), 0.64% of average NAV annualized, with increased costs due to uplisting process and Nasdaq fees.

• Earnings per share: -6.56 SEK (Q1 2025: -0.16 SEK).

• Cash and cash equivalents: 169.2 MSEK as of March 31, 2026.

Outlook and guidance

• Management signals a strategic shift toward more active ownership and opportunistic global investments, with continued support for portfolio companies and a focus on long-term value creation.

• Over 600 MSEK in investment capacity remains available for new investments and acquisitions.