Flow Capital (FW) Q1 2025 earnings summary

Executive summary

• Loan interest revenue rose 45% year-over-year to CAD 2.9 million for Q1 2025, marking the seventh consecutive quarter of revenue growth.

• Recurring free cash flow reached a record CAD 847,111, up 104% year-over-year.

• Book value per share reached CAD 1.22 at quarter end.

• CAD 3.2 million in new loan capital was deployed, all to existing high-performing companies.

• The quarter marks the 23rd consecutive quarter of positive free cash flow.

Financial highlights

• Total revenues were CAD 2.55 million, up from CAD 1.91 million year-over-year.

• Net income was CAD 433,881, down from CAD 720,237 in Q1 2024.

• Recurring free cash flow per share was CAD 0.028 for the quarter, up from CAD 0.013 year-over-year.

• Book value per share rose to CAD 1.22 from CAD 1.20 in Q4.

• Total assets increased 13% year-over-year to CAD 74.1 million.

Outlook and guidance

• Management expects continued operating leverage and growth as the business scales, with significant room for further improvement in net expense ratio.

• The pipeline remains robust, though lumpy, supporting ongoing growth.

• Management highlighted continued strong growth and positive recurring cash flow, entering the sixth consecutive year of positive recurring cash flow.