Flow Capital (FW) Q2 2025 earnings summary

Executive summary

• Achieved eighth consecutive quarter of sequential revenue growth, with Q2 2025 loan interest revenue up 54% year-over-year to $3.2 million and up 7% sequentially from Q1 2025.

• Six-month revenue increased 49% year-over-year, reflecting strong business momentum.

• Record deployment of $16.3 million in new investments during the quarter, up from $9.3 million a year ago.

• Total investments value increased 39% year-over-year to $72.2 million.

• Portfolio IRR over the past seven years remains above 22%.

Financial highlights

• Recurring free cash flow rose 212% year-over-year to $884,129 for the quarter; six-month recurring free cash flow reached $1.7 million, up 148%.

• Free cash flow per share for the first six months was just under $0.06, up 152% year-over-year.

• Recurring free cash flow per share for Q2 2025 was $0.0290, up from $0.0092 a year ago.

• Basic earnings per share for Q2 2025 was $(0.0483), compared to $0.0062 in Q2 2024.

• Book value per share declined by $0.03 from December 2024, impacted by FX losses, credit loss increases, and conservative warrant valuation.

Outlook and guidance

• Operating leverage expected to improve as business scales, with continued focus on conservative warrant valuation.

• Management highlights continued strong growth and positive free cash flow as indicators of business model strength and execution.

• Pipeline remains lumpy, with increased competition from banks returning to the venture debt market.

• Forward-looking statements caution about significant risks and uncertainties affecting future results.