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Introduction & Market Context
Flow Traders NV ( AMS (VIE:AMS2):FLOW) reported exceptional second-quarter 2025 results on July 31, showcasing substantial growth across all key financial metrics. The Amsterdam-based electronic liquidity provider capitalized on increased market volatility and growing ETP trading volumes to deliver a remarkable performance, with net profit soaring 295% year-over-year.
The company’s shares closed at €26.44 on July 30, down 1.27% ahead of the earnings release, but still significantly above the €24.40 level seen after Q1 2025 results. The latest quarterly performance represents a strong rebound from the first quarter, when the company reported a decline in net profit that triggered a 19.31% stock price drop.
Flow Traders benefited from favorable market conditions in Q2, with market ETP value traded increasing 50% year-over-year and average implied volatility (VIX) rising 67%. These conditions created an ideal environment for the company’s market-making activities.
Quarterly Performance Highlights
Flow Traders delivered exceptional financial results in Q2 2025, with growth across all key metrics. Total (EPA:TTEF) income reached €143.4 million, representing an 89% increase compared to Q2 2024. This strong top-line performance translated into even more impressive profitability metrics.
As shown in the following comprehensive financial overview:
EBITDA surged to €68.0 million, up 210% year-over-year, with EBITDA margin expanding significantly from 29% to 47%. Net profit reached €51.3 million, a 295% increase from Q2 2024, resulting in earnings per share of €1.18 compared to €0.30 in the same period last year.
The company’s trading activities also showed substantial growth, with ETP value traded increasing 42% year-over-year to €492 billion, while total value traded rose 14% to €1.692 billion. These results demonstrate Flow Traders’ ability to effectively capitalize on market opportunities and generate strong returns.
Detailed Financial Analysis
Flow Traders maintained strong cost discipline despite its growth trajectory. Fixed operating expenses increased modestly to €23.4 million in Q2 2025 from €20.4 million in Q2 2024, representing a 15% year-over-year increase. This controlled expense growth, combined with the 89% increase in total income, resulted in significant operating leverage.
The company’s headcount remained relatively stable, with 607 full-time employees at the end of Q2 2025, compared to 601 in March 2024. This modest 1% increase in personnel, despite the substantial growth in business activity, further demonstrates the scalability of Flow Traders’ business model.
As illustrated in the following operating expense and margin chart:
The EBITDA margin expansion to 47% in Q2 2025 from 29% in Q2 2024 highlights the company’s ability to convert additional revenue into profit. This represents a continuation of the strong 46% EBITDA margin reported in Q1 2025, suggesting the company has established a sustainable level of profitability.
Competitive Industry Position
Flow Traders operates in a growing global ETP market that continues to expand in terms of both assets under management and trading volumes. The company’s presentation highlighted that market ETP value traded increased by 50% year-over-year in Q2 2025, while ETP assets under management grew to €14,876 billion, up 7% by the end of the quarter.
The following chart illustrates the growth in the global ETP market:
Flow Traders has positioned itself to benefit from several market dynamics, including increased ETP velocity and rising volatility. The company also highlighted growth in fixed income and cryptocurrency markets, with global crypto ETP value traded reaching €120 billion in Q2 2025, up significantly from just €7 billion in Q2 2022.
The company’s regional performance shows strength across multiple geographies. In Europe, Flow Traders maintained its position as a leading liquidity provider in ETPs. The Americas region benefited from increased trading activity following "Liberation Day" tariff announcements, while Asia saw elevated trading volumes in Hong Kong and China.
The following regional breakdown illustrates the company’s global performance:
Strategic Initiatives
Flow Traders outlined four key mega-trends that support its long-term growth strategy. These include continued ETP market growth, with projections of $25 trillion in assets under management by 2030; increasing electronification of trading, with approximately 50% of volumes now executed in Euro credit; expansion in digital assets, with the tokenized real-world asset market expected to reach $30 trillion by 2030; and a conducive regulatory environment.
As illustrated in the following strategic overview:
To capitalize on these trends, Flow Traders is focusing on four strategic pillars: optimizing its core business and growing trading capital; diversifying the business and exploring adjacent growth opportunities; leveraging and building out proprietary infrastructure; and increasing research capabilities and speed of iteration.
The company’s strategic framework is visualized as follows:
Forward-Looking Statements
Flow Traders’ Q2 2025 results represent a significant improvement over Q1 2025, when the company reported a net profit of €36.3 million and EPS of €0.84. The Q2 performance suggests that the company has successfully navigated the challenges that affected its Q1 results and is on a strong growth trajectory.
The company’s presentation emphasized its structural growth potential, highlighting that its net trading income has consistently outperformed implied market volatility over time. This indicates that Flow Traders’ business expansion is driven by more than just favorable market conditions, suggesting sustainable long-term growth potential.
Looking ahead, Flow Traders appears well-positioned to benefit from continued growth in the ETP market and expansion in digital assets. The company’s strong capital position, with growing trading capital and shareholders’ equity, provides a solid foundation for future growth initiatives.
While the presentation did not provide specific guidance for the remainder of 2025, the company’s strategic focus on optimizing its core business, diversifying revenue streams, and leveraging technology suggests continued investment in long-term growth opportunities. Based on the Q1 earnings call, fixed operating expenses for the full year 2025 are projected to be between €190 million and €210 million.
Full presentation:
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