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Introduction & Market Context
Flow Traders NV (AMS:FLOW) released its third-quarter 2025 trading update on October 30, revealing a sharp decline in profitability despite growth in ETP market volumes. The company’s stock fell 6.96% to €23.26 following the announcement, as investors reacted to the significant year-over-year profit decline.
The market maker reported a 71% drop in net profit to €10.9 million for Q3 2025, down from €37.6 million in the same period last year, despite a 17% increase in ETP value traded. The results highlight the challenging trading environment faced by the company, characterized by lower volatility and compressed margins.
As shown in the following snapshot of key performance indicators:
Quarterly Performance Highlights
Flow Traders’ total income fell 29% year-over-year to €80.5 million in Q3 2025, while EBITDA plunged 62% to €19.4 million. The EBITDA margin contracted significantly to 24%, compared to 44% in Q3 2024, reflecting pressure on profitability despite higher trading volumes.
The company reported earnings per share of €0.25 for the quarter, bringing the year-to-date figure to €2.26. While ETP value traded increased 17% year-over-year to €426 billion, total value traded across all asset classes decreased slightly by 2% to €1,528 billion.
Fixed operating expenses increased by 14% year-over-year to €51.2 million, primarily due to higher employee and other expenses, further pressuring margins. The company updated its fixed operating expenses guidance for the full year to €200-205 million.
The global ETP market continued to show strong growth, with market ETP value traded increasing 47% year-over-year to reach a new record high. ETP assets under management grew 12% quarter-over-quarter to a record €15,975 billion, while average implied volatility decreased by 7% year-over-year and 32% quarter-over-quarter.
As illustrated in the following chart showing global ETP market growth:
Regional Analysis
Flow Traders’ performance varied significantly across regions, with the Americas segment experiencing the steepest decline. Revenue in the Americas fell 79% year-over-year to €15 million in Q3 2025, despite a 33% increase in market ETP value traded to €12,663 billion.
The European segment saw revenue decline by 34% to €46 million, while the Asian segment’s revenue dropped 20% to €59 million. The company noted that European market activity declined seasonally, while the Americas experienced declines in both market activity and volatility. Asian performance was mixed, varying by country.
The following regional breakdown illustrates these performance differences:
Strategic Initiatives
Despite the challenging quarter, Flow Traders announced significant steps to strengthen its financial position. The company secured a $200 million private credit facility and a $75 million revolving credit facility, which will increase its total trading capital base to over €1 billion.
Trading capital has increased by 36% since Q2 2024 to €848 million, while shareholders’ equity has grown by 31% to €834 million over the same period. The company emphasized that it is systematically bolstering its trading capital base to support future growth opportunities.
As shown in the following chart detailing the growth in trading capital and return metrics:
The company’s focus on expanding its capital base comes as it looks to capitalize on growth opportunities in various markets. Flow Traders has highlighted particular interest in expanding its presence in the Asia and APEC regions, according to the earnings call transcript.
Market Dynamics
Flow Traders’ presentation highlighted interesting developments in fixed income and cryptocurrency markets. The crypto sector showed particularly strong growth, with global crypto ETP value traded increasing substantially from previous quarters.
Bitcoin prices and trading volumes have shown significant fluctuations, while fixed income markets presented a mixed picture. These market dynamics provide important context for understanding the company’s trading performance across different asset classes.
The following chart illustrates these fixed income and crypto market trends:
Forward-Looking Statements
Despite the challenging quarter, Flow Traders maintains a positive outlook on the global ETP market, noting that the "strong growth outlook remains intact." The company is focusing on deploying additional trading capital in ETF, crypto, and Asian markets.
Management expressed confidence in generating over a 50% return on trading capital going forward, despite the current margin pressure. The company has scheduled a Capital Markets Day next year to outline its strategic vision in more detail.
However, investors should be mindful of several risks, including rising operating expenses that could continue to pressure margins, limited participation in certain markets due to capital constraints, and the company’s dependence on market conditions and volatility for revenue generation.
The steady increase in trading capital, coupled with the new credit facilities, positions Flow Traders to potentially capitalize on market opportunities when volatility returns, though the timing of such a recovery remains uncertain.
Full presentation:
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