Flow Traders NV Q2:26: A solid revenue-driven beat; New digital asset disclosures helpful

Research evidence excerpt

Flow Traders NV Q2:26: A solid revenue-driven beat; New digital asset disclosures helpful

Forecast returns

Forecast price appreciation 14.2%

Forecast dividend yield 0.0%

Forecast stock return 14.2%

Market return assumption 7.8%

Forecast excess return 6.4%

Company Description

Flow Traders is an independent, technology-based, ETP-focused, market-neutral liquidity

provider and market maker. The company was founded in the Netherlands in 2004, when

ETPs started becoming more popular in Europe. Since then, the company has opened offices

in 7 other regions to expand its reach globally. Flow Traders generates revenue through the

bid-ask spread on the volume of ETPs it trades. It does not take directional bets, and aims to

hedge trades instantaneously and automatically.

Valuation Method and Risk Statement

We value Flow Traders using a targeted PB multiple derived using the Gordon growth model.

Main risks for Flow Traders include: 1) the company is exposed to fluctuations in volatility,

which can change in response to numerous factors often with little predictability and for

uncertain durations; 2) enhanced regulatory scrutiny could result in changes to market

structure and additional requirements which might limit the company's ability to grow

revenue or create added costs; 3) Flow Traders' business model is predicated on its proprietary

technology, and any unexpected system shutdowns or difficulties could result in significant

losses; 4) increased competition could put pressure on spreads and diminish Flow Traders'

market share in any given market it provides liquidity in; and 5) FLOW is subject to a takeover

offer from another company.

First Read: Flow Traders NV 30 July 2026 ab 3