Flow Traders: Net income down 84% in third quarter at €6.4M amid low volatility
Flow Traders published unaudited quarterly results on October 29, 2026, showing a sequential decline in profitability: third quarter EBITDA fell 72% compared to the second quarter, and net income fell 84% to €6.4M.
Over nine months, the picture differs. Net trading revenues advance 7% to €388.2M, driven by traditional ETF activity. Fixed costs, however, increase 19% over the same period, bringing cumulative EBITDA margin from 42% to 39%.
Third quarter: EBITDA down 72% to €17.5M
In the third quarter of 2026, the market maker's net trading income (NTI) stood at €84.5M, down 43% quarter-over-quarter. Total revenue reached €86.4M (−41%). Traditional activity fell 46% to €70.8M, and digital assets declined 15% to €13.8M.
Total operating expenses decreased 18% to €68.9M, driven by an 83% reduction in variable compensation, brought down to €4.1M. Fixed costs, however, increased 9% to €64.8M, driven by higher fixed personnel expenses (+20%) and technology spending (+12%).
Quarterly EBITDA thus stands at €17.5M, representing a margin of 20%, compared to 43% in the second quarter. Basic EPS stands at €0.15. According to consensus gathered on October 23, 2026 (one analyst only), the expected EPS for the quarter was €0.63 and revenues of €125M.
Average VIX at 16.0 and digital assets declining
The group attributes this quarter to weaker market activity and declining volatility. Average VIX returned to 16.0, compared to 18.3 in the second quarter and 20.3 in the first. ETF volumes traded across the entire market fell 6% to €20,550 billion.
Flow Traders' ETF volumes fell 2% to €553 billion. On a year-over-year basis, traditional NTI for the third quarter amounts to €70.8M, compared to €42.3M in the third quarter of 2025, a period when average VIX also stood at 16.0.
Digital assets follow a different trajectory. Their quarterly NTI reaches €13.8M, compared to €36.1M a year earlier, with centralized platform volumes touching multi-year lows according to the company. Over nine months, it declines 46% to €51.7M and now represents only 13% of total NTI, compared to 26%.
Trading capital stands at €1,137M, compared to €848M a year earlier. Its quarterly return has returned to 30%, compared to 53% in the second quarter and 37% in the third quarter of 2025.
Fixed costs for 2026 still expected between €235 and €245M
Over the first nine months, traditional NTI advances 26% to €336.4M, with increases of 45% in the United States, 31% in EMEA and 7% in Asia-Pacific. ETF volumes traded by the group increase 15% to €1,699 billion.
Fixed costs reach €180.2M (+19%), driven by technology spending, recruitment of experts and non-recurring items. Variable compensation remains stable at €58M. Cumulative EBITDA increases 2% to €153.4M, but interest charges rise from €1.3M to €15.2M.
Net income over nine months thus declines 1% to €97.6M, for basic EPS of €2.22. Chief Executive Officer Thomas Spitz described "disappointing financial results this quarter", while stating he is continuing the Horizon 2030 strategy, focused on research, technology and distribution.
The group has reiterated its forecast for fixed costs for fiscal year 2026, between €235 and €245M excluding interest on its private credit line, and deems the cumulative level of €180.2M consistent with this target. Annual results will be published on February 11, 2027.
