Flow Capital Corp.

Q2 2026 loan interest and royalty income increased 30% year over year to $4.2 million from $3.2 million. Free cash flow rose 88% to $1.66 million from $884,000, and free cash flow per share increased 96% to approximately $0.06 from $0.03. Book value per share increased 14% to $1.34 from $1.17, and equity book value rose to $39.3 million from $35.7 million in aggregate assets on equity in the quarter. Management said there was about a $1 million contribution to free cash flow from successful exits, fees, and prepayments, and noted foreign exchange also helped somewhat. Guidance-wise, the company did not provide formal next-quarter or full-year financial guidance, but said it had deployed over $9 million in Q3 to date and sees a fairly strong uptick in its pipeline after a period of slower deployment.

Alex Baluta said the quarter was solid overall but somewhat disappointing on deployment, with no new cash deployed in Q2 and several repayments. He said the slower deployment over the last 12 months has pressured recurring revenue growth, but added that this trend appears to be stabilizing and turning, with a stronger pipeline and good-quality deals. He also emphasized that Flow Capital remains selective as an evergreen fund, continues to add modest opportunistic equity positions, and is investing in internal AI tools and portfolio systems to improve efficiency and decision-making.

The new CFO, Matthew Gan, was introduced as an internal promotion after previously leading credit functions, but he did not provide separate prepared financial commentary beyond the company’s reported metrics. The financial discussion centered on the quarter’s higher free cash flow, improved book value per share, and the contribution from exits and foreign exchange. Management also highlighted capital allocation through share repurchases, saying Flow Capital has bought and retired over 17 million shares over 7 years at a cost of just under $7 million, and about 161,000 shares year-to-date.

There was no analyst Q&A; the operator said there were no questions at this time. As a result, no additional concerns or clarifications were raised on the call beyond management’s prepared comments about deployment, competitive pressure, and pipeline recovery.