Earnings release
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Flow Capital Announces Q2 2026 Financial Results Revenue up 30% and Free Cash Flow up 88% year-over-year TORONTO, August 20, 2026 – Flow Capital Corp. (“Flow Capital” or the “Company”) (CSE:FW), a leading provider of flexible growth capital, alternative debt solutions, and equity investments for high-growth companies, announces its financial and operating results for the quarter ended June 30, 2026. All amounts are in Canadian dollars unless otherwise stated. Q2 2026 Performance Highlights Three months ended June 30, 2026, compared to the three months ended June 30, 2025 30.0% increase in loan interest and royalty income, to $4.2 million from $3.2 million 88.0% increase in Free Cash Flow to $1.6 million from $884 thousand 96.0% increase in Free Cash Flow per share to $0.057 from $0.029 14.0% increase in book value per share to $1.341 from $1.175 in the prior year Q2 2026 Free Cash Flow included $1.0 million in prepayment and associated fees received in connection with the early repayment from multiple loan investments. Six Months Ended June 30, 2026, Compared to Six Months Ended June 30, 2025 26.0% increase in loan interest and royalty income, to $7.7 million from $6.1 million 47.0% increase in Free Cash Flow to $2.5 million from $1.7 million 53.0% increase in Free Cash Flow per share to $0.087 from $0.057 “Revenue reached $4.2 million in Q2, up 30% year-over-year, and free cash flow increased to $1.6 million. The quarter benefited from $1.0 million in prepayment and associated fees, which lifts book value, deleverages our portfolio, and will be redeployed into other attractive opportunities.” said Alex Baluta, CEO of Flow Capital. Detailed financial results are available on our website at https://www.flowcap.com/investor-relations/2026 or on www.sedarplus.ca.
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Results of Operations (1) Free Cash Flow is an internally defined, non-IFRS measure calculated as total revenue less loan amortization income, salaries, professional fees, office and general administrative expenses, financing expenses, and restructuring costs. See the section “Use of Non-IFRS Financial Measures”. Flow Capital Corp. also paid a cash dividend of $0.069 per Series A Preferred Share on July 15, 2026, to shareholders recorded as of June 30, 2026. This dividend corresponds to the period from April 1, 2026, to June 30, 2026. Results of Operations (Unaudited) Three months ended June 30, 2026 Three months ended June 30, 2025 Six months ended June 30, 2026 Six months ended June 30, 2025 Loan interest income $ 4,086,646 $ 3,194,899 $ 7,415,453 $ 5,823,398 Financial royalty income 145,391 49,334 333,827 324,976 $ 4,232,037 $ 3,244,233 $ 7,749,280 $ 6,148,374 Fair value gains/(lossess) from changes in the value of financial assets (660,072) (1,927,430) (1,056,025) (2,018,000) Total revenue and net investment gains/(losses) 3,571,965$ 1,316,803$ 6,693,255$ 4,130,374$ Expected credit losses (recovery) 38,359 716,150 422,888 674,914 Financing expense 993,254 903,834 2,049,067 1,724,072 Salaries, benefits and staffing costs 647,257 725,664 1,273,701 1,332,063 Restructuring cost - 70,000 - 70,000 Gain/loss on loan modification - (343,765) - (32,779) Share-based compensation (66,348) 50,089 (33,538) 102,893 Professional fees 189,447 93,488 389,511 263,173 Office and general administrative 280,565 235,621 562,439 455,982 Total operating expenses 2,212,111 2,381,081 4,793,643 4,519,648 Gain/(losses) and other income Other income and gains/(losses) 73,949 447,612 77,131 455,020 Foreign exchange gains/(losses) 889,690 (1,518,568) 1,379,506 (1,607,944) Total gains/(losses) and other income 963,639 (1,070,956) 1,456,637 (1,152,924) Operating income (loss) before income taxes 2,323,493 (2,135,234) 3,356,249 (1,542,199) Total income tax expense (recovery) 696,022 (662,695) 907,603 (503,540) Net income 1,627,471$ (1,472,540)$ 2,448,646$ (1,038,659)$ Weighted average number of shares - Diluted 29,881,905 30,502,286 29,952,243 30,558,711 Earnings per share - diluted 0.055$ (0.048)$ 0.082$ (0.034)$ Free Cash Flow 1,660,712$ 884,129$ 2,541,472$ 1,731,240$ FCF per share 0.057$ 0.029$ 0.087$ 0.057$ Book value per share 1.341$ 1.175$ 1.341$ 1.175$ Loans and Royalty Assets 64,547,538$ 66,385,760$ 64,547,538$ 66,385,760$ Equity Securities 6,787,023$ 5,782,267$ 6,787,023$ 5,782,267$ Total Investments 71,334,561$ 72,168,027$ 71,334,561$ 72,168,027$ Total Assets 81,471,409$ 85,496,993$ 81,471,409$ 85,496,993$ Total Liabilities 42,130,127$ 49,808,842$ 42,130,127$ 49,808,842$ Total Shareholders' Equity 39,341,282$ 35,688,151$ 39,341,282$ 35,688,151$
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Conference Call Details Flow Capital will host a conference call to discuss these results at 9:00 a.m. Eastern Time, on Friday, August 21, 2026. Participants should call +1 800-717-1738 or +1 289-514-5100 and ask an operator for the Flow Capital Earnings Call, Conference ID 41411. Please dial in 10 minutes prior to the call to secure a line. A replay will be available shortly after the call. To access the replay, please dial +1 888-660-6264 or +1 289- 819-1325 and enter passcode 41411#. The replay recording will be available until 11:59 p.m. ET, September 04, 2026. An audio recording of the conference call will also be available on the investors’ page of Flow Capital’s website at https://www.flowcap.com/investor-relations/2026 About Flow Capital Flow Capital Corp. is a publicly listed provider of flexible growth capital, alternative debt solutions, and small equity investments for high-growth companies. Since its inception in 2018, the company has provided financing to businesses in the US, the UK, and Canada, helping them achieve accelerated growth without the dilutive impact of equity financing or the complexities of traditional bank loans. Flow Capital focuses on revenue-generating, VC-backed, and founder-owned companies seeking $1 to $15 million in capital to drive their continued expansion. High-growth companies seeking covenant-light founder-friendly growth capital are invited to apply for funding directly at www.flowcap.com/get-funding. For further information, please contact: Flow Capital Corp. Matthew Gan Chief Financial Officer matthew@flowcap.com 47 Colborne St, Suite 303, Toronto, Ontario M5E 1P8 Non-IFRS Financial Measures This press release includes references to the non-IFRS financial measure " Free Cash Flow." This financial measure is employed by the Company to measure its operating and economic performance, to assist in business decision-making, and to provide key performance information to senior management. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain
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investors and analysts use this information to evaluate the company’s operating and financial performance. This financial measure is not defined under IFRS, nor does it replace or supersede any standardized measure under IFRS. Other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure. Reconciliations of non-IFRS measures to the nearest IFRS measure can be found in this press release under "Reconciliation of Non-IFRS Measures." Reconciliation of Non-IFRS Measures The table below reconciles Free Cash Flow for the periods indicated. Free Cash Flow is an internally defined, non-IFRS measure calculated as loan interest income less loan amortization income, salaries, benefits and staffing costs, professional fees, office and general administrative and financing expenses. Forward-Looking Information and Statements Certain statements herein may be “forward-looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Flow or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward-looking statements. These forward-looking statements reflect current assumptions and expectations regarding future events and operating performance and are made as of the date hereof, and Flow assumes no obligation, except as required by law, to update any forward- looking statements to reflect new events or circumstances. Reconciliation of free cash flow to loan interest revenue Three months ended J une 30, 2026 Three months ended J une 30, 2025 Six months ended J une 30, 2026 Six months ended J une 30, 2025 Loan interest and financial royalty income 4,232,037$ 3,244,233$ 7,749,280$ 6,148,374$ Loan amortization income 510,686 438,206 1,032,329 717,157 Salaries, benefits, and staffing costs 647,257 725,664 1,273,701 1,332,063 Professional fees 189,447 93,488 389,511 263,173 Office and general administrative 280,565 235,395 562,439 455,312 Transaction cost amortization (49,885) (36,483) (99,238) (74,191) Financing expense 993,254 903,834 2,049,067 1,724,072 Free cash flow (FCF) 1,660,712$ 884,129$ 2,541,472$ 1,731,240$