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Thomas Spitz will join as Chief Executive Officer from 1 September 2025
Amsterdam based proprietary trading firm Flow Traders has reported its strongest quarterly results in company history, with net trading income soaring 80% to €143.4 million in the second quarter of 2025, driven by a sharp increase in market volatility across traditional asset classes.
The firm, which provides liquidity across multiple asset classes on major global exchanges, posted total income of €143.9 million for the quarter, up 89% from €76.2 million in the same period last year. Net profit surged 295% to €51.3 million, yielding earnings per share of €1.18.
The results mark Flow Traders' fourth consecutive quarter of triple-digit net trading income, with Chief Executive Officer Mike Kuehnel describing this as "the first time in the Company's history" such performance has been sustained.
Trading capital reached €831 million at quarter-end, generating a 75% return on average trading capital as the firm benefited from retained profits under its Trading Capital Expansion Plan implemented in July 2024.
Exchange-traded product value traded increased 42% to €492 billion compared to €347 billion in the second quarter of 2024, whilst overall market ETP value reached €16.5 trillion, up 50% year-on-year, indicating robust investor appetite for these instruments globally.
The strong performance coincided with heightened market conditions, particularly in April when volatility spiked across equity markets after nearly two years of relatively subdued activity. The average VIX index climbed to 23.6 in the second quarter from 14.2 in the same period last year.
Regional performance showed significant growth across all markets, with Asia delivering the strongest gains at 147% to €35.1 million, followed by the Americas at 125% to €30.2 million, and Europe rising 62% to €78.7 million.
Operating expenses rose 40% to €76 million, primarily due to higher variable employee compensation linked to the improved trading performance. Fixed operating expenses increased 15% to €49.8 million, driven by technology investments and additional headcount in growth areas.
The firm employed 607 full-time equivalents at quarter-end, slightly down from 619 at the end of the first quarter but up from 594 a year earlier.
Flow Traders announced separately that Thomas Spitz will join as Chief Executive Officer from 1 September 2025, subject to regulatory and shareholder approval, taking over from Kuehnel who has led the company's expansion into digital assets and geographic diversification.
Market conditions varied significantly across regions during the quarter. European equity trading volumes saw low double-digit increases year-on-year but declined slightly from the first quarter, with volatility rising by mid double-digit percentage points. However, much of the increased activity occurred in the first half of April, with conditions normalising in May and June.
In the Americas, US equity trading volumes increased by low double-digit percentages year-on-year and high single-digits to low double-digits quarter-on-quarter, whilst volatility surged by high double-digit percentages compared to the previous year.
Asian markets presented a mixed picture, with Hong Kong and China experiencing significant volume increases year-on-year but slight declines from the first quarter. Japan saw modest increases both year-on-year and quarter-on-quarter. Market volatility increased in Hong Kong and China compared to the previous year.
Digital assets, which Flow Traders has been developing for eight years, saw trading volumes increase slightly year-on-year but decline meaningfully from the first quarter as traditional asset classes attracted more attention. Volatility in cryptocurrencies decreased both year-on-year and quarter-on-quarter.
The company highlighted continued institutional interest in digital assets amid a more favourable regulatory environment, including the regulatory approval of AllUnity, its partnership with DWS and Galaxy Digital to launch a MiCAR-compliant Euro-denominated stablecoin later this year.
"Flow Traders posted another strong set of results in the second quarter, delivering the fourth straight quarter of triple-digit NTI for the first time in the Company's history," Kuehnel said. "In addition, the fifth triple-digit NTI quarter in the last six quarters serves as strong validation of our growth and diversification strategy. The Company was able to deliver solid results through periods of mostly below average market volatility throughout most of 2024 with strong contributions from Digital Assets. We then had strong contributions from Asia in the second half of 2024, and now from Europe and the Americas in the first half of 2025. We continue to reap the rewards of our eight-year investment into Digital Assets as it has proven to be a dependable countercyclical offset to the traditional asset classes."
He added: "The second quarter saw a sharp increase in volatility in traditional asset classes, particularly in Equity, after nearly two years of relatively muted activity. While the rebound in volumes and volatility we saw in early April was not nearly as extreme and was relatively short-lived when compared to COVID, we were able to leverage the additional profits retained as part of the Trading Capital Expansion Plan. We were able to capture the opportunities that arose and record one of the best months ever in the Company's history. The return of market activity on the back of continued record ETP fund inflows around the world drove improved performance across all regions, particularly in the Americas and Asia. We are especially excited about the significant opportunity in China, where trading volumes have doubled vs. a year ago and is now two-to-three times the volumes seen in Europe."
Commenting on digital assets, Kuehnel said: "In Digital Assets, trading volumes declined quarter-on-quarter as traditional asset classes garnered more attention given the tariff news headlines. Nevertheless, we continue to see positive sentiment shifts as institutional interests grow amidst a more conducive regulatory environment. The ecosystem around digital assets continues to expand, as evidenced by a raft of digital asset-related IPOs. We are particularly excited about the regulatory approval of AllUnity, our partnership with DWS and Galaxy Digital, which will launch a MiCAR-compliant Euro-denominated stablecoin later this year. As one of the earliest adopters of digital assets, Flow Traders remains instrumental in providing liquidity to this asset class and helping to expand the ecosystem."
Reflecting on his tenure, Kuehnel said: "Looking forward, I am proud of what we have achieved at Flow Traders over my tenure. The Company remains committed to enhancing its trading capabilities by strategically investing in cutting-edge technology and talent. The strong return on trading capital over the last 12 months validates the strategic decision taken last July to retain more profits to reinvest back into the business. I'm certain that the combination of improving and expanding the Company's trading capabilities and growing the trading capital base will undoubtedly accelerate the growth of Flow Traders in the years to come."
Flow Traders maintained its fixed operating expense guidance for the full year at €190-210 million, expecting additional technology investments and targeted hiring in growth areas to be partially offset by operational efficiency gains.
Founded in 2004, Flow Traders is a leading global ETP market maker that has expanded from European equity ETPs into fixed income, commodities, digital assets and foreign exchange globally. The firm operates across all major exchanges with over 600 professionals located worldwide.
