Flat Capital AB: Flat Capital's year-end report 2025

Flat Capital AB (publ) ("Flat") publishes its year-end report for 2025 where net asset value per share decreased by -8,2% compared to the previous quarter to 13,91 SEK per share. The change in value mainly consists of the share price development in Klarna, which amounts to -2,527,692 KSEK, where the underlying Klarna shares are valued at USD 28.91 per share, based on the closing price on December 31, 2025.

Period October-December 2025

• Change in value for the quarter amounted to -2,521,026 KSEK (127,996). The change in value of listed holdings amounted to -2,531,087 KSEK, mainly consisting of the share price development in Klarna of -2,527,692 KSEK, where the underlying Klarna shares are valued at USD 28.91 per share, based on the closing price on December 31, 2025. The change in value of unlisted holdings amounted to +10,061 KSEK. For further information, see Note 3.
• Investments amounted to 8,020,301 KSEK (69,261). For further information, see Note 5.
• Divestments amounted to 0 KSEK (0).
• Operating expenses amounted to 3,568 KSEK (2,081), corresponding to 0.34% (1.58%) of average NAV on an annual basis. For further information, see Note 6.
• Operating profit amounted to -2,524,594 KSEK (126,061).
• Operating profit does not include unrealized changes in value of -2,521,026 KSEK (127,996) and realized changes in value of 0 KSEK (0).
• Profit after tax amounted to -2,521,481 KSEK (127,959).
• Earnings per share before and after dilution amounted to -5.06 SEK (2.44).

Period January-December 2025

• Change in value for the full year 2025 amounted to -2,272,315 KSEK (108,185). For further information, see Note 3.
• Investments amounted to 8,595,485 KSEK (145,853). For further information, see Note 5.
• Divestments amounted to 42,663 KSEK (0).
• Operating expenses amounted to 12,531 KSEK (6,105), corresponding to 0.33% (1.14%) of average NAV on an annual basis. For further information, see Note 6.
• Operating profit amounted to -2,284,730 KSEK (103,395).
• Operating profit does not include unrealized changes in value of -2,306,838 KSEK (108,185) and realized changes in value of 34,523 KSEK (0).
• Profit after tax amounted to -2,290,441 KSEK (107,950).
• Earnings per share before dilution amounted to SEK -12.72 (2.16) and after dilution to SEK -12.71 (2.16).
• The Board of Directors proposes that no dividend be distributed.

Cash flow statement

• As of December 31, 2025, cash and cash equivalents amounted to 144,075 KSEK (158,832), of which cash flow from operating activities amounted to -1,827 KSEK (4,771) for the period October-December and -21,217 KSEK (5,198) for the period January-December.
• Cash flow from investing activities amounted to -49,622 KSEK (-69,261) for the period Oct-Dec and -582,143 KSEK (145,853) for the period Jan-Dec.
• Cash flow from financing activities amounted to -2,537 KSEK (137,175) for the period Oct-Dec and 588,603 KSEK (137,138) for the period Jan-Dec and relates to new share issues, after deduction of issue costs.

Significant events during the quarter

• On October 14, 2025, Sebastian Siemiatkowski and the Board of Directors presented a revised proposal ahead of the Extraordinary General Meeting on October 17, 2025. The previous proposal, published on September 17, 2025, concerned the integration of Double Sunday AB (DSAB), a company indirectly wholly owned by Sebastian Siemiatkowski, holding 24,564,396 ordinary shares in Klarna. In the revised proposal, the valuation of the Klarna shares was adjusted from 46.7 to 39.0 USD per share, which meant that Sebastian was allocated approximately 16% fewer newly issued shares. The issue was proposed to be carried out through two non-cash issues totaling 400,137,971 new shares in Flat, of which 136,657,667 were A-shares and 263,480,304 were B-shares.
• On October 17, 2025, the extraordinary general meeting decided, in accordance with the revised proposal, to implement the integration of all shares in DSAB through the proposed non-cash issues.

Significant events after the end of the quarter

• On January 12, 2026, Flat announced that Rickard El Tarzi will take over as the company's new CEO in April 2026. The Board of Directors has appointed Amaury de Poret, working member of the Board of Directors of Flat, to be acting CEO from February 6, 2026, until Rickard takes over.

Investments & divestments during the quarter
Three new investments were made during the quarter, totaling SEK 8,020 million. See also Note 5.

• 7,971 MSEK in Double Sunday AB - see press release 2025-10-30
• 48 MSEK in Alpaca - see press release dated January 14, 2026
• 1.9 MSEK in Talk2Me - angel investment in a company that creates authentic digital personalities for brands & creators through AI.

Other events

• On October 22, 2025, CEO Hanna Andreen exercised all of her 364,243 warrants of Series 2021/2025:A and subscribed for 16,404 B shares through a cashless exercise.
• On December 23, Defensor published an update indicating that ArmaTech and SAFE4U are expected to exceed previous forecasts of SEK 410 million in sales and SEK 100 million in EBIT by approximately 20% and 10%, respectively, during the 2025 calendar year.
• On January 23, 2026, Defensor announced a majority investment in Zulu Marine AB, a company that develops boats based on its own design philosophy, with a focus on high usable speed, stability, and range for advanced governmental authorities. The investment is financed through a preferential rights issue in Defensor, in which Flat participates pro rata with approximately 35 MSEK.
• Flat has initiated a process to prepare the company for a potential listing change from Nasdaq First North Growth Market to the main list of Nasdaq Stockholm.
• Flat has a potential commitment to the SPV Open AI fund of up to approx. 928,000 USD. However, the company assesses that the probability of this resulting in an outflow is low, which is why no provision has been made for this.
• January 20, 2026, Flat sold all 23,476 shares in Figma at an average price of USD 28.4, resulting in net proceeds of 6 MSEK.

Amounts in parentheses refer to comparative figures. For items in the income statement and cash flow statement, the figures relate to the result and cash flows for the same period in the previous year. For balance sheet items, the figures refer to the financial position at the end of the previous year.

Link to the report on the website:
https://www.flatcapital.com/en/investor-relations/

For further information, please contact:
Hanna Andreen, CEO, [e-mail], [phone]
Antonio Melani, CFO, [e-mail],[phone]

Certified Adviser:
Flat Capitals Certified Adviser is Augment Partners AB, [e-mail], [phone]

About Flat Capital:
Flat Capital is a long-term investment company that invests in prominent entrepreneurs and companies through a global network. The company has a long-term and significant ownership stake in Klarna, is the majority owner of Defensor Group, and also invests in several leading global tech companies such as OpenAI, SpaceX, and Cerebras Systems. Flat Capital was founded in 2013 by Nina and Sebastian Siemiatkowski, the entrepreneurs behind Klarna and Milkywire. Sebastian is Flat's chairman and largest shareholder.