Flat Capital AB: Flat Capital's Interim Report January-March 2026

Flat Capital AB (publ) ("Flat") publishes its interim report for January-March 2026, in which the net asset value amounts to 3,659,535 kSEK, corresponding to 7,35 SEK per share, a reduction of 47% compared to previous quarter. During the quarter, Flat divested a large portion of its passive AI- and software-related holdings for a total of approximately 719 MSEK, which represents a profit of approximately 525 MSEK and a return of approximately 3.7x MOIC and +130% IRR over the holding period. Further, Flat refinanced the loan in Double Sunday AB ("DSAB") of approximately 1.1 BSEK under a new credit facility in Flat Capital AB of 100 MUSD.

Financial position

• Net asset value amounted to 3,659,535 kSEK, corresponding to 7,35 SEK per share, which represents a reduction of 47% per share for the quarter.
• Net debt amounted to 780,774 kSEK, corresponding to 21,3% of net asset value.

Period January-March 2026

• The change in value amounted to -3,259,589 kSEK (-1,299) during the quarter. The change in value in listed holdings amounted to -3,555,115 kSEK, and consists mainly of the share price development in Klarna of -3,562,609 kSEK, where the underlying Klarna shares are valued at USD 13.09 per share, based on the closing price on 2026-03-31. The change in value in unlisted holdings amounted to 295,526 kSEK.
• Investments amounted to 1,203,824 kSEK (21,836).
• Divestments amounted to 724,554 kSEK (41,529).
• Operating expenses amounted to 8,440 kSEK (2,378), corresponding to 0.64% (1.46%) of average NAV, on an annualized basis.
• The operating result amounted to -3,267,996 kSEK (-3,677). The operating result includes unrealized changes in value of -3,786,178 kSEK (-42,227) as well as realized changes in value of 526,589 kSEK (40,928).
• The result after tax amounted to -3,267,550 kSEK (-9,401).
• Earnings per share before and after dilution amounted to -6.56 SEK (-0.16).

Cash flow statement

• As of 2026-03-31, cash and cash equivalents amounted to 169,172 kSEK (166,797), where of cash flow from operating activities amounted to -2,004 kSEK (-11,728) for the period.
• Cash flow from investing activities amounted to -922,845 kSEK (19,693) and consists primarily of shareholder contributions made to DSAB of 1,161,261 kSEK.
• Cash flow from financing activities amounted to 949,947 kSEK (0) and consists of financing raised.

Significant events during the quarter

• During the quarter, Flat divested a large portion of its passive AI- and software-related holdings for a total of approximately 719 MSEK, which represents a profit of approximately 525 MSEK and a return of approximately 3.7x MOIC and +130% IRR over the holding period.
• On March 30, 2026, Flat refinanced the loan in DSAB of approximately 1.1 BSEK under a new credit facility in Flat Capital AB of 100 MUSD, with a maturity of up to two years. The new loan has in its entirety been used to refinance the loan in the subsidiary DSAB. The refinancing of the loan in DSAB has taken place through the funds that Flat lent to the company during the quarter, which as of 2026-03-31 were converted into shareholder contributions.
• On March 19, 2026, the annual general meeting was held, which resolved on the introduction of a long-term incentive program 2026 (LTIP 2026) and the issuance of warrants, transfer of warrants, and authorization to enter into swap agreements under LTIP 2026. The purpose of the program is for the Company to attract, motivate, and retain the most qualified employees and thereby offer competitive compensation. LTIP 2026 consists of two components, approximately 30 percent time-based share units (RSUs) and up to approximately 70 percent performance-based share units (PSUs). The meeting resolved to approve issuances of shares and warrants in Defensor Group AB. Furthermore, the meeting also resolved, in accordance with the board's proposal, to authorize the board to decide, up until the time of the next annual general meeting and on one or more occasions, on new issues of shares, warrants, and/or convertibles with or without deviation from the shareholders' preferential rights.
• The meeting resolved on the re-election of Sebastian Siemiatkowski, Charlotte Runius, Amaury de Poret, and Marcelo Carvalho de Andrade, as well as the new election of Johan Söör as ordinary board members for the period until the end of the next annual general meeting.
• On January 12, 2026, Flat announced that Rickard El Tarzi would take office as new CEO of the company in April 2026 and that the board had appointed Amaury de Poret, executive member of the board of Flat, to be acting CEO from February 6, 2026 until Rickard's assumption of office.

Significant events after the end of the quarter

• No significant events have occurred after the end of the quarter.

Investments and divestments during the quarter

• During the quarter, a number of new investments, which amounted to 1,203,824 kSEK and divestments, which amounted to 724,554 kSEK, were made.
• During the quarter, divestments were carried out of a large portion of Flat's passive AI- and software-related holdings for a total of 719 MSEK. The holdings consist of the entire positions in OpenAI (both direct and indirect through the "AI portfolio," which also includes Anysphere/Cursor, Speak, and Chai), ElevenLabs, Lovable, Cerebras Systems, and Alpaca, as well as more than half of the holding in Perplexity. The divestments were carried out as separate transactions to independent buyers.
• Flat writes up the acquisition value in DSAB by 1,161 MSEK, through a conversion of shareholder contributions made in connection with the amortization and refinancing of the previous loan in DSAB.
• During the quarter, Flat took its pro rata share in a rights issue in Defensor, in connection with Defensor's investment in Zulu Marine. Flat's additional investment in Defensor amounted to approximately 34 MSEK.
• During the quarter, investments of approximately 8 MSEK were made in listed derivative instruments. Flat has built up a portfolio of short put options on listed software companies with a maturity of 1-2 years.
• During January, Flat also divested its entire holding in the listed portfolio company Figma. The divestment amounted to approximately 6 MSEK.

Other events

• Flat has an ongoing process with the aim of preparing the company for a potential list change from Nasdaq First North Growth Market to the main market Nasdaq Stockholm.
• On February 27, 2026, Defensor entered into an agreement on an investment in Novator Solutions AB through a directed share issue. Novator develops solutions to strengthen Swedish signals intelligence and electronic warfare capabilities. Through the transaction, Defensor becomes owner of 40% of the shares in the company, with options to over time increase its ownership and become majority owner. Novator had revenues of approximately 40 MSEK in 2025.
• On April 1, 2026, Niclas Colliander was presented as CEO and Group President of Defensor Group AB. In connection with Niclas's assumption of office, it was also announced that Max Jägerbring, who has been CEO since inception, remains in Defensor's management team as Commercial Director.
• On April 9, 2026, Rickard El Tarzi took office as CEO of Flat.

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

For further information, please contact:
Rickard El Tarzi, CEO, [e-mail], [phone]
Antonio Melani, CFO, [e-mail], [phone]

Certified Adviser:
Flat Capital's Certified Adviser is Augment Partners AB, [e-mail], [phone]

About Flat Capital:
Flat Capital is a publicly traded investment firm built on a simple belief: the best returns are achieved by investing in the best founders. From a significant stake in Klarna to a majority position in Defensor Group, and with a flexible mandate to invest in both listed and unlisted assets globally, Flat Capital partners with exceptional entrepreneurs at pivotal moments. Flat was founded in 2013 by Nina and Sebastian Siemiatkowski and is listed on the Nasdaq First North Growth Market. More information is available at: www.flatcapital.com