Financial Results for the Second Quarter of 2025

Executive Summary

• Helios Fairfax Partners Corporation (TSX: HFPC.U) reported strong financial results for the second quarter and first half of 2025, driven by significant unrealized gains on its Helios Managed Investments and TopCo LP Class A.
• The company reported a substantial turnaround in profitability, moving from net losses in the prior year periods to net earnings of $11.6 million in Q2 2025 and $12.4 million for the first six months of 2025.
• Book value per share increased to $3.96 in Q2 2025, reflecting improved expectations of value realization and strong performance in underlying African market investments.

Key Details

• Q2 2025 Financial Performance:
  • Net earnings: $11.6 million (compared to $0.9 million in Q1 2025 and a net loss of $16.5 million in Q2 2024).
  • Book value per share: $3.96 (up from $3.85 in Q1 2025).
  • Drivers: $19.9 million in net gains on Helios Managed Investments and $3.3 million net gain on TopCo LP Class A, partially offset by unrealized losses on TopCo LP Class B and Nova Pioneer.
• H1 2025 Financial Performance:
  • Net earnings: $12.4 million (compared to a net loss of $21.2 million in H1 2024).
  • Drivers: $35.8 million in net gains on Helios Managed Investments, partially offset by $2.2 million net losses on TopCo LP and $11.8 million in expenses (including $2.8 million for Seven Rivers expenses).
• Capital Deployment and Transactions:
  • Deployed $1.2 million under the Digital Ventures loan facility.
  • Deployed $1.5 million under the $13.5 million HSEG loan facility.
  • Entered into a new $10 million loan facility with HSEG and deployed $5.0 million under it.
  • Funded capital calls of $6.2 million for Helios Fund IV and $0.9 million for TopCo LP Class A.
  • Redeemed part of its investment in Seven Rivers for $18.0 million ($9.0 million cash received, $9.0 million receivable).
• Subsequent Events:
  • Committed to investing $20.0 million in Helios Fund V, which completed its first close.
  • Committed to a $2.0 million management team commitment for Helios Fund V, entitling HFP to a 50% share of carried interest via TopCo LP Class A and Excess Management Fees via TopCo LP Class B.
• Balance Sheet Metrics:
  • Cash and cash equivalents: $14.7 million as of June 30, 2025.
  • Common shares outstanding: 108,291,576 as of June 30, 2025 (up from 108,179,127 at December 31, 2024).

Notable Quotes

• “The second quarter of 2025 marked a return to growth in book value and strong net earnings due to performance of our Helios Managed Investments and improved expectations of value realization from the underlying investments,” said Tope Lawani and Babatunde Soyoye, Co-CEOs of Helios Fairfax Partners.