Chrysalis Investments (LSE:CHRY) reported an unaudited net asset value of 165.36 pence per share at 31 December 2025, representing a 3.7% quarter-on-quarter decline. The movement was largely driven by a lower valuation for Klarna following weakness in its post-IPO share price, alongside a valuation discount applied to wefox reflecting near-term funding uncertainty. These headwinds were partly offset by an uplift in the valuation of Starling, helping to cushion the overall NAV impact. During the period, the company continued to execute its capital allocation strategy, with cumulative share buybacks reaching approximately £108m by late January, surpassing its original £100m target.
Operationally, Chrysalis’s portfolio companies delivered a series of positive developments that highlight growing underlying momentum. Starling’s Engine banking-as-a-service platform secured a significant 10-year core banking migration contract with Tangerine Bank, strengthening its long-term revenue visibility. Smart Pension reported assets under management exceeding £9bn, benefiting from accelerating consolidation in the UK pensions market, while Klarna delivered strong growth in transaction volumes and revenues despite reporting a small operating loss driven by accounting factors. Together, these updates underline the contrast between short-term valuation pressures linked to public markets and funding dynamics, and the continued strategic and commercial progress being made across the portfolio, which could support future valuation uplifts and realisations.
From an investment perspective, the outlook remains constrained by uneven financial quality, including negative operating and free cash flow in 2025 and historically high volatility, even as the company has delivered a recent rebound in profitability and maintains a low-leverage balance sheet. Technical indicators are supportive, with positive momentum in the share price, while a low price-to-earnings multiple improves the broader valuation backdrop.
More about Chrysalis Investments Limited
Chrysalis Investments Limited is a UK-listed investment company that provides growth capital to later-stage, technology-enabled businesses, with a portfolio concentrated on fintech and digital financial services. Its holdings include companies such as Klarna, Starling, Smart Pension and wefox, and the firm actively manages both its investments and capital structure, including the use of share buybacks, to enhance long-term shareholder value while supporting portfolio companies through key growth phases.
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