Chrysalis Investments Posts 1.1% NAV Decline in Q4 Despite Strong Annual Growth

Chrysalis Investments Limited (LSE:CHRY) reported that its unaudited net asset value (NAV) per ordinary share stood at 171.65 pence as of 30 September 2025, marking a 1.1% decrease from the previous quarter’s figure of 30 June. Despite the modest quarterly dip, the company achieved a 21.5% NAV increase over the full financial year, driven primarily by the strong performance of Starling Bank.

A key highlight of the quarter was Klarna’s initial public offering on the New York Stock Exchange on 9 September, priced at $40 per share and valuing the fintech firm at around $15 billion. Chrysalis did not sell any shares during the IPO and remains under a six-month lock-up agreement. While Klarna’s stock initially performed well, it softened toward the end of the quarter amid broader weakness in the fintech sector.

Starling Bank continued to advance its product suite, launching new AI-driven features such as “Spending Intelligence” in June and “Scam Intelligence” in October. The bank also expanded its footprint through the August acquisition of Ember, an accounting and tax software provider for small and medium-sized enterprises.

Richard Watts and Nick Williamson, Managing Partners of Chrysalis Investment Partners LLP, reiterated their confidence in Starling’s growth potential, referencing the CFO’s comment that he saw a “credible path to £100 million of recurring revenue within two years.”

During the quarter, Chrysalis executed its Capital Allocation Policy, repurchasing £17 million of its own shares. By 30 September, total capital returned to shareholders had reached £86 million, increasing to £93 million by the end of October.

As of 30 September, the company held gross cash and equivalents of approximately £118 million, along with positions in Klarna and Wise valued at around £115 million and £3 million respectively. This provided a total liquidity position of roughly £236 million, equivalent to 27% of NAV. Shortly after the quarter’s close, Chrysalis repaid £10 million of its term loan, reducing the outstanding balance to £60 million.