>>> US After Hours Summary: PRCH +24.8%, INVX +19.1%, ZI +17.4%, OLO +15.5%, AXO

After Hours Summary: PRCH +24.8%, INVX +19.1%, ZI +17.4%, OLO +15.5%, AXON +13%, WDAY +10.2% higher on earnings; FLYW -18.4%, GO -17.1%, AGL -15%, LMND -13.3%, CART -9.3% lower on earnings

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: PRCH +24.8%, INVX +19.1%, ZI +17.4%, OLO +15.5% (also files mixed shelf offering), AXON +13%, INGN +10.3%, WDAY +10.2% (also former Google and SAP exec joins co to lead innovation strategy), USNA +9.5%, JACK +9%, ARQT +8.4%, LCID +7.9% (also CEO transitions to new role, co earching for new CEO), CCCS +6.8%, INTU +6.4%, MASI +6.2%, CWH +5.3%, WK +5.3%, CPNG +5.2%, PRCT +5.2%, IGIC +5.2%, HURN +5%, SAM +4.7%, BASE +4.1%, CAVA +3.6%, RXST +3.5%, ZIP +3.3%, PARR +3.2%, SPXC +2.8%, CHRD +2.7%, STRL +2.6% (also announces two large transportation awards), PR +2.5%, MATX +1.9%, AMC +1.8%, FSLR +1.4% (also files patent infringement lawsuit against JKS), OUT +1.3%, SUPN +1.3%, ODD +0.8%, RRC +0.7%, BWIN +0.1%, GPOR +0.1%

Companies trading higher in after hours in reaction to news: SMCI +21.9% (files all delinquent filings, 10-K, 10-Qs), CW +3% (awarded two contracts from TerraPower), LE +2.9% (confirms receipt of letter from Edward Lampert re initiating a strategic sale process), CALM +2.2% (announces diversification agreement with founder's family, potential transition to becoming a non-controlled co; also announces $500 mln share buyback auth), NOVT +1.9% (files mixed shelf securities offering), SLGN +1.7% (increases dividend), BTU +1.1% (CEO bought 6,684 shares), ALLO +0.3% (expands strategic partnership with Foresight Diagnostics), BAX +0.2% (files mixed shelf securities offering), WBD +0.2% (launching Max streaming service in Australia)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: FLYW -18.4% (also acquires Sertifi), GO -17.1%, AGL -15%, LMND -13.3%, ZETA -10.2%, OSUR -10%, CART -9.3%, EXLS -4.3%, KEYS -3.5%, SPT -3%, SKWD -2.8%, RLJ -2%, DAWN -1.9%, JAZZ -1.6%, FIHL -1.1%, EXR -0.8%, WBTN -0.6%, CZR -0.4%, RVLV -0.4%, BGS -0.1%, NHI -0.1%, MFIC -0.1%

Companies trading lower in after hours in reaction to news: SPNT -4.2% (Loeb entities to offer 4.1 mln shares, SPNT to repurchase 2 mln of those shares), HRMY -2.3% (files mixed shelf securities offering), CCI -1.9% (to delay 10-K filing), ORIC -1.5% (announces clinical development plans for its two lead programs), WBA -0.4% (enters settlement agreement with Everly/PWN; to pay $595 mln), INVH -0.1% (names new COO)

WSJ : CFTC Offers New Incentives for Companies to Report Their Own Wrongdoing

CFTC Offers New Incentives for Companies to Report Their Own Wrongdoing
The derivatives market regulator clarifies criteria and credit it will give to companies that voluntarily report misconduct

The Commodity Futures Trading Commission said it would give companies that voluntarily report potential misconduct more lenient penalties under a new enforcement advisory.

In a memo published on Tuesday, the derivatives market regulator issued new guidelines clarifying how it would give credit to a company that reports its own potential misconduct, cooperates with an agency investigation and addresses a reported issue.

A company that voluntarily reports potential wrongdoing and fully cooperates can receive a discount from the CFTC cutting the cost of a penalty to less than half the initially calculated amount in some cases.

Giving a grade
The CFTC’s enforcement division will assign a company’s efforts one of three rankings—“no self-report,” “satisfactory self-report” or “exemplary self-report”—based on information the company submits. The agency said a company can receive full credit if its disclosure is voluntary, timely, complete and made directly to the CFTC. The agency is also giving companies “a safe harbor” from further penalties if initial self-reporting is inaccurate but promptly corrected.

The CFTC’s enforcement division will evaluate the quality of a company’s cooperation with one of four rankings: “no cooperation,” “satisfactory cooperation,” “excellent cooperation” or “exemplary cooperation.”

The regulator will also assess a company’s mitigation efforts as part of a cooperation evaluation, including efforts to prevent a future violation and whether an outside compliance monitor or consultant might be recommended.

The benefits of cooperation
Under the new advisory, a company meeting the criteria for exemplary self-reporting and cooperation can receive a discount of up to 55% of an initial calculated penalty.

The CFTC said its efforts to provide cooperation credit aren’t new but weren’t applied consistently in the past.

Acting CFTC Chairman Caroline Pham said the new guidelines are “creating meaningful incentives for firms to come forward and get cases resolved faster with reasonable penalties.”

The guidelines will free up the regulator’s resources to focus on implementing the Trump administration’s goals of combating fraud and scams, Pham said.

“From the beginning, I have encouraged firms to self-report to proactively take ownership, ensure accountability and prevent future violations,” she said in a statement.

The advisory follows guidelines from other law enforcement agencies and regulators that aim to encourage companies to report misconduct.

The Justice Department, under the Biden administration, expanded its leniency policies to persuade companies to report their misconduct to prosecutors. A policy announced in 2023 said companies that disclose wrongdoing to the Justice Department won’t be prosecuted if they fully cooperate with investigators and fix underlying problems, including shortcomings in compliance programs. Department officials have said more companies were choosing to voluntarily disclose misconduct because of the policy.

>>> Interparfums beats by $0.03, reports revs in-line; reaffirms FY25 EPS guidan

Interparfums beats by $0.03, reports revs in-line; reaffirms FY25 EPS guidance, revs guidance (139.06 +1.23)
  • Reports Q4 (Dec) earnings of $0.82 per share, excluding non-recurring items, $0.03 better than the FactSet Consensus of $0.79; revenues rose 10.1% year/year to $362 mln vs the $362 mln single analyst estimate.
  • Co reaffirms guidance for FY25, sees EPS of $5.35, excluding non-recurring items, vs. $5.33 FactSet Consensus; sees FY25 revs of $1.51 bln vs. $1.51 bln FactSet Consensus.
  • In February 2025, Interparfums' Board of Directors approved an increase in the annual cash dividend rate to $3.20 per share, up 7% from $3.00 per share. This dividend increase reflects the Board's continued confidence in the Company's financial strength and ability to achieve long-term, sustainable sales and earnings growth.

>>> US Closed Dow +0.37% S&P -0.47% Nasdaq -1.35% Russell -0.38%

Closing Stock Market Summary
There were troubles for the stock market at today's open. The mega-cap stocks headed south and carried the major indices with them at the start. Things worsened, though, at 10:00 a.m. ET with the release of the February Consumer Confidence Index. That report, which featured a drop in the index from 105.3 to 98.3 (the largest monthly decline since August 2021) and a surge in average 12-month inflation expectations from 5.2% to 6.0%, sent the indices cascading to their lows for the day.

Treasuries, meanwhile, rallied on the news in a safe-haven trade that was further supported by tariff angst, growth concerns, and diplomatic tension as reports indicated the Trump administration is looking at tightening restrictions on chip exports to China. The latter report sent the Philadelphia Semiconductor Index 2.2% lower.

A $70 billion 5-yr note auction, which was met with strong demand, fortified the Treasury market's position and its fifth straight winning session. The 2-yr note yield dropped seven basis points to 4.10% and the 10-yr note yield fell 10 basis points to 4.30%.

The lower yields, however, didn't ignite the stock market, which was held back all day by relative weakness in the mega-cap cohort. Tesla (TSLA 302.80, -31.67, -9.6%) was the biggest loser of the bunch, falling sharply on heavier-than-average volume that was catalyzed by an unwinding of momentum positions and an FT report that indicated Tesla's Europe sales were down 45% year-over-year in January.

The Vanguard Mega-Cap Growth ETF (MGK) was down as much as 2.1% at its low, but ended the session down 1.2%.

Notwithstanding the weakness in the widely-held mega-cap stocks, the broader market fared better on a comparative basis. The Russell 2000 (-0.4%) fought back from a larger 1.1% decline, the S&P Midcap 400 (flat) neutralized an early 0.8% loss, and the equal-weighted S&P 500 advanced 0.1%.

Dow component Home Depot (HD 393.24, +10.82, +2.8%) provided some relief in the wake of its better-than-feared earnings report; Eli Lilly (LLY 902.36, +21.16, +2.4%) offered some support after announcing additional Zepbound vial doses at lower costs; and real estate/housing-related stocks saw some uplift on the drop in interest rates, the response to Home Depot's earnings report, and other sector earnings results.

Their aggregate strength, however, was not enough to prevent the market cap-weighted S&P 500 from suffering its fourth straight loss.

The predominately defensive disposition of today's session was reflected in the outperformance of the consumer staples (+1.7%) and health care (+0.9%) sectors, the flight-to-safety in Treasuries, and the uptick in the CBOE Volatility Index (19.79, +0.81, +4.3%), which traded as high as 21.48.

The communication services (-1.5%), energy (-1.5%), information technology (-1.4%), and consumer discretionary (-0.8%) sectors were today's biggest losers.
  • DJIA: +2.5% YTD
  • S&P 500: +1.3% YTD
  • S&P Midcap 400: -0.8% YTD
  • Nasdaq Composite: -1.5% YTD
  • Russell 2000: -2.7% YTD

Reviewing today's economic data:
  • The Conference Board's Consumer Confidence Index dropped to 98.3 in February (consensus 103.1) from an upwardly revised 105.3 (from 104.1) in January. This was the largest monthly decline since August 2021.
    • The key takeaway from the report is that the drop in confidence was seen across all age groups with worries about tariffs, inflation, and future employment prospects driving the decline.
  • December FHFA Housing Price Index (actual 0.4%; prior revised to 0.4% from 0.3%)
  • December S&P Case-Shiller Home Price Index (actual 4.5%; consensus 4.4%; prior 4.3%)

FT : Smith & Nephew chief rejects shareholder calls for break-up

Smith & Nephew chief rejects shareholder calls for break-up
FTSE 100 medical devices group reports forecast-beating earnings

The chief executive of medical device maker Smith & Nephew has rejected shareholder calls to break up the business, as the FTSE 100 group delivered forecast-beating earnings. 

Deepak Nath said the board was committed to its strategy of improving the performance of its orthopaedics business, which makes replacement hip and knee joints, rather than spinning it off as at least three investors have proposed. 

“We have a robust dialogue where we critically examine all facets of our business, including the portfolio, and we remain committed to driving shareholder value,” he said. 

In results on Tuesday, the company reported a 4.7 per cent rise in revenues last year to $5.81bn, above average analyst estimates of $5.77bn. Adjusted earnings per share were up 1.7 per cent at 84.3 cents, against a consensus forecast of 83.1 cents.

Forecast revenue growth for this year is 5 per cent, with a trading profit margin of 19 to 20 per cent. Shares in Smith & Nephew rose as much as 8 per cent in early trading.

Cevian Capital, an activist shareholder, disclosed a 5 per cent stake in the company in July last year. It argued that it owns “fundamentally attractive businesses in structurally growing markets” but “has not generated shareholder value for many years”. 

Smith & Nephew has four divisions: orthopaedics, sports medicine, ear nose and throat, and advanced wound management. 

In November, three major investors told the Financial Times that it should spin off its orthopaedics division, which accounts for about 40 per cent of sales, if management could not improve its performance. 

Smith & Nephew is two years into a three-year turnaround programme, but has faced a setback in its China business. Government policies to control the cost of healthcare have driven up to 70 per cent falls in the price of medical devices and more local competition. 

Nath said it was “hard to recover” from the changes. “China was a relatively big market for us. We had a relatively good position within that market, and it was highly profitable,” he said. 

The shareholder calls to break the company up come as the last large industrial conglomerate on the London market — Smiths Group — announced plans for a demerger under pressure from an activist investor, and London-listed DCC is also planning to sell its healthcare unit to focus on energy. 

Nath said Smith & Nephew was not a “conglomerate” but rather a “portfolio of four businesses”.

FT : Unilever’s abrupt CEO switch exposes risks of short tenures

Unilever’s abrupt CEO switch exposes risks of short tenures
Sudden nature of announcement suggests impatience within

British chief executives may not command the pay checks of football managers. But Unilever’s precipitous ousting of Hein Schumacher shows they can have equally short shelf lives.

Schumacher, only the second outsider to helm the consumer goods conglomerate since it ditched co-bosses, was in the throes of steering Unilever’s latest turnaround. Now, he will be out at the end of the week, replaced by chief financial officer Fernando Fernandez.

What works on the pitch is messier in the C-suite. Unilever has 128,000 staff spread across 190 countries and an unwieldy business that is being gradually pruned. Investors, including US activist Nelson Peltz, are losing patience with Unilever’s performance. Justifiably so: it lags behind peers such as the US’s Procter & Gamble on margins and sales growth.

But shortened tenures are unhelpful. About 20 months is hardly sufficient to turn around a longtime laggard. Sure, Schumacher’s self-styled growth action plan could have garnered a bit more momentum. Plans to separate the ice-cream business, unveiled last March, stalled when would-be buyers balked; a spin-off on the Amsterdam exchange is now planned for later this year. But break-ups take time: US conglomerate General Electric took two years to dismantle itself; rival Honeywell has set a similar timetable.


Performance, more easily assessed in league tables, is a trickier metric for companies. Schumacher had presided over a 9 per cent rise in the share price, and the best set of results in a decade. But Unilever shares have long trailed its peer group and continue to do so.

The abrupt nature of the announcement suggests impatience within. Peltz, who joined the board in 2022, is a man after action. Chair Ian Meakins, who has headed a dozen or so companies, has a reputation for moving fast. He was quick to wield the axe — to directors and business units — after taking up the helm at Wolseley in 2011, promising investors that the building materials merchant “won’t dally too long”.

Presumably too, the board felt that an outsider, like a management consultant, was just the ticket for laying out a blueprint for change, but that execution was best left to a dyed-in-the-wool Unilever man. Fernandez, as former finance chief, now gets to share in Schumacher’s achievements but disclaim his flaws.

Consumer goods is, at heart, an industry that hews to homegrown talent, despite its reliance on constant innovation. Only last year Switzerland’s Nestlé installed company veteran Laurent Freixe at the top, replacing external hire Mark Schneider. It falls to Fernandez, now tasked with conducting the planned 7,500 job cuts and launching the ice cream spin-off, to prove himself a better choice to lead the team.

FT : Blackstone and Omers look to offload healthcare groups in multibillion-doll

Blackstone and Omers look to offload healthcare groups in multibillion-dollar deals
Private equity firms prepare to exit investments after being constrained by high interest rates

Blackstone and Omers have each put multibillion-dollar healthcare services companies up for sale, as private equity groups seek to offload their investments in a push to return cash to investors, according to people familiar with the matter.

Private equity giant Blackstone has hired advisers to work on a sale of its majority stake in health insurance software provider HealthEdge, hoping to clinch a deal that values the company at more than $2.5bn, three people said.

Meanwhile, Omers, one of Canada’s largest pension funds, is also working with advisers to sell Premise Health, which operates one of the biggest direct-access care networks in the US, seeking a valuation of about $2bn, the people added.

The two auction processes come as private equity groups gear up to exit a wave of investments in the healthcare sector and beyond, after high interest rates constrained sponsor-backed deals in recent years.

Blackstone and Omers both declined to comment. HealthEdge and Premise did not immediately respond to requests for comment.

Investments in 2,700 healthcare companies had been held by buyout funds for six years or more as of last November, up from 2,100 companies five years earlier, putting the sector on a footing for “an imminent increase in sponsor exits” in 2025, Bain & Company predicted in a report last year.

The people cautioned that both sale processes were at an early stage and might not result in deals, as the owners could decide to hold on to their investments. Both companies would probably receive interest from other private equity groups, they added.

Blackstone last tested interest in HealthEdge in 2022, but the sale process failed to result in a deal. HealthEdge received a minority investment from Philippe Laffont’s hedge fund Coatue Management in 2021, valuing the group at about $2bn.

HealthEdge, which according to one of the people generated between $100mn and $120mn in earnings last year, offers novel software for health insurers to modernise their systems, which eases the process behind designing healthcare plans and making decisions about claims.

Premise, which was founded in 1964, has through a series of acquisitions grown to become one of the biggest direct-access care networks in the US, operating 800 wellness centres in 46 states to meet the needs of more than 2,500 employers signed up to its plans.

Both sales will mark profitable exits for the private equity groups if completed. Omers first backed Premise in 2018 in a deal worth just over $1bn including debt, while Blackstone bought a majority stake in HealthEdge in 2020 valuing the business at about $700mn.

Le Figaro : Patrick Drahi cède près de la moitié du capital de SFR à ses créanci

Patrick Drahi cède près de la moitié du capital de SFR à ses créanciers pour en garder le contrôle

INFO LE FIGARO - Après des négociations serrées d’un an, les créanciers devrait s’engager à réduire leur dette de 8,6 milliards. En échange, ils vont récupérer 45% du capital du propriétaire d’Altice France.

Fumée blanche chez Altice France. Selon nos informations et après un an d’un bras de fer intense, l’homme d’affaires Patrick Drahi et ses créanciers sont tombés d’accord sur la restructuration de la dette colossale de la holding détenant SFR, dont le montant atteignait la bagatelle de 24 milliards d’euros. Une situation intenable pour le milliardaire, menacé de perdre le contrôle de son groupe malgré les cessions en 2024 de son pôle média BFMTV-RMC a Rodolphe Saadé ainsi qu’une partie des data center de SFR pour se renflouer.

«Un sentiment de fin de règne»: depuis un an, l’empire de Patrick Drahi ébranlé : http://www.lefigaro.fr/secteur/high-tech/un-sentiment-de-fin-de-regne-depuis-un-an-l-empire-de-patrick-drahi-ebranle-20240829

Après une négociation serrée avec ses porteurs de dette, le milliardaire réussit finalement à garder les manettes. En échange d’une réduction d’un volume significatif de sa dette - environ 8,6 milliards sur les 24 milliards, opération d’une ampleur jamais vue en France -, les créanciers vont prendre un peu moins de la moitié du capital (45%), selon un proche des négociations. Trois ans après le rachat des actions des entités françaises et le retrait de la Bourse, Patrick Drahi va donc devoir collaborer de nouveau avec des actionnaires minoritaires.

Donner de l’air à Altice

Dans la corbeille de l’accord, les créanciers obtiennent également de meilleurs taux d’intérêts pour leurs créances, ainsi qu’un paiement cash de la part d’Altice, qui devrait atteindre 2 milliard d’euros en plus des 700 millions réglés aux créanciers au titre des échanges prévues en 2025. « Pour les créanciers sécurisés, l’accord est intéressant : ils récupèrent du cash, obtiennent du capital de la société, conservent une dette qui sera rémunérée », souligne un proche des porteurs de dette.

Grâce à cet accord qui réduit sa dette de 24 à 15,9 milliards, Altice fait également baisser la charge des intérêts de 400 millions d’euros par an. Il repousse enfin le fardeau immédiat des échéances de dette. Aucune grosse maturité n’est prévue jusqu’en 2030. Et la maturité moyenne des obligations passe de 3,1 à 6,1 ans, certaines ayant été repoussées jusqu’à 2033. De quoi donner un peu d’air à SFR, opérateur dont les performances commerciales ne cessent de se dégrader depuis deux ans.

Plus d’informations à suivre...

WSJ : Startup Quantum Machines Raises $170 Million in Series C Round

Startup Quantum Machines Raises $170 Million in Series C Round
The Israeli company’s latest round marks one of the largest fundraisings to date for a quantum computing company

Quantum Machines, an Israeli quantum computing startup, raised $170 million in a Series C round, bringing total funding to date to $280 million.

The raise, the fifth-largest ever for a quantum computing company according to data provider PitchBook Data, comes amid growing excitement for quantum computing in the wake of hardware advancements announced by Microsoft and Google. The largest was a $624.6 million investment into PsiQuantum in 2024, according to PitchBook.

“Investors understand that at the end of the day, if you can bring a new paradigm of computing, that’s probably the biggest potential one can think of,” said Quantum Machines co-founder and Chief Executive Itamar Sivan. “There’s nothing that’s driving the industry and the economy more than computing in the last hundred years.”

PSG Equity led the round with participation from Intel Capital, Red Dot Capital Partners and existing investors.

Quantum computing promises to do everything from simulating the behavior of natural materials in chemistry to breaking the public-key cryptography used to secure the internet.

Quantum startups have seen less investor activity in recent years compared with trendier areas like generative artificial intelligence and AI agents, in part because of uncertainty over when quantum computing can demonstrate meaningful commercial applications.

Quantum Machines doesn’t have to wait for that day, selling its tech now to the companies, government labs and universities that are building quantum computers.

The startup provides control systems for quantum computers, the hardware and software that sends signals to the quantum processor, commanding it to execute certain tasks.

Quantum Machines said its products are designed to integrate with the varying types of quantum processors in use. It said it works with dozens of companies building quantum hardware, including Nvidia.

Sivan said he plans to use the money to continue developing the technology to support more powerful quantum computers and to invest in the company’s head count. The company has about 200 employees worldwide, with offices in Israel, Denmark and Germany. By the end of 2025, the plan is to hire about 100 more and set up two more offices, in locations to be determined.

Quantum Machines declined to comment on its revenue and valuation.

Intel Capital, which invests off the balance sheet of Intel Corp., said Quantum Machines represents its first quantum investment.

The debate around quantum has strongly shifted from a question of “if” to a question of “when,” said Intel Capital investment director Kike Miralles. “The timeline is still uncertain, but the category is here to stay.”

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FT : Germany’s AfD brings ‘friendly face of National Socialism’ into fold

Germany’s AfD brings ‘friendly face of National Socialism’ into fold
Far-right parliamentary group embraces radicals after record gains in Sunday’s election

The far-right Alternative for Germany has embraced some of the movement’s most radical figures after a record second-place finish in elections, including a man who once described himself the “friendly face of National Socialism”.

The AfD group in the Bundestag on Tuesday voted to accept Matthias Helferich, who is so divisive officials from his own regional association attempted to expel him from their local association, alleging he referred to Germans descended from migrants as “beasts”.

The AfD parliamentary faction, which is jubilant after securing a record 21 per cent in Sunday’s federal elections, also voted to admit Maximilian Krah, who last year sought to downplay the crimes of Adolf Hitler’s SS and faced an investigation over alleged payments from Russia and China.

Other members of the new AfD contingent, which is older and more male than the Bundestag average, include Dario Seifert, 31, a former member of the youth wing of the notorious extremist party the NPD, who on Sunday won the seat of former CDU chancellor Angela Merkel.

The new AfD group, which has grown so much that it had to move to a larger room for Tuesday’s meeting, also includes a slew of allies of Björn Höcke, the figurehead of the party’s most radical flank. They include eight MPs from the eastern state of Thuringia, where he is party co-leader, his former office manager and strategist.

Benjamin Höhne, a political scientist at Chemnitz Technical University, said that the inclusion of Krah and Helferich was the latest sign that — rather than moderating and seeking to broaden its appeal like France’s Marine Le Pen — the AfD was growing more radical.

“The party as a whole is much more on the far-right of the party spectrum than it was in the beginning — and than it was two or three years ago,” he said. Höhne said that party co-leader Alice Weidel, who has sought to present the AfD as conservative rather than far-right, appeared to be “too weak” to insist on the exclusion of figures who undermined that approach.

The AfD was founded in 2013 in protest at the Eurozone bailout of Greece. But it has increasingly morphed into a far-right anti-immigration party, recently embracing the contentious term “remigration” as well as in effect calling for the dismantling of the EU and opposing sanctions on Moscow.

In a party with no shortage of offbeat characters, Krah, who won his seat in the east German state of Saxony with 44 per cent of the vote in Sunday’s federal elections, has become one of its most notorious figures.

He had previously been the AfD’s top candidate for last year’s European elections. But he was ejected from the party’s delegation in the European parliament after telling the Financial Times that not all those who served in Adolf Hitler’s SS were criminals. 

Krah had already made headlines after German police arrested one of his staffers on suspicion of spying for China and faced investigation over alleged payments from Russian and Chinese sources — allegations that he denied.

Helferich, meanwhile, has been a member of parliament since 2021 but was in effect banned from joining its parliamentary faction after a leaked Facebook chat in which he talked about being “the friendly face” of the Nazis became public. He insisted that he was simply “parodying” online leftwingers in the online exchange.

But he has been engaged in a bitter struggle with officials of his own party in the west German state of North Rhine-Westphalia, who sought to have him expelled after claiming that he supported the deportation of German citizens descended from migrant parents or grandparents, whom he allegedly referred to as “beasts”. Helferich has denied that claim and accused party rivals of trying to sideline him.

The AfD’s historic result is set to provide new levels of political exposure for the far-right group and boost its financial resources — as well as exacerbating the already increasingly unruly tone of the national political debate.

It has no chance of entering government because election winner Friedrich Merz, of the centre-right Christian Democrats, has ruled out working with a party he and other mainstream politicians view as politically toxic. 

Even so, its success in doubling vote share since the previous election will deliver millions of euros in extra funding each year for a party that has already said it is gunning for a first place finish at the next election in 2029. 

“We will overtake the CDU in the next few years,” said the party’s co-leader Weidel in a triumphant press conference on Monday. “And that will happen very, very quickly.”

The AfD received €11.6mn from a public fund for supporting political parties in 2023 — a figure that represented about 30 per cent of its income. That amount will rise significantly. So too will separate funds provided by the Bundestag to members of parliament to pay for their offices, staff and other expenses. 

Aurel Eschmann, a campaigner for the Berlin-based NGO LobbyControl, which calls for greater transparency in politics, said that the extra funds would be “massive” for the AfD, whose income has lagged behind many of its rivals.

He said that the party — parts of which are officially classified as right-wing extremist by Germany’s domestic intelligence agency — would be able to use the funds to bolster far-right networks by employing their members or renting buildings owned by their members.

He warned that there was very little accountability over how parties used public money: “They can do whatever they want with it.”

In the aftermath of Sunday’s vote, the AfD has also begun clamouring for its success to reflected in top jobs in the Bundestag, including the parliament’s vice-president — a role similar to the post of deputy speaker in the UK.

The AfD tried unsuccessfully to nominate a candidate for that position in 2017, when it was also the largest opposition party, albeit with a smaller contingent. The move was opposed by other parties.

AfD MP Kay Gottschalk said it would be harder for its rivals to do the same again this time round. “It’s very hard under this pressure [from voters] to argue: ‘we have to exclude them’,” he told the FT. “It’s a game-changer.”

The AfD will probably chair the Bundestag’s budget committee. Peter Boehringer, a senior AfD MP who served in that role from 2017 to 2021, said that in reality the power was “limited”.

More important, he argued, was the fact that the AfD would be granted the first response on every topic in plenary sessions in the Bundestag, as well as more time to speak. “It’s more than just symbolism,” he said. “We are the official opposition leader now.”

Weidel, the party co-leader, also described it as a “disgrace” that the party had not been elected to the committee that oversees the intelligence services since 2018. She said that a party with almost a quarter of the seats in the Bundestag “should no longer be ignored”.

The sharp increase in the number of AfD members of parliament is likely to lead to a much more unruly Bundestag, according to analysts. 

“It will change the style and the tone of our debates,” said Andrea Römmele, a political scientist at the Hertie School in Berlin.

The number of “calls to order” issued by the Bundestag president against MPs for using terms such as “child murderer”, “liar” and “hypocrite” reached its highest postwar level in the three years since the previous election — with the vast majority issued against the AfD.

Anna-Sophie Heinze, a political scientist at the University of Trier, said: “The AfD really tries to use targeted provocations and insults to provoke the MPs from the other parties.” She added that, with its newfound influence, the AfD would have an unprecedented ability to “set the tone”.