Abdiel Capital Advisors fully exited its position in Floor & Decor Holdings (FND 5.57%), removing 1,482,936 shares, with an estimated value change of $112.64 million, per its Nov. 14, 2025, SEC filing.
What happened
According to a Securities and Exchange Commission (SEC) filing dated Nov. 14, 2025, Abdiel Capital Advisors sold all 1,482,936 shares of Floor & Decor Holdings in the third quarter.
The estimated value of the stake removed was $112.64 million, representing a significant portion of the fund’s reported U.S. equity assets.
What else to know
Abdiel Capital Advisors sold out of FND, removing a position previously accounting for 10.5% of AUM as of the previous quarter.
Post-filing, the firm's top holdings are:
- HCA Healthcare (HCA +0.59%): $147.60 million (44.7% of AUM)
- Global-e Online (GLBE 1.21%): $71.07 million (21.5% of AUM)
- Affirm (AFRM 4.51%): $70.13 million (21.2% of AUM)
- Appian (APPN 3.54%): $40.48 million (12.2% of AUM)
- BBB Foods (TBBB +1.70%): $1.09 million (0.3% of AUM)
As of Nov. 14, 2025, shares of FND were priced at $60.02, down 41% over the past year, with a one-year alpha of -54% versus the S&P 500.
Company overview
| Metric | Value |
|---|---|
| Price (as of market close 2025-11-14) | $60.02 |
| Market Capitalization | $6.47 billion |
| Revenue (TTM) | $4.66 billion |
| Net Income (TTM) | $216.80 million |
Company snapshot
Floor & Decor:
- Offers a range of hard surface flooring products, including tile, wood, laminate, vinyl, and stone, along with decorative and installation accessories.
- Operates a multi-channel retail and commercial distribution model, generating revenue through warehouse-format stores, design studios, and e-commerce.
- Serves professional installers, commercial businesses, and do-it-yourself customers across 34 states in the U.S.
Floor & Decor Holdings focuses on hard surface flooring and related accessories, leveraging a warehouse-format store strategy and e-commerce to serve both professional and consumer demand.
Foolish take
Abdiel Capital held Floor & Decor for more than five years. Over that period, FND stock declined at a rate of 5% annually.
Despite growing sales and net income by 18% and 9% annually over those five years, the stock languished as it struggled to keep up with a very premium valuation. In 2021, the company's P/E ratio had ballooned above 60 at certain times throughout the year.
While Abdiel's liquidation of the stock is certainly jarring, it is somewhat understandable. Whether they are concerned about the slowdown in the housing market, the recent challenges to consumer spending, or Floor & Decor's declining margins and slowing sales growth rates, there are several potential reasons for the sale.
Making matters worse, the company's CEO, who has been in the role for over 12 years, is also departing, so Abdiel may not like the ownership change.
That said, from a Foolish perspective of holding for a decade or longer, it may be too early to give up on the company.
The U.S. housing market is notoriously cyclical, so even the most robust housing (and housing-adjacent) stocks will be impacted.
Now trading at just 1.3 times sales and 29 times earnings, Floor & Decor is arguably trading at its lowest valuation of the last decade.
As a leader in its specialized niche, Floor & Decor could be an interesting buy at these more reasonable valuations as it continues to expand its footprint.
Glossary
Assets Under Management (AUM): The total market value of investments managed on behalf of clients by a fund or firm.
13F Reportable Assets: U.S. equity securities that investment managers must disclose quarterly to the SEC if they exceed $100 million in value.
Alpha: A measure of an investment's performance relative to a benchmark, showing excess return above the market average.
Trailing Twelve Months (TTM): The 12 months ending with the most recent quarterly report.
Multi-channel Retail: A sales approach using multiple methods, such as physical stores, online platforms, and direct sales, to reach customers.
Warehouse-format Stores: Large retail locations designed for bulk inventory and self-service shopping, often offering lower prices.
Commercial Distribution Model: A business strategy focused on selling products or services to other businesses, not just individual consumers.
Position (in investing): The amount of a particular security or asset held by an investor or fund at a given time.
Fully Exited: When an investor or fund has sold all of its holdings in a particular security.
Net Value Change: The total dollar amount gained or lost from buying or selling a security, after accounting for all transactions.
