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Flotek Surpasses 2024 Annual Guidance with Strong Fourth Quarter and Full-Year Results

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HOUSTON, March 10, 2025 /PRNewswire/ — Flotek Industries, Inc. (“Flotek” or the “Company”) (NYSE: FTK) today announced operational and financial results for the fourth quarter and full-year ended December 31, 2024.  Fourth quarter 2024 results were the strongest quarterly results of 2024 in terms of revenue, gross profit, net income and adjusted EBITDA (1).

Financial Summary (in thousands, except ‘per share’ amounts)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2024

2023

2024

2023

Total Revenues

$            50,758

$            42,188

$          187,025

$          188,058

Gross Profit

$            12,277

$              9,430

$            39,386

$            24,263

Net Income

$              4,429

$              2,104

$            10,498

$            24,713

Diluted Income (Loss) Per Share

$                0.14

$                0.07

$                0.34

$               (0.10)

Adjusted EBITDA (1)

$              7,023

$              3,952

$            20,327

$              1,488

Full-Year and Fourth Quarter 2024 Highlights

Q4 2024 total revenue rose 20% vs. Q4 2023, led by a 21% jump in external customer revenue—the highest in 5 years.Data analytics service revenue grew 124% vs. Q4 2023 and 44% vs. full year 2023.Gross profit climbed 30% vs. Q4 2023 and 62% vs. full year 2023, with Q4 2024 gross margin rising to 24%.Q4 2024 net income was $4.4 million and adjusted EBITDA(1) totaled $7.0 million, up 111% and 78%, respectively, vs Q4 2023.2024 net income hit $10.5 million or $0.34/share, vs. a loss of $(0.10)/share in 2023.2024 adjusted EBITDA(1) reached $20.3 million, up $18.8 million from 2023—the highest since 2017—exceeding guidance of $18.5 million by 10%.

Management Commentary

Chief Executive Officer Dr. Ryan Ezell commented, “2024 marks a significant step in the execution of our corporate strategy towards the convergence between innovative Data and Chemistry solutions that deliver outstanding value to our customers and external stakeholders. This year, we not only achieved the highest profitability metrics in nearly a decade but did so through superior operational efficiency and service quality execution. Additionally, our commitment to safety has shone through, with no lost-time incidents recorded in the past three years.

We’ve expanded our technology portfolio with the introduction of three cutting-edge Data Analytics solutions: VeraCal, JP3 Raman, and XSPCT, systems specifically designed to address the unique challenges of the energy and infrastructure sector while driving high-margin growth into 2025 and beyond. In the fourth quarter, we observed a significant transformation in our Data Analytics revenue resulting in a 67% sequential increase in service revenue furthering the shift from products to services.

Looking ahead, we expect that the integration of Data and Chemistry at Flotek will provide exciting new innovations in the energy and infrastructure market. These advancements are set to empower our customers’ assets to maximize returns, reduce costs, automate processes, and leverage data in ways previously unimaginable. We believe that our relentless pursuit to leverage chemistry as the common value creation platform will position Flotek as a leader in differentiated technologies and foster our future growth.”

Fourth Quarter and Full-Year 2024 Financial Results

Revenue: Flotek reported total revenues of $50.8 million for fourth quarter 2024, an increase of $8.6 million, or 20%, compared to total revenues of $42.2 million for fourth quarter 2023. Full-year 2024 total revenues totaled $187.0 million, as compared to total revenues of $188.1 million during 2023. Fourth quarter and full year 2024 revenues include $8.6 million and $32.4 million, respectively, related to the minimum purchase requirements under the Company’s long-term supply agreement with ProFrac Services, LLC.

Segment Revenue Summary (in thousands)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2024

2023

2024

2023

Chemistry Technologies:

 External Revenues

$             21,071

$             17,996

$             63,214

$             59,016

Related Party Revenues

27,215

22,769

114,947

120,903

Total

$             48,286

$             40,765

$           178,161

$           179,919

Data Analytics:

Product Revenues

$                   826

$                   688

$               4,745

$               5,277

Service Revenues

1,646

735

4,119

2,862

Total

$               2,472

$               1,423

$               8,864

$               8,139

Gross Profit: The Company generated gross profit of $12.3 million during fourth quarter 2024 compared to a gross profit of $9.4 million during fourth quarter 2023. The improvement in fourth quarter 2024 gross profit was primarily the result of successful initiatives throughout 2024 to drive cost reductions with respect to freight, logistics and materials combined with an 18% increase in chemistry revenue and a 74% increase in data analytics revenue, as compared to fourth quarter 2023.

The Company generated gross profit of $39.4 million for full-year 2024 compared to gross profit of $24.3 million for full-year 2023.Selling, General and Administrative (“SG&A”) Expense: SG&A expense totaled $6.6 million for the fourth quarters of 2024 and 2023. SG&A expense totaled $24.7 million for full-year 2024 compared to $27.8 million for full-year 2023, an 11% reduction year-over-year. Excluding non-cash stock compensation expense, 2024 SG&A expense is 17% lower than 2023.Net Income (Loss) and EPS: Flotek reported net income of $4.4 million, or $0.14 per diluted share, for the fourth quarter 2024. This compares to net income of $2.1 million, or $0.07 per diluted share, for the fourth quarter 2023. Net income for full-year 2024 was $10.5 million, or $0.34 per diluted share, compared to net income (loss) of $24.7 million, or ($0.10) per diluted share, for the comparable period of 2023. Net income for full-year 2023 included non-cash gains related to the fair value measurement of convertible notes payable and a PPP loan forgiveness totaling $34.5 million.Adjusted EBITDA (Non-GAAP)(1): Adjusted EBITDA(1) was $7.0 million in fourth quarter 2024 as compared to $4.0 million in fourth quarter 2023. Adjusted EBITDA(1) was $20.3 million for full-year 2024 compared to $1.5 million for full-year 2023.

(1)

See the “Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings” section in this release for more information, including reconciliations to the most comparable GAAP measures.

2025 Guidance

Consistent with 2024 and 2023, Flotek plans to issue 2025 guidance in conjunction with the release of its first quarter 2025 financial and operating results.

Upcoming Investor Event

Flotek will participate in the 37th Annual Roth Conference to be held at the Marriott in Laguna Dana Point, California, March 17-18, 2025. Flotek Chief Executive Officer, Ryan Ezell, will participate in an industry panel discussion on March 17 at 10:00 a.m. PT and will be joined by Chief Financial Officer, Bond Clement, in hosting one-on-one meetings during the event. An updated corporate presentation to be used in discussions at the conference will be posted to the Investor Relations section of Flotek’s corporate website at www.flotekind.com prior to the start of the conference.

Conference Call Details

Flotek will host a conference call on March 11, 2025, at 9:00 a.m. CT (10:00 a.m. ET) to discuss its fourth quarter and full-year 2024 results. Participants may access the call through Flotek’s website at www.flotekind.com under “News” within the Investor Relations section, by telephone toll free at 1-800-836-8184 (international toll: 1-646-357-8785), or by using the following link to access the audience view of the webcast at https://app.webinar.net/qDjWg9qga1Y approximately five minutes prior to the start of the call. Following the conclusion of the conference call, a recording of the call will be available on the Company’s website.

An updated corporate presentation that will be referenced on the call will be posted to the Investor Relations section of Flotek’s website at www.flotekind.com prior to the start of the earnings conference call.

About Flotek Industries, Inc.

Flotek Industries, Inc. is a leading chemistry and data technology company focused on servicing the Energy industry. The Company’s top tier technologies leverage near real-time data to deliver innovative solutions to maximize customer returns. Flotek has an intellectual property portfolio of over 130 patents, 20+ years of field and laboratory data, and a global presence in more than 59 countries.

Flotek has established collaborative partnerships focused on sustainable and optimized chemistry and data solutions, aiming to reduce the environmental impact of energy on land, air, water and people.

Flotek is based in Houston, Texas and its common shares are traded on the New York Stock Exchange under the ticker symbol “FTK.” For additional information, please visit www.flotekind.com. 

Forward-Looking Statements

Certain statements set forth in this press release constitute forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934) regarding Flotek Industries, Inc.’s business, financial condition, results of operations and prospects. Words such as will, continue, expects, anticipates, intends, plans, believes, seeks, estimates and similar expressions or variations of such words are intended to identify forward-looking statements, but are not the exclusive means of identifying forward-looking statements in this press release. Although forward-looking statements in this press release reflect the good faith judgment of management, such statements can only be based on facts and factors currently known to management. Consequently, forward-looking statements are inherently subject to risks and uncertainties, and actual results and outcomes may differ materially from the results and outcomes discussed in the forward-looking statements. Further information about the risks and uncertainties that may impact the Company are set forth in the Company’s most recent filing with the Securities and Exchange Commission on Form 10-K (including, without limitation, in the “Risk Factors” section thereof), and in the Company’s other SEC filings and publicly available documents. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.

FLOTEK INDUSTRIES, INC.

 UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)

December 31, 2024

December 31, 2023

ASSETS

Current assets:

Cash and cash equivalents

$                          4,404

$                          5,851

Restricted cash

102

102

Accounts receivable, net of allowance for credit losses of $447 and $745 at
December 31, 2024 and December 31, 2023, respectively

17,386

13,687

Accounts receivable, related party, net of allowance for credit losses of $0 at
each of December 31, 2024 and December 31, 2023, respectively

52,370

34,569

Inventories, net

13,303

12,838

Other current assets

2,952

3,564

Current contract asset

5,939

5,836

Total current assets

96,456

76,447

Long-term contract asset

63,105

68,820

Property and equipment, net

6,178

5,129

Operating lease right-of-use assets

3,326

5,030

Deferred tax assets, net

51

300

Other long-term assets

1,680

1,787

TOTAL ASSETS

$                      170,796

$                      157,513

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

$                        38,073

$                        31,705

Accrued liabilities

5,912

5,890

Income taxes payable

48

45

Current portion of operating lease liabilities

1,486

2,449

Current portion of finance lease liabilities

—

22

Asset-based loan

4,789

7,492

Current portion of long-term debt

60

179

Total current liabilities

50,368

47,782

Deferred revenue, long-term

14

35

Long-term operating lease liabilities

6,514

7,676

Long-term debt

—

60

TOTAL LIABILITIES

56,896

55,553

Commitments and contingencies

Stockholders’ equity:

Preferred stock, $0.0001 par value, 100,000 shares authorized; no shares
     issued and outstanding

—

—

Common stock, $0.0001 par value, 240,000,000 shares authorized;
     30,938,073 shares issued and 29,826,508 shares outstanding at
     December 31, 2024; 30,772,837 shares issued and 29,664,130 shares
     outstanding at December 31, 2023

3

3

Additional paid-in capital

464,620

463,140

Accumulated other comprehensive income

251

127

Accumulated deficit

(316,308)

(326,806)

Treasury stock, at cost; 1,111,565 and 1,108,707 shares at December 31,
     2024 and December 31, 2023, respectively

(34,666)

(34,504)

Total stockholders’ equity

113,900

101,960

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$                      170,796

$                      157,513

 

FLOTEK INDUSTRIES, INC.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except per share data)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2024

2023

2024

2023

Revenue:

Revenue from external customers

$              23,328

$            19,239

$            71,263

$          66,518

Revenue from related party

27,430

22,949

115,762

121,540

Total revenues

50,758

42,188

187,025

188,058

Cost of goods sold

38,481

32,758

147,639

163,795

Gross profit

12,277

9,430

39,386

24,263

Operating costs and expenses:

Selling, general, and administrative

6,630

6,552

24,709

27,827

Depreciation

229

204

891

734

Research and development

365

255

1,714

2,486

Gain on sale of property and equipment

(90)

—

(124)

(38)

Gain in fair value of Contract Consideration
Convertible Notes Payable

—

—

—

(29,969)

Total operating costs and expenses

7,134

7,011

27,190

1,040

Income from operations

5,143

2,419

12,196

23,223

Other income (expense):

Paycheck protection plan loan forgiveness

—

—

—

4,522

Interest expense

(253)

(320)

(1,095)

(2,857)

Other income (expense), net

(105)

56

46

(26)

Total other (expense) income

(358)

(264)

(1,049)

1,639

Income before income taxes

4,785

2,155

11,147

24,862

Income tax expense

(356)

(51)

(649)

(149)

Net income

$                 4,429

$               2,104

$            10,498

$          24,713

Income (loss) per common share:

Basic

$                   0.15

$                 0.07

$                0.36

$               1.00

Diluted

$                   0.14

$                 0.07

$                0.34

$             (0.10)

Weighted average common shares:

Weighted average common shares used in
   computing basic income (loss) per common
   share

29,642

29,396

29,534

24,830

Weighted average common shares used in
   computing diluted income (loss) per common
   share

31,436

30,496

30,889

28,377

 

FLOTEK INDUSTRIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

Twelve Months Ended

December 31,

2024

2023

Cash flows from operating activities:

Net income

$                  10,498

$                  24,713

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

Change in fair value of contingent consideration

71

(527)

Change in fair value of Contract Consideration Convertible Notes Payable

—

(29,969)

Amortization of convertible note issuance costs

—

83

Payment-in-kind interest expense

—

2,284

Amortization of contract asset

5,612

5,033

Depreciation

891

734

Amortization of asset-based loan origination costs

314

121

Provision for credit losses, net of recoveries

181

138

Provision for excess and obsolete inventory

645

959

Gain on sale of property and equipment

(124)

(38)

Non-cash lease expense

2,094

3,014

Stock compensation expense

1,366

(254)

Deferred income tax expense

249

104

Paycheck protection plan loan forgiveness

—

(4,522)

Changes in current assets and liabilities:

Accounts receivable

(3,880)

5,311

Accounts receivable, related party

(17,801)

(11,886)

Inventories

(1,110)

1,938

Income taxes receivable

8

—

Other assets

561

(836)

Accounts payable

6,368

(1,670)

Accrued liabilities

(70)

(2,575)

Operating lease liabilities

(2,515)

(3,391)

Income taxes payable

3

(53)

Interest payable

—

(8)

Net cash provided by (used in) operating activities

3,361

(11,297)

 

FLOTEK INDUSTRIES, INC.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(continued)

Twelve Months Ended

December 31,

2024

2023

Cash flows from investing activities:

Capital expenditures

(1,940)

(1,081)

Proceeds from sale of assets

124

67

Net cash used in investing activities

(1,816)

(1,014)

Cash flows from financing activities:

Payment for forfeited stock options

—

(617)

Payments on long term debt

(179)

(149)

Proceeds from asset-based loan

166,950

68,716

Payments on asset-based loan

(169,653)

(61,224)

Payment of asset-based loan origination costs

(164)

(574)

Payments to tax authorities for shares withheld from employees

(162)

(268)

Proceeds from issuance of stock under Employee Stock Purchase Plan

114

77

Payments for finance leases

(22)

(33)

Net cash (used in) provided by financing activities

(3,116)

5,928

Effect of changes in exchange rates on cash and cash equivalents

124

(54)

Net change in cash and cash equivalents and restricted cash

(1,447)

(6,437)

Cash and cash equivalents at the beginning of period

5,851

12,290

Restricted cash at the beginning of period

102

100

Cash and cash equivalents and restricted cash at beginning of period

5,953

12,390

Cash and cash equivalents at end of period

4,404

5,851

Restricted cash at the end of period

102

102

Cash and cash equivalents and restricted cash at end of period

$                    4,506

$                    5,953

 

FLOTEK INDUSTRIES, INC.

Unaudited Reconciliation of Non-GAAP Items and Non-Cash Items Impacting Earnings

(in thousands)

Three Months Ended

December 31,

Twelve Months Ended

December 31,

2024

2023

2024

2023

Gross profit

$             12,277

$               9,430

$             39,386

$             24,263

Stock compensation expense

15

3

24

(132)

Severance and retirement

2

3

11

29

Contingent liability revaluation

117

(143)

71

(527)

Amortization of contract asset

1,271

1,368

5,612

5,033

Adjusted Gross profit (Non-GAAP) (1)

$             13,682

$             10,661

$             45,104

$             28,666

Net income

$               4,429

$               2,104

$             10,498

$             24,713

Interest expense

253

320

1,095

2,857

Income tax expense

356

51

649

149

Depreciation and amortization

229

204

891

734

EBITDA (Non-GAAP) (1)

$               5,267

$               2,679

$             13,133

$             28,453

Stock compensation expense

451

307

1,366

(268)

Severance and retirement

7

10

39

(17)

Contingent liability revaluation

117

(143)

71

(527)

Gain on disposal of assets

(90)

—

(124)

(38)

PPP loan forgiveness

—

—

—

(4,522)

Contract Consideration Convertible Notes Payable revaluation adjustment

—

—

—

(29,969)

Amortization of contract asset

1,271

1,368

5,612

5,033

Non-Recurring professional fees

—

(269)

230

3,343

Adjusted EBITDA (Non-GAAP) (1)

$               7,023

$               3,952

$             20,327

$               1,488

(1)

Management believes that adjusted gross profit, EBITDA and adjusted EBITDA for the three and twelve months ended December 31, 2024 and 2023, are useful to investors to assess and understand operating performance, especially when comparing those results with previous and subsequent periods.  Management views the income and expenses noted above to be outside of the Company’s normal operating results.  Management analyzes operating results without the impact of the above items as an indicator of performance, to identify underlying trends in the business and cash flow from continuing operations, and to establish financial and operational goals, excluding certain non-cash or non-recurring items.

 

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SOURCE Flotek Industries, Inc.

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Haloid Poll: Majority of Public Safety and Commercial Radio Administrators Would Consider Starlink Integration With LMR Two-Way Radio Networks, but Disruption Unlikely

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STONY BROOK, N.Y., Oct. 25, 2026 /PRNewswire/ — Following Starlink’s announced entry into the mobile communications space, Haloid’s consulting team polled government and business land mobile radio (LMR) administrators on whether Starlink could replace, or complement, their LMR systems. We found that most radio administrators were receptive to the nascent technology but did not see it as a replacement for their LMR networks.

Sixty-seven percent of radio administrators said they would be willing to integrate Starlink technology if it allowed them to expand coverage or lower infrastructure costs. When asked whether Starlink could completely replace their LMR networks, fewer than 15 percent said yes; the vast majority believed Starlink is not as reliable as the custom networks they have built. Among administrators who already use two-way radio over cellular (also known as push-to-talk over cellular, or PoC), however, nearly 80 percent said that Starlink’s satellite coverage, combined with its newly acquired cellular spectrum, would make it more desirable than the industry’s wireless incumbents because it could eliminate dead spots where cellular does not reach.

In the U.S., hundreds of thousands of radio users rely on traditional cellular carriers for push-to-talk communications, and that number grows each year. While the migration to two-way radio over cellular has affected the LMR industry, it has not replaced it. Many public safety agencies never made the switch, citing the risk that cellular networks could go down during weather events, power outages, or cyberattacks and jeopardize emergency communications.

In fact, during recent cellular outages, Starlink was used to provide emergency communications to affected areas, because its satellite connectivity does not depend on cell towers. But Starlink’s integration with the 800 MHz cellular spectrum — “Starlink 2.0,” as some experts are calling it — exposes it to some of the same vulnerabilities as traditional wireless carriers.

While Starlink’s satellite service might still function if local cell towers go down, a critical portion of an agency’s communications might rely on local towers using the 800 MHz spectrum, leaving the agency vulnerable in a storm or outage.

Expect evolution, not disruption

“Just like cellular didn’t replace LMR, we don’t see Starlink as an existential risk,” said Jeremy Alicandri, President of Haloid Solutions. He expects Starlink to accelerate the industry’s evolution toward shared communications infrastructure, also known as hybrid LMR. “We have public safety customers already using Starlink in their vehicles to extend the coverage of their radios. This trend will continue as Starlink devices become more ubiquitous.”

The stock prices of Verizon, T-Mobile, and AT&T were affected by Starlink’s recent announcement. LMR stocks such as L3Harris, JVCKENWOOD, and BK Technologies, maker of the Bendix King brand, have been unaffected, as Wall Street views Starlink as unlikely to replace LMR technology for the same reasons cellular did not. “But it may be too early to predict the industry’s winners and losers,” Alicandri added. “The cellular incumbents have many advantages, including low-cost devices, existing infrastructure, and their own satellite ambitions.”

About Haloid Solutions Research

Haloid’s Starlink poll drew on respondents to its LMR brand loyalty study, which measures radio administrators’ sentiment toward the ownership and after-sales experience. Haloid’s LMR research is sponsored by investors in the mission-critical communications space.

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Newborn Town and Viggle Launch AI-Powered 3D Interactive Game, Bringing World Models to Social Gaming

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HONG KONG, Oct. 26, 2026 /PRNewswire/ — Recently, Newborn Town’s game-oriented social platform TopTop has launched “Slap Showdown”, an AI-powered 3D interactive mini-game developed in collaboration with Viggle, a company specializing in physics-native world models. The launch brings world model technology into social gaming, offering users a more personalized and engaging interactive experience.

Developed by TopTop and powered by Viggle’s self-developed Joint Space-Time (JST) world model, “Slap Showdown” lets users turn uploaded photos into customized 3D characters and take them straight into the game.

Launched in September, “Slap Showdown” has gained particular traction in Japan, among Spanish-speaking users in North America, and across the Middle East. It is now available in multiple countries and regions worldwide.

From Better Gameplay to a Richer Ecosystem: How World Models Could Redefine Social Gaming on TopTop

In terms of gameplay, “Slap Showdown” combines AI-generated 3D characters with multiplayer interaction. Players can simply upload a photo from their phone and generate a personalized 3D character in around 30 seconds, whether it’s an anime protagonist, a cyberpunk cyborg, or a LEGO minifigure. They can then bring their custom characters into the game and face off against other players in fun, interactive battles.

As players use controls such as press-and-hold, tap, and drag, the 3D characters respond with realistic, physics-based movements. This takes AI-generated characters beyond visual customization, integrating them directly into the gameplay experience.

According to TopTop’s operations team, “Slap Showdown” has attracted a growing base of highly engaged, high-spending-potential players in its first month since launch. The game has recorded a 97% match completion rate, while its game-start rate has also exceeded the platform-wide average.

The depth of user engagement is further illustrated by individual player activity. One player in Japan completed 1,041 matches over 22 days, reaching a daily peak of 151 matches and averaging one match every 9.5 minutes. Another particularly avid player in Eastern Europe completed 735 matches in just 11 days, averaging 66.8 matches per day and peaking at 126 matches in a single day.

For a UGC-driven social gaming platform such as TopTop, mini-games serve as entry points and traffic drivers, while social features underpin retention and monetization. Personalized 3D avatars add another dimension to that experience. Beyond their visual appeal, they give users new ways to express themselves, interact with friends and share memorable moments. In turn, richer gameplay and more meaningful social interactions can help improve retention, attract new users and strengthen engagement across the platform.

“Slap Showdown” marks a successful step in TopTop’s efforts to deepen its application of AI technology, as well as a starting point for using world models to enhance gaming and social experiences. TopTop’s operations team said future game releases could make greater use of AI-powered 3D generation, extending beyond avatars to include customized environments. Existing games could also be revitalized by the introduction of new gameplay features, potentially driving stronger retention and user acquisition.

Beyond enriching gameplay, world model capabilities could also reshape social interaction itself, enabling more immersive, face-to-face experiences in virtual spaces. “We’re constantly exploring how AI can transform gaming and social interaction, while bringing new energy and capabilities to our UGC ecosystem,” TopTop’s operations team said.

Viggle Unveils Physics-Native Model JST-2, Setting Its Sights on Becoming the Infrastructure Layer for Physical AI

The world model technology powering “Slap Showdown” is provided by Viggle.

Founded in 2022, Viggle has focused on developing physics-native world foundation models. Its self-developed JST model can generate 3D characters, motion and environments directly, providing a foundation for gaming and a growing range of AI applications.

Viggle previously attracted widespread attention with Meme Maker, its AI-powered video creation product. The tool enables users to animate static characters and generate videos by applying specified movements, making AI character animation and video creation more accessible. In August 2024, Viggle raised USD 19 million in a Series A funding round led by Silicon Valley venture capital firm Andreessen Horowitz (a16z).

However, video creation was an early application of this technology. Viggle’s longer-term ambition is to make JST a foundational technology for AI-powered experiences across gaming, social platforms and other applications.

Viggle is now further expanding its technological boundaries. On 19 October, Viggle launched JST-2 in full, likening its significance for world models to GPT-2’s role in the evolution of language models.

Unlike many world models that infer physical structure indirectly from pixels, JST-2 is built around a physics-native architecture designed to learn the structure and dynamics of the 3D world directly. Its underlying representation consists of units resembling digital “atoms.” Each has a defined position in three-dimensional space, along with physical properties such as material, color and mass, and information describing how it moves and responds to forces. This allows the model to do more than generate convincing images. It can represent and generate 3D characters, motion and scenes with an underlying understanding of their physical properties.

To support this approach, Viggle has developed an integrated technology stack spanning tokenization, model architecture, data engine, pre-training and post-training. After four years of research and development, JST-2 can generate characters, motion and scenes within a single unified architecture.

Compared with other approaches, JST-2 also demonstrates cost efficiency. JST-2 can generate a 3D scene in seconds, at an inference cost of less than one US cent. Once created, the content can be rendered locally without repeatedly running the foundation model to generate each frame.

It is noteworthy that world model technology remains at an early stage, but Viggle is already working toward more advanced capabilities.

Its next-generation model, JST-3, is intended to become a comprehensive world simulator. Such a system could underpin future game and graphics engines, while also serving as a virtual training environment for robotics and other forms of physical AI.

The longer-term goal is for JST-3 to learn the physical rules governing its simulated world directly from data, rather than relying on rules explicitly written by developers.

For Newborn Town, its investment in and partnership with Viggle represents an important step in exploring how advanced AI can reshape social gaming, promoting a deep integration of AI technology with its business operations.

As a leading global social entertainment company, Newborn Town has continued to deepen the use of AI across key areas in recent years, including product R&D, social recommendation systems, intelligent operations, safety and risk management, and marketing and user acquisition, supporting ongoing business growth.

Meanwhile, the company also continued to invest across the AI ecosystem, backing projects in areas including world models, AI companionship, AI Agents and AI interactive gaming. These investments have further enriched its AI application ecosystem, with Viggle among the AI companies previously backed by Newborn Town.

“Slap Showdown” represents an early step in bringing world models into social gaming. For Newborn Town and Viggle, the next challenge is to turn increasingly sophisticated AI capabilities into experiences that users find genuinely engaging — and compelling enough to keep coming back.

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SOURCE Newborn Town

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HKICEC Launches First-Ever Global Mobile Exchange Pavilion at Mobile Electronics Show

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Charting a New Milestone with Outstanding Achievements

HONG KONG, Oct. 26, 2026 /PRNewswire/ — The Hong Kong International Communications Electronic Chamber (HKICEC) made a landmark debut at the Global Sources Mobile Electronics Show, held from October 18-21, 2026, with the inaugural launch of the HKICEC Global Mobile Exchange Pavilion. Spanning 600 square meters, the pavilion brought together nearly 60 industry leaders from mainland China, Hong Kong, India, Japan, the UAE, the US and the UK. As the largest themed pavilion in the mobile electronics sector and a premier highlight of the exhibition, this event marks a new developmental milestone for HKICEC. The pavilion underscores the chamber’s dedication to bridging global markets and serving the communications and electronics industry, injecting vital new momentum into the synergy between Hong Kong’s technology sector and international trade.

The grand opening ceremony on October 18 marked the official launch of the first B2B pavilion in Hong Kong and Asia dedicated exclusively to mobile communications equipment. The milestone event was officiated by a distinguished lineup of devices global business, including  Dr. the Hon. Starry Lee Wai King, GBS, JP, Member of the Standing Committee of the National People’s Congress and President of the Legislative Council; Mr. Zhu Xiaodong, Director of the Kowloon Affairs Department of the Liaison Office of the Central People’s Government in the HKSAR; Dr. the Hon. Horace Cheung Kwok Kwan SBS JP, Deputy Secretary for Justice, HKSAR; Mr. Liu Maozhou, Level 1 Bureau Rank Official, the Economic and Financial Department II, Liaison Office of the Central People’s Government in the HKSAR; Mr. Ho Lap Ki, Denny, JP, District Officer (Kwun Tong), Home Affairs Department; Mr James Liu, CEO of Global Sources; and Mr. Jacky Tse, Chairman of HKICEC, alongside HKICEC Management team. Together, they witnessed the official launch of the first B2B pavilion in Hong Kong and Asia dedicated to mobile communications equipment. The ceremony drew over a hundred political and business leaders, industry representatives, international exhibitors, and major media outlets, reflecting the event’s importance and the industry’s green trading development. Following the inauguration, officials toured the pavilion for high-level discussions with global exhibitors, signaling robust institutional backing for the industry and HKICEC’s strategic expansion.

During the four-day exhibition, the pavilion experienced a continuous flow of visitors. Communications and electronics suppliers and global buyers from overseas visited specifically for business matchmaking and negotiations, unlocking numerous commercial opportunities. Notably, the pavilion also featured a retrospective exhibit of 16 classic mobile phones, tracing the industry’s evolution from early ‘brick’ devices to Mainland China’s first official Apple release, the iPhone 3GS. The historical display proved to be a standout attraction, gathering large crowds throughout the event.

Beyond the exhibition floor, the chamber partnered with Global Sources to co-host an international forum on October 19. Under the theme ” From New Devices to New Life: Building a Global Mobile Device Lifecycle Ecosystem”, the event gathered experts from ecoATM, PCS Wireless, Cenwood, Our Hong Kong Foundation, and the Global Mobile Association. They engaged in profound discussions on cutting-edge topics including the global economic landscape, inventory management, ESG development, the circular ecology of new and used devices, and AI technology.  Attended by over 200 international representatives, the forum successfully catalyzed cross-border collaboration and established a new standard for sustainability discourse in the global mobile industry.

As a capstone to the comprehensive four-day events, HKICEC convened over 500 industry leaders, VIPs, and exhibitors for a high-profile networking banquet designed to accelerate cross-border business alliances. The gathering provided a premier platform for delegates to solidify collaborative ties and exchange strategic insights initiated from the pavilion. Ahead of the exhibition’s conclusion, a special ” Pearl Of The Orient • Victoria Harbour Cruise Party” was organized to showcase Hong Kong’s unique charm as a cosmopolitan city to global guests, providing a memorable networking experience against Hong Kong’s iconic skyline to formally cap off the week’s successes.

High-resolution images: https://bit.ly/3WqHMxu

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/hkicec-launches-first-ever-global-mobile-exchange-pavilion-at-mobile-electronics-show-302918996.html

SOURCE The Hong Kong International Communications Electronic Chamber (HKICEC)

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