Connect with us

Technology

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

Published

on

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.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/flotek-surpasses-2024-annual-guidance-with-strong-fourth-quarter-and-full-year-results-302397404.html

SOURCE Flotek Industries, Inc.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

Truemed and Highmark Benefits Administration Partner to Expand Access to Root‑Cause Healthcare and Enable Employers to Reach Benefits Goals

Published

on

By

AUSTIN, Texas, May 1, 2026 /PRNewswire/ — Truemed, the leading platform enabling qualified health purchases with HSA and FSA dollars, today announced a strategic partnership with Highmark Benefits Administration, a trusted provider of comprehensive, compliance‑driven solutions committed to providing A+ benefits administration services to clients nationwide.

The partnership aligns two organizations focused on delivering innovative, cost-effective solutions that help clients achieve business goals while empowering employees to use their benefits confidently and proactively. By integrating Truemed’s medically-necessary qualification process with Highmark’s service‑driven administrative infrastructure, employers can offer a broader range of eligible health interventions while maintaining clarity, compliance, and operational efficiency.

Through this collaboration, eligible Highmark participants can use pre‑tax HSA and FSA funds on evidence‑based, root‑cause health solutions— including fitness and movement programs, nutrition and supplement options, stress‑management tools, and other medically‑necessary interventions designed to help employees proactively improve their health.

“At Highmark Benefits Administration, we understand that managing employee benefits and plan compliance can be a daunting task, but it doesn’t have to be,” said Dan Bearden, Founder and Director of Highmark. “Partnering with Truemed expands what’s possible with HSA and FSA dollars while maintaining the clarity and compliance confidence our clients rely on. We’re excited to help participants access more meaningful health solutions.”

“Highmark has built a reputation for exceptional service and operational excellence,” said Justin Mares, CEO of Truemed. “This partnership builds on that foundation by giving eligible participants access to root‑cause health interventions that have been shown to improve health outcomes and chronic condition management. Together, we’re helping employers offer benefits that are simple, compliant, and truly impactful.”

Learn more at: truemed.com/a/highmark

Truemed is for qualified customers. See terms at truemed.com/disclosures.

About Truemed

Truemed partners with consumer health brands and benefits administrators to enable HSA and FSA payments for root‑cause healthcare expenses. Through licensed practitioner review and IRS‑aligned documentation, Truemed helps qualified individuals invest in medically necessary products and services using pre‑tax dollars. Learn more at truemed.com.

About Highmark Benefits Administration

Highmark Benefits Administration provides comprehensive, cost‑effective benefits administration services designed to simplify complexity and support employer goals. With expertise in enrollment and eligibility management, COBRA administration, FSA/HSA/HRA programs, compliance reporting, carrier billing, and employee communication, Highmark delivers exceptional service backed by modern technology solutions. Learn more at highmarkbenadmin.com.

Media Contact:
Tom Dahl
tom@truemed.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/truemed-and-highmark-benefits-administration-partner-to-expand-access-to-rootcause-healthcare-and-enable-employers-to-reach-benefits-goals-302760163.html

SOURCE Truemed

Continue Reading

Technology

DistrictWON’s uReport Partners with KOIN to Usher Back Local Sports Coverage to Every Community

Published

on

By

PORTLAND, Ore., May 1, 2026 /PRNewswire/ — KOIN 6 is proud to announce a groundbreaking partnership with uReport, bringing comprehensive, community-driven sports coverage to every high school across the entire metro Portland and southwestern Washington markets.

Through this initiative, KOIN is offering uReport, a human-powered, AI-assisted platform widely endorsed across high schools and colleges nationwide, fully-funded to all high schools in the region. uReport is ISTE EdTech Index Approved and listed in the ISTE Learning Technology Directory, a vetted resource used by educators to identify high-quality digital learning tools.

This partnership empowers schools, students, and communities to create and share stories, highlights, and updates across all sports, while amplifying that content across KOIN.com. uReport is already endorsed by leading organizations including the National Interscholastic Athletic Administrators Association, College Sports Communicators and other groups representing over 17,000 high schools and colleges.

“Local sports coverage has historically reached the biggest schools and the biggest games. uReport flips that. Every school in our market — from the 6A powerhouse to the 1A program with 80 kids — now has a dedicated platform on KOIN.com,” said Tom Keeler, Vice President & General Manager of KOIN.

Key benefits for each school & community include:

A dedicated content platform for every school.The ability to cover every game, every sport at every level and include unlimited pictures and videos.Every school will also be featured on KOIN.com, allowing all schools to consistently make the news!Schools also distribute content onto their own social channels, creating an amazing content library Real-world training for student journalism and responsible use of AI in storytellingA free fan-powered mobile app for real-time contributions from the communityFull customer support for the platform, all year. 

Check out a quick explainer video here: KOIN – Supercharging Your Coverage

KOIN will host three short webinars for Portland market school administrators to learn more. Any administrator is encouraged to participate (administrator, teacher, coach or other, click below to attend):
Tuesday 5/5: 9am PT
Wednesday 5/6: 8am PT
Thursday 5/7: 12pm PT
Schools can self-start and sign-up right now to cover spring events and continue to have access for the entire 2026–27 academic year. Self-start sign-up is easy here: www.ureport.com/koin

For more information, contact uReport Director of Customer Success, Dan McGrath: 216-647-3857; dmcgrath@districtwon.com

View original content to download multimedia:https://www.prnewswire.com/news-releases/districtwons-ureport-partners-with-koin-to-usher-back-local-sports-coverage-to-every-community-302760179.html

SOURCE DistrictWON

Continue Reading

Technology

Fuutura Outlines Architecture Built for the Cross-Border Stablecoin Corridors the IMF Now Tracks

Published

on

By

As the IMF’s April 2026 Global Financial Stability Report calls for enhanced regulatory oversight of cross-border stablecoin flows to emerging markets, Fuutura’s compliance-first architecture across identity, payments, and trading is built to support exactly this kind of regulatory oversight

PANAMA CITY, Panama, May 1, 2026 /PRNewswire/ — Fuutura, a blockchain infrastructure company building a compliance-first financial ecosystem for the global market, today set out its position on rising cross-border stablecoin flows to emerging markets, following the IMF’s call for enhanced regulatory oversight in its April 2026 Global Financial Stability Report.

 

 

The IMF’s findings reflect a structural shift in how money moves across emerging economies. Cross-border flows of the two largest dollar-pegged stablecoins, Tether and USD Coin, rose from approximately $12 billion in early 2020 to $316 billion by early 2025, outpacing flows of Bitcoin and Ethereum. A significant share of those flows has been directed toward emerging markets, with cumulative net inflows accelerating since late 2023. The IMF’s concern is that rapid stablecoin adoption in emerging markets, absent appropriate regulation and backstops, could lead to currency substitution, weaken the transmission of monetary policy, increase capital flow volatility, and create challenges for capital flow management measures.

The IMF report also acknowledges that stablecoins, with adequate regulation, could offer improved settlement efficiency, faster cross-border payments, increased competition in the payment space, and broader access to digital finance. The same flows that warrant enhanced oversight also reflect genuine demand for financial services that legacy infrastructure has consistently failed to deliver in emerging markets.

Fuutura is being built to make both possible at once. A compliance by design approach facilitates the very regulatory oversight the IMF is advocating. That same architecture allows the platform to serve users in markets unreached by legacy financial infrastructure. What that looks like in practice is best described by the people who have built it.

“The IMF’s findings lay bare something that anyone working in cross-border financial services across emerging markets has been seeing for years. The flows are real, the demand is structural, and the existing infrastructure has not been built to give regulators the kind of visibility they need to do their work properly. That is the gap our infrastructure is built to address, across cross-border payments, identity verification, and the trading layer that connects users to the global financial system. Compliance is not something we have layered on top of an existing platform. It is part of how the system functions at every level.”

Ellis McGrath, Co-founder and Chief Technology Officer, Fuutura

The architectural choice that defines Fuutura is the integration of compliance at a foundational level. Most digital asset platforms operate perimeter compliance, with KYC and AML conducted at onboarding and transaction monitoring sitting on top of an existing technology stack. Fuutura’s design records verified KYC and AML attestations on-chain and ties them to the user’s wallet, so that every interaction with the platform is gated by the presence of that attestation at the smart contract level. This applies across the entire ecosystem. Whether a user is opening a wallet, executing a trade on the exchange, or moving funds across borders, the same compliance design governs every interaction. The result is infrastructure where compliance is enforceable on every transaction and auditable by regulators at the on-chain level.

“The platforms that earn regulators’ trust will be the ones that make their work easier. The IMF’s call for proportionate monitoring of stablecoin flows reflects a broader truth about the relationship between innovators and regulators in this industry. Architecture that is open to inspection by default. A company posture that welcomes the questions responsible oversight requires. We believe the future of digital finance depends on builders and regulators working together, and we have designed Fuutura to support that relationship across every product on the platform.”

Oliver Cook KC, Co-founder and Chief Legal Officer, Fuutura

Fuutura is building for a market where existing financial infrastructure has consistently failed to deliver. The cross-border stablecoin corridors identified by the IMF are one part of that market. The broader scope is the millions of people and businesses across emerging economies who require digital identity, secure custody, and access to global financial markets in a single connected environment. The company’s launch marks the beginning of a phased rollout, with further ecosystem development planned as the platform scales across the markets it was designed to serve.

About Fuutura

Fuutura is a blockchain infrastructure company building a compliance-first financial ecosystem facilitating participation in the global financial system from underserved markets with a focus on the Global-South. The platform combines digital identity verification, a wallet, and a trading exchange into one unified ecosystem, giving users access to crypto and tokenised real-world assets through a single environment. Fuutura is pursuing licensing in multiple jurisdictions. Built with KYC and AML integrated at an architectural level, Fuutura is designed to be open to regulatory oversight by design. Fuutura is building infrastructure to extend digital finance to markets that legacy banking has not reached.

Media Contact
Fuutura
pr@fuutura.com

Forward-Looking Statements and Risk Disclosures

Digital asset risk. Digital assets are high-risk and their value may fall as well as rise. Trading digital assets involves significant risk and may not be suitable for all investors. Past performance is not a reliable indicator of future results.

Forward-looking statements. This press release contains forward-looking statements regarding Fuutura, its technology, products, business plans and future conduct, including statements relating to the phased rollout of the ecosystem, regulatory engagement and licensing outcomes, geographic expansion, and market ambitions. Forward-looking statements are identifiable by words such as “building,” “plans,” “intends,” “expects,” “designed to,” “anticipates” and similar expressions, as well as by statements regarding future outcomes, ambitions or strategic direction.

Forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that could cause actual outcomes to differ materially from those expressed. These include, without limitation, changes in the regulatory environment across jurisdictions; the availability and timing of licensing or authorisation; developments in digital asset markets; technological and cybersecurity risks; operational risks; counterparty and third-party risks; the pace of product development; and other factors beyond Fuutura’s control.

No offer or advice. Nothing in this press release constitutes an offer to sell, a solicitation to purchase, investment advice, or a recommendation in respect of any digital asset, crypto-asset, token, security, or financial product or instrument. Fuutura’s products and services may not be available in all jurisdictions and may be subject to regulatory restrictions. Access to Fuutura’s platform is restricted to residents of jurisdictions where its services are permitted.

No duty to update. Fuutura undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law.

This release is not for distribution in the United States, the United Kingdom, the European Union, or in any other jurisdiction where such distribution would be unlawful.

Photo:  https://mma.prnewswire.com/media/2970890/Fuutura.jpg
Logo:   https://mma.prnewswire.com/media/2965342/5949163/Fuutura_Logo.jpg

 

 

View original content:https://www.prnewswire.co.uk/news-releases/fuutura-outlines-architecture-built-for-the-cross-border-stablecoin-corridors-the-imf-now-tracks-302760188.html

Continue Reading

Trending