FRNT Financial Clarifies New Revenue Lines Following Q3 2025 Financials

Rhea-AI Summary

FRNT Financial Inc. (FRNT) has provided clarity on its new revenue streams following Q3 2025 results, highlighting its Bitcoin-backed institutional lending platform launched in late 2024. The platform originated over $15M in crypto-backed loans in Q3, featuring automated tri-party structure with BitGo as custodian, 24/7 margin monitoring, and institutional-grade risk management. Revenue is generated through spread revenue (collected with interest payments) and origination fees (upfront compensation for loan setup). Despite macro disruptions in Q3, CEO Stéphane Ouellette reports strong post-quarter institutional interest and growth in lending and merchant banking services.

Positive

• Successfully originated over $15M in Bitcoin-backed loans through new institutional lending platform
• Platform features robust infrastructure including 24/7 margin monitoring and institutional-grade risk management
• Strong post-quarter institutional interest and growth trends in lending and merchant banking businesses
• Dual revenue streams from spread revenue and origination fees

Negative

• Q3 performance was impacted by macro disruptions in global trade
• Spread revenue depends on loan duration, with risk of reduced earnings if loans are liquidated or closed early

Toronto, Ontario--(Newsfile Corp. - June 2, 2025) - FRNT Financial Inc. (TSXV: FRNT) (OTCQB: FRFLF) (FSE: XZ3) ("FRNT" or the "Company"), a leading institutional capital markets and advisory platform focused on digital assets, today provides context following the release of the Q3/2025 FRNT financial results and wishes to clarify for investors new revenue lines.

In Q3 2025, FRNT originated over $15 million in Bitcoin-backed loans through its newly launched institutional lending platform, which debuted in late-2024. FRNT originates USD loans collateralized by BTC and other liquid digital assets between institutional lenders and borrowers. Loans are executed and monitored on the FRNT Lending Platform, with BitGo serving as tri-party custodian.

Highlights and differentiators of the FRNT Platform include:

• Fully automated tri-party structure with no rehypothecation and 24/7 margin monitoring
• Robust crypto-native infrastructure combined with institutional-grade risk management
• Real-time loan dashboards with instant visibility into collateral health, margin status and historical activity

The Company notes that revenue for this business line will be recognized in two-ways, 'spread revenue' and 'origination fees.' Spread revenue is collected with interest payments throughout the life of the loan. This implies that if a loan is liquidated or for whatever reason is closed before the end of the term, FRNT will only earn revenue for the period the loan was active. Origination fees represent compensation for FRNT's facilitation and operational support in setting up the loan. Where the fee relates solely to loan origination, it is recognized upfront.

Giles Colwell, Head of North American Distribution, notes, "We've built a turnkey solution for institutions looking to lend against crypto securely. Our early traction shows just how much demand exists for infrastructure that bridges traditional capital with digital assets."

CEO Commentary:

Stéphane Ouellette, CEO of FRNT, noted, "While in Q3, the industry was impacted due to macro disruptions surrounding global trade, in the weeks following the end of the quarter enthusiasm and interest from institutions in the digital asset space returned in full-force. FRNT finds itself uniquely positioned for the revenue re-rating in institutional crypto services and is seeing particularly strong growth trends in its lending and merchant banking businesses. We are extremely excited for the opportunities presented in the second half of the year as this market-cycle continues to mature."

About FRNT Financial Inc.

FRNT Financial is an institutional capital markets platform that bridges traditional and web-based finance through innovative technology-forward solutions. The Company partners with financial institutions and crypto-native firms to deliver a range of capital markets services. Headquartered in Toronto, FRNT was co-founded in 2018 by CEO Stéphane Ouellette.

For further information, contact:

Stéphane Ouellette
Chief Executive Officer
investors@frnt.io
+1 833 222-3768

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Cautionary Note Regarding Forward-Looking Information

This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable law which may include, without limitation, statements relating to revenue generation methods, financial and business prospects of the Company and other matters. Generally, forward-looking statements and forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". All forward-looking statements and forward-looking information are based on reasonable assumptions that have been made by the Company as at the date of such information. Forward-looking statements and forward-looking information are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements and forward-looking information, including but not limited to: the general risks associated with the speculative nature of the Company's business, current global financial conditions, uncertainty of additional capital, price volatility, government regulation in the industries in which the Company operates, political and economic risk, absence of public trading market, arbitrary offering price, dilution to the Company's common shares, dependence on key personnel, currency fluctuations, insurance and uninsured risks, competition, legal proceedings, conflicts of interest and lack of dividends. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements and forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements or information. Accordingly, readers should not place undue reliance on forward-looking statements or forward-looking information. The Company does not undertake to update any forward-looking statement or forward-looking information that is included herein, except in accordance with applicable securities laws.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/254264

FAQ

What is FRNT Financial's new lending platform and how does it work?

FRNT Financial's lending platform, launched in late 2024, originates USD loans collateralized by Bitcoin and other digital assets between institutional parties, featuring automated tri-party structure with BitGo as custodian and 24/7 margin monitoring.

How much did FRNT Financial (FRFLF) originate in crypto-backed loans in Q3 2025?

FRNT Financial originated over $15 million in Bitcoin-backed loans through its institutional lending platform in Q3 2025.

How does FRNT Financial generate revenue from its lending platform?

FRNT generates revenue through two streams: spread revenue collected with interest payments throughout the loan term, and origination fees charged upfront for loan setup and facilitation.

What were the main challenges for FRNT Financial in Q3 2025?

FRNT Financial faced challenges from macro disruptions in global trade during Q3 2025, though institutional interest rebounded strongly in the weeks following the quarter.

What are the key features of FRNT Financial's lending platform?

The platform features fully automated tri-party structure, no rehypothecation, 24/7 margin monitoring, institutional-grade risk management, and real-time loan dashboards with instant visibility into collateral health.