FRNT Financial, Inc. (FRNT) AI Stock Analysis

• Market Cap: C$13.45M
• Dividend Yield: N/A
• Average Volume (3M): 9.47K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: 13.48%
• EPS Growth: -43.47%
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 72
• Industry: Financial - Capital Markets
• EPS (TTM): -0.02
• Shares Outstanding: 34,045,784
• 10 Day Avg. Volume: 7,008
• 30 Day Avg. Volume: 9,468
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.50
• Price Target Upside: 25.00% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: C$0.50 ▲(25.00% Upside)

The overall score is primarily driven by the mixed financial performance and valuation concerns. However, recent corporate events provide a positive outlook for revenue diversification and market expansion.

FRNT Financial, Inc. Business Overview & Revenue Model

Company Description

FRNT Financial, Inc. (FRNT) is a financial services company operating in the cryptocurrency and digital asset sector. The company offers a range of services tailored towards institutional and professional traders, including trading solutions, advisory services, and risk management products. By leveraging advanced technology and industry expertise, FRNT aims to facilitate efficient and secure trading experiences in the rapidly evolving digital asset market.

How the Company Makes Money

FRNT Financial, Inc. generates revenue through several key streams. Primarily, the company earns money by providing trading solutions that involve transaction fees, spreads, or commissions on trades executed through its platform. Additionally, FRNT offers advisory services to clients seeking expertise in managing digital asset portfolios, for which it charges consultancy fees. The company may also generate income from risk management products, such as derivatives or options, designed to help clients hedge against market volatility. Strategic partnerships with other financial institutions, technology providers, and cryptocurrency exchanges may further bolster FRNT's revenue by expanding its client base and service offerings.

FRNT Financial, Inc. Financial Statement Overview

Summary

FRNT Financial, Inc. faces challenges achieving profitability despite revenue growth. Weak profitability metrics and persistent negative earnings indicate operational inefficiencies. While the strong equity base provides some stability, ongoing negative cash flows reflect cash flow inefficiencies and potential liquidity concerns.

Income Statement

FRNT Financial, Inc. has shown a mixed performance in its income statement. The company has experienced a significant increase in revenue from 2020 to 2024, with a notable jump in 2024 compared to previous years. However, the company's profitability metrics, such as gross profit margin, EBIT margin, and net profit margin, remain weak due to persistent negative earnings. This indicates operational inefficiencies and a high cost structure that impacts profitability.

Balance Sheet

The balance sheet of FRNT Financial, Inc. shows a strong equity base, with a substantial equity ratio indicating financial stability. However, the debt-to-equity ratio remains low, suggesting conservative leverage which is positive. Despite this, the company has experienced a decline in total assets over the years, which might impact future growth potential.

Cash Flow

FRNT Financial, Inc.'s cash flow statement reveals challenges in generating positive free cash flow, with negative free cash flow persisting over the years. The company has a negative operating cash flow to net income ratio, reflecting cash flow inefficiencies and potential liquidity concerns. Despite this, there was an improvement in free cash flow from 2023 to 2024, suggesting some operational adjustments.

Breakdown	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.56M	438.50K	292.98K	109.69K	104.06K
Gross Profit	1.47M	-911.09K	-714.27K	107.42K	104.06K
EBITDA	-1.90M	-2.68M	-2.65M	-2.05M	-464.35K
Net Income	-2.02M	-2.81M	-2.73M	-2.07M	-358.96K
Balance Sheet
Total Assets	5.53M	6.38M	8.64M	5.50M	1.93M
Cash, Cash Equivalents and Short-Term Investments	4.73M	4.84M	5.11M	5.43M	1.73M
Total Debt	95.16K	447.69K	505.46K	254.65K	212.51K
Total Liabilities	487.65K	765.58K	768.99K	577.21K	350.76K
Stockholders Equity	5.05M	5.62M	7.87M	4.93M	1.58M
Cash Flow
Free Cash Flow	-2.42M	-2.76M	-3.27M	-786.52K	-334.84K
Operating Cash Flow	-2.42M	-2.75M	-3.24M	-777.36K	-334.85K
Investing Cash Flow	2.72M	-134.84K	145.70K	-2.01M	-1.07M
Financing Cash Flow	804.43K	-74.66K	5.00M	3.64M	1.98M

FRNT Financial, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FRNT, the sentiment is Negative. The current price of 0.4 is below the 20-day moving average (MA) of 0.42, below the 50-day MA of 0.44, and below the 200-day MA of 0.44, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 43.49 is Neutral, neither overbought nor oversold. The STOCH value of 49.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FRNT.

FRNT Financial, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$17.82B	11.90	10.30%	3.72%	9.69%	0.80%
FRNT	56 Neutral	C$13.45M	―	-66.86%	―	13.48%	-43.47%
NDA	56 Neutral	C$135.99M	60.00	-0.89%	―	-20.75%	-84.00%
DEFI	52 Neutral	C$51.06M	9.33	-75.81%	―	-98.96%	-214.13%
BBKCF	―	$25.31M	―	-110.80%	―	―	―
DPXCF	―	$9.39M	―		―	―	―
BTCW	45 Neutral	C$18.89M	―		―	73.03%	25.25%

FRNT Financial, Inc. Corporate Events

FRNT Financial Announces $2M Private Placement Offering

FRNT Financial Inc. announced a private placement offering of up to 5,000,000 common shares to raise $2 million. The proceeds will be used for BTC treasury investments, marketing, and general corporate purposes. The offering is subject to customary conditions, including TSX Venture Exchange approval, and is not available to U.S. investors.

FRNT Financial Announces $2M Offering and Bitcoin Treasury Strategy

FRNT Financial Inc. has announced a non-brokered private placement offering aiming to raise up to $2,000,000, part of which will be invested in a spot Bitcoin treasury. The company plans to leverage its extensive experience in digital asset arbitrage strategies to efficiently manage this treasury. Additionally, FRNT intends to allocate funds to marketing efforts, positioning itself as a valuable partner for corporates and asset managers entering the digital asset space. This move is seen as a strategic step to capitalize on the growing sophistication of the digital asset market, potentially boosting the company’s revenue and market reach.

FRNT Financial Expands Revenue Streams with New Bitcoin-Backed Lending Platform

FRNT Financial Inc. has announced new revenue lines following its Q3 2025 financial results, highlighting its successful launch of an institutional lending platform that originated over $15 million in Bitcoin-backed loans. The platform offers USD loans collateralized by BTC and other digital assets, featuring a fully automated tri-party structure and robust risk management. Despite macro disruptions in the industry, FRNT is experiencing strong growth trends in its lending and merchant banking businesses, positioning itself for significant opportunities as the market matures.