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SEC filingCuentas reported flat revenue of $676K for FY 2025 while narrowing its net loss by 52.5% to -$1.6M, reflecting a strategic pivot away from legacy fintech operations that have struggled with limited financial resources. The company remains in a transitional phase with new mobile ventures not yet generating significant revenue.
Cuentas reported revenue of $676,000 for FY 2025, unchanged from the prior year. However, the composition of this revenue reflects a company undergoing a fundamental business model transition. The filing discloses that wholesale telecommunication services from the Bilateral Wholesale Carrier Agreement with Next Communications INC. — a company controlled by Chairman and CEO Arik Maimon — decreased, removing a historical revenue source. This decline was not offset by new revenue from strategic initiatives, as the company explicitly stated it "does not currently have significant revenue from its operational companies." Gross margin remained negative at -11.1%, reflecting a cost structure that remains misaligned with current revenue levels.
The company achieved a significant reduction in net loss, narrowing to -$1.6M from -$3.3M in the prior year — a 52.5% improvement. Diluted EPS improved correspondingly to -$0.53 from -$1.22. Operating loss also improved to -$1.9M from -$2.0M, a reduction of approximately 5%. The filing indicates the company was unable to fully implement its original fintech business plan primarily due to limited financial resources, the high cost of maintaining and upgrading the fintech platform, and reliance on third-party technology and processing partners. These constraints appear to have contributed to the strategic repositioning now underway.