FDCTech Reports 161.6% Revenue Growth to $18.2 Million in Q3 2024

FDCTech, Inc. reported significant financial growth in its latest 10-Q filing for the third quarter of 2024, with total revenues reaching $18.2 million, a substantial increase of 161.6% compared to $6.9 million in the same period last year. The company’s revenue streams are primarily derived from three segments: Technology and Software Development, Wealth Management, and Investment and Margin Brokerage Business. Notably, the brokerage segment saw a remarkable rise in revenue, contributing $12.2 million for the nine months ended September 30, 2024, compared to just $2.0 million in the prior year.

Despite the revenue growth, FDCTech reported a net loss of $861,395 for the nine months ended September 30, 2024, compared to a net income of $320,829 in the same period of 2023. The increase in general and administrative expenses, which rose to $7.6 million from $1.6 million, was a significant factor contributing to the loss. This increase is attributed to the consolidation of costs from newly acquired subsidiaries, including Alchemy Markets Ltd. and Alchemy Prime Ltd., which were fully integrated into the company’s financials following their acquisitions in late 2023.

Operationally, FDCTech has expanded its customer base and product offerings, with ten licensing agreements for its Condor Pro Multi-Asset Trading Platform as of September 30, 2024. The company is also developing the Condor Investing & Trading App, expected to launch by the end of Q2 2025. The company’s workforce has grown, reflecting its strategic focus on enhancing its technological capabilities and market presence.

The company’s balance sheet shows a cash position of $27.99 million as of September 30, 2024, down from $31.32 million at the end of 2023. The accumulated deficit increased to $3.49 million, up from $2.64 million at the end of the previous fiscal year. FDCTech's management indicated that while current cash flows are sufficient to meet obligations, additional capital will be necessary to support future growth initiatives, particularly through acquisitions. The company plans to seek funding through private equity or public markets to bolster its growth strategy.

Looking ahead, FDCTech remains optimistic about its growth trajectory, driven by its acquisition strategy and the expansion of its product offerings. The management believes that the integration of its recent acquisitions will enhance operational efficiencies and revenue generation capabilities. However, the company acknowledges the need for ongoing capital to sustain its growth and operational objectives in the competitive fintech landscape.