Cuentas Inc. (CUEN): PESTLE Analysis [Nov-2025 Updated]

You're looking at Cuentas Inc. (CUEN) and seeing a high-stakes bet: a company with a clear, in-demand FinTech solution for the underserved Hispanic demographic, but one that is defintely fighting for its life. The 2025 fiscal year results show the severity of the challenge, with Total Revenue at just $0.676 million and a Gross Profit loss of $(0.075) million, signaling negative margins and a significant going concern risk. We need to map the external forces-from strict US anti-money laundering (AML) laws to the growth potential of their WiFi6 joint venture-to understand if the sociological opportunity can overcome the massive economic and legal headwinds.

Here is the PESTLE analysis, grounded in their late 2025 fiscal data, which gives us the clearest picture of near-term risks and opportunities.

Political Factors: Compliance and Geopolitical Risk

The biggest political headwind for Cuentas Inc. (CUEN) is the constant, high-stakes exposure to US federal and state anti-money laundering (AML) law enforcement. Honestly, for any FinTech serving the unbanked, this is the cost of doing business, but it's a critical compliance burden. Also, their MVNO (Mobile Virtual Network Operator) business means they must comply with complex Federal Communications Commission (FCC) rules, which are always shifting. Geopolitical tensions, especially those impacting Latin America, could disrupt their international remittance and telecommunication services, so that's a risk to watch.

The company is actively working to regain compliant status for open market trading. That's a non-negotiable step for investor confidence.

Economic Factors: The Liquidity Crisis

Let's be blunt: the economics are the most immediate threat. Total Revenue for the 2025 fiscal year was only $0.676 million. That's a sharp drop from the prior year and a clear signal of stalled operations. Here's the quick math: Gross Profit for 2025 was a loss of $(0.075) million, meaning their core services are running at a negative margin before even considering operating expenses. The company faces a significant 'going concern' risk due to this current lack of liquidity, and high inflation plus rising interest rates only increase the cost of securing critical additional capital. They need a capital injection, and they need it yesterday.

Negative margins make fundraising a nightmare.

Sociological Factors: The Core Opportunity

The sociological landscape is Cuentas Inc. (CUEN)'s strongest asset. Their core market is the unbanked, under-banked, and underserved Hispanic demographic in the USA. There is strong demand for low-cost, empathetic FinTech solutions in this community, which is often ignored by traditional banks. Their distribution network relies heavily on over 31,000 bodegas and small retail locations, which is a brilliant, culturally-aligned way to reach their customers. But, to be fair, the cultural preference for cash and in-person transactions still presents a barrier to full digital adoption, so they need a hybrid approach.

They have the right product for the right people.

Technological Factors: Strategic Partnerships as Lifelines

Technology is where the growth opportunities lie, mostly through strategic joint ventures. The deployment of WiFi6 shared network systems through the CuentasMax joint venture is a key growth area. Plus, their strategic joint venture with World Mobile is crucial for expanding global roaming and MVNO services. The Cuentas platform must defintely keep pace with rapid FinTech innovation-things like digital wallets and mobile payments-or they'll be left behind. Still, the use of eSIM technology simplifies customer onboarding for Cuentas Mobile services, which is a smart move for reducing friction.

Partnerships are accelerating their tech roadmap.

Legal Factors: Internal Controls and Litigation

The legal and regulatory environment presents severe internal challenges. Material weaknesses in internal controls over financial reporting expose the company to significant SEC risk, which is a red flag for any serious investor. Ongoing litigation matters could result in substantial monetary damages or force major business practice changes, and that uncertainty is a killer. Also, changes in consumer protection laws directly impact their prepaid debit card and financial product design. The termination of the InComm Prepaid Card Program processing agreement impacts service continuity, and they need a solid replacement to maintain trust.

Weak internal controls are a dealbreaker until fixed.

Environmental Factors: A Diversification Play

The 'E' in PESTLE often seems less relevant for FinTech, but Cuentas Inc. (CUEN) has a real estate venture called Cuentas Casa. This initiative focuses on sustainable building systems for affordable housing in Florida, targeting the growing need for disaster-resilient buildings in high-risk coastal areas. This is a diversification play, but it also ties them to environmental, social, and governance (ESG) reporting pressure. They must manage the energy consumption of the WiFi6 network infrastructure to meet corporate sustainability goals, as increased stakeholder focus on ESG demands transparency from all business units.

Real estate adds a sustainable, but capital-intensive, layer.

Next Step: Finance: Draft a 13-week cash view by Friday to quantify the immediate liquidity gap and model the required capital raise.

Cuentas Inc. (CUEN) - PESTLE Analysis: Political factors

US federal and state anti-money laundering (AML) law enforcement is a constant high-risk area.

You're operating a FinTech business that serves the unbanked and under-banked, a demographic that relies heavily on money services, so your exposure to Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) regulations is intense. Cuentas Inc. must comply with the Bank Secrecy Act (BSA) and its implementing regulations enforced by the Financial Crimes Enforcement Network (FinCEN), plus various state-level money transmitter laws. This isn't just a cost center; it's a high-stakes operational risk.

The financial sector's total annual cost for financial crime compliance in the U.S. and Canada was estimated at over $60 billion in 2024, and this number is only rising as regulators like FinCEN ramp up scrutiny and technology requirements. The company's focus on mobile financial services and prepaid debit products, while serving a vital social need, places a heavy burden on its compliance infrastructure. Honestly, a single, major compliance failure could wipe out a company with a 2025 Total Revenue of only $0.676 million.

Here's the quick math on the compliance pressure:

• FinCEN is actively surveying nonbank financial institutions (NBFIs), like money services businesses, to assess the financial impact of AML/CFT compliance requirements in late 2025.
• The global RegTech (Regulatory Technology) market, which helps firms manage this complexity, is projected to exceed $22 billion by mid-2025, showing the scale of necessary investment.
• Cuentas must continuously invest in technology for transaction monitoring and Know Your Customer (KYC) procedures to mitigate the risk of steep penalties.

Compliance with complex Federal Communications Commission (FCC) rules for their MVNO business is crucial.

Cuentas Mobile, the company's Mobile Virtual Network Operator (MVNO) segment, is subject to the complex regulatory framework of the Federal Communications Commission (FCC). This includes rules on spectrum use, universal service fund contributions, consumer protection, and network interconnection. The company is actively negotiating to sell mobile services through a major 5G network, which means new regulatory agreements and compliance audits are defintely on the horizon.

The telecommunications segment saw a significant reduction in wholesale services, which contributed to the overall drop in revenue from $2.346 million in the prior year to $0.676 million in 2025. While not solely political, the cost and complexity of FCC compliance-from data privacy to E911 service requirements-are a constant drag on a small operator's already negative gross profit margin of $(0.075) million. This segment's viability hinges on navigating the regulatory maze efficiently.

Geopolitical tensions could disrupt international remittance and telecommunication services.

The core business model of Cuentas Inc. is built around serving the Hispanic and immigrant populations in the U.S., a group that frequently engages in international remittance and cross-border communication. This means the company is inherently exposed to geopolitical risks, even if its primary operations are domestic.

Geopolitical instability and shifting U.S. foreign policy, particularly concerning sanctions compliance, remain a top enforcement priority in 2025. Any new sanctions or trade restrictions against countries where Cuentas' customers send money could immediately disrupt the flow of funds and impact the company's service offerings. For a company already struggling with liquidity and facing a Net Loss of $(3.309) million in 2025, any external shock to its customer base's ability to transact internationally is a material risk.

This risk is mapped out like this:

The company is actively working to regain compliant status for open market trading.

A critical political factor for Cuentas Inc. is its current standing with U.S. securities regulators, which directly affects its ability to raise capital. As of late 2025, the company is actively working toward regaining compliant status to trade on open markets. This is a major headwind for investor confidence and financial flexibility.

The reality is that Cuentas Inc. is currently traded on the Expert Market of the OTC Markets Group. What this means is that quotations are restricted from public viewing, and the stock is designated for Unsolicited Quotes Only. The company is also explicitly noted as not current in its reporting obligations under Section 13 or 15(d) of the Exchange Act. This lack of current reporting and restricted trading severely limits institutional investment and makes raising the additional capital needed to ensure sustainable operations incredibly difficult.

The path back to a major exchange like Nasdaq, where it previously traded, requires a significant and sustained effort to correct these deficiencies. Regaining compliant status is the single most important political action for the company's financial survival right now.

Cuentas Inc. (CUEN) - PESTLE Analysis: Economic factors

Revenue Collapse and Negative Margins

You need to see the cold, hard numbers for Cuentas Inc. to understand the depth of its economic challenge. The company's core financial performance for the last reported fiscal year shows a dramatic contraction. Total Revenue for the 2024 fiscal year, which is the most recent full-year data available in late 2025, was only $0.676 million. This figure represents a sharp drop from the prior year's revenue of $2.346 million, primarily due to a significant reduction in wholesale telecommunication services. That's a massive revenue loss, so the business model is clearly under extreme stress.

Even more concerning is the Gross Profit (Loss), which was a negative $(0.075) million for the 2024 fiscal year. This means the company is losing money on the direct cost of providing its core services, indicating a negative gross margin. You can't scale your way to profitability when your unit economics are upside down like that.

Critical Liquidity and Going Concern Risk

The company faces a significant 'going concern' risk, which is a formal statement from auditors expressing doubt about its ability to continue operating for the next year. This risk stems directly from a critical lack of liquidity. As of December 31, 2024, Cuentas Inc. had only $15,000 in cash and cash equivalents, while simultaneously carrying a working capital deficit of $3,170,000. Here's the quick math: with a multi-million-dollar deficit and virtually no cash, the business is running on fumes and needs capital immediately.

The severity of the liquidity crisis is further highlighted by the company's efforts to raise capital, including the issuance of convertible notes in 2025 and the sale of its interest in a real estate project in May 2025 for $800,000, specifically to address liquidity issues and settle debts.

Macroeconomic Headwinds for Capital Raising

The broader US economic environment in 2025 makes securing the critical additional capital Cuentas Inc. needs defintely more expensive and difficult. High inflation and elevated interest rates increase the cost of any new financing, whether it's debt or equity. With the US annual inflation rate hovering at 3.0% in September 2025, the real cost of money remains high. For a company with a 'going concern' warning, lenders will demand a substantial risk premium.

The Federal Reserve's target range for the federal funds rate was at 3.75%-4.00% following the October 2025 meeting, which keeps the benchmark Bank Prime Loan Rate at a high 7.00% as of November 2025. This high-rate environment translates directly into a higher hurdle rate for any potential investor or lender, meaning Cuentas Inc. must demonstrate a much faster, more compelling path to profitability to justify the risk. The market is not forgiving of negative gross margins when capital is this costly.

• US Inflation Rate (Sept 2025): 3.0%
• Fed Funds Rate Target (Oct 2025): 3.75%-4.00%
• Bank Prime Loan Rate (Nov 2025): 7.00%

The action is clear: Management must present a credible, near-term plan to reverse the negative Gross Profit and secure a minimum of $4 million in working capital to mitigate the going concern risk.

Cuentas Inc. (CUEN) - PESTLE Analysis: Social factors

The core market is the unbanked, under-banked, and underserved Hispanic demographic in the USA.

You need to understand the sheer scale of the market Cuentas Inc. is built to serve. This isn't a niche; it's a major economic force. The U.S. Hispanic population is now over 63 million people, representing nearly one in five Americans. This demographic is also younger, with a median age a full decade below the national average, making them the engine of future consumer growth.

The core opportunity is financial exclusion. While the total unbanked rate has dropped, the disparity remains stark. As of the most recent data, 11% of Hispanic adults were unbanked, a rate nearly three times higher than the 4% for white adults. Moreover, Hispanic households account for a disproportionate 33.4% of all unbanked households in the U.S. This segment is not just unbanked, but also underbanked-meaning they have a bank account but still rely on expensive, non-mainstream financial services (like check-cashing stores) for basic needs.

Here's the quick math on the financial exclusion gap:

Strong demand exists for low-cost, empathetic FinTech solutions in this community.

This demographic is not anti-technology; they are simply underserved by traditional banks. In fact, the Hispanic community shows the highest adoption of financial technology (FinTech) among all racial groups, with an adoption rate of 92%, compared to 74% for white adults. They are actively looking for digital solutions that speak to their needs-low fees, no minimum balances, and bilingual support.

Cuentas' strategy of refraining from activation fees and maintaining low monthly charges is defintely aligned with this demand. The projected buying power of the Hispanic market, surpassing $2.8 trillion by 2026, shows that while they need low-cost services, they represent immense spending power. The right FinTech solution captures a highly engaged, high-growth consumer. The challenge is building trust and integrating into their existing financial habits.

Distribution network relies heavily on over 31,000 bodegas and small retail locations.

The physical distribution network is a critical social factor, bridging the gap between digital services and the community's preference for in-person transactions and trusted local hubs. Cuentas-SDI operates a digital distribution network across over 31,000 bodegas and small retail locations. This network is a massive competitive advantage.

These locations-the local corner stores-are more than just transaction points; they are cultural and social anchors for the community. They allow Cuentas to offer services like prepaid digital content and gift cards, and historically, prepaid debit card services, directly where the customer already shops and feels comfortable. This model lowers the barrier to entry for digital financial products by pairing them with a familiar, trusted physical touchpoint. It's a hybrid approach that respects the social context of financial transactions.

Cultural preference for cash and in-person transactions still presents a barrier to full digital adoption.

While FinTech adoption is high, the cultural preference for cash and in-person transactions remains a persistent barrier to complete digital migration. This is a behavioral reality you must factor into any strategy. Even with a bank account, many in the community rely on non-bank services.

Consider this: 82% of Latinos believe there will always be a need for cash. This is not just about a lack of trust in banks, but a preference rooted in multi-generational households and a history of financial exclusion. This preference drives the continued use of alternative financial services (AFS). For instance, 32% of unbanked adults used a nonbank money order or check cashing service in 2024. Cuentas' model, which leverages the 31,000-location physical network for transactions, directly addresses this dual reality-high digital interest, but continued cash reliance.

The most popular non-cash payment method is the debit card, preferred by 60% of Hispanics, which is a strong indicator that the community favors managing money they physically possess, rather than credit. This confirms that products like prepaid debit and digital wallets, which mimic the control of cash but offer digital convenience, are the right solution set.

Cuentas Inc. (CUEN) - PESTLE Analysis: Technological factors

You're looking at Cuentas Inc. and seeing a company that is strategically pivoting its technology stack, moving aggressively into mobile-first services to offset a challenging financial picture, which includes a net loss of $(3.309) million for the fiscal year ending in 2025. The core technological opportunity lies in leveraging key joint ventures and modern connectivity standards like eSIM and WiFi6 to target the underserved Hispanic market.

The company's total revenue of only $0.676 million in the 2025 fiscal year shows that these new technological deployments are critical for future revenue generation. Frankly, the execution on these partnerships will defintely determine if the company can capture meaningful market share.

Deployment of WiFi6 Shared Network Systems is a Growth Area

The CuentasMAX LLC joint venture with WaveMax Corporation is Cuentas's play in the high-speed, shared-network space. This partnership focuses on deploying WaveMax's patented SharedWiFI6 technology in small retail locations, often called 'Bodegas,' which serve as key distribution points. The initial rollout scope targeted 1,000 locations across the greater New York City Metropolitan Area, specifically 500 in NYC, 330 in New Jersey, and 170 in Connecticut.

This initiative strategically positions Cuentas to tap into the rapidly expanding Wi-Fi 6 market, which is estimated to be valued at $26.76 billion in 2025 globally, with a projected Compound Annual Growth Rate (CAGR) of 14.1% through 2032. The technology enables location-based advertising, which provides a new, high-margin revenue stream beyond traditional mobile service revenue. Here's the quick math: if the network can successfully monetize its user base through advertising, it creates a powerful secondary layer of income for the company's low-revenue model.

Strategic Joint Venture with World Mobile is Key for Expanding Global Roaming and MVNO Services

The most significant technological move in 2025 is the formation of the World Mobile LLC joint venture with World Mobile Group Ltd. on April 21, 2025. Cuentas holds a 51% majority interest in this new Mobile Virtual Network Operator (MVNO) business. This is a smart way to expand their Cuentas Mobile offering without building costly physical infrastructure.

The goal is to offer cost-efficient global roaming and connectivity, with the partnership claiming prices up to 12 times less than what legacy networks charge. The immediate distribution target is massive: an initial market of 30,000 retail outlets across the United States. This technological integration is designed to revolutionize prepaid mobile telecommunications for the unbanked and under-banked communities Cuentas serves.

The Cuentas Platform Must Keep Pace with Rapid FinTech Innovation

While Cuentas is shifting its primary focus to mobile and digital content, its platform still needs to keep pace with FinTech (Financial Technology) innovation, especially in digital wallets and mobile payments. Global digital wallet transactions are expected to surpass $10 trillion globally in 2025, and digital wallet use in North American e-commerce is projected to rise to 33% of payment volume. This is a massive, ongoing trend.

The company is aware of this, having launched its General Purpose Reloadable (GPR) Card, which includes a digital wallet feature. However, the strategic decision in 2024 to end their prepaid debit card processing agreement with InComm, receiving a $475,000 credit in the process, highlights the challenge of maintaining a competitive, full-stack FinTech operation. They must now ensure their revitalized platform can seamlessly integrate third-party digital payment solutions to capture a piece of this market, especially since 82% of merchants are planning to expand their use of digital wallets in 2025.

Use of eSIM Technology Simplifies Customer Onboarding for Cuentas Mobile Services

The adoption of eSIM (embedded Subscriber Identity Module) technology is a crucial technological advantage for Cuentas Mobile. This digital SIM simplifies the customer experience by eliminating the need for a physical SIM card, which is especially important for their target demographic of unbanked and under-banked customers who value speed and minimal friction.

The company utilizes both advanced eSIM and traditional SIM technology to ensure reliability and broad device compatibility. This is directly aimed at improving the time-to-value for new customers, a critical metric in the mobile industry. For context, poor onboarding in mobile apps can lead to the loss of an average of 75% of active users within the first three days. Using eSIM streamlines the activation process, which should reduce churn risk and help Cuentas achieve its goal of a notable increase in customers through simplified onboarding and minimal compliance friction.

• Utilizes eSIM for instant, remote service activation.
• Reduces reliance on physical distribution for SIM cards.
• Targets a faster Time-to-Onboard (TTO) metric.
• Supports the goal of expanding to 30,000 retail outlets efficiently.

Cuentas Inc. (CUEN) - PESTLE Analysis: Legal factors

Material weaknesses in internal controls over financial reporting expose the company to SEC risk.

You need to be aware that Cuentas Inc. has disclosed the existence of material weaknesses in its internal controls over financial reporting (ICFR). This isn't just an accounting issue; it's a significant legal and regulatory vulnerability. A material weakness means there is a reasonable possibility that a material misstatement in the company's financial statements will not be prevented or detected on a timely basis.

For a seasoned analyst, this is a major red flag, as it directly impacts the reliability of the company's reported 2025 financial figures, including the reported Net Loss of $(3.309) million.

The consequences of this legal exposure are immediate and quantifiable:

• Increased SEC Scrutiny: The Securities and Exchange Commission (SEC) focuses heavily on unaddressed material weaknesses, which can lead to formal inquiries, enforcement actions, and civil penalties.
• Higher Operating Costs: Remediation requires substantial investment in new systems, processes, and qualified accounting personnel, driving up external audit and compliance fees.
• Investor Confidence Loss: The disclosure itself erodes trust, which is a key factor in the stock trading on the Expert Market, a segment for securities with restricted public quoting, often due to a lack of current public information.

Ongoing litigation matters could result in substantial monetary damages or force business practice changes.

As of late 2025, Cuentas Inc. is actively involved in various litigation matters. The company's own disclosures acknowledge that an adverse resolution in these cases could result in substantial monetary damages or necessitate significant changes to their current business practices.

While the specific details of each lawsuit are not publicly itemized with a loss contingency estimate, the sheer presence of 'various litigation matters' in the financial risk section of a public filing is a clear signal of near-term legal liability risk. You should factor in the possibility of a material, non-operating charge hitting the income statement from a legal settlement in the next 12 to 18 months.

Here's the quick math on the potential impact:

Changes in consumer protection laws directly impact their prepaid debit card and financial product design.

Although Cuentas Inc. has strategically shifted away from its core FinTech prepaid debit card business, the regulatory framework for its remaining digital financial products remains a significant legal factor. The company's historical focus on the unbanked and under-banked population means it is subject to rigorous consumer protection laws.

The Consumer Financial Protection Bureau (CFPB) enforces rules like Regulation E (Electronic Fund Transfer Act) and the Truth in Lending Act's (TILA) Regulation Z, which govern prepaid accounts and financial disclosures. Any new or modified rule from the CFPB could force a redesign of its mobile wallet features or fee structures, even for non-card products.

The primary area of focus now shifts to its new core business:

• Anti-Money Laundering (AML): Compliance with federal AML laws is critical for its digital content and mobile offerings, especially given its cross-border customer base.
• Clear Disclosures: New products must have clear, upfront disclosures on all fees to avoid CFPB enforcement actions, which can carry civil penalties.

This is a continuous, high-stakes compliance cost.

Termination of the InComm Prepaid Card Program processing agreement impacts service continuity.

The mutual termination of the Processing Services Agreement with Interactive Communications International, Inc. (InComm) on August 12, 2024, was a decisive legal event that changed the company's operational focus. This move effectively closed Cuentas Inc.'s legacy fintech division for prepaid debit cards.

The legal termination, however, had a positive financial component: InComm agreed to waive an outstanding debt of $475,000 that Cuentas Inc. owed for unpaid monthly minimum fees. Additionally, Cuentas Inc. received a $475,000 credit from InComm to finalize the closure.

While the prepaid card program's service continuity was terminated, the critical legal and commercial continuity was maintained through a separate Digital Content and Distribution Agreement with InComm. This allows Cuentas Inc. to continue distributing products like mobile top-ups and digital transportation access, which are central to its new strategy.

The action item is clear: Finance must defintely monitor the new World Mobile joint venture for any similar, material contract risks.

Cuentas Inc. (CUEN) - PESTLE Analysis: Environmental factors

You're looking at Cuentas Inc. (CUEN) and trying to map their environmental exposure, which is smart. The company's biggest near-term environmental factor isn't just their FinTech or telecom operations, but their strategic shift into real estate, specifically the Cuentas Casa initiative. This venture is a direct play on climate resilience and sustainable materials, which is a major opportunity, but also a new area for environmental scrutiny.

The core takeaway is that Cuentas is using a highly sustainable, patented building system that dramatically reduces construction-related carbon, positioning them well for the growing US demand for climate-resilient housing. Still, they must translate this material advantage into clear, company-wide Environmental, Social, and Governance (ESG) reporting to satisfy investors.

The Cuentas Casa initiative focuses on sustainable building systems for affordable housing in Florida

The Cuentas Casa initiative is a strategic pivot to address the dual crisis of housing affordability and climate risk in Florida. By securing a 10-year supply agreement for the patented Mineral Composite Fiber Reinforced (MCFR) construction system from RENCO, the company is fundamentally changing its supply chain. This material is a game-changer because it's crafted from a high percentage of recycled materials, specifically between 25% to 50% recycled materials like resin and fiberglass, plus virgin calcite dust.

The initial investments reflect this commitment, with Cuentas having already made investments in affordable housing projects for over 450 apartments to date. The planned 'Arden By Cuentas Casa' complex near Tampa, Florida, will add another 360 apartment units using this sustainable technology.

This real estate venture targets the growing need for disaster-resilient buildings in high-risk coastal areas

This is where the environmental risk map meets the market opportunity. Florida's housing market is increasingly vulnerable to severe weather events, and the demand for resilient infrastructure is high-a market estimated to be worth $2.1 trillion. The RENCO MCFR system is engineered to directly address this, boasting a structural capacity to withstand a Category 5 hurricane and wind speeds up to 275 miles per hour.

Here's the quick math on the material's environmental edge:

This material advantage is defintely a core value proposition for Cuentas Casa, translating directly into a smaller construction footprint, less noise, and reduced waste on-site compared to traditional concrete construction.

Energy consumption of the WiFi6 network infrastructure must be managed to meet corporate sustainability goals

While the Cuentas Casa project gets the headlines, the company's core business is still technology and telecommunications (Cuentas Mobile). The energy consumption of their network infrastructure, including the deployment of modern standards like WiFi6, is a quiet but growing environmental liability. Globally, the annual energy consumption of Wi-Fi Customer Premises Equipment (CPE) is projected to more than double between 2023 and 2030, climbing to 215.14 TWh annually.

To meet sustainability goals, Cuentas needs to focus on efficiency in their digital services, which is a common challenge for telecom firms:

• Prioritize energy-efficient CPE design, which has been shown by other ISPs to reduce consumption by up to 30%.
• Implement native, integrated energy consumption metering in their network to establish a clear baseline and track improvements.
• Leverage the FinTech platform to incentivize energy-conscious behavior among residents in Cuentas Casa properties.

Increased stakeholder focus on environmental, social, and governance (ESG) reporting applies pressure for transparency

The market is demanding quantifiable ESG data, especially from companies with a significant environmental footprint, even if their main business is digital. For the 2025 fiscal year, Cuentas reported Total Revenue of $0.676 million and a Net Loss of $(3.309) million. Given the financial challenges, demonstrating non-financial value through robust ESG reporting is crucial for attracting capital and strategic partners.

The company's social mission-serving the unbanked and underbanked-is a strong 'S' (Social) component, but the 'E' (Environmental) requires more formal disclosure. The specific, measurable data points on the Cuentas Casa materials (e.g., 82% less embodied carbon) are excellent ESG metrics. The next action is to formalize these into a public ESG framework.

Next Step: Management should commission a third-party audit to formally quantify the full lifecycle carbon footprint reduction of the Cuentas Casa model by Q2 2026.