A Look Back at 2025 — And How We’re Thinking About the Year Ahead

As we turn the page into 2026, I wanted to take a moment to reflect on 2025 and share a high-level update on

how 42 Solutions LLC performed over the past year.

2025 was the strongest year in the history of the business — not just in terms of growth, but in how we operated, underwrote, and protected capital while scaling.

Below is a transparent snapshot of what we accomplished and, more importantly, how we did it.

2025 at a Glance — Key Results

• $10.823M in total loan volume funded

• 23 loans funded (a record year for the firm)

• $1M+ in gross revenue crossed for the first time

• 46.6% net profit margin

• 0 defaults

• 0 foreclosures

• 68.8% average LTARV across all loans

• 8-month average loan duration

• <30 days average redeployment of capital

Since inception, 42 Solutions LLC has now funded:

• 58 total loans

• $18.27M in total loan volume

These numbers matter — but the way they were achieved matters more.

Growth, Without Compromising Discipline

2025 saw meaningful year-over-year growth:

• 156.7% balance sheet growth from December 2024 to December 2025

• 168.2% gross revenue growth

• 163.7% net income growth

While these growth rates are not something we expect — or even want — to replicate every year, they demonstrate that disciplined underwriting and conservative leverage can still produce strong results when paired with the right borrowers and systems.

We did not loosen standards to grow.

We did not chase volume for volume’s sake.

We did not compromise LTARV targets or borrower quality.

That approach remains unchanged heading into 2026.

Risk Management Remains the Priority

A few operational decisions in 2025 materially strengthened the business:

• We added an internal valuation specialist, allowing us to produce conservative “as-is” and ARV valuations internally and base all lending decisions on those figures — not borrower-provided assumptions.

• We successfully completed our 2024 audit and received full approval as an Arizona Mortgage Banker, further strengthening regulatory credibility and operational rigor.

• We continued to refine borrower selection, resulting in a deeper bench of repeat, high-quality operators.

By year-end:

• Our borrower email list exceeded 700, with 40+ borrowers added to our internal A-list — experienced Arizona operators with proven track records, strong credit, and consistent execution.

• At this point, we see more quality deals than deployable capital, which is exactly where we want to be.

Capital Partner Performance

While capital partners participate through our income note program (as lenders to the business, not equity investors), transparency and consistency remain non-negotiable.

In 2025:

• $103,000 was paid out to capital partners

• 100% of payments were made on time

• 100% of monthly statements were delivered

At year-end:

• $1,832,500 in total capital partner funds outstanding

• 16 active capital partners

Reliability and clarity are foundational to how we operate.

How We’re Thinking About 2026

We are entering 2026 with momentum — but also with restraint.

While we expect continued growth, a major focus this year is strengthening reserves. Our objective is to move from maintaining roughly six months of operating coverage toward twelve months, increasing durability and flexibility regardless of market conditions.

Growth matters.

Staying power matters more.

We’ll share more on our 2026 priorities in future updates.

Final Thoughts

2025 reinforced something I’ve believed for a long time:

A conservative, risk-first lending model can scale — and it can do so without sacrificing discipline, transparency, or sleep.

I’m grateful for the borrowers, capital partners, and advisors who helped make this year possible, and I’m excited for what lies ahead.

More to come soon.

— Devon Kennard

Founder, 42 Solutions LLC