Revenue: As of FY2025, the actual value is USD 7.674 M.

EPS: As of FY2025, the actual value is USD -0.82.

EBIT: As of FY2025, the actual value is USD -4.907 M.

Overall Financial Performance

• Total Revenue: SHF Holdings, Inc. reported total revenue of $7,673,532 for the year ended December 31, 2025, which represents a decrease of 49.7% from $15,242,560 in 2024. This decline was primarily due to a 63% reduction in loan program income, partially offset by $0.4 million in incremental loan program income from the Second Amended CAA. Investment income decreased by 45%, and account fee income declined by 39%.
• Operating Loss: The company’s operating loss improved to -$5,399,210 in 2025 from -$7,091,486 in 2024.
• Net Loss: The net loss for 2025 was -$2,160,998, a significant improvement compared to a net loss of -$48,319,475 in 2024, which was heavily impacted by a -$43.9 million deferred tax asset valuation adjustment.

Revenue Breakdown

• Account Fee Income: Decreased by 38.5% to $3,963,097 in 2025 from $6,447,201 in 2024, due to limited lending capacity, cannabis industry pressures, termination of a banking relationship, and a renegotiated revenue-sharing arrangement.
• Safe Harbor Program Income: Remained constant at $76,920 for both 2025 and 2024.
• Investment Income: Decreased by 44.8% to $1,155,433 in 2025 from $2,092,863 in 2024, influenced by declining IORB rates, the launch of interest-bearing money market accounts, decreased average daily deposit balances, and the termination of the Five Star Bank relationship.
• Loan Program Income: Decreased by 62.6% to $2,478,082 in 2025 from $6,625,576 in 2024, primarily due to the First Amended CAA reducing the company’s share of income, partially offset by a $0.4 million increase from the Second Amended CAA’s retroactive effect.

Operating Expenses

• Total Operating Expenses: Decreased by 41.5% to $13,072,742 in 2025 from $22,334,046 in 2024, mainly due to the absence of impairment charges in 2025.
• Compensation and Employee Benefits: Decreased by 19.5% to $6,266,317 in 2025 from $7,783,331 in 2024, reflecting headcount reductions, reduced bonus programs, and termination of 401(k) matching contributions, partially offset by executive bonus compensation and a one-time settlement payment.
• General and Administrative Expenses: Decreased by 18.0% to $3,294,275 in 2025 from $4,018,094 in 2024, driven by lower depreciation and amortization, reduced bank-sharing fees, and lower investment relations expenses, partially offset by increased hosting fees.
• Professional Services: Increased by 32.2% to $3,328,222 in 2025 from $2,518,394 in 2024, due to a shift to external legal counsel, litigation-related fees, and costs associated with the September 2025 Recapitalization and auditor transition.
• Lease Expense: Decreased by 9.9% to $232,773 in 2025 from $258,477 in 2024, mainly due to the closure of the Arkansas office.
• Amortization of Contract Asset: $129,072 in 2025, compared to $0 in 2024.
• Credit Loss (Benefit) Expense: A credit benefit of -$177,917 in 2025, compared to a credit benefit of -$1,393,131 in 2024. The 2025 figure reflects the reinstatement of indemnification obligations under the Second Amended CAA, leading to a stand-ready guarantee liability of $2.1 million and a financial indemnification liability of $1.1 million, with a corresponding contract asset.
• Impairment of Goodwill and Long-Lived Intangible Assets: No impairment charges in 2025, compared to $6,058,000 for goodwill and $3,090,881 for intangible assets in 2024.

Other Income (Expenses)

• Total Other Income: Increased to $3,179,742 in 2025 from $2,631,697 in 2024, primarily due to a $3.3 million gain on extinguishment of the Forward Purchase Agreement (FPA) liability.
• Interest Expense: -$492,643 in 2025, compared to -$533,390 in 2024, mainly due to a lower average principal balance on the PCCU Note, partially offset by non-cash interest expense from Convertible Promissory Notes.
• Change in Fair Value of Warrant Liabilities: A gain of $1,320,871 in 2025, compared to a gain of $2,803,638 in 2024.
• Gain on Extinguishment of Forward Purchase Derivative: $3,336,213 in 2025, compared to $0 in 2024.
• Costs Incurred to Secure Financing: -$987,621 in 2025, related to establishing the Equity Line of Credit (ELOC), compared to $0 in 2024.
• Discount on Common Stock Sold Pursuant to the ELOC: -$76,553 in 2025, compared to $0 in 2024.
• Change in the Fair Value of Deferred Consideration: A gain of $79,475 in 2025, compared to a gain of $361,449 in 2024. The deferred consideration liability was fully extinguished in October 2025.

Cash Flow

• Cash Used in Operating Activities: -$3.4 million in 2025.
• Cash Generated from Operating Activities: $0.4 million in 2024.
• Cash Generated from Investing Activities: $0.4 million in 2025, primarily from loan proceeds and sale of investment securities, compared to $0.01 million in 2024.
• Cash Generated from Financing Activities: $7.4 million in 2025, including proceeds from Convertible Promissory Notes ($0.6 million), Series B Preferred Stock and Warrants ($6.1 million), and ELOC sales ($1.8 million), offset by repayments and redemptions.
• Cash Used in Financing Activities: -$3.0 million in 2024, primarily for PCCU Note repayment.

Unique Operational Metrics

• Average Deposit Balance: $105,215,252 in 2025, a decrease of 10.7% from $117,847,512 in 2024.
• Trailing 14-Day Average Account Balance: $106,800,196 in 2025, a decrease of 5.5% from $113,008,693 in 2024.
• Average Active Accounts: 773 in 2025, an increase of 2.1% from 757 in 2024.
• Average Account Balance: $136,094 in 2025, a decrease of 12.6% from $155,728 in 2024.
• Average Fees per Account: $3,546 in 2025, a decrease of 47.1% from $6,704 in 2024.

Outlook / Guidance

Management’s focus for 2026 includes improving client retention through expanded lending capabilities, enhanced client service technology, and new marketing and customer acquisition processes. The tiered rate structure for asset hosting fees is expected to generate annualized savings of approximately $0.3 million starting in the first quarter of 2026, and ongoing professional services costs are anticipated to decline. The company plans to reassess its 401(k) matching contribution as its financial position improves.