SHF Holdings, Inc. (SHFS): Safe Harbor Financial Reports Third Quarter 2026 Financial Results
SHF Holdings, Inc. (SHFS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Safe Harbor Financial Reports Third Quarter 2026 Financial Results Revenue increases 6.5% to $1.95 million, supported by 70.2% growth in loan program income Average client deposits rise to $112 million, with quarter-end trailing 14-day average deposits reaching $119.
How this was made
The 30-second read
Why it matters
The Q3 earnings release is the first public disclosure of the company's latest financial performance, offering fresh data for traders.
Market read
Micro‑cap earnings with modest improvement; may trigger short‑term price movement but limited broader market relevance.
What to watch
Liquidity constraints and reliance on a single partner credit union could limit upside.
Safe Harbor third-quarter revenue rises 6.5% to $1.95 million on higher loan program income; operating loss narrows 17.7%; going concern and Nasdaq listing issues remain open
Revenue and operating loss improved year over year and deposit balances rose, but the company reported a net loss against prior-year net income that included a $3.34 million gain on debt extinguishment, cash fell to $4.40 million, operating cash outflow for the nine months was $4.05 million, the filing carries a going concern disclosure, and the company is subject to a Nasdaq minimum bid price deficiency with a nonbinding term sheet that would leave existing stockholders with approximately 15% of the combined company.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenue, Q3 2026GAAP | $1.95M | – | increase of 6.5% |
| Loan program income, Q3 2026GAAP | approximately $869,000 | – | increase of 70.2% |
| Account fee income, Q3 2026GAAP | approximately $798,000 | – | decreased 17.1% |
| Investment income, Q3 2026GAAP | approximately $284,000 | – | decreased 16.7% |
| Average client deposit balances, Q3 2026other | $112M | – | increase of 3.8% |
| Trailing 14-day average client deposits at quarter-endother | $119.3M | – | increase of 7.4% |
| Average account balance, Q3 2026other | $147,209 | – | increase of 5.6% |
| Average active accounts, Q3 2026other | 761 | – | declined 1.7% |
| Total operating expenses, Q3 2026GAAP | $2.95M | – | decrease of 3.2% |
| Compensation and employee benefits expense, Q3 2026GAAP | $1.52M | – | decreased 10.6% |
| Professional services expenses, Q3 2026GAAP | approximately $722,000 | – | increased 63.3% |
| Operating loss, Q3 2026GAAP | −$1.00M | – | narrowed 17.7% |
| Net loss, Q3 2026GAAP | approximately $979,000 net loss | – | – |
| Basic (loss) income per share, Q3 2026GAAP | $(0.95) | – | – |
| Diluted (loss) income per share, Q3 2026GAAP | $(0.95) | – | – |
| Total revenue, nine months 2026GAAP | $5.86M | – | increase of 4.5% |
| Loan program income, nine months 2026GAAP | $2.55M | – | increased 58.6% |
| Total operating expenses, nine months 2026GAAP | $9.65M | – | – |
| Operating loss, nine months 2026GAAP | $3.79M | – | – |
| Net loss, nine months 2026GAAP | −$4.27M | – | – |
| Net loss attributable to common stockholders, nine months 2026GAAP | −$5.34M | – | – |
| Basic and diluted loss per share, nine months 2026GAAP | $(8.08) | – | – |
| Net cash used in operating activities, nine months 2026GAAP | $4.05M | – | – |
| Cash and cash equivalents, September 30, 2026GAAP | $4.4M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Loan program incomeThe company attributes the increase primarily to its second amended commercial alliance agreement with Partner Colorado Credit Union, effective October 1, 2025, which increased its share of applicable loan program income from approximately 35% to up to 65%, despite lower average outstanding loan balances. | approximately $869,000 | – | increase of 70.2% |
| Account fee incomeThe company states the decline primarily reflected lower revenue from a merchant service partner and competitive pressure on account fees. | approximately $798,000 | – | decreased 17.1% |
| Investment incomeThe company states that lower prevailing interest rates more than offset growth in average investable deposit balances. | approximately $284,000 | – | decreased 16.7% |
Capital returns
- The filing does not report share repurchases or cash dividends for the period.
- A 1-for-12 reverse stock split became effective September 30, 2026; per-share figures in the filing reflect the split.
What drove it
- Company explanation: loan program income rose primarily because of the amended agreement with Partner Colorado Credit Union, which raised the company's share of applicable loan program income from approximately 35% to up to 65%.
- Company explanation: the nine-month increase in loan program income primarily reflected the revised revenue-sharing arrangement rather than growth in underlying loan volume.
- Company explanation: average balances rose because of a shift toward larger, higher-deposit-balance client relationships.
- Company explanation: operating expenses declined, including lower compensation and employee benefits and an approximately $353,000 credit benefit associated with changes in estimated credit losses under financial indemnification obligations.
- Company explanation: these benefits were partly offset by higher professional services expenses and amortization of a contract asset tied to the amended Partner Colorado Credit Union agreement.
- Company explanation: the year-over-year net loss comparison was significantly affected by a $3.34 million gain on debt extinguishment recorded in Q3 2025.
Concerns
- The company moved from net income of approximately $180,000 in Q3 2025 to a net loss of approximately $979,000 in Q3 2026, and the prior-year quarter included a $3.34 million gain on debt extinguishment.
- Account fee income fell 17.1% and investment income fell 16.7%, so the two non-lending revenue lines declined.
- Professional services expenses rose 63.3% to approximately $722,000.
- Net cash used in operating activities reached $4.05 million over nine months, up from $2.35 million, while cash fell to $4.40 million from $6.78 million at December 31, 2025.
- The going concern disclosure states that management's plans have not alleviated substantial doubt about the company's ability to continue as a going concern.
- The company is subject to a Nasdaq minimum bid price requirement; the compliance period runs through April 19, 2027, and the filing states there can be no assurance of compliance or continued listing.
- The company states that the increase in loan program income reflected revenue-sharing terms rather than growth in underlying loan volume, and average loan portfolio balances were lower.
What to watch
- Execution of a definitive agreement with Opifex Media Inc., which remains a nonbinding term sheet signed October 23, 2026.
- The Opifex transaction would leave Opifex security holders with approximately 85% of the combined company, with existing Safe Harbor stakeholders at approximately 15%, subject to adjustment within a range of 12.5% to 17.5%.
- Required consents from holders of the Series B securities, and the company's evaluation of potential arrangements involving those securities.
- Progress toward regaining compliance with the $1 minimum bid price by April 19, 2027.
- Whether loan program income holds its level under the amended revenue-sharing agreement, given that the company says the increase did not come from loan volume growth.
- Trends in average client deposits and in account fee income, which declined 17.1% year over year.
- Liquidity: cash of $4.40 million at September 30, 2026, and the company's stated intention not to draw on its equity line of credit while the Opifex term sheet remains in effect.
Balance sheet and cash flow
- Cash and cash equivalents were $4.40 million as of September 30, 2026, compared with $6.78 million as of December 31, 2025.
- Total assets were $13.09 million as of September 30, 2026, compared with $17.21 million at year-end 2025.
- Net cash used in operating activities was $4.05 million for the nine months ended September 30, 2026, compared with $2.35 million in the prior-year period.
- The company had no secured debt as of September 30, 2026.
- The company does not intend to draw on its existing equity line of credit while the term sheet with Opifex Media Inc. remains in effect.
- The unaudited financial statements include a going concern disclosure resulting from recurring operating losses, negative operating cash flows and uncertainties related to capital structure, litigation and other obligations; management's plans have not alleviated substantial doubt.
Analysis
Safe Harbor reported third-quarter 2026 revenue of $1.95 million, up 6.5% from $1.83 million, and the company attributes the increase to a 70.2% rise in loan program income to approximately $869,000. The company explains that this rise reflects the amended Partner Colorado Credit Union agreement, which raised its share of applicable loan program income from approximately 35% to up to 65%, and that it occurred despite lower average loan portfolio balances. The nine-month loan program income increase of 58.6% to $2.55 million is described by the company as reflecting the revised revenue-sharing arrangement rather than loan volume growth. Set against this, account fee income fell 17.1% to approximately $798,000 and investment income fell 16.7% to approximately $284,000. The filing gives the company's explanations for both declines but does not separate the revenue lines into segments beyond these three income streams.
Deposit metrics moved up. Average client deposit balances were $112 million, up 3.8% from approximately $108 million, and the trailing 14-day average at quarter-end was $119.3 million, up 7.4% from $111.1 million. The company states that the quarter-end trailing 14-day balance was its highest since April 2024. The average account balance rose 5.6% to $147,209 while average active accounts declined 1.7% to 761, which the company attributes to a shift toward larger client relationships.
On costs, total operating expenses fell 3.2% to $2.95 million and compensation and employee benefits fell 10.6% to $1.52 million. The company cites an approximately $353,000 credit benefit tied to changes in estimated credit losses as a factor in the lower expense total. Professional services expenses rose 63.3% to approximately $722,000, which the company links to higher legal, accounting and other professional costs. The operating loss narrowed 17.7% to $1.00 million ($(1,002) thousand), from $(1,217) thousand. Below the operating line, the company reported a net loss of approximately $979,000, or $(0.95) per basic and diluted share, against net income of approximately $180,000 in Q3 2025. The company states that the prior-year comparison was significantly affected by a $3.34 million gain on debt extinguishment recorded in Q3 2025, so the swing to a loss is not a like-for-like operating comparison. The nine-month net loss was $(4,272) thousand against $(1,578) thousand, and the net loss attributable to common stockholders was $(5,341) thousand.
The balance sheet and cash flow carry the main risk. Cash and cash equivalents fell to $4.40 million from $6.78 million at December 31, 2025, total assets were $13.09 million against $17.21 million at year-end 2025, and net cash used in operating activities was $4.05 million for nine months against $2.35 million a year earlier. The company reports no secured debt, but its unaudited financial statements carry a going concern disclosure, and management states that its plans have not alleviated substantial doubt. The company also states that it does not intend to draw on its equity line of credit while the Opifex term sheet remains in effect.
The filing is dominated by corporate actions. A nonbinding term sheet signed October 23, 2026 with Opifex Media Inc. contemplates a combined company in which Opifex security holders would own approximately 85% and existing Safe Harbor stakeholders approximately 15%, with the Safe Harbor share adjustable between 12.5% and 17.5% following an independent fairness opinion. The transaction is subject to a definitive agreement, Series B consents, Nasdaq approval and stockholder approval, among other conditions. On October 20, 2026, Nasdaq granted an additional 180-day period, to April 19, 2027, to regain compliance with the $1 minimum bid price. The company also effected a 1-for-12 reverse split on September 30, 2026. The filing contains no revenue guidance for the coming periods.
Management, verbatim
Our third-quarter results demonstrate the continued value of Safe Harbor’s established financial services platform, with higher revenue, significant growth in loan program income and increased client deposit balances,
Terry Mendez, Chief Executive Officer, Safe Harbor
At the same time, we recognize the challenges facing our capital structure and public listing and remain focused on evaluating solutions that preserve the value of our operating business,
Terry Mendez, Chief Executive Officer, Safe Harbor
Not in the filing
stated, not guessed- No forward guidance for revenue, operating expenses or any other metric is provided in the filing.
- The filing does not report revenue by segment beyond the three income lines; no segment total or segment operating income is printed.
- Prior-year and prior-quarter cash balance for the same quarter is not printed; the only comparison is the December 31, 2025 balance.
- Year-over-year change for the net loss in Q3 2026 is not printed as a percentage.
- Year-over-year change for nine-month total operating expenses is not printed.
- Year-over-year change for nine-month operating loss and nine-month net loss is not printed as a percentage.
- Quarter-over-quarter (sequential) figures are not printed in the filing.
- Total assets and cash are not given on a same-period prior-year basis; comparisons are to December 31, 2025.
- Stock price reaction and analyst expectations are not in the filing.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
SHF Holdings (Nasdaq: SHFS) provides banking and lending services to the regulated cannabis and hemp industries.
Ticker impact
SHF Holdings reported Q3 2026 results, showing revenue up 6.5% and operating loss narrowing 17.7% YoY.
potential modest upside as the market prices in the narrowed loss and higher loan income
Micro‑cap with limited liquidity; earnings beat is positive but scale is small, so price move likely limited.
Market effects
Shows improving fundamentals in the niche cannabis‑finance fintech sector.
Limited to U.S. micro‑cap investors; no broader regional effect.
Minimal global impact due to company size and niche focus.
Counterpoint
Despite loss narrowing, the company still reports a net loss and may face capital‑structure challenges.
Key entities
- companySHF Holdings, Inc.
Fintech platform serving cannabis and hemp financial services.
- partnerColorado Credit Union
Partner whose amended agreement increased SHFS's loan program revenue share.
