Safe Harbor Financial Reports Preliminary Fourth Quarter and Full Year 2025 Results
Rhea-AI Summary
Safe Harbor Financial (NASDAQ: SHFS) reported preliminary unaudited results for Q4 and full year 2025. Q4 revenue was $2.1M, up 12% sequentially; Q4 loan program income $0.9M, up 71% sequentially. Full‑year revenue fell to $7.7M from $15.2M (‑50%).
The September 2025 recapitalization eliminated $18.3M of debt and raised $6.8M, restoring positive equity. The Second Amended CAA raises loan income share to up to 65% and extends PCCU terms to 2031. The company filed a Form 12b‑25 extension and noted the figures are preliminary and unaudited.
Positive
- Total debt eliminated: $(18.3)M removed from balance sheet
- Cash and equivalents increased by $4.5M to $6.8M (192% increase)
- PCCU CAA extended through 2031 with loan income share up to 65%
- Sequential Q4 revenue growth of 12% and loan income +71%
- Majority of previously identified material weaknesses remediated
Negative
- Full‑year 2025 total revenue declined 50% to $7.7M
- Full‑year loan program income down 63% to $2.5M
- Deposit, activity, onboarding income down 39% to $4.0M
- Investment income fell 45% to $1.2M, affected by lower rates
- Filed Form 12b‑25 for late 10‑K, indicating additional audit time
Key Figures
Market Reality Check
Peers on Argus
SHFS was up 2.94% pre-release, while regional banking peers like CARV, MBBC and KFFB showed declines and GLBZ, BAFN were flat. No evidence of a broader sector move; price action appears company-specific.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 01 | Q4 & FY 2024 earnings | Neutral | -2.3% | Mixed 2024 results: lower revenue, strong loan income growth, large non-cash loss. |
| Nov 12 | Q3 2024 earnings | Neutral | -2.1% | Q3 2024 net income with lower revenue and reduced operating expenses. |
| Aug 14 | Q2 2024 earnings | Positive | +0.8% | Q2 2024 swing to net income and higher EBITDA despite revenue decline. |
| May 13 | Q1 2024 earnings | Positive | -3.0% | Q1 2024 net income surge and lower expenses with slight revenue dip. |
Past earnings reports often mixed improving profitability with softer revenue, and the stock’s average move around these events has been modestly negative.
Recent earnings history for Safe Harbor shows improving profitability metrics against a backdrop of declining revenue. In Q1–Q3 2024, net income and adjusted EBITDA improved while revenue trended lower, aided by cost reductions and capital structure changes. The 2024 year-end report highlighted strong loan income growth but a sizable net loss from non-cash charges. Today’s preliminary Q4 and FY 2025 results extend that narrative with sharper revenue declines but a cleaner, debt-free balance sheet.
Historical Comparison
Across the last 4 earnings releases, SHFS shares moved an average of -1.64%, reflecting muted reactions to mixed reports. The 2025 preliminary figures continue the theme of revenue pressure alongside improving balance sheet quality.
Earnings have evolved from 2024’s improving profitability but declining revenue to 2025’s sharper 50% revenue drop and elimination of $18.3M debt, marking a shift from income stabilization toward balance sheet repair and new PCCU economics through 2031.
Market Pulse Summary
This announcement pairs a materially cleaner balance sheet with weaker top-line performance. Management reports eliminating $18.3M of debt, raising cash to $6.8M, and improving PCCU economics to up to 65% loan income share, while FY 2025 revenue fell 50% to $7.7M. The Form 10‑K delay under Form 12b‑25 and the preliminary, unaudited status of these figures highlight the need to watch the final audit and disclosure for any changes.
Key Terms
commercial alliance agreement financial
material weaknesses financial
stockholders’ equity financial
form 10-k regulatory
form 12b-25 regulatory
rule 12b-25 regulatory
AI-generated analysis. Not financial advice.
DENVER, April 01, 2026 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a Safe Harbor Financial (“Safe Harbor” or the “Company”) (NASDAQ: SHFS), a financial technology company serving the banking, lending, and financial services needs of the regulated cannabis and hemp industries, today announced its preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2025.
Fourth Quarter 2025 Financial Summary
| Q4 2025 (Unaudited) | Q3 2025 (Unaudited) | Q4 2024 (Derived from audited financials) | ||
| Total Revenue | ||||
| Loan Program Income | ||||
| Sequential Revenue Change (vs. Q3 2025) | +12 | % | — | n/a |
| Sequential Loan Program Income Change | +71 | % | — | n/a |
The sequential increase in Q4 2025 reflects improved economics under the Second Amended and Restated Commercial Alliance Agreement with PCCU, effective October 1, 2025, which increased the Company’s share of loan program income to up to
Full Year 2025 Financial Summary
| FY 2025 (Unaudited) | FY 2024 (Derived from audited financials) | Change | ||
| Revenue: | ||||
| Deposit, activity, onboarding income | (39 | %) | ||
| Loan Program Income | (63 | %) | ||
| Investment Income | (45 | %) | ||
| Safe Harbor Program Income | 0 | % | ||
| Total Revenue | (50 | %) | ||
The decline in revenue was primarily attributable to revised interest allocation provisions under the First Amended CAA, which was in effect for the first nine months of the year, and a reduction in the number of active accounts. Investment Income was impacted by lower Federal Reserve interest rates. Account Fee Income was impacted by both (a) lower average account activity, and (b) the introduction of client money market accounts.
Selected Consolidated Balance Sheet Summary
| Dec 31, 2025 (Unaudited) | Dec 31, 2024 (Derived from audited financials) | % Change | $ Change | ||
| Cash and Cash Equivalents | 192 | % | |||
| Total Debt | (100 | %) | |||
The September 2025 Recapitalization eliminated substantially all of the Company’s
Operational and Governance Summary
| Item | Status at Year-End 2025 | Prior Status |
| Material Weaknesses | Majority remediated | Multiple weaknesses identified |
| PCCU CAA Term | Extended through 2031 | Expired 2029 |
| Loan Program Income Share | Up to | ~ |
| Asset Hosting Fee | calculation, saving approximately | Fixed calculation at |
| Board of Directors | 5 members; PCCU has no appointment rights | 7 members; PCCU had appointment rights |
| Senior Financial Leadership | CEO/CFO and PAO with Big 4 experience | N/A |
Management Commentary
“Fiscal year 2025 was the most consequential year in Safe Harbor Financial’s history,” said Terrance Mendez, Chief Executive Officer. “We eliminated
Mr. Mendez continued, “With the Second Amended CAA extending our PCCU partnership through 2031 at meaningfully improved economics, we enter 2026 with a different revenue profile, as evidenced by sequential revenue growth of
Form 10-K Filing Status
The Company has filed a Notification of Late Filing on Form 12b-25 with the Securities and Exchange Commission. As a result of the closing of a significant and complex transaction in 2025, the Company requires additional time to prepare its financial statements to ensure adequate disclosure of the financial information required to be included in the Form 10-K. The Company expects to file its Annual Report on Form 10-K within the fifteen-calendar-day extension period provided under Rule 12b-25 of the Securities Exchange Act of 1934, as amended. As a result of the ongoing audit, there could be changes to the Company’s audited financial statements as compared to the preliminary unaudited figures presented herein.
About Safe Harbor
Safe Harbor is a financial platform delivering smarter banking, lending, payments and business services tailored to how the cannabis industry actually operates. As one of the original pioneers of compliant cannabis banking in the U.S., Safe Harbor has facilitated more than
Important Notice Regarding Preliminary Financial Information
The financial information presented herein for the year ended December 31, 2025 is preliminary and unaudited. The Company’s audit for fiscal year 2025 is ongoing, and the Company expects to file its Annual Report on Form 10-K within the fifteen-calendar-day extension period provided under Rule 12b-25 of the Securities Exchange Act of 1934, as amended. As a result of the closing of significant and complex transaction in 2025, the Company requires additional time to prepare its financial statements to ensure adequate disclosure of the financial information required to be included in the Form 10-K. The preliminary unaudited financial information presented herein should not be viewed as a substitute for audited financial statements prepared in accordance with U.S. generally accepted accounting principles.
Cautionary Statement Regarding Forward-Looking Statements
Certain information contained in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included herein may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Forward-looking statements may include, but are not limited to, statements with respect to trends in the cannabis industry, including proposed changes in U.S and state laws, rules, regulations and guidance relating to Safe Harbor’s services; Safe Harbor’s growth prospects and Safe Harbor’s market size; Safe Harbor’s projected financial and operational performance, including relative to its competitors and historical performance; success or viability of new product and service offerings Safe Harbor may introduce in the future; the impact of volatility in the capital markets, which may adversely affect the price of Safe Harbor’s securities; the outcome of any legal proceedings that have been or may be brought by or against Safe Harbor; and other statements regarding Safe Harbor’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “outlook,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would,” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in Safe Harbor’s filings with the U.S. Securities and Exchange Commission. Safe Harbor undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
Contacts
Investor Relations: ir@SHFinancial.org
Media Relations: safeharbor@kcsa.com
FAQ
What were Safe Harbor Financial (SHFS) preliminary Q4 2025 results?
How did Safe Harbor Financial (SHFS) perform for full year 2025 versus 2024?
What balance sheet changes did Safe Harbor Financial (SHFS) report as of Dec 31, 2025?
What does the Second Amended CAA mean for Safe Harbor Financial (SHFS) revenue?
Did Safe Harbor Financial (SHFS) resolve accounting issues in 2025?
Why did Safe Harbor Financial (SHFS) file a Form 12b‑25 extension for its 2025 10‑K?
