Safe Harbor Financial Reports Second Quarter 2026 Results and Provides Corporate Update
Rhea-AI Summary
Safe Harbor Financial (NASDAQ: SHFS) reported second quarter 2026 revenue of approximately $1.93 million, up 4.8% year over year, driven mainly by a 50.7% increase in loan program income to about $0.8 million. Account fee income declined 18.4% to roughly $0.8 million, while investment income held at about $0.3 million.
Average deposit balances rose 6.8% year over year to $108.4 million, and average account balances increased 6.3%. Operating expenses were about $3.0 million, up 5.1% for the quarter but down 0.6% year to date. Net loss widened to $(1.5) million, with net loss attributable to common stockholders of $(2.5) million or $(0.36) per share, largely due to a $1.0 million non-cash deemed dividend from induced Series B preferred conversions. As of June 30, 2026, cash and equivalents were $5.7 million and stockholders’ equity was $6.1 million.
Positive
- Q2 2026 revenue up 4.8% year over year to $1.93 million
- Loan program income up 50.7% YoY to about $0.8 million in Q2
- Average deposit balances up 6.8% YoY to $108.4 million in Q2
- Average investable deposit base up 30% to $45.8 million
- Year-to-date operating expenses down 0.6% to about $6.7 million
- Credit benefit from risk reduction on certain loans of $0.4 million in Q2
- Conversion of 3,198 Series B preferred shares into 4,920,008 common shares, simplifying capital structure
- Total liabilities decreased to $8.1 million from $9.0 million since December 31, 2025
Negative
- Q2 2026 net loss widened to $(1.5) million from $(0.9) million year over year
- Net loss attributable to common stockholders increased to $(2.5) million or $(0.36) per share
- Q2 operating expenses rose 5.1% year over year to about $3.0 million
- Account fee income declined 18.4% YoY to roughly $0.8 million in Q2
- Average monthly fees per account fell about 17–18% year over year in Q2 and year to date
- Cash and cash equivalents declined to $5.7 million from $6.8 million at December 31, 2025
- Total stockholders’ equity decreased to $6.1 million from $8.2 million since year-end 2025
News Explained
During
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 18 | Q1 earnings report | Positive | +3.3% | Revenue and loan program income increased while operating expenses declined year over year. |
| Apr 16 | Q4 earnings report | Negative | -4.1% | Full-year revenue declined despite balance-sheet improvements and reduced debt. |
| Apr 01 | Preliminary earnings report | Negative | -3.7% | Full-year revenue fell 50% despite improved loan-program economics and recapitalization. |
| Apr 01 | 2024 earnings report | Negative | -2.3% | Full-year revenue declined and the company reported a substantial net loss. |
| Nov 12 | Q3 earnings report | Positive | -2.1% | Net income and loan interest income improved despite lower quarterly revenue. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings history showed four aligned reactions and one divergence, with an average 24-hour move of -1.78%.
Key Terms
schedule iii regulatory
convertible preferred stock financial
induced conversions financial
pooled employer 401(k) plan financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Second Quarter 2026 Revenue of Approximately
Loan Program Income Up
Average Deposit Balances Increased
Cash and Cash Equivalents of
DENVER, Aug. 10, 2026 (GLOBE NEWSWIRE) -- SHF Holdings, Inc., d/b/a Safe Harbor Financial (“Safe Harbor” or the “Company”) (NASDAQ: SHFS), a leading fintech platform serving the banking, lending, and financial services needs of the regulated cannabis and hemp industries, today announced its financial results for the second quarter ended June 30, 2026.
“Our second quarter results reflect the continued execution of the growth strategy we have been building over the past several quarters,” said Terrance Mendez, Chief Executive Officer and Chief Financial Officer of Safe Harbor. “Loan program income grew more than
“As expected, general and administrative expenses increased year over year, primarily reflecting continued strategic investment in marketing, brand awareness and systems, together with a franchise tax refund recognized in the second quarter of 2025 that did not recur this year,” Mr. Mendez continued. “Our underlying expense trends remain consistent with our commitment to disciplined cost management, and we continue to identify further opportunities for efficiency even as we invest in the platform.”
“Growth and execution remain our top priorities for the remainder of 2026,” Mr. Mendez added. “We are continuing to invest in the people, systems and products that support that our growth, including the expansion of our consulting and managed services offering and our purpose-built pooled employer retirement plan, which has already onboarded multiple clients and earned the endorsement of Canopy HR as the recommended retirement solution for its cannabis-focused clients. Combined with the continued build-out of our Safe Harbor Institutional Infrastructure-as-a-Service model for financial institutions, we believe these investments, paired with continued expense control, position Safe Harbor to capture the growing opportunity in front of us.”
On the regulatory front, Mr. Mendez added, “the Department of Justice’s April 23 order placing state-licensed medical cannabis on Schedule III, followed by the DEA’s expedited hearing on broader rescheduling held between June 29 and July 15, reflect continued momentum toward a more favorable federal cannabis policy environment. While the timing and ultimate scope of further federal action remain uncertain, we believe Safe Harbor remains well positioned to benefit as the addressable market for our compliance platform continues to expand.”
Second Quarter 2026 Operational Highlights
| ● | Board of Directors Expansion (April 2026): Appointed Tyler Klimas and Sean Tonner to the Board of Directors effective April 22, 2026, adding deep cannabis regulatory and strategic communications expertise. Sundie Seefried resigned from the Board on April 20, 2026. | |
| ● | Safe Harbor Retirement Plan Launch (April 2026): Introduced the Safe Harbor Pooled Employer 401(k) Plan, a purpose-built, fully transparent and compliant pooled employer retirement plan that provides state-legal cannabis businesses with access to institutional-quality retirement benefits. | |
| ● | Continued Deposit and Relationship Growth (Second Quarter 2026): Average deposit balances increased | |
| ● | Federal Cannabis Rescheduling Developments (April to July 2026): Following the Department of Justice’s April 23, 2026 order rescheduling state-licensed medical cannabis to Schedule III, the DEA held an expedited administrative hearing between June 29 and July 15, 2026 to consider broader rescheduling of cannabis from Schedule I to Schedule III. | |
Subsequent Operational Highlights
| ● | Infrastructure-as-a-Service Launch (July 2026): Introduced the Safe Harbor Institutional Infrastructure-as-a-Service operating model, which helps financial institutions build, operate and scale compliant cannabis banking programs. | |
| ● | Canopy HR Selects the Safe Harbor Retirement Plan (August 2026): Canopy HR, a provider of HR, compliance, benefits and administrative support for the cannabis industry serving approximately 526,000 worksite employees, selected the Safe Harbor Pooled Employer 401(k) Plan as the recommended retirement solution for its cannabis-focused clients. Since its April 2026 launch, the plan has onboarded six new clients, including a multistate operator. | |
| ● | Capital Structure Simplification (August 2026): The temporary reduction in the conversion price of the Company’s Series B Convertible Preferred Stock concluded on July 31, 2026, with the conversion price reverting to | |
Balance Sheet Highlights
| June 30, 2026 (Unaudited) | December 31, 2025 | |||||||
| Cash and Cash Equivalents | $ | 5,729,576 | $ | 6,779,040 | ||||
| Total Assets | $ | 14,153,304 | $ | 17,207,024 | ||||
| Total Liabilities | $ | 8,052,337 | $ | 8,971,116 | ||||
| Total Stockholders’ Equity | $ | 6,100,967 | $ | 8,235,908 | ||||
Second Quarter and Year-to-Date 2026 Income Statement Highlights
| Q2 2026 (Unaudited) | Q2 2025 (Unaudited) | YTD 2026 (Unaudited) | YTD 2025 (Unaudited) | |||||||||||||||
| Total Revenue | $ | 1,934,740 | $ | 1,845,334 | $ | 3,910,179 | $ | 3,777,686 | ||||||||||
| Total Operating Expenses | $ | 2,961,094 | $ | 2,816,376 | $ | 6,699,889 | $ | 6,740,223 | ||||||||||
| Operating Loss | $ | (1,026,354 | ) | $ | (971,042 | ) | $ | (2,789,710 | ) | $ | (2,962,537 | ) | ||||||
| Net Loss | $ | (1,513,235 | ) | $ | (930,715 | ) | $ | (3,292,452 | ) | $ | (1,757,914 | ) | ||||||
For the Three Months Ended June 30,
| 2026 | 2025 | Change ($) | Change (%) | ||||||||||||||||
| Average deposit balance | (1 | ) | $ | 108,413,858 | $ | 101,463,819 | $ | 6,950,039 | 6.8 | % | |||||||||
| Trailing 14-day average account balance | (2 | ) | $ | 108,933,064 | $ | 100,915,015 | $ | 8,018,049 | 7.9 | % | |||||||||
| Average monthly account fees | (3 | ) | $ | 229,360 | $ | 276,586 | $ | (47,226 | ) | (17.1 | )% | ||||||||
| Average active accounts | (4 | ) | 766 | 762 | 4 | 0.5 | % | ||||||||||||
| Average account balance | (5 | ) | $ | 141,532 | $ | 133,155 | $ | 8,377 | 6.3 | % | |||||||||
| Average monthly fees per account | (6 | ) | $ | 299 | $ | 363 | $ | (64 | ) | (17.6 | )% | ||||||||
For the Six Months Ended June 30,
| 2026 | 2025 | Change ($) | Change (%) | ||||||||||||||||
| Average deposit balance | (1 | ) | $ | 107,327,311 | $ | 103,756,620 | $ | 3,570,691 | 3.4 | % | |||||||||
| Trailing 14-day average account balance | (2 | ) | $ | 108,933,064 | $ | 100,915,015 | $ | 8,018,049 | 7.9 | % | |||||||||
| Average monthly account fees | (3 | ) | $ | 235,218 | $ | 285,433 | $ | (50,215 | ) | (17.6 | )% | ||||||||
| Average active accounts | (4 | ) | 765 | 772 | (7 | ) | (0.9 | )% | |||||||||||
| Average account balance | (5 | ) | $ | 140,358 | $ | 134,400 | $ | 5,958 | 4.4 | % | |||||||||
| Average monthly fees per account | (6 | ) | $ | 308 | $ | 370 | $ | (62 | ) | (16.8 | )% | ||||||||
| (1 | ) | Represents the average deposit balance over the period. | |
| (2 | ) | Represents the average balance for the 14 calendar days ending on June 30th, which represents a period end balance that smooths our clients’ two-week payroll cycles. | |
| (3 | ) | Reported account activity fee revenue. | |
| (4 | ) | Represents the average of ending active accounts for each of the three months therein. | |
| (5 | ) | Refer to the sectionDiscussion of Results of our Operationsin the Company’s Quarterly Report on form 10-Q for the three months ended June 30, 2026 for additional discussion of trends. | |
| (6 | ) | Represents the average of account activity fee revenue for the three and six months therein. | |
Revenue was approximately
Loan program income was approximately
Account fee income was approximately
Investment income was approximately
Average deposit balances increased
Total operating expenses for the second quarter of 2026 increased
Net loss was approximately
For more information on the Company’s quarter ended June 30, 2026 financial results, please refer to our Form 10-Q filed with the U.S. Securities and Exchange Commission and accessible at www.sec.gov.
About Safe Harbor:
Safe Harbor is a cannabis-exclusive 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 financial operations support and cannabis banking consulting in the U.S., Safe Harbor has assisted in the processing of more than
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, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026. 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.
Safe Harbor Investor Relations Contact:
ir@SHFinancial.org
Safe Harbor Media Relations Contact:
safeharbor@kcsa.com
