SHF Holdings Reports $1.98 Million Revenue with Increased Net Loss in Q1 2026

SHF Holdings, Inc. reported a revenue of $1.98 million for the first quarter of 2026, reflecting a slight increase of 2.2% from $1.93 million in the same period of 2025. Despite this revenue growth, the company experienced a net loss of $1.78 million, compared to a net loss of $827,199 in the prior year. The increase in losses was attributed to higher operating expenses, which totaled $3.74 million, down from $3.92 million in the previous year, primarily due to reduced professional services costs and a credit benefit of $316,576.

In terms of financial position, SHF Holdings reported total assets of $15.69 million as of March 31, 2026, a decrease from $17.21 million at the end of 2025. The decline in assets was driven by a reduction in cash and cash equivalents, which fell to $5.90 million from $6.78 million. The company's liabilities remained relatively stable, totaling $8.96 million, compared to $8.97 million at the end of the previous fiscal year. Stockholders' equity also decreased to $6.73 million from $8.24 million, largely due to the accumulated deficit increasing to $124.70 million.

Strategically, SHF Holdings has made significant changes to its revenue-sharing agreement with Partner Colorado Credit Union (PCCU), increasing its share of loan program income from approximately 35% to up to 65%. This adjustment, effective October 1, 2025, is expected to enhance the company's revenue profile moving forward. Additionally, the company has entered into an Equity Line of Credit (ELOC) agreement, allowing it to sell up to $150 million in newly issued shares to an institutional investor, which could provide necessary capital for future operations.

Operationally, SHF Holdings continues to focus on its core business of providing compliant banking services to cannabis-related businesses (CRBs) across 41 states. The company reported that its revenue is heavily concentrated, with PCCU accounting for approximately 90% of total revenue for the quarter. The company’s cash flow from operations showed a net cash outflow of $1.08 million, slightly improved from $1.14 million in the same period last year. The company is actively monitoring its cash flow and has implemented measures to preserve liquidity amid ongoing operational losses.

Looking ahead, SHF Holdings acknowledges substantial doubt about its ability to continue as a going concern due to recurring losses and negative cash flows. Management is focused on strengthening its revenue profile, managing expenses, and exploring additional strategic partnerships to enhance its financial stability. The company remains committed to navigating the challenges posed by the cannabis industry's regulatory environment while seeking to improve its operational performance and financial health.