SHF Holdings Reports 4.8% Revenue Growth but Faces Increased Net Loss in Q2 2026

SHF Holdings, Inc. reported its financial results for the second quarter of 2026, revealing a revenue of $1.93 million, a 4.8% increase from $1.85 million in the same period of 2025. For the first half of 2026, the company generated $3.91 million in revenue, up from $3.78 million year-over-year. Despite the increase in revenue, SHF Holdings experienced a net loss of $1.51 million for the quarter, compared to a loss of $0.93 million in the prior year. The company’s accumulated deficit reached $126.21 million as of June 30, 2026, reflecting ongoing challenges in achieving profitability.

The company’s operating expenses for the second quarter totaled $2.96 million, slightly higher than the $2.82 million reported in the same quarter of 2025. Notably, compensation and employee benefits decreased to $1.48 million from $1.58 million, while professional services expenses rose to $0.79 million from $0.71 million. The increase in operating expenses, coupled with the net loss, indicates that while revenue is growing, cost management remains a critical area for the company.

Strategically, SHF Holdings has made significant changes to its revenue structure through the Second Amended Commercial Alliance Agreement with Partner Colorado Credit Union (PCCU), which took effect on October 1, 2025. This agreement increased the company's share of loan program income from approximately 35% to up to 65%, enhancing its revenue profile. The company also reported a transition to a tiered fee structure for asset hosting, which is expected to yield annual savings of approximately $0.3 million. These strategic moves are aimed at improving the company's financial stability and revenue generation capabilities.

Operationally, SHF Holdings continues to expand its services across 41 states and territories, primarily focusing on providing compliant banking and financial services to cannabis-related businesses. The company reported a significant reliance on PCCU, which accounted for 92.7% of total revenue for the first half of 2026. As of June 30, 2026, the company had cash and cash equivalents of $5.73 million, down from $6.78 million at the end of 2025, indicating a need for careful cash flow management moving forward.

Looking ahead, SHF Holdings acknowledges substantial doubt about its ability to continue as a going concern due to ongoing operating losses and negative cash flows. Management is implementing measures to preserve liquidity, including expense management and exploring additional capital access through an Equity Line of Credit (ELOC). The company raised $1.1 million from the ELOC in the first half of 2026, but its future ability to draw on this facility remains uncertain. The outlook for the company will depend on its ability to stabilize operations, manage costs effectively, and navigate the regulatory landscape of the cannabis industry.