Stewards, Inc. Reports $3.5 Million Revenue with Increased Losses and Strategic Leadership Changes

Stewards, Inc. reported a total revenue of $3.5 million for the three months ended June 30, 2026, a slight increase of 5% compared to $3.3 million in the same period last year. The revenue for the first half of 2026 reached $7.3 million, up 10% from $6.7 million in the prior year. The growth was primarily driven by the introduction of rental income from the company's real estate segment, which generated $2.4 million in the second quarter and $4.8 million in the first half of the year. However, the financing solutions segment saw a significant decline, with revenues dropping 68% to $1.1 million in the second quarter, attributed to lower merchant cash advance (MCA) origination volumes.

The company's operating expenses surged by 70% to $5.8 million in the second quarter, compared to $3.4 million in the same period last year, and increased by 87% to $12.2 million for the first half of 2026. This rise was largely due to higher general and administrative costs, which rose 42% to $3.0 million in the second quarter, reflecting the expansion of the real estate operations and increased professional fees associated with the company's growth initiatives. The net loss for the second quarter was $7.2 million, compared to a loss of $2.2 million in the prior year, while the loss for the first half of 2026 totaled $12.9 million, up from $4.3 million in the same period last year.

In terms of operational developments, Stewards, Inc. has expanded its real estate segment through the acquisition of Block 40, LLC, which operates a mixed-use property in Hollywood, Florida. This acquisition is part of the company's strategy to diversify its revenue streams and enhance its asset base. The company also reported a significant increase in its employee headcount, reflecting its growth and expansion efforts. As of June 30, 2026, total assets stood at $174.0 million, a decrease from $178.4 million at the end of 2025, primarily due to changes in cash and receivables.

The company has also made strategic changes in its leadership, with a new CEO and Chairman appointed during the quarter. This transition is expected to guide the company through its ongoing restructuring and growth initiatives. Additionally, Stewards, Inc. has secured a commitment for $24 million in funding over the next twelve months, which is anticipated to support its liquidity needs and operational expenditures. The company’s management remains focused on improving portfolio quality and managing liquidity as it navigates the challenges posed by its current financial position, including a negative working capital of $2.8 million and an accumulated deficit of $71.6 million.

Looking ahead, Stewards, Inc. aims to leverage its dual business model of private credit and real estate to create long-term value. The company plans to continue its focus on providing alternative financing solutions to small and medium-sized businesses while expanding its real estate portfolio to generate stable rental income. Management's outlook remains cautious, emphasizing the need for additional financing and effective management of operating expenditures to ensure the company's sustainability and growth in the coming year.