SHF (SHFS) Q1 2026 earnings summary

Executive summary

• Operates a compliance technology platform enabling financial institutions to serve cannabis-related businesses (CRBs) in 41 states, generating revenue from account fees, loan program income, investment income, and program licensing.

• Revenue for Q1 2026 was $2.0 million, up 2.2% year-over-year, with a net loss of $1.8 million and negative adjusted EBITDA of $1.8 million, reflecting higher compensation and marketing costs.

• The company’s primary client and revenue source is Partner Colorado Credit Union (PCCU), with a new agreement increasing its share of loan program income to 65% but also reinstating indemnification obligations for loan losses.

• Substantial doubt exists about the company’s ability to continue as a going concern due to recurring losses, negative cash flows, and an accumulated deficit of $124.7 million as of March 31, 2026.

Financial highlights

• Q1 2026 revenue: $1.98 million (up 2.2% year-over-year).

• Net loss: $1.8 million for Q1 2026, compared to $0.8 million in Q1 2025.

• Adjusted EBITDA: $(1.8) million for Q1 2026, down from $(1.2) million in Q1 2025.

• Cash and cash equivalents: $5.9 million as of March 31, 2026.

• Operating loss: $1.8 million for Q1 2026.

• Accumulated deficit: $124.7 million as of March 31, 2026.

Outlook and guidance

• Management is focused on improving client retention, expanding lending capabilities, and enhancing technology and marketing to drive new account growth.

• Liquidity preservation measures include increased loan program income share, access to a $150 million equity line of credit (ELOC), cost reductions, and cash flow monitoring.

• Substantial doubt remains about the ability to continue as a going concern for at least 12 months.