SHF (SHFS) Q2 2024 earnings summary

Executive summary

• Net income reached $0.94 million in Q2 2024, reversing a $17.6 million net loss in Q2 2023, with positive gross profit and sharply reduced operating expenses.

• Revenue for Q2 2024 was $4.0 million, down 12% year-over-year, mainly due to reduced deposit activity and onboarding income.

• Loan interest income surged 204% year-over-year to $1.8 million in Q2 2024, driven by lending platform expansion and new credit programs.

• Cash and cash equivalents as of June 30, 2024, were $6.1 million, up from $4.9 million at year-end 2023.

• The company operates a proprietary platform for deposit compliance, onboarding, and loan servicing, focusing on cannabis-related businesses in 41 states.

Financial highlights

• Six-month revenue was $8.1 million, down 7.6% year-over-year.

• Six-month net income was $3.0 million, compared to a $19.0 million net loss in the prior year period.

• Adjusted EBITDA for Q2 2024 was $0.97 million, up from $0.85 million in Q2 2023; six-month Adjusted EBITDA was $2.06 million, up from $1.26 million in 2023.

• Operating expenses for Q2 2024 were $3.7 million, down from $22.5 million in Q2 2023.

• Total assets as of June 30, 2024, were $67.3 million; total liabilities were $28.9 million; equity was $38.5 million.

Outlook and guidance

• Full-year 2024 revenue expected in the range of $17–$18 million.

• Full-year 2024 Adjusted EBITDA projected between $3.75–$4.25 million.

• Management expects a shift in account and fee trends as the lending program expands, with a focus on higher-margin products and regulatory changes favoring the cannabis sector.