SHF (SHFS) Q2 2026 earnings summary

Executive summary

• Revenue for Q2 2026 was $1.93 million, up 4.8% year-over-year, and six-month revenue was $3.91 million, up 3.5%, driven by higher loan program income and increased deposit balances.

• Loan program income rose 53.1% year-over-year for the six months, reflecting a favorable revenue-sharing agreement under the Second Amended CAA.

• Net loss attributable to common stockholders was $4.4 million for the six months ended June 30, 2026, and $1.5 million for Q2 2026, reflecting higher deemed dividends and investment losses.

• The company’s business is highly concentrated with a single customer, PCCU, which accounted for over 92% of revenue.

• The company continues to face substantial doubt about its ability to continue as a going concern due to recurring losses, negative cash flows, and ongoing litigation.

Financial highlights

• Revenue for Q2 2026 was $1.93 million (up 4.8% year-over-year); six-month revenue was $3.91 million (up 3.5%).

• Loan program income for Q2 2026 was $0.8 million (up 50.7% year-over-year); YTD: $1.7 million (up 53.1%).

• Account fee income declined 18.4% year-over-year to $0.8 million in Q2 2026.

• Cash and cash equivalents were $5.7 million as of June 30, 2026, down from $6.8 million at year-end 2025.

• Working capital was $4.7 million and total stockholders’ equity was $6.1 million, exceeding Nasdaq minimums.

Outlook and guidance

• Management is implementing measures to preserve liquidity, including cost reductions and strategic investments in people, systems, and new product offerings.

• The company’s ability to access its $150 million equity line of credit is uncertain and subject to market conditions.

• Ongoing litigation and Nasdaq compliance issues present risks to future operations and capital access.

• Continued investment in consulting, managed services, and the pooled employer retirement plan is expected to drive future growth.

• Regulatory developments in cannabis rescheduling could expand the addressable market for compliance solutions.