SHF Holdings Stock Drops As 2024 Revenue Declines, Losses Widen — Retail Stays Skeptical
Synopsis
Full-year revenue shrank 13% year-over-year to $15.24 million compared to $17.56 million in 2023. Net loss widened to $48.32 million during the year compared to $17.28 million in 2023.
Shares of SHF Holdings, Inc. (SHFS) fell 3% on Tuesday after the company’s full-year revenue declined and net losses widened significantly.
Full-year revenue shrank 13% year-over-year (YoY) to $15.24 million compared to $17.56 million in 2023. Net loss widened to $48.32 million during the year compared to $17.28 million in 2023.
Loan Interest Income rose 123% to approximately $6.6 million during the year compared to roughly $3 million in 2023.
However, adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) narrowed to approximately $2.9 million versus approximately $3.6 million for the full year of 2023.
For the fourth quarter (Q4) of 2024, revenue declined to approximately $3.7 million compared to roughly $4.5 million in the same quarter a year ago. Loan Interest Income increased 82% to approximately $1.8 million from roughly $1 million in the fourth quarter of 2023.
Adjusted EBITDA declined to $63,581 compared to $1.3 million in the fourth quarter of 2023.
CEO Terry Mendez highlighted that the company modified its debt obligation with Partner Colorado Credit Union.
“This modification greatly improves our financial stability as we are able to unlock over $6 million in cashflow over the next two years and push the term of the debt obligation out to October 2030,” he said.
The CEO also highlighted that throughout 2024, Safe Harbor's lending arm was a driving force for the company, as its loan interest income was up 82% for the fourth quarter and 123% for the year.
Meanwhile, on Stocktwits, retail sentiment continued to trend in the ‘bearish’ territory (34/100), albeit with a marginally higher score.
SHFS shares have lost over 53% since the beginning of the year and over 78% in the past 12 months.
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