8-K: Safe Harbor Financial Reports Q2 2026 Growth Amidst Net Loss

SHF Holdings, Inc. announced second quarter 2026 results, highlighting a 4.8% year-over-year revenue increase to $1.9 million, driven by loan program income, while also reporting a net loss of $1.5 million.

Summary

• SHF Holdings, Inc. reported financial results for the second quarter ended June 30, 2026.
• Total revenue increased by 4.8% year-over-year to approximately $1.9 million.
• Loan program income saw a significant increase of 50.7% year-over-year to approximately $0.8 million.
• Average deposit balances grew by 6.8% year-over-year to $108.4 million.
• The company reported a net loss of approximately $1.5 million for the quarter.
• Total operating expenses increased by 5.1% to approximately $3.0 million for the quarter.
• Net loss attributable to common stockholders was approximately $(2.5) million, or $(0.36) per share.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive report, indicating revenue growth and strategic progress, but also showing continued net losses and increased expenses.

Positives

• Revenue increased by 4.8% year-over-year to $1.9 million for Q2 2026.
• Loan program income grew by 50.7% year-over-year to $0.8 million for Q2 2026.
• Average deposit balances increased by 6.8% year-over-year to $108.4 million for Q2 2026.
• The company launched its Safe Harbor Institutional Infrastructure-as-a-Service model in July 2026.
• Canopy HR selected the Safe Harbor Pooled Employer 401(k) Plan as its recommended retirement solution.
• The temporary reduction in the conversion price of Series B Convertible Preferred Stock concluded, simplifying the capital structure.

Negatives

• Net loss for the second quarter of 2026 was approximately $(1.5) million, an increase from $(0.9) million in Q2 2025.
• Net loss attributable to common stockholders was approximately $(2.5) million, or $(0.36) per share, compared to $(0.9) million, or $(0.33) per share in Q2 2025.
• Total operating expenses increased by 5.1% to approximately $3.0 million for Q2 2026.
• Account fee income decreased by 18.4% to approximately $0.8 million in Q2 2026.
• Cash and cash equivalents decreased from $6.8 million at the end of 2025 to $5.7 million as of June 30, 2026.

Risks

• The timing and ultimate scope of further federal action on cannabis rescheduling remain uncertain.
• Volatility in the capital markets may adversely affect the price of Safe Harbor's securities.
• The outcome of any legal proceedings that have been or may be brought by or against Safe Harbor is uncertain.
• The company's financial performance is subject to risks and uncertainties described in its SEC filings.

Future Outlook

The company believes its investments in people, systems, and products, including its consulting and managed services offering and pooled employer retirement plan, position it to capture growing opportunities. The ongoing developments in federal cannabis policy are also seen as a potential benefit as the addressable market for its compliance platform expands.

Management Comments

• "Our second quarter results reflect the continued execution of the growth strategy we have been building over the past several quarters."
• "Loan program income grew more than 50% year over year for the second consecutive quarter, and average deposit balances increased 6.8% year over year to $108.4 million, with our trailing 14-day average balance up 7.9%."
• "We believe this deposit growth is a direct result of the enhanced marketing and customer-focused initiatives we have put in place, which are winning new customers and increasing average balances across our platform."
• "Our underlying expense trends remain consistent with our commitment to disciplined cost management, and we continue to identify further opportunities for efficiency even as we invest in the platform."
• "Growth and execution remain our top priorities for the remainder of 2026."
• "While the timing and ultimate scope of further federal action remain uncertain, we believe Safe Harbor remains well positioned to benefit as the addressable market for our compliance platform continues to expand."

Industry Context

StockSavvy.ai notes that Safe Harbor Financial operates in the specialized fintech sector serving the regulated cannabis industry. The company's performance is closely tied to evolving federal and state cannabis regulations, as evidenced by the commentary on the DOJ's Schedule III reclassification and the DEA's hearing. Growth in loan program income and deposit balances suggests increasing financial activity within the cannabis sector, while the company's expansion into retirement plans and infrastructure-as-a-service indicates diversification efforts.

Management Changes

Related Party Transactions

• Accounts receivable related party: $683,887 as of June 30, 2026.
• Accounts payable related party: $158,725 as of June 30, 2026.

Stakeholder Impact

• Shareholders: Continued net losses and a decrease in stockholders' equity may impact investor sentiment, though revenue growth and strategic initiatives offer potential for future returns.
• Customers: The company's focus on enhanced marketing and customer-centric growth, along with new offerings like the retirement plan and infrastructure-as-a-service, aims to provide value and attract/retain clients.
• Financial Institutions: The Infrastructure-as-a-Service model is designed to help financial institutions build compliant cannabis banking programs, potentially expanding partnerships.

Next Steps

• Continue to invest in people, systems, and products to support growth.
• Expand consulting and managed services offering.
• Grow the purpose-built pooled employer retirement plan.
• Continue building out the Safe Harbor Institutional Infrastructure-as-a-Service model.
• Monitor and adapt to evolving federal cannabis policy.

Key Dates

Recommendation

The company shows positive revenue and loan income growth, alongside strategic product development and favorable regulatory shifts in the cannabis industry. However, persistent net losses, increased operating expenses, and a decline in common stockholders' equity warrant a cautious 'hold' rating until profitability improves and the impact of strategic investments becomes clearer.

Keywords

cannabis banking, fintech, loan program income, deposit balances, financial services, regulatory compliance, retirement plan, infrastructure-as-a-service