Fold Holdings 2025 Q1 Earnings Misses Targets with Net Loss Widening Over 5000%

Fold Holdings (FLD) reported its fiscal 2025 Q1 earnings on May 15th, 2025. The company's revenue of $7.1 million reflected a 44% year-over-year increase, showcasing strong market adoption. However, the net loss widened significantly to $48.9 million, missing expectations and representing more than a 5000% increase compared to the prior year. The company maintained its revenue guidance for 2025 at $61.6 million, suggesting confidence in continued growth. Despite the revenue growth, profitability remains a challenge, as evidenced by the substantial net loss.

Revenue
Fold Holdings experienced a substantial rise in total revenue for Q1 2025, reaching $7.09 million, up from $4.93 million in Q1 2024. The breakdown of revenue segments revealed that banking and payment operations were the primary contributors, generating $6.92 million. Custody and trading activities added $151,855, while other revenue streams contributed $26,035. Sales returns and allowances reduced revenue by $11,678, resulting in net revenue of $7.09 million.

Earnings/Net Income
Fold Holdings saw its losses deepen significantly, with a reported loss of $1.92 per share in Q1 2025 compared to $0.16 per share in Q1 2024, marking a 1100.0% increase in loss per share. The net loss widened to $48.88 million, an increase of 5072.2% from the previous year's loss of $945,046. This performance highlights the company's ongoing financial challenges.

Price Action
The stock price of Fold Holdings dropped by 3.14% during the latest trading day and week, but has surged 23.77% month-to-date.

Post-Earnings Price Action Review
The post-earnings strategy of purchasing FLD shares when revenue expectations are missed and holding them for 30 days has shown a 100% return over a two-year backtested period, indicating its potential profitability. Backtesting is an essential tool to validate trading strategies, employing historical data to evaluate profitability and risk. The strategy's impressive returns suggest it may perform well in real market conditions, provided its rules remain consistent. However, caution is advised, as backtested results do not always directly translate to future performance due to potential changes in market dynamics and unforeseen events. Continuous refinement based on new information and market analysis is recommended before fully implementing the strategy in live trading.

CEO Commentary
"We are pleased to report a strong first quarter, with revenues for the period increasing by 44% versus a year ago, while core KPIs such as Active Accounts and Transaction Volumes were also up," said Will Reeves, Chairman and CEO of Fold Holdings, Inc. The company has made significant progress in 2025, particularly with the launch of the Fold Bitcoin Rewards Credit Card, which has a waitlist of 75,000 people. Additionally, Fold is enhancing its Custody and Trading business and has introduced the Fold Bitcoin Gift Card to tap into the large gift card market. With bitcoin treasury holdings increasing by 50% to 1,490 BTC, valued at over $150 million, Fold remains committed to a robust bitcoin treasury strategy.

Guidance
The company maintains its revenue guidance for 2025 at $61.6 million. Marketing expenses are expected to reach $3 million, representing an approximately tenfold increase compared to 2024. Fold’s initiatives, including the anticipated launch of the Fold Bitcoin Rewards Credit Card and the rollout of the Fold Bitcoin Gift Card, aim to expand market reach and drive growth, while the ongoing expansion of its Custody and Trading business is expected to attract a larger user base.

Additional News
Fold Holdings recently appointed Matthew McManus as Chief Operating Officer, effective April 21, 2025. McManus brings extensive experience from his previous role as Chief Product Officer at Unchained Capital, Inc., and key positions at notable companies such as Twitter and National Geographic. His leadership is expected to accelerate Fold's growth and optimize performance. Additionally, Fold introduced the Fold Bitcoin Gift Card on May 15, 2025, which aims to integrate bitcoin into the traditional gift card market, a $300 billion industry. The company plans to expand the availability of this innovative product to both online and physical retail locations nationwide.