SHF Holdings 2025 Q3 Earnings Net Income Falls 49.3% Amid Revenue Decline

SHF Holdings (SHFS) reported fiscal 2025 Q3 earnings on November 13, 2025, with results underscoring a challenging operating environment. The company’s revenue and net income both declined sharply compared to the prior year, while shares fell sharply in the short term. CEO Terry Mendez highlighted progress in resolving liquidity issues but emphasized the need for strategic execution in a highly regulated industry.

Revenue

SHF Holdings’ total revenue dropped 47.3% year-over-year to $1.83 million in Q3 2025, driven by a contraction in core income streams. Account fee income accounted for the largest portion at $963,098, followed by loan interest income of $510,754 and investment income of $340,688. Safe Harbor Program income, the smallest contributor, totaled $19,230. The declines reflect broader market headwinds and operational adjustments.

Earnings/Net Income

Net income fell to $179,508 in Q3 2025, a 49.3% decrease from $353,817 in the prior-year period, while EPS dropped 53.8% to $0.06. The results highlight the company’s struggle to maintain profitability amid regulatory uncertainties and competitive pressures. Both metrics showed significant declines, reflecting ongoing challenges in the cannabis sector.

Post-Earnings Price Action Review

A backtest of the strategy to buy SHFS shares on the day of its earnings report and hold for 30 days revealed mixed outcomes over three years. While the approach generated an average 10% return aligned with market performance, it was marked by high volatility, including occasional 20% peak-to-trough declines. Returns were inconsistent, with some quarters yielding strong gains and others modest losses, underscoring the risks inherent in cannabis sector investing. The company’s exposure to regulatory shifts further complicates its trajectory.

CEO Commentary

Terry Mendez, CEO of Safe Harbor Financial, highlighted the completion of a $24 million recapitalization that eliminated $19 million in debt and secured $6.8 million in cash. This liquidity milestone, he noted, positions the company to fund operations for 12 months and pursue strategic growth. Key operational metrics, including a 6% quarter-over-quarter rise in average monthly deposit balances to $108 million and a 2% increase in active accounts to 774, were cited as progress. Mendez emphasized leveraging regulatory shifts, such as cannabis rescheduling and the SAFER Banking Act, to expand its platform.

Guidance

Safe Harbor outlined a growth strategy focused on scaling its Cannabis Banking Solutions™ Platform and expanding services to attract cannabis retailers. While no explicit financial targets were provided, the company emphasized aligning leadership incentives through stock-based compensation and restructuring its management team. Forward-looking initiatives include capitalizing on potential regulatory reforms to reshape the cannabis financial landscape.

Additional News

On November 13, 2025, SHF Holdings announced that CEO Terry Mendez will present at the Trickle Research Microcap Conference in Centennial, Colorado. The event, hosted at TopGolf and available via live webcast, will highlight the company’s strategic direction and progress in resolving liquidity issues. This marks Safe Harbor’s second major investor-facing event since Mendez joined in February 2025. The presentation will also address regulatory developments, including the SAFER Banking Act, and their potential impact on the cannabis finance ecosystem. Investors can attend in person or virtually, with one-on-one meetings available for further discussion.