Safe Harbor CEO Releases Shareholder Letter, Expects $10.5 Million Incremental Cash Flow
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 09 2026
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Should l Buy SHFS?
SHF Holdings released a letter to shareholders from Terrance Mendez, Chief Executive Officer of Safe Harbor. "Today, Safe Harbor has a strong financial base and is ready to grow: we are debt-free, hold more than $6 million in cash, and have secured a long-term agreement with a major customer that is expected to generate at least $10.5 million in incremental cash flow. Here is a summary of the past year and why we believe the next chapter is significantly more valuable than the last... Here is where we stand financially: More than $6 million cash on hand with no meaningful debt obligations at the end of 2025, Long-term revenue visibility through 2031 under our amended agreement with Partner Colorado Credit Union that is expected to increase cash flow by over $10 million over the term, 29% deposit growth in Emerging U.S. Markets over the 12 months ended February 4, 2026, driven by more than 100 new accounts... In September we launched our Fully Managed Cannabis Banking Program, offering a compliant turnkey program designed for community banks, credit unions, and financial institutions seeking to serve the legal cannabis market. Safe Harbor manages everything, including compliance, onboarding, account support and loan syndications while deposits remain directly at the financial institution... Today, Safe Harbor has meaningfully expanded its lending capabilities such that we now have the ability to structure financing across the entire operator lifecycle, from startup funding of as little as $5,000 to transactions as large as $25 million or more, funded through our network of credit unions, regional banks, family offices, and private equity relationships... We launched our Managed Services platform that delivers end-to-end back-office solutions to cannabis operators spanning treasury management, HR outsourcing, employee banking, accounts receivable management, and cash flow advisory... We are a leaner, better-capitalized, and more diversified company than we were 12 months ago and we are building new revenue lines. While we've made significant progress, we're continuing to develop additional compliant solutions and look forward to announcing them when appropriate. We see much more opportunity to create value, and intend to capture it through continued execution."
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About SHFS
SHF Holdings, Inc. is a service provider to offer compliance, monitoring and validation services to financial institutions, providing traditional banking services to cannabis, hemp, CBD, and ancillary operators. Its services include regulatory compliance consulting and software for maintaining Know Your Customer (KYC) and Bank Secrecy Act compliance to financial institutions, principally conducted vis-a-vis its proprietary financial services platform and the origination, onboarding, verification, and servicing of cannabis-related deposit business for and on behalf of its partner financial institutions. Its services also include sourcing, underwriting, servicing, and administering loans issued to cannabis businesses and related entities, which are often also its customers and being customers of its partner financial institutions. Through the Company’s platform, its financial institution clients can provide cannabis-related businesses (CRBs) with access to traditional financial services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SHF Holdings Reports Q4 2025 Financial Results
- Revenue Performance: SHF Holdings reported Q4 2025 revenue of $2.06 million, which, while an improvement compared to the previous year, still indicates ongoing challenges in achieving profitability and revenue growth.
- Net Loss Situation: The net loss for the fourth quarter was approximately $0.6 million, contrasting sharply with a net income of $0.2 million in Q3 2025, highlighting persistent difficulties in cost management and profitability.
- Employee Bonus Impact: The quarterly financial results included approximately $0.5 million in success-based employee bonuses, which exacerbated the financial strain and negatively impacted overall profitability.
- Adjusted EBITDA: The adjusted EBITDA for Q4 2025 was approximately -$1.1 million, a significant decline from the $0.1 million reported in Q4 2024, indicating major challenges in operational efficiency and profitability.
See More
Safe Harbor Financial Reports Significant Debt Reduction and Revenue Growth
- Debt Elimination: Safe Harbor successfully eliminated $18 million in debt, ending December 31, 2025, with $6.8 million in cash and stockholders' equity of $8.2 million, marking a significant improvement in the company's financial health.
- Revenue Growth: Revenue for Q4 2025 was approximately $2.1 million, a 12% increase from Q3, although down 44% from Q4 2024; however, loan program income surged 70% sequentially, indicating signs of business recovery.
- Operating Expense Reduction: Q4 2025 operating expenses decreased 72% year-over-year to about $3.3 million, primarily due to success-based employee bonuses, reflecting effective cost control measures by the company.
- Strategic Partnership Extension: The agreement with Partner Colorado Credit Union has been extended through 2031, expected to increase cash flow by over $10 million during this period, further driving loan program revenue growth and enhancing the company's competitive position in the market.
See More
Safe Harbor Financial Reports Significant Financial Improvement
- Revenue Growth: In Q4 2025, total revenue reached $2.1 million, reflecting a 12% increase from Q3, primarily due to the revised Commercial Alliance Agreement with PCCU, which increased the loan program income share to 65%, laying a foundation for future revenue growth.
- Annual Revenue Decline: For the full year 2025, total revenue was $7.7 million, a 50% decrease from 2024, mainly attributed to revised interest allocation provisions and a reduction in active accounts, indicating pressure on the company's market competitiveness.
- Debt Elimination: Through a recapitalization in September 2025, Safe Harbor successfully eliminated $18.3 million in debt and raised $6.8 million in new capital, significantly improving the company's financial condition and restoring positive stockholders' equity.
- Management Outlook: CEO Terrance Mendez stated that 2025 was the most consequential year in the company's history, and looking ahead to 2026, the company aims to diversify its revenue streams by expanding into insurance, payments, and consulting solutions, enhancing its competitive position in the market.
See More
Safe Harbor Financial Amends Key Agreement with PCCU for Growth
- Revenue Model Enhancement: The amendment to the agreement with PCCU increases Safe Harbor's share of loan interest income from approximately 37% to 65%, expected to generate over $9 million in revenue during the agreement term, significantly improving the company's financial outlook and driving profitable growth.
- Cost Structure Optimization: The new agreement reduces asset hosting fees by about 23%, saving $250,000 annually and $1.5 million over the term, alleviating the burden of fixed costs and enhancing the company's financial flexibility.
- Extended Customer Relationship: The agreement extends the customer relationship through 2031 with automatic renewal provisions, demonstrating PCCU's confidence in Safe Harbor's platform and management team, laying a solid foundation for future business expansion.
- Risk Conversion to Revenue: Safe Harbor will indemnify up to 65% of potential loan default losses, successfully converting non-cash risk exposure into substantial cash revenue, further strengthening the company's market competitiveness and profitability.
See More
Safe Harbor Expands Payment Solutions Portfolio
- Payment Solutions Expansion: Safe Harbor enhances its payment solutions portfolio through partnerships with Lüt and GreenCard, introducing ACH debit, cashless ATM, and closed-loop payment systems, thereby improving customer payment flexibility and reliability in the cannabis sector.
- Closed-Loop Payment Innovation: Lüt's closed-loop payment system ensures continuous fund flow, particularly during high-traffic periods, helping operators avoid processing downtime while enhancing customer shopping experience and loyalty.
- Integrated Payment Infrastructure: Greencard delivers end-to-end payment infrastructure for vertically integrated cannabis operations, unifying retail, delivery, and e-commerce transactions, significantly improving fund settlement efficiency and enabling faster cash turnover for operators.
- Risk Management Support: Safe Harbor's payment solutions enhance client flexibility and continuity by offering multiple independent payment options, ensuring cannabis businesses are no longer reliant on a single payment channel amidst systemic challenges.
See More
Safe Harbor Expands Leadership Team to Enhance Cannabis Financial Services
- Executive Additions: Safe Harbor has appointed Stephen La Rosa as Senior Vice President of Lending Strategy and Cassandra Douglass as Senior Manager of Client Experience, aimed at enhancing the company's financial service capabilities in the cannabis sector.
- Strategic Investment: The addition of these executives represents a proactive investment by Safe Harbor to meet the full financial lifecycle needs of cannabis operators, reinforcing the company's long-standing commitment to compliance, transparency, and innovation.
- Market Positioning: La Rosa stated that Safe Harbor aims to redefine how cannabis operators access capital by expanding beyond traditional banking channels through private equity and institutional partnerships, adapting to rapidly changing market demands.
- Compliance and Client Relations: Douglass will leverage her extensive experience in compliance and client relationship management to enhance the efficiency of client onboarding and compliance processes, addressing increasingly complex client needs.
See More
SHF Holdings Reports Q4 2025 Financial Results
- Revenue Performance: SHF Holdings reported Q4 2025 revenue of $2.06 million, which, while an improvement compared to the previous year, still indicates ongoing challenges in achieving profitability and revenue growth.
- Net Loss Situation: The net loss for the fourth quarter was approximately $0.6 million, contrasting sharply with a net income of $0.2 million in Q3 2025, highlighting persistent difficulties in cost management and profitability.
- Employee Bonus Impact: The quarterly financial results included approximately $0.5 million in success-based employee bonuses, which exacerbated the financial strain and negatively impacted overall profitability.
- Adjusted EBITDA: The adjusted EBITDA for Q4 2025 was approximately -$1.1 million, a significant decline from the $0.1 million reported in Q4 2024, indicating major challenges in operational efficiency and profitability.
See More
Safe Harbor Financial Reports Significant Debt Reduction and Revenue Growth
- Debt Elimination: Safe Harbor successfully eliminated $18 million in debt, ending December 31, 2025, with $6.8 million in cash and stockholders' equity of $8.2 million, marking a significant improvement in the company's financial health.
- Revenue Growth: Revenue for Q4 2025 was approximately $2.1 million, a 12% increase from Q3, although down 44% from Q4 2024; however, loan program income surged 70% sequentially, indicating signs of business recovery.
- Operating Expense Reduction: Q4 2025 operating expenses decreased 72% year-over-year to about $3.3 million, primarily due to success-based employee bonuses, reflecting effective cost control measures by the company.
- Strategic Partnership Extension: The agreement with Partner Colorado Credit Union has been extended through 2031, expected to increase cash flow by over $10 million during this period, further driving loan program revenue growth and enhancing the company's competitive position in the market.
See More
Safe Harbor Financial Reports Significant Financial Improvement
- Revenue Growth: In Q4 2025, total revenue reached $2.1 million, reflecting a 12% increase from Q3, primarily due to the revised Commercial Alliance Agreement with PCCU, which increased the loan program income share to 65%, laying a foundation for future revenue growth.
- Annual Revenue Decline: For the full year 2025, total revenue was $7.7 million, a 50% decrease from 2024, mainly attributed to revised interest allocation provisions and a reduction in active accounts, indicating pressure on the company's market competitiveness.
- Debt Elimination: Through a recapitalization in September 2025, Safe Harbor successfully eliminated $18.3 million in debt and raised $6.8 million in new capital, significantly improving the company's financial condition and restoring positive stockholders' equity.
- Management Outlook: CEO Terrance Mendez stated that 2025 was the most consequential year in the company's history, and looking ahead to 2026, the company aims to diversify its revenue streams by expanding into insurance, payments, and consulting solutions, enhancing its competitive position in the market.
See More
Safe Harbor Financial Amends Key Agreement with PCCU for Growth
- Revenue Model Enhancement: The amendment to the agreement with PCCU increases Safe Harbor's share of loan interest income from approximately 37% to 65%, expected to generate over $9 million in revenue during the agreement term, significantly improving the company's financial outlook and driving profitable growth.
- Cost Structure Optimization: The new agreement reduces asset hosting fees by about 23%, saving $250,000 annually and $1.5 million over the term, alleviating the burden of fixed costs and enhancing the company's financial flexibility.
- Extended Customer Relationship: The agreement extends the customer relationship through 2031 with automatic renewal provisions, demonstrating PCCU's confidence in Safe Harbor's platform and management team, laying a solid foundation for future business expansion.
- Risk Conversion to Revenue: Safe Harbor will indemnify up to 65% of potential loan default losses, successfully converting non-cash risk exposure into substantial cash revenue, further strengthening the company's market competitiveness and profitability.
See More
Safe Harbor Expands Payment Solutions Portfolio
- Payment Solutions Expansion: Safe Harbor enhances its payment solutions portfolio through partnerships with Lüt and GreenCard, introducing ACH debit, cashless ATM, and closed-loop payment systems, thereby improving customer payment flexibility and reliability in the cannabis sector.
- Closed-Loop Payment Innovation: Lüt's closed-loop payment system ensures continuous fund flow, particularly during high-traffic periods, helping operators avoid processing downtime while enhancing customer shopping experience and loyalty.
- Integrated Payment Infrastructure: Greencard delivers end-to-end payment infrastructure for vertically integrated cannabis operations, unifying retail, delivery, and e-commerce transactions, significantly improving fund settlement efficiency and enabling faster cash turnover for operators.
- Risk Management Support: Safe Harbor's payment solutions enhance client flexibility and continuity by offering multiple independent payment options, ensuring cannabis businesses are no longer reliant on a single payment channel amidst systemic challenges.
See More
Safe Harbor Expands Leadership Team to Enhance Cannabis Financial Services
- Executive Additions: Safe Harbor has appointed Stephen La Rosa as Senior Vice President of Lending Strategy and Cassandra Douglass as Senior Manager of Client Experience, aimed at enhancing the company's financial service capabilities in the cannabis sector.
- Strategic Investment: The addition of these executives represents a proactive investment by Safe Harbor to meet the full financial lifecycle needs of cannabis operators, reinforcing the company's long-standing commitment to compliance, transparency, and innovation.
- Market Positioning: La Rosa stated that Safe Harbor aims to redefine how cannabis operators access capital by expanding beyond traditional banking channels through private equity and institutional partnerships, adapting to rapidly changing market demands.
- Compliance and Client Relations: Douglass will leverage her extensive experience in compliance and client relationship management to enhance the efficiency of client onboarding and compliance processes, addressing increasingly complex client needs.
See More
