Cannabis fintech firm SHF Holdings' Q3 revenue rises on loan program income growth
SHFS•SHF Holdings' third-quarter revenue rose 6.5% year over year to $1.95 million, driven by a 70.2% increase in loan program income. Its operating loss narrowed 17.7%.
1. Quarterly results
SHF Holdings reported third-quarter revenue of $1.95 million, up 6.5% year over year. Loan program income rose 70.2%, which the company attributed to improved revenue-sharing economics under an amended agreement with Partner Colorado Credit Union.
2. Deposits and costs
Average client deposit balances increased 3.8% year over year to $112 million, while the quarter-end trailing 14-day average was $119.3 million. The operating loss narrowed 17.7%, helped in part by a 10.6% decrease in compensation and employee benefits expenses.
3. Proposed combination
The company entered a nonbinding term sheet for a proposed business combination with Opifex Media. SHF Holdings said it does not intend to draw on its equity line of credit while the term sheet remains in effect.
