Safe Harbor Cannabis Fintech Co’s Balance Sheet Strengthens in Q1 by ~$20M YoY, Equity Turns Positive

By Jelena Martinovic, Featured Writer

SHF Holdings, Inc., doing business as Safe Harbor Financial (NASDAQ: SHFS), announced its first-quarter results on Monday, revealing a slight increase in revenue and a drop in operating expenses, indicating cost discipline.

The company shifted from a $16.9M equity deficit to $6.7M equity in a year. That’s according to Terrance Mendez, the company’s CEO and CFO. “This represents a fundamental transformation of our balance sheet, and it gives us a durable foundation on which to execute,” Mendez added.

The company also reported moving beyond banking into insurance, retirement and broader lending in an attempt to grow a full financial platform for cannabis operators.

Like other companies in the space, Safe Harbor framed cannabis rescheduling as a major catalyst that could expand its addressable market and improve client financial health.

“Safe Harbor is uniquely positioned to benefit,” Mendez continued. “As Section 280E relief reaches state-licensed medical operators and as additional financial institutions evaluate whether to enter the cannabis banking market, we expect the addressable market for our compliance platform to expand in two ways: directly, through healthier and better-capitalized cannabis customers, and indirectly, through new financial institution partners that need the regulatory infrastructure we have spent more than a decade building.”

Q1 2026 Financial Highlights

• Revenue totaled roughly $2 million, representing an increase of 2.2% year-over-year.
• Loan program income was $0.8 million, up 55.6% over the same period.
• Total operating expenses decreased 4.7% year-over-year to approximately $3.7 million.
• Operating loss improved to $1.76 million, compared to $1.99 million last year.
• Net loss amounted to $1.78 million, representing a wider loss year-over-year due to prior-year warrant valuation gain.
• As of March 31, cash and cash equivalents were $5.9 million.

Safe Harbour has processed more than $35 billion in cannabis transactions across 41 states and completed more than 25 regulatory examinations, Mendez said, explaining what’s next for the company.

“We enter the remainder of 2026 with a stronger balance sheet, a broader platform, and a more favorable regulatory backdrop than at any point in our history,” Mendez stated in a press release. “The remainder of 2026 is about disciplined execution against that ambition, and the foundation we now have in place gives us a clear path to pursue it.”

SHFS Price Action

Safe Harbor Financial’s shares traded 1.55% lower at $0.4564 per share at the time of writing on Monday.