Fold Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Reported Q3 2026 revenue of $4.2 million, down from $7.4 million in Q3 2025.
• Total operating expenses were $10.5 million, a 21% decrease year-over-year from $13.3 million in Q3 2025.
• Net loss for the quarter was $2.6 million, compared to a net income of $0.6 million in Q3 2025.
• Loss per share was $0.05, compared to $0.01 in Q3 2025.
• Adjusted EBITDA loss was $4.5 million, an improvement from a $5.5 million loss in Q2 2026 and a $4.2 million loss in Q3 2025.
• Adjusted EBITDA per share loss was $0.08.
• Cash and cash equivalents ended the quarter at $21.7 million, up from $7.7 million at December 31, 2025.
• Bitcoin treasury holdings totaled 247 BTC (171 BTC in investment treasury, 76 BTC in rewards treasury).
• Total transaction volume reached $159 million.
• Verified accounts exceeded 88,500, adding 1,500 new verified accounts during the quarter.

Guidance and Future Outlook:

• Management stated that the benefits of the transition to balance-based economics are ahead of the company.
• A financing partner for the Fold Credit Card program is expected to be announced shortly.
• The company intends to add a credit facility partner in the future to scale the credit card program beyond its own balance sheet.
• Stockholders approved a reverse stock split authorization to regain compliance with Nasdaq listing requirements ahead of the January 11, 2027 deadline.

Business Segments and Product Lines:

• Custody and trading revenue increased approximately 270%, driven by the TikTok Shop distribution channel.
• Fold Credit Card expanded to approximately 2,500 cardholders, transitioning from a waitlist to an invite system.
• Launched "Fold Reserve," a stored-value product allowing customers to hold funds and unlock rewards tiers.
• Launched "Lead Bank" spending accounts with deposits held at an FDIC-insured institution.
• Introduced pass-through bitcoin buying, enabling direct purchases from linked bank accounts.
• Consolidated gift card merchant offers onto the Blackhawk platform.
• Kroger renewed its commitment to the Fold program.

Market and Competitive Landscape:

• The bitcoin gift card became the first and only bitcoin gift card on TikTok Shop, becoming Fold's largest customer acquisition channel.
• September was a record month for bitcoin gift card sales, which holds a 4.7-star rating.
• Management noted the bitcoin market remained soft through the quarter.
• The company is shifting focus from a transaction-based business model to one that monetizes customer balances.

Risks and Challenges:

• The company faces risks related to the volatility of the bitcoin market price.
• Challenges include reliance on third-party banking partners subject to complex regulations and a single custodian for bitcoin.
• The company must regain compliance with Nasdaq listing requirements by January 11, 2027.
• The press release notes a "major transition" involving a new banking partner, deposit strategy, and consolidated merchant platform, creating short-term noise in results.

Management Commentary and Tone:

• Chairman and CEO Will Reeves described Q3 as an "inflection point" for Fold.
• Management emphasized a strategic shift from gathering customers to gathering assets, noting that early demand for new balance products is running ahead of expectations.
• Reeves stated the company has de-risked the path to future growth through extended debt maturity, reduced operating expenses, and a new financing partner for the credit card.
• The tone reflects confidence in the company's positioning for its next stage of growth despite the soft bitcoin market.

Other Key Points:

• Extended the maturity of the $13 million note to November 2027, with an option to extend to November 2028 and potential capacity increased to $25 million.
• Replaced a $250 million equity line with a $25 million committed equity facility to reduce potential dilution.
• Ended the quarter with $171 million in investment treasury (in BTC value context, though balance sheet shows $14.2M in assets and $6.3M in rewards treasury assets).
• The company reported a net loss of $41.5 million for the nine months ended September 30, 2026.
• Non-cash repayment of a convertible note via transfer of digital assets occurred during the period.
• Legal settlements of $1.4 million were recorded as a non-recurring expense in the nine-month period.