SHF Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue increased 6.5% year-over-year to $1.95 million, compared to $1.83 million in Q3 2025.
• Loan program income surged 70.2% to approximately $869,000, up from $511,000 in the prior-year period.
• Account fee income decreased 17.1% to approximately $798,000, down from $963,000.
• Investment income fell 16.7% to approximately $284,000, compared to $341,000.
• Total operating expenses decreased 3.2% to $2.95 million, down from $3.05 million.
• Compensation and employee benefits expense dropped 10.6% to $1.52 million, compared to $1.70 million.
• Professional services expenses increased 63.3% to approximately $722,000, up from $442,000.
• Operating loss narrowed 17.7% to approximately $1 million, compared to $1.22 million in Q3 2025.
• Net loss was approximately $979,000 ($0.95 per share), contrasting with a net income of $180,000 ($0.74 per share) in the prior year.
• Cash and cash equivalents totaled $4.40 million as of September 30, 2026, down from $6.78 million at year-end 2025.
• Net cash used in operating activities was $4.05 million for the nine months ended September 30, 2026, compared to $2.35 million in the prior period.
• The company reported no secured debt as of September 30, 2026.

Guidance and Future Outlook:

• Management is focused on evaluating strategic alternatives to address capital structure and public listing challenges.
• Priorities include maintaining service to clients and financial institution partners, managing liquidity, and pursuing opportunities to support a sustainable path forward.
• The Company does not intend to draw on its existing equity line of credit while the term sheet with Opifex Media Inc. remains in effect.
• Management aims to preserve the value of the operating business while addressing capital structure and liquidity requirements.

Business Segments and Product Lines:

• Loan program income growth was driven by an amended agreement with Partner Colorado Credit Union effective October 1, 2025, increasing Safe Harbor's revenue share from approximately 35% to up to 65%.
• Average client deposit balances increased 3.8% year-over-year to $112 million.
• Trailing 14-day average client deposits reached $119.3 million at quarter-end, a 7.4% increase from the prior year and the highest level since April 2024.
• Average account balance increased 5.6% to approximately $147,000, reflecting a shift toward larger client relationships.
• Safe Harbor Institutional was recognized as the Top Business Solutions Company at the 2026 PBC Cannabis Banking Conference.
• Safe Harbor Institutional joined the American Bankers Association (ABA) Partner Network to expand engagement with U.S. banking institutions.

Market and Competitive Landscape:

• Account fee income decline was attributed to lower revenue from a merchant service partner and competitive pressure on account fees.
• Investment income decline was driven by lower prevailing interest rates offsetting growth in average investable deposit balances.
• The Company serves the regulated cannabis and hemp industries, having processed over $38.7 billion in cannabis-related depository funds across 41 states and territories since inception.

Risks and Challenges:

• The unaudited financial statements include a going concern disclosure due to recurring operating losses, negative operating cash flows, and uncertainties related to capital structure, litigation, and other obligations.
• Management's plans have not alleviated substantial doubt regarding the Company's ability to continue as a going concern.
• The Company faces challenges regarding its capital structure and public listing status.
• There is no assurance that the proposed transaction with Opifex will be completed or that the Company will regain compliance with Nasdaq listing requirements.

Management Commentary and Tone:

• CEO Terry Mendez stated that results demonstrate the value of the established platform, citing higher revenue, loan program income growth, and increased deposit balances.
• Management acknowledged challenges facing the capital structure and public listing while emphasizing a focus on preserving the value of the operating business.
• The tone reflects a commitment to maintaining operational continuity and protecting built capabilities while evaluating opportunities for a sustainable foundation.

Other Key Points:

• On October 23, 2026, Safe Harbor entered into a nonbinding term sheet with Opifex Media Inc. for a proposed business combination to create a diversified public holding company.
• Under the proposed transaction, Opifex security holders would own approximately 85% of the combined company, while existing Safe Harbor stakeholders would own approximately 15% (subject to valuation adjustments between 12.5% and 17.5%).
• On October 20, 2026, Nasdaq granted Safe Harbor an additional 180-day period through April 19, 2027, to regain compliance with the $1 minimum bid price requirement.
• The proposed transaction is subject to definitive agreements, due diligence, consents, stockholder approval, Nasdaq approval, and financing completion.
• A $3.34 million gain on debt extinguishment recorded in Q3 2025 significantly impacted the prior-year net income comparison.
• A 1-for-12 reverse stock split was effective September 30, 2026.