--- title: "Fold | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 5.592 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286152648.md" datetime: "2026-05-12T20:26:37.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286152648.md) - [en](https://longbridge.com/en/news/286152648.md) - [zh-HK](https://longbridge.com/zh-HK/news/286152648.md) --- # Fold | 10-Q: FY2026 Q1 Revenue Misses Estimate at USD 5.592 M Revenue: As of FY2026 Q1, the actual value is USD 5.592 M, missing the estimate of USD 9.995 M. EPS: As of FY2026 Q1, the actual value is USD -0.59. EBIT: As of FY2026 Q1, the actual value is USD -5.931 M. Fold Holdings, Inc. operates as a single reportable segment, with all financial and operational metrics presented on an entity-wide basis . #### Segment Revenue - **Net Revenue**: For the three months ended March 31, 2026, net revenue was $5,592,309, marking a -21% decrease from $7,087,837 in the same period of 2025, primarily due to a broader downturn in digital asset markets . Revenue reductions from Revenue Rewards totaled $0.3 million for the three months ended March 31, 2026, down from $0.5 million in 2025 . - **Banking and Payments Revenues**: These revenues decreased by -29% to $4,931,213 for the three months ended March 31, 2026, from $6,921,625 in the prior year . This was mainly driven by a -29% decrease in net revenue from merchant offers, falling from $6.4 million in 2025 to $4.5 million in 2026, due to decreased customer volumes and optimization for higher-margin offers . Excluding merchant offers and Visa rebates, these revenues decreased from $0.5 million in 2025 to $0.4 million in 2026 . - **Custody and Trading Revenues**: These revenues significantly increased by 338% to $665,194 for the three months ended March 31, 2026, up from $151,855 in 2025, including $0.5 million from the Fold Bitcoin Gift Card, which launched in May 2025 . - **Other Revenues**: These revenues decreased by -100% to $97 for the three months ended March 31, 2026, from $26,035 in 2025 . #### Operational Metrics - **Operating Loss**: The operating loss improved by -18%, decreasing to - $7,830,313 for the three months ended March 31, 2026, from - $9,500,370 in the prior year . - **Net Loss**: The net loss decreased by -40% to - $29,167,906 for the three months ended March 31, 2026, compared to - $48,879,200 for the same period in 2025 . - **Total Operating Expenses**: Total operating expenses decreased by -19% to $13,422,622 for the three months ended March 31, 2026, from $16,588,207 in 2025 . - **Banking and Payments Costs**: These costs decreased by -29% to $4,806,374 for the three months ended March 31, 2026, from $6,758,924 in 2025, primarily due to decreased merchant offer volumes . Costs of sales from merchant offers decreased by -30% from $6.4 million in 2025 to $4.5 million in 2026 . - **Custody and Trading Costs**: These costs increased to $598,415 for the three months ended March 31, 2026, from $45,785 in 2025, driven by costs from the Fold Bitcoin Gift Card ($0.5 million) . - **Compensation and Benefits**: These expenses decreased by -38% to $4,034,267 for the three months ended March 31, 2026, from $6,457,940 in 2025 . This includes non-cash share-based compensation expense of $1.7 million in 2026, significantly lower than $5.2 million in 2025, which included $4.4 million immediately recognized due to a Merger . - **Marketing Expenses**: These expenses decreased by -33% to $268,108 for the three months ended March 31, 2026, from $399,798 in 2025 . - **Professional Fees**: These fees decreased by -7% to $1,667,414 for the three months ended March 31, 2026, from $1,788,505 in 2025, mainly due to lower legal and consulting fees compared to 2025, which included Merger-related costs . - **Gain (Loss) on Customer Rewards Liability**: A gain of - $1,507,471 was recognized for the three months ended March 31, 2026, compared to a gain of - $1,100,857 in 2025 . - **Gain (Loss) on Digital Assets - Rewards Treasury**: A loss of $1,689,455 was recognized for the three months ended March 31, 2026, compared to a loss of $1,010,586 in 2025 . - **Other Selling, General and Administrative Expenses**: These expenses increased by 50% to $1,709,981 for the three months ended March 31, 2026, from $1,136,455 in 2025, driven by higher software amortization, contract labor, board compensation, and travel expenses . - **Adjusted EBITDA**: Adjusted EBITDA decreased by -37% to - $5,751,662 for the three months ended March 31, 2026, from - $4,208,992 in 2025, primarily due to increased compensation and benefits (excluding share-based compensation) and other selling, general and administrative expenses . #### Cash Flow - **Net Cash Used in Operating Activities**: Cash used in operating activities increased to - $6,592,367 for the three months ended March 31, 2026, compared to - $4,954,200 for the same period in 2025 . - **Net Cash Provided by (Used in) Investing Activities**: This shifted from - $1,829,194 used in 2025 to $13,192,937 provided in 2026, primarily due to the sale of 200 bitcoin for $14.4 million . - **Net Cash Provided by (Used in) Financing Activities**: Cash used in financing activities was - $2,726,302 for the three months ended March 31, 2026, compared to $152,587 provided in 2025, including proceeds from the February 2026 Investor Note and Credit Facility draws, offset by repayment of convertible notes . #### Unique Metrics - **Verified Accounts**: Fold Holdings, Inc. added nearly 2,000 Verified Accounts during the three months ended March 31, 2026, reaching almost 85,000 total . - **Transaction Volumes**: From inception through March 31, 2026, Fold Holdings, Inc. processed over $3.6 billion in Transaction Volume . For the three months ended March 31, 2026, the average monthly Transaction Volume was over $57 million, a decrease from $72 million per month for Q4 2025 and $84 million per month for Q1 2025 . - **Bitcoin Treasury**: As of March 31, 2026, Fold Holdings, Inc. held 826 bitcoin in its Investment Treasury, valued at $56.4 million, and 77 bitcoin in its Rewards Treasury, valued at $5.3 million . Of the Investment Treasury, 430 bitcoin ($29.3 million) were restricted as collateral for the Credit Facility . #### Future Outlook and Strategy Fold Holdings, Inc. plans to expand existing product offerings and introduce new ones, such as the Fold Bitcoin Gift Card, Employee Bitcoin Bonus program, and Fold Credit Card, to drive higher volumes, revenues, and margins . The company also intends to increase investment in marketing channels to accelerate customer base growth and transaction volume . 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