SHFS Safe Harbor Financial Services, Inc.
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Executive Summary
Safe Harbor Financial reported Q1 2026 revenue of ~$2.0M (+2.2% YoY) and a net loss of ~$1.8M (vs ~$0.8M loss in Q1 2025), driven by a $1.1M non-cash warrant liability benefit in the prior year. Loan program income surged 55.6% YoY to ~$0.8M, but account fee income fell 19% and operating expenses remained high at ~$3.7M. The company highlighted a stronger balance sheet ($6.7M equity vs $16.9M deficit a year ago) and a favorable regulatory backdrop with cannabis rescheduling progress, though near-term profitability remains elusive.
Actionable Insight
Revenue growth is modest and net losses are widening on an operating basis. The stock is a micro-cap with high cash burn relative to revenue. Monitor the 10-Q for detailed segment trends and the June/July DEA rescheduling hearing — a favorable ruling could expand the addressable market but won't fix near-term profitability.
Key Facts
- Q1 2026 revenue $1.98M, up 2.2% YoY from $1.93M
- Loan program income $0.8M, up 55.6% YoY, driven by restructured PCCU agreement
- Account fee income $0.9M, down 19% YoY due to shift to money market accounts
- Net loss $1.78M vs $0.83M loss in Q1 2025; prior year included $1.1M non-cash warrant benefit
- Operating expenses $3.74M, down 4.7% YoY but still well above revenue
- Cash and equivalents $5.9M; stockholders' equity $6.7M vs $16.9M deficit a year ago
- Basic EPS $(0.43) vs $(0.30) in Q1 2025
- Operating cash flow negative $(1.08M) vs $(1.14M) in prior year
- Subsequent events: retirement plan launch, expanded lending platform, federal cannabis rescheduling order
Financial Impact
Revenue growth of ~$43K YoY on $2M base; net loss widened by ~$952K due to absence of prior-year warrant benefit
Risk Factors
- Net loss widening despite revenue growth; operating expenses still exceed revenue by ~90%
- Account fee income declining 19% YoY as customers shift to lower-fee products
- Negative operating cash flow of $1.08M in the quarter; cash burn rate of ~$0.36M/month
- Micro-cap ($2M market cap) with limited liquidity and high volatility
- Dependence on regulatory outcomes (cannabis rescheduling) that remain uncertain
Market Snapshot
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3296528 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
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May 18, 2026
26d ago
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Press Release
| $0.4790 $0.4950 | ▲ +3.34% | ▲ +1.72% | $0.2760 (−42.38%) |
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Apr 16, 2026
8w ago
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Press Release
| $0.8700 $0.8700 | · 0.00% | ▼ −0.98% | $0.2760 (−68.28%) |
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Apr 1, 2026
10w ago
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Press Release
| $0.8000 $0.7890 | ▼ −1.38% | ▼ −5.14% | $0.2760 (−65.50%) |
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Mar 3, 2026
14w ago
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8-K
| $0.8600 $0.8510 | ▼ −1.05% | ▼ −0.57% | $0.2760 (−67.91%) |
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Sep 30, 2025
36w ago
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Insider Cluster
| $7.16 $4.75 | ▼ −33.66% | ▼ −34.11% | $0.2760 (−96.15%) |
US Market Status
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