Operating cash flow remains deeply negative, evidenced by a $1.1 million outflow in 2026Q1 that reflects a structural inability to generate organic capital.
| Cash from Operations | -3.36M | -3.42M | 430.48K | -832.14K | 1.7M | 2.95M | 4.95M |
| Operating CF Growth % | -294.84% | -893.93% | 151.73% | -149.03% | -42.39% | -40.48% | - |
| Net Income | -3.11M | -2.4M | -48.32M | -17.28M | -35.13M | 3.29M | 5.12M |
| Depreciation & Amortization | 259.86K | 132.23K | 711.93K | 1.37M | 189.27K | 1.92K | 5.86K |
| Deferred Taxes | 0 | 0 | 43.86M | -1.83M | -9.25M | 0 | 0 |
| Other Non-Cash Items | -2.54M | -3.41M | 4.65M | 17.24M | 42.69M | 1.4K | 13.34K |
| Working Capital Changes | 1.34M | 736.13K | -2.05M | -4.07M | 393.4K | -343.82K | -184.3K |
| Cash from Investing | 463.96K | 442.19K | 12.39K | -2.18M | -2.9M | 1.04M | 5.83K |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale/Maturity of Investments | 75.02K | 50K | 0 | 0 | 0 | 0 | 0 |
| Net Investment Activity | 75.02K | 50K | 0 | 0 | 0 | 0 | 0 |
| Acquisitions | 0 | 0 | 0 | -3M | -3.04M | 0 | 0 |
| Other Investing | 388.94K | 392.19K | 12.39K | 1.03M | 161.57K | 1.04M | 6.81K |
| Cash from Financing | 7.86M | 7.43M | -3.01M | -488.83K | 4.09M | -1.49M | -3.57M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -12.77K | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 7.44M | 7.26M | 0 | 0 | 0 | 0 | 0 |
| Net Stock Activity | 7.42M | 7.26M | 0 | 0 | 0 | 0 | 0 |
| Debt Issuance (Net) | 550K | 294.24K | -1000K | -488.83K | 0 | 0 | -192.83K |
| Other Financing | -116.1K | -128.87K | 0 | 0 | 4.09M | -1.49M | -3.38M |
| Net Change in Cash | 4.97M | 4.45M | -2.56M | -3.5M | 2.89M | 2.49M | 1.38M |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 6.78M | 2.32M | 4.89M | 8.39M | 5.5M | 3M | 1.62M |
| Cash at End | 5.9M | 6.78M | 2.32M | 4.89M | 8.39M | 5.5M | 3M |
| Interest Paid | 115.34K | 0 | 416.85K | 450.26K | 0 | 0 | 2.51K |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -3.36M | -3.42M | 430.48K | -1.04M | 1.68M | 2.94M | 4.95M |
| FCF Growth % | -53.55% | -893.93% | 141.37% | -161.94% | -42.86% | -40.59% | - |
Liquidity and solvency pressure
According to recent financial filings, SHFS has consistently generated negative operating cash flows, with a $1.1 million outflow in 2026Q1, highlighting a structural inability to retain earnings or generate organic capital to support its specialized compliance-heavy business model in the current high-cost, low-revenue environment.
The persistent gap between net income and operating cash flow suggests that the company is struggling to convert its service-based revenue into tangible liquidity. This trend indicates that the firm's capital base is being steadily depleted by ongoing operating expenses rather than being bolstered by profitable growth.
As reported in the 2026Q1 statement of cash flows, the company recorded a $1.1 million provision for loan losses, which represents a significant departure from the zero-provision periods seen in 2025 and suggests an emerging deterioration in the quality of the underlying cannabis-related loan portfolio.
This sudden spike in provisioning, when viewed alongside the company's negative net interest income, implies that management is increasingly concerned about the creditworthiness of its borrowers. Investors should monitor whether this provision reflects realized losses or a proactive adjustment to a weakening credit environment within the cannabis sector.
Based on the provided quarterly data, SHFS has shown negligible investment activity, with only minor asset sales of $25,000 in 2026Q1, indicating that the firm is not actively managing a securities portfolio to generate yield or liquidity to offset its core operational cash burn.
The lack of meaningful investment activity suggests that the company is not utilizing its balance sheet to generate secondary income streams. This inactivity may indicate a focus on preserving remaining cash rather than deploying capital into income-generating assets, which limits the firm's ability to diversify its revenue base.
Analysis of the cash flow statement reveals that the company's reliance on debt repayment, such as the $764,500 reduction in long-term debt during 2024Q4, masks the underlying operational weakness by prioritizing deleveraging over the necessary investment in platform scalability or market expansion.
While debt reduction is typically viewed as a positive, in the context of SHFS, it appears to be a defensive measure that leaves the company with limited financial flexibility. The absence of significant capital expenditure or investment in growth suggests that the firm is currently in a survival mode rather than a growth phase.
Quick answers to the most common questions about buying SHFS stock.
SHF Holdings, Inc. (SHFS) generated $-3.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
SHF Holdings, Inc. (SHFS) reported negative free cash flow of $3.4M in 2025, indicating capital requirements exceeded cash from operations.
SHF Holdings, Inc. (SHFS) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.