Revenue generation has fundamentally broken down, with net interest income turning negative at -$4.6K in 2026Q1 while the efficiency ratio reached an unsustainable 131.3%.
| Net Interest Income | 1.55M | 1.99M | 6.09M | 1.88M | 424.97K | 102.96K | 22.77K |
| NII Growth % | -304.01% | -67.41% | 224.45% | 341.84% | 312.75% | 352.2% | - |
| Net Interest Margin % | 9.9% | 11.54% | 46.09% | 2.77% | 0.43% | 1.37% | 0.5% |
| Interest Income | 1.94M | 2.48M | 6.63M | 2.97M | 1.13M | 102.96K | 25.28K |
| Interest Expense | 384.44K | 492.64K | 533.39K | 1.09M | 705.2K | 0 | 2.51K |
| Loan Loss Provision | 963.31K | 2.84M | -1.39M | 290.86K | 506.21K | 1.4K | 13.34K |
| Non-Interest Income | 9.28M | 5.2M | 11.78M | 17.31M | -33.13M | 6.9M | 8.01M |
| Non-Interest Income % | 82.72% | 67.71% | 64.01% | 85.34% | 103.53% | 98.53% | 99.69% |
| Total Revenue | 11.22M | 7.67M | 18.41M | 20.28M | -32M | 7.01M | 8.04M |
| Revenue Growth % | -108.2% | -58.31% | -9.23% | 163.37% | -556.77% | -12.85% | - |
| Non-Interest Expense | 13.02M | 9.74M | 23.73M | 38M | 11.17M | 3.72M | 2.91M |
| Efficiency Ratio | 116.12% | 126.99% | 128.9% | 187.4% | -34.91% | 53.06% | 36.16% |
| Operating Income | -3.16M | -5.4M | -4.46M | -19.11M | -44.38M | 3.29M | 5.12M |
| Operating Margin % | -28.13% | -70.36% | -24.23% | -94.23% | 138.69% | 46.92% | 63.64% |
| Operating Income Growth % | - | -21.06% | 76.66% | 56.94% | -1450.24% | -35.74% | - |
| Pretax Income | -3.17M | -2.22M | -4.46M | -19.11M | -44.38M | 3.29M | 5.12M |
| Pretax Margin % | -28.27% | -28.92% | -24.23% | -94.23% | 138.69% | 46.92% | 63.64% |
| Income Tax | -58.47K | -58.47K | 43.86M | -1.83M | -9.25M | 0 | 0 |
| Effective Tax Rate % | 1.84% | 2.63% | -983.45% | 9.57% | 20.85% | 0% | 0% |
| Net Income | -3.11M | -2.16M | -48.32M | -17.28M | -35.13M | 3.29M | 5.12M |
| Net Margin % | -27.75% | -28.16% | -262.5% | -85.21% | 109.78% | 46.92% | 63.64% |
| Net Income Growth % | 93.92% | 95.53% | -179.63% | 50.81% | -1168.73% | -35.74% | - |
| Net Income (Continuing) | -3.11M | -2.16M | -48.32M | -17.28M | -35.13M | 3.29M | 5.12M |
| EPS (Diluted) | -0.72 | -0.82 | -17.43 | -8.12 | -37.00 | 3.51 | 5.47 |
| EPS Growth % | 94.66% | 95.3% | -114.66% | 78.05% | -1154.13% | -35.83% | - |
| EPS (Basic) | - | -0.82 | -17.43 | -8.12 | -37.00 | 3.51 | 5.47 |
| Diluted Shares Outstanding | 4.35M | 2.92M | 2.77M | 2.13M | 949.43K | 935.79K | 935.79K |
Regulatory and liquidity insolvency
As reported in recent financial statements, SHFS experienced a severe contraction in net interest income, which plummeted to negative $4.6K in 2026Q1, marking a stark reversal from the $1.8M peak observed in 2024Q4 and signaling a fundamental breakdown in the company's interest-earning asset generation capabilities.
The shift to negative net interest income suggests that the cost of funding or interest-bearing liabilities now exceeds the yield generated from the loan portfolio. This trajectory implies that the bank's core lending engine has stalled, likely due to a combination of shrinking deposit bases and heightened credit risk within the cannabis vertical.
Based on the provided quarterly data, the net interest margin has exhibited extreme instability, swinging from a high of 13.3% in 2024Q4 to a negative 0.0% in 2026Q1, reflecting significant difficulty in maintaining a stable spread between asset yields and the cost of capital.
The erratic NIM performance indicates that the bank is struggling to price its specialized lending products effectively against the backdrop of a volatile deposit environment. Investors should monitor whether this margin compression is a permanent feature of the current business model or a temporary byproduct of aggressive balance sheet restructuring.
According to the company's income statement, the efficiency ratio reached an unsustainable 131.3% in 2026Q1, demonstrating that non-interest expenses are significantly outpacing total revenue and highlighting a lack of operational scalability in the current high-compliance, low-volume environment for the firm's specialized financial services.
The inability to maintain an efficiency ratio below 100% suggests that the fixed costs associated with regulatory compliance and administrative overhead are too high for the current revenue scale. This structural imbalance appears to be a primary driver of the persistent operating losses and suggests that significant cost-cutting or revenue growth is required to reach breakeven.
As indicated by the 2026Q1 financial data, the company recorded a provision expense of $1.1M, a sharp increase that suggests management is bracing for potential credit losses within the loan portfolio, contrasting with the zero-provision periods observed throughout much of 2025.
The sudden spike in provision expense may imply a deterioration in the credit quality of the underlying cannabis-related borrowers. This warrants further investigation into whether the bank is experiencing a rise in non-performing loans or if this is a proactive adjustment to account for the heightened risk profile of its client base.
Quick answers to the most common questions about buying SHFS stock.
SHF Holdings, Inc. (SHFS) reported a net loss of $2.2M for the fiscal year ending 2025.
SHF Holdings, Inc. (SHFS) reported an operating income of $-5.4M, resulting in an operating profit margin of -70.4%. This margin reflects the operational efficiency of the business before interest and taxes.
SHF Holdings, Inc. (SHFS) generated $4.3M in gross profit for the year, representing a gross profit margin of 56.6%. This demonstrates the company's core pricing power and production efficiency.