FLD — Fold Holdings, Inc.

Summary of Fold Holdings, Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 Revenue: $9.1 million, an 8% increase year-over-year.
• Full Year Revenue: $31.8 million, a 34% increase year-over-year.
• Total Transaction Volumes: $960 million for the year, up 46% year-over-year.
• New Verified Accounts: 3,000 in Q4, totaling over 84,000 accounts, a nearly 20% increase year-over-year.
• GAAP Operating Loss: $27.8 million for the year, compared to $5.8 million in the previous year.
• Adjusted EBITDA: Negative $17.2 million, worsening from negative $6.3 million year-over-year.
• Cash and Cash Equivalents: $7.7 million as of December 31, 2025.
• Bitcoin Holdings: 1,527 Bitcoin, with 1,000 restricted as collateral.

2. Strategic Updates and Business Highlights

• Product Launches:
  • The Fold Bitcoin Rewards Credit Card launched, expected to significantly increase transaction volumes and customer engagement.
  • The Bitcoin Gift Card continues to gain traction, with a successful partnership with Kroger and plans for expansion to other retailers.
  • The Bitcoin Bonus Program for enterprises launched with Steak 'n Shake, aiming to integrate Bitcoin into employee compensation.
• Partnerships: Collaborations with Visa and Stripe to enhance payment infrastructure and product offerings.
• Operational Improvements: Significant restructuring of capital, including the elimination of $66.3 million in convertible debt, enhancing financial flexibility.

3. Forward Guidance and Outlook

• 2026 Expectations: Anticipated revenue growth driven by the rollout of the credit card and expansion of consumer products and enterprise partnerships.
• Transaction Volumes: Expected to increase progressively throughout 2026 as new products scale.
• Customer Acquisition: The existing waitlist of over 80,000 for the credit card is expected to convert at low acquisition costs, with plans to reopen the waitlist to attract more customers.

4. Bad News, Challenges, or Points of Concern

• Market Volatility: The Bitcoin price dropped significantly from $124,000 to $60,000, leading to reduced engagement and transaction volumes across the industry, impacting Fold's metrics.
• Increased Operating Losses: The operating loss widened significantly, raising concerns about profitability in the near term.
• Delayed Product Launches: The credit card and gift card launches were delayed compared to initial forecasts, which could hinder growth momentum.
• Dependence on Bitcoin Market: The company's performance is closely tied to Bitcoin's market dynamics, posing risks during downturns.

5. Notable Q&A Insights

• Bitcoin Gift Card Performance: Generated approximately $722,000 in revenue in Q4, with a 20% month-over-month growth since launch.
• Credit Card Waitlist: Over 80,000 people are on the waitlist, with plans to scale access based on fraud and risk control measures.
• Funding Receivables: The credit card program will utilize third-party financing facilities to scale, with Fold retaining maximum economics from interchange and interest.
• User Experience Enhancements: The removal of subscription fees is expected to drive user engagement and cross-sell opportunities, with the app rebuilt for faster feature deployment.

Overall, Fold Holdings is positioned for growth in 2026 despite facing significant market challenges and operational hurdles in 2025. The successful launch of new products and strategic partnerships will be critical to overcoming these challenges and achieving profitability.