FLD Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

Revenue: Down 21% year-over-year, reflecting lower transaction volumes due to a significant drop in Bitcoin prices.
Transaction Volumes: Decreased by 31% year-over-year.
Net Loss: Reported at $29.2 million, an improvement from a net loss of $48.9 million in Q1 2025.
Adjusted EBITDA: Negative $5.8 million, compared to negative $4.2 million in the prior year.
Operating Expenses: Reduced to $13.4 million from $16.6 million in Q1 2025, primarily due to lower direct costs and reduced share-based compensation.
Cash Position: Ended the quarter with $11.5 million in cash and cash equivalents, up from $7.7 million at year-end 2025.

2. Strategic Updates and Business Highlights

Fold Credit Card: Launched with over 1,000 cardholders, currently in a phased rollout to validate systems and customer engagement. The company has a waitlist of over 8,000 potential users.
Bitcoin Gift Card Program: Continues to onboard new customers and re-engage existing ones, with plans to restructure economics to reduce friction and improve retail placement.
Bitcoin Bonus Program: Recently launched, allowing employees to earn Bitcoin bonuses, which has garnered interest from various businesses.
Product Development: Fold is focused on expanding its product offerings and enhancing its ecosystem to include savings, rewards, and credit services.

3. Forward Guidance and Outlook

The company anticipates continued growth in customer engagement and transaction volumes as Bitcoin prices recover.
Plans to accelerate the rollout of the Fold Credit Card and expand its offerings, with multiple product launches expected in the coming quarters.
Management believes that Fold is positioned to evolve into a leading financial rewards platform beyond just Bitcoin.

4. Bad News, Challenges, or Points of Concern

Market Conditions: The broader Bitcoin market remains challenging, with significant price volatility impacting consumer behavior and transaction volumes.
Increased Losses: While the net loss improved year-over-year, the adjusted EBITDA loss widened, indicating ongoing operational challenges.
Dependence on Bitcoin Recovery: Future growth is closely tied to the recovery of Bitcoin prices and broader market conditions, which remain uncertain.

5. Notable Q&A Insights

Rollout Pace: Management is optimistic about the credit card rollout, with plans to scale quickly based on positive customer engagement and fraud management capabilities.
Institutional Interest in Bitcoin Bonus Program: Early feedback is positive, with businesses showing interest in incorporating Bitcoin bonuses into their employee benefits, indicating potential for expansion.
Economic Changes for Gift Cards: The company plans to reduce fees associated with Bitcoin Gift Cards to enhance distribution and customer acquisition, aiming to convert gift card users into regular customers.

Overall, while Fold faced challenges in Q1 2026 due to market conditions, it has made significant strides in product development and customer engagement, positioning itself for potential growth as market conditions improve.

FLD — Fold Holdings Inc