FLDDW — 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 (YTD): $960 million, up 46% year-over-year.
• New Verified Accounts: 3,000 added in Q4, totaling over 84,000 (20% increase YoY).
• 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 YoY.
• Cash and Cash Equivalents: $7.7 million; working capital was negative $2.3 million.
• Bitcoin Holdings: 1,527 Bitcoin, with 1,000 Bitcoin restricted as collateral.

2. Strategic Updates and Business Highlights

• Product Launches:
  • The Fold Bitcoin Rewards Credit Card was launched, aimed at expanding the customer base and increasing transaction volumes.
  • The Bitcoin Gift Card has gained traction, with significant partnerships (e.g., Kroger) and a reported 20% month-over-month growth since launch.
  • A new Bitcoin bonus program for businesses was introduced, starting with Steak 'n Shake, allowing employees to receive Bitcoin bonuses.
• Partnerships: Collaborations with Visa and Stripe were highlighted to enhance payment infrastructure.
• Operational Improvements: Significant changes to capital structure, including the elimination of $66.3 million in convertible debt, improving financial flexibility.

3. Forward Guidance and Outlook

• 2026 Expectations:
  • Anticipated revenue growth driven by the rollout of the credit card and expansion of consumer and enterprise products.
  • Transaction volumes and revenues expected to increase progressively as new products scale.
  • Confidence in the ability to capture a larger market share and deepen customer engagement through cross-selling opportunities.

4. Bad News, Challenges, or Points of Concern

• Market Volatility: The Bitcoin ecosystem experienced a significant downturn, with Bitcoin prices dropping from $124,000 to as low as $60,000, leading to reduced engagement and transaction volumes.
• Operational Delays: The launch of key products was delayed compared to initial forecasts due to vendor negotiations and program setup.
• Increased Losses: The company reported a significant increase in operating losses and negative adjusted EBITDA, raising concerns about financial sustainability in the short term.

5. Notable Q&A Insights

• Bitcoin Gift Card Performance: Revenue from the Bitcoin Gift Card was approximately $722,000 in Q4, contributing to overall revenue growth.
• Credit Card Waitlist: Over 80,000 individuals are on the waitlist for the credit card, with plans to gradually onboard users while ensuring robust fraud and risk controls.
• Customer Acquisition Costs: The initial group on the waitlist is expected to have a low acquisition cost due to organic demand and minimal marketing spend.
• Funding for Credit Receivables: The credit card program will utilize a mix of third-party financing and Fold's balance sheet, aiming for profitability without relying heavily on external financing.

Overall, Fold Holdings is positioned for growth in 2026, despite facing challenges from market volatility and operational delays. The successful launch of new products and strategic partnerships are expected to drive future revenue and customer engagement.