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    FLD
    Earnings call· Jun 2026(Q2 FY26)

    Fold Holdings Q2 FY26 earnings call FLD

    Aug 11, 2026 Source

    Executive summary

    Fold Holdings, Inc. Q2 FY26 — Strategic Shift to Broader Financial Platform and Credit Card Scaling

    Fold Holdings is undergoing a strategic transformation from a transaction-dependent bitcoin-native business to a broader financial services platform. Despite a challenging Q2 FY26 marked by lower bitcoin prices impacting revenue and profitability, the company is laying infrastructure for future growth, including a successful credit card early access program and new distribution channels. The focus is shifting towards monetizing customer assets and deepening relationships, aiming for more predictable, recurring revenues and reduced reliance on volatile transaction volumes.

    Highlights

    5

    • Credit card performing well in early access, with per-swipe economics profitable and transactions per user increasing 4x.

    • Eliminated $20 million in bitcoin-backed debt, reducing monthly interest expense by nearly $145,000 and increasing financial flexibility.

    • Bitcoin gift card distribution expanding, with TikTok Shop showing "incredible results" and driving customer engagement.

    • Partnership with Lead Bank provides foundation for expanded banking capabilities and participation in deposit economics.

    • GAAP operating expenses decreased 4% year-over-year to $13.9 million.

    Concerns

    4

    • Revenue decreased 26% year-over-year to $6.1 million due to challenging bitcoin market conditions.

    • Net loss was $9.7 million, compared to a net income of $13.4 million in the prior year period.

    • Adjusted EBITDA was negative $5.5 million, compared to negative $4.7 million in the prior year, driven by increased payroll and contractor expenses.

    • Lower bitcoin prices continued to pressure transaction activity, trading volume, and consumer engagement.

    Operational metrics

    10
    Adjusted EBITDA
    -$5.5 millionvs -$4.7 million in Q2 FY25
    Q2 FY26

    The principal drivers of the increased loss related to increased payroll and contractor expenses as our headcount expanded year-over-year.

    Bitcoin-backed debt eliminated
    $20 million
    Q2 FY26

    Eliminated $20 million in bitcoin-backed debt under our facility with Two Prime, thereby reducing our monthly interest expense by nearly $145,000 going forward.

    Monthly interest expense reduction
    $145,000
    monthly

    Reduced monthly interest expense by nearly $145,000 going forward due to elimination of $20 million bitcoin-backed debt.

    Unrestricted capital retained
    $25 million
    Q2 FY26

    Retained an additional $25 million of unrestricted capital for use in the business.

    Credit card early access customers
    over 2,000
    Q2 FY26

    Over 2,000 customers are participating in early access for the credit card.

    Credit card transactions per user
    4x increase
    since customer begins using

    Transactions per user increase 4x since a customer begins using the credit card over a few months.

    Credit card waitlist
    over 80,000continued to grow
    Q2 FY26

    The waitlist for the credit card stands at over 80,000 and has continued to grow.

    GAAP Operating Expenses growth
    -4%YoY
    Q2 FY26

    GAAP operating expenses were down 4% to $13.9 million compared to $14.5 million in the second quarter of 2025.

    Revenue growth
    -26%YoY
    Q2 FY26

    Generated revenue of $6.1 million, a decrease of 26% year-over-year.

    Credit card spend per user
    outpacing projections
    Q2 FY26

    The spend per user on the credit card is outpacing even what our projections were.

    Product announcements

    2
    ProductTypeDetails
    Broader Fold platformroadmap
    Bitcoin Bonus Programupdate

    Deals & partnerships

    2
    Lead BankProvides the foundation that enables us to bring expanded banking capabilities to more customers, participate in deposit economics, and support the next generation of the Fold platform.

    Partnership with Lead Bank to expand banking capabilities and participate in deposit economics, supporting Fold's shift to a broader financial services platform.

    Two PrimeEliminated $20 million in bitcoin-backed debt under our facility with Two Prime.$20 million

    Eliminated $20 million in bitcoin-backed debt from Two Prime facility to reduce treasury volatility and increase financial flexibility.

    Risks & headwinds

    4
    Challenging bitcoin industry environmentsecond quarter

    Lower bitcoin prices continue to pressure transaction activity, trading volume, and consumer engagement, and those conditions are reflected in our financial results. Revenue down 26% YoY, net loss $9.7M, adjusted EBITDA -$5.5M.

    Mitigation: Building a broader financial platform designed around deeper, longer-term customer relationships and more durable sources of revenue, less dependent on transaction activity alone.

    Increased operational costsQ2

    Increased payroll and contractor expenses as our headcount expanded year-over-year contributed to adjusted EBITDA loss.

    Mitigation: Focused on reducing operational expenses, including the elimination of certain vendors and contractors that were used to support our investments over the past year.

    Dependence on transactional volumeHistorically

    Historically, our economics have been heavily dependent on transaction activity.

    Mitigation: Expanding from solely a transaction business into a broader financial services company, monetizing assets held, which is expected to result in higher and more recurring revenues, better margins, and less dependence on transactional volume.

    Gating factor for credit card scalingongoing

    The only limiting factor in continuing to scale is continuing to bring more and more financing partners on board.

    Mitigation: Will be having strategic financing partners in that will allow us to expand the credit score box or go deeper within a given cohort. We're going to start with some announcements in the financing that will kind of be in tandem with our summer launch.

    What to watch in Q3 FY26

    5

    Wider release and scaling of credit card

    later this summer
    CurrentOver 2,000 customers in early access
    TargetWider release to waitlist (over 80,000) and existing MTU base

    Why it matters

    This is a key product launch expected to drive significant growth and customer acquisition for the new platform.

    as we move to widening the credit card release, that will coincide with our upcoming product launches later this summer.

    Q&A highlights

    5

    Are there signs of accelerating customer activity beyond just account growth, given the current bitcoin market?

    While traditional bitcoin metrics are down, the credit card program shows strong early signs, with transactions per user increasing 4x. The card is performing as expected as a primary transaction card, indicating success in new growth products despite depressed bitcoin trading.

    “We've seen transactions per user increase 4x since a customer begins using it to as they establish themselves into the program over a few months, now that we have several months of data.”

    asked by Maximus Alexander-Nino · answered by William Reeves

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Transformation to Full-Featured Financial Services

    Fold is evolving from a transaction-dependent business into a broader financial services company, aiming to become the "most rewarding financial platform in America." This involves expanding beyond payments to include services that encourage users to deposit and hold assets, with the goal of generating more predictable recurring cash flows and fostering stronger customer relationships, thereby reducing reliance on volatile transaction volumes.

    02

    Credit Card Performance and Scaling

    The credit card, currently in early access with over 2,000 customers, is performing strongly, demonstrating profitable per-swipe economics and a 4x increase in transactions per user. The early access program successfully validated underwriting, fraud systems, servicing, and financing. The company plans a wider rollout later this summer, coinciding with new product launches and the onboarding of new financing partners to expand capacity beyond its current self-financing model.

    03

    Infrastructure Development and Partnerships

    Key strategic investments include a partnership with Lead Bank, which provides the essential foundation for expanded banking capabilities and enables Fold to participate in deposit economics. Additionally, Fold has developed a proprietary bank-grade core ledger, purpose-built for a multi-asset environment, which management views as a significant long-term competitive advantage for the company.

    04

    Market Expansion and Customer Focus

    Fold is broadening its target market beyond bitcoin-native customers to include a wider audience, specifically those primarily interested in cash-back rewards, with the long-term objective of transitioning them to earning bitcoin. This expansion is expected to enhance the value of existing distribution channels and partnerships, creating substantial new growth opportunities for the business.

    05

    Operational Efficiency and Balance Sheet De-risking

    During the quarter, Fold successfully eliminated $20 million in bitcoin-backed debt with Two Prime, resulting in a reduction of nearly $145,000 in monthly interest expense and significantly enhancing financial flexibility. Concurrently, the company initiated efforts to lower operational costs by discontinuing relationships with certain vendors and contractors used for past investments.

    06

    Bitcoin Gift Card Distribution Success

    The bitcoin gift card program is effectively expanding its distribution network, notably through a successful partnership with TikTok Shop. This channel has generated "incredible results" and high customer engagement, with content creators producing videos that garner significant views, driving traffic to both the gift card and the broader Fold platform. This strategy aims to position Fold advantageously for future bitcoin market upturns.

    AI-generated summary of the company’s earnings call. Not investment advice.