Safe Harbor Financial Reports Preliminary Q4 and Full Year 2025 Results

The financial tech company serving the cannabis industry saw revenue declines but eliminated debt and strengthened its balance sheet.

Apr. 1, 2026 at 10:34am

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SHF Holdings, Inc., d/b/a Safe Harbor Financial, a financial technology company serving the banking, lending, and financial services needs of the regulated cannabis and hemp industries, announced its preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2025. The company saw revenue declines but eliminated $18.3 million in debt, returned the balance sheet to positive stockholders' equity, and remediated the majority of its previously identified material weaknesses.

Why it matters

Safe Harbor Financial is one of the original pioneers of compliant cannabis banking in the U.S., facilitating over $26 billion in transactions across 41 states. The company's financial performance and operational changes are closely watched by the cannabis industry as it navigates the complex regulatory environment.

The details

In the fourth quarter of 2025, Safe Harbor saw a 12% sequential increase in total revenue and a 71% increase in loan program income, reflecting improved economics under a new commercial alliance agreement with PCCU. For the full year 2025, the company reported a 50% decline in total revenue, primarily due to revised interest allocation provisions and a reduction in the number of active accounts.

  • The Second Amended and Restated Commercial Alliance Agreement with PCCU, effective October 1, 2025, increased the company's share of loan program income to up to 65% and extended the relationship through December 31, 2031.
  • The company's September 2025 recapitalization eliminated substantially all of its $18.3 million in debt and raised $6.8 million in new capital.

The players

Terrance Mendez

Chief Executive Officer of Safe Harbor Financial.

Safe Harbor Financial

A financial technology company serving the banking, lending, and financial services needs of the regulated cannabis and hemp industries.

PCCU

A partner financial institution that has a commercial alliance agreement with Safe Harbor Financial.

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What they’re saying

“Fiscal year 2025 was the most consequential year in Safe Harbor Financial's history. We eliminated $18.3 million in debt, returned the balance sheet to positive stockholders' equity, and remediated the majority of our previously identified material weaknesses. These were fundamental changes to the financial foundation of this Company.”

— Terrance Mendez, Chief Executive Officer

“With the Second Amended CAA extending our PCCU partnership through 2031 at meaningfully improved economics, we enter 2026 with a different revenue profile, as evidenced by sequential revenue growth of 12% in the fourth quarter. We have also expanded beyond core banking and lending through the launch of insurance, payments, and consulting solutions.”

— Terrance Mendez, Chief Executive Officer

What’s next

The company has filed a Notification of Late Filing on Form 12b-25 with the SEC, as it requires additional time to prepare its financial statements for the Form 10-K filing due to the closing of a significant and complex transaction in 2025. The company expects to file its Annual Report on Form 10-K within the fifteen-calendar-day extension period.

The takeaway

Safe Harbor Financial's financial and operational changes in 2025, including debt elimination, balance sheet improvement, and the extension of its key commercial alliance, position the company for a different revenue profile and growth opportunities in the regulated cannabis industry in 2026 and beyond.