Fold Holdings Inc. (NASDAQ: FLD) reported first-quarter results that reflected bitcoin-market-driven pressure on transaction activity, but the quarter did not alter the core investment thesis, according to Stonegate Capital Partners. Instead, the focus for fiscal year 2026 shifts toward conversion and scaling across products now in market.
Revenue declined 21.1% year over year to $5.6 million as transaction volume fell 32% to $172 million. Verified accounts approached 85,000 with close to 2,000 net adds. The net loss was $(29.2) million, and adjusted EBITDA was $(5.8) million, though GAAP results were affected by bitcoin treasury fair value changes and financing-related items. Operating expenses declined 19% year over year to $13.4 million, supported by lower direct costs, lower stock-based compensation, and lower professional fees.
Management noted that February marked the bottom across most core KPIs, with early improvement as bitcoin recovered. Stonegate views the first quarter as market-driven pressure in transaction-linked activity, while Fold’s broader platform strategy moved closer to commercial validation. The full announcement is available here.
Key takeaways from the quarter include that Q1 advanced Fold’s transition toward platform-led monetization. Account growth, opex discipline, and concurrent product launches support a broader revenue model beyond transaction activity. Credit card execution is the primary FY26 catalyst. With over 1,000 cards live and an approximately 80,000-person waitlist, cohort spend, engagement, credit performance, and funding capacity will drive the setup. Capital structure simplification improves strategic flexibility. Extinguishing the convertible notes, while retaining bitcoin treasury exposure, strengthens Fold’s ability to scale credit, gift card, and business channels.
Fold Holdings is a bitcoin financial services company that integrates bitcoin rewards into everyday spending and savings. The company offers a debit card, credit card, and gift card products that earn bitcoin back on purchases. The recent quarter highlights the challenges and opportunities as the company navigates bitcoin price volatility while expanding its product suite.
