Key Takeaways
- Fold recorded a $69.6M net loss in fiscal 2025, with operating losses surging nearly fivefold to $27.7M
- Top-line revenue increased 34% year-over-year to $31.8M; fourth-quarter revenue reached $9M, an 8% uptick
- Management eliminated two convertible bonds, erasing future dilution concerns while absorbing a $9.6M extraordinary charge
- Bitcoin treasury holdings slashed by approximately 46%, dropping from 1,527 BTC to 827 BTC by mid-March
- FFLD shares plummeted 59% in 2026 year-to-date and 83.8% over 12 months; brief 13.4% after-hours surge Tuesday reversed with 4.46% decline Wednesday
Fold closed out its inaugural year as a publicly traded entity with mixed signals: revenues advanced, but red ink spread faster. The cryptocurrency-centric financial platform disclosed a $69.6 million net loss for 2025, even as revenues expanded 34% to reach $31.8 million.
The chasm between revenue momentum and profitability remains glaring. Operating losses ballooned from $5.8 million to $27.7 million — a near-fivefold escalation. Adjusted EBITDA loss registered at $17.2 million, translating to $0.41 per share.
A substantial portion of the net loss stemmed from a one-time $9.6 million expense tied to extinguishing two convertible bonds. CEO Will Reeves characterized the move as “strategic housekeeping,” noting it “eliminates structural overhang and channels financing exclusively toward expanding our core operations.”
The remaining delta between operating loss and net loss presumably reflects non-cash elements — equity compensation, amortization, and comparable accounting entries that inflate GAAP losses without draining real capital.
Regarding user acquisition, Fold onboarded 13,000 fresh users throughout 2025, elevating total verified accounts to 84,000. Transaction throughput reached $960 million annually, climbing 46%. The fourth quarter alone processed $215 million in transactions, though that figure dipped 3% year-over-year.
Expansion into Credit Products
Fold recently debuted a Visa and Stripe-enabled Bitcoin Rewards Credit Card, broadening its cashback framework to credit-based spending. The firm simultaneously introduced Fold For Business, enabling enterprises to embed Bitcoin into compensation structures and treasury operations.
An initial collaborator is Steak ‘n Shake, which distributes employee incentive payments in Bitcoin.
During the earnings discussion, CEO Reeves projected boldly: “Bitcoin rewards will surpass airline miles as America’s dominant consumer loyalty mechanism.”
He acknowledged that card initiatives must “expand to millions of cardholders,” but emphasized that enhanced fraud mitigation and risk management systems need deployment before Fold can “truly unleash full-scale growth.”
The credit card pivot represents a capital-intensive gamble for an organization already hemorrhaging operational cash. Credit instruments demand reserves, fraud prevention architecture, and regulatory compliance infrastructure that debit alternatives circumvent. Yet the American credit card sector processes approximately $5 trillion yearly — capturing even a modest fraction would eclipse Fold’s existing transaction volumes.
Cryptocurrency Holdings Slashed
While Reeves championed expansion prospects, Fold has been systematically liquidating its Bitcoin reserves. The enterprise maintained 1,527 BTC at 2024’s conclusion. By March 17, holdings had contracted to 827 BTC — representing approximately a 46% reduction.
This treasury drawdown has coincided with persistent equity deterioration. FFLD shares have plunged 59% year-to-date in 2026 and surrendered 83.8% of valuation across the trailing twelve months.
Following Tuesday’s financial disclosure, shares spiked 13.4% during extended trading to $1.27. However, Wednesday’s regular session erased momentum, with shares declining 4.46% to settle at $1.07.
Fold advances into 2026 with a restructured balance sheet, a nascent credit card offering, and 84,000 registered customers — yet simultaneously confronts escalating losses and shares trading near all-time lows.
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