Safe Harbor Financial Reports Fourth Quarter and Year-End 2024 Results

SHF Holdings, Inc., doing business as Safe Harbor Financial, has released its unaudited consolidated financial results for the fourth quarter and full year ended December 31, 2024. Safe Harbor Financial is a prominent provider of financial services and credit facilities to the regulated cannabis industry.

Financial Highlights

For the fourth quarter of 2024, Safe Harbor Financial reported revenue of approximately $3.7 million, a decrease from $4.5 million in the same period of 2023 but an increase from $3.5 million in the third quarter of 2024. Loan interest income saw a significant rise of 82% year-over-year, reaching approximately $1.8 million. The company also reported a positive Adjusted EBITDA of $63,581 for the quarter, although this was a decline from $1.3 million in the fourth quarter of 2023.

For the full year 2024, revenue was approximately $15.2 million, down from $17.6 million in 2023. However, loan interest income increased by 123% year-over-year to approximately $6.6 million. Operating expenses decreased significantly to approximately $22.3 million from $38.3 million in 2023. The company reported a net loss of approximately $48.3 million for the year, compared to a net loss of approximately $17.3 million in 2023.

Business and Operational Highlights

During the fourth quarter, Safe Harbor Financial originated a $1.07 million secured credit facility for a Missouri cannabis operator and collaborated with Collective Clean Energy Fund and Partner Colorado to fund a $500,000 sustainable upgrade loan for a Denver cannabis facility. The company also reported a 32% decline in compensation and employee benefits expenses and a 36% decline in general and administrative expenses compared to the fourth quarter of 2023.

For the full year, Safe Harbor Financial processed over $25 billion in cannabis-related funds and originated a $1.5 million secured credit facility for another Missouri cannabis operator. The company also successfully modified its debt obligation with Partner Colorado Credit Union, unlocking $6.4 million in cash flow over the next two years.

Strategic Initiatives and Corporate Developments

Safe Harbor Financial entered into an Amended Commercial Alliance Agreement with Partner Colorado Credit Union, extending the term through December 31, 2028, and eliminating the company's indemnification obligations for any losses related to loans facilitated under the original agreement. Additionally, Terry Mendez joined as Co-CEO in January 2025 and became CEO in February 2025 following the retirement of former CEO Sundie Seefried.

Management's Perspective

CEO Terry Mendez highlighted the significant increase in loan interest income and the company's efforts to introduce new financial solutions for clients while maintaining lower overall expenses. Mendez also emphasized the importance of the debt modification with Partner Colorado Credit Union, which provides financial flexibility to enhance and expand business services.

Future Outlook

Looking ahead, Safe Harbor Financial aims to build on its strong foundation by evolving from a single compliance solution provider to offering a broad array of services designed to protect, lend, connect, and enable the success of its clients. The company is well-positioned to offer competitive solutions and continue its growth trajectory in the regulated cannabis industry.

SEC Filing: SHF Holdings, Inc. [ SHFS ] - 8-K - Apr. 01, 2025