Revenue growth is modest and net losses are widening on an operating basis. The stock is a micro-cap with high cash burn relative to revenue. Monitor the 10-Q for detailed segment trends and the June/July DEA rescheduling hearing — a favorable ruling could expand the addressable market but won't fix near-term profitability.
Price Chart
Executive Summary
Safe Harbor Financial reported Q1 2026 revenue of ~$2.0M (+2.2% YoY) and a net loss of ~$1.8M (vs ~$0.8M loss in Q1 2025), driven by a $1.1M non-cash warrant liability benefit in the prior year. Loan program income surged 55.6% YoY to ~$0.8M, but account fee income fell 19% and operating expenses remained high at ~$3.7M. The company highlighted a stronger balance sheet ($6.7M equity vs $16.9M deficit a year ago) and a favorable regulatory backdrop with cannabis rescheduling progress, though near-term profitability remains elusive.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $1.98M, up 2.2% YoY from $1.93M
- Loan program income $0.8M, up 55.6% YoY, driven by restructured PCCU agreement
- Account fee income $0.9M, down 19% YoY due to shift to money market accounts
- Net loss $1.78M vs $0.83M loss in Q1 2025; prior year included $1.1M non-cash warrant benefit
- Operating expenses $3.74M, down 4.7% YoY but still well above revenue
- Cash and equivalents $5.9M; stockholders' equity $6.7M vs $16.9M deficit a year ago
- Basic EPS $(0.43) vs $(0.30) in Q1 2025
- Operating cash flow negative $(1.08M) vs $(1.14M) in prior year
- Subsequent events: retirement plan launch, expanded lending platform, federal cannabis rescheduling order
Financial Impact
Revenue growth of ~$43K YoY on $2M base; net loss widened by ~$952K due to absence of prior-year warrant benefit
Risk Factors
- Net loss widening despite revenue growth; operating expenses still exceed revenue by ~90%
- Account fee income declining 19% YoY as customers shift to lower-fee products
- Negative operating cash flow of $1.08M in the quarter; cash burn rate of ~$0.36M/month
- Micro-cap ($2M market cap) with limited liquidity and high volatility
- Dependence on regulatory outcomes (cannabis rescheduling) that remain uncertain
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3296528 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Aug 11, 2026 7w ago | EFFECT | $0.1751 $0.1557 | ▲ +11.08% | ▲ +10.02% | $1.30 (−642.43%) |
Aug 10, 2026 7w ago | 8-K | $0.1822 $0.1536 | ▲ +15.70% | ▲ +14.78% | $1.30 (−613.50%) |
Aug 10, 2026 7w ago | Press Release | $0.1822 $0.1536 | ▲ +15.70% | ▲ +14.78% | $1.30 (−613.50%) |
May 18, 2026 19w ago | Press Release | $0.4790 $0.2848 | ▼ −40.54% | ▼ −42.12% | $1.30 (+171.40%) |
Apr 16, 2026 24w ago | Press Release | $0.8700 $0.4380 | ▼ −49.66% | ▼ −55.47% | $1.30 (+49.43%) |
Apr 1, 2026 26w ago | Press Release | $0.8000 $0.8280 | ▲ +3.50% | ▼ −6.22% | $1.30 (+62.50%) |
Mar 3, 2026 30w ago | 8-K | $0.8600 $0.8310 | ▼ −3.37% | ▲ +1.03% | $1.30 (+51.16%) |
Sep 30, 2025 12mo ago | Insider Cluster | $7.16 $3.05 | ▼ −57.40% | ▼ −60.54% | $1.30 (−81.84%) |
US Market Status
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