Safe Harbor Financial: Revenue Soars 82.11%, Processed $1B In Cannabis-Related Funds This Year

SHF Holdings, Inc., d/b/a/ Safe Harbor Financial SHFS, a leading provider of financial services to the cannabis industry, reported robust financial and operational performance for the three- and nine-month period ended September 30, 2023.

Q3 2023 Financial Results

For the quarter ended September 30, 2023

• Total Revenue: Safe Harbor achieved a substantial 82.11% increase in revenue, reaching $4.3 million, compared to $2.4 million in Q3 2022. According to the company, it was driven by higher investment and loan interest income as well as increased deposit activity and onboarding income.
• Operating Expenses: Increased to $3.8 million, compared to $1.6 million in the prior year period, attributed to higher compensation, employee benefits, marketing expenses, amortization, and depreciation.
• Net Loss: $748,067, compared to a net income of $1,056,235 in the prior year period primarily due to increased operating expenses.

For the nine months ended September 30, 2023

• Total Revenue: Increased to $13.1 million, compared to $5.9 million in the prior year period.
• Operating Expenses: Increased to $32.1 million, compared to $4.2 million in the prior year period, mainly due to higher compensation, employee benefits, marketing expenses, amortization, and depreciation.
• Net Loss: $19.8 million, compared to a net income of $1.9 million in the prior year period, primarily due to increased operating expenses.

As of September 30, 2023, Safe Harbor Financial maintained a robust financial position with cash and cash equivalents totaling $8.9 million, compared to $8.4 million on December 31, 2022.

“As a result of our continued dedication to the industry coupled with the compliant fintech platform, we have processed more than $1 billion in cannabis-related funds for each of the first three quarters of 2023. With this increased deposit base, we have also been able to increase our credit portfolio by 123% year-over-year to over $42 million in book value," said Sundie Seefried, CEO of Safe Harbor Financial. "Since the end of 2022, we have also significantly reduced our overall operating expenses while still being able to grow our business and further increase Adjusted EBITDA which was positive for the third consecutive quarter.”

Price Action

SHFS's shares were trading 0.02% down at $0.6599 per share at the time of writing on Tuesday afternoon.

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Photo: Courtesy Of Joel Muniz On Unsplash