SHF Holdings, Inc., a financial technology company focused on the cannabis sector, reported its financial results for the third quarter and the nine months ended September 30, 2024. The company experienced a decline in revenue, with Q3 2024 revenue at $3.48 million, down from $4.33 million in Q3 2023. For the nine months ended September 30, 2024, total revenue was $11.57 million, compared to $13.09 million in the same period last year. The revenue decrease was attributed to a reduction in the average number of accounts following the termination of an agreement with the Central Bank of Arkansas.

Despite the revenue decline, SHF Holdings reported a net income of $353,817 for Q3 2024, a significant improvement from a net loss of $748,067 in Q3 2023. For the nine-month period, the company achieved a net income of $3.35 million, contrasting sharply with a net loss of $19.77 million in the same period of 2023. This turnaround in profitability was supported by a substantial reduction in total operating expenses, which fell to $3.31 million in Q3 2024 from $3.80 million in Q3 2023, and to $10.77 million for the nine months ended September 30, 2024, down from $32.09 million in the prior year.

The company’s total current assets increased to $12.17 million as of September 30, 2024, from $7.76 million at the end of 2023, while total liabilities decreased to $27.52 million from $33.51 million. Total stockholders’ equity rose to $39.35 million, up from $34.36 million at the end of 2023, reflecting improved financial health.

Strategically, SHF Holdings has focused on enhancing its fintech offerings, particularly through its acquisition of Rockview Digital Solutions, Inc. in October 2022. The company continues to generate revenue primarily from deposit activity, loan interest income, and compliance services for cannabis-related businesses. The Commercial Alliance Agreement with PCCU remains a significant revenue source, contributing $10.19 million for the nine months ended September 30, 2024, an increase from $10.05 million in the same period of 2023.

Management has acknowledged the need for ongoing evaluation of financial performance due to historical trends of negative operating income and net working capital deficits, raising concerns about the company's ability to continue as a going concern. The company is actively working to mitigate these risks through cost reductions and strategic financial management.