Safe Harbor Financial reports preliminary 2025 results

Safe Harbor Financial (NASDAQ: SHFS) reported preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2025, according to a press release statement.

The company posted fourth quarter 2025 revenue of $2.1 million, representing a 12% sequential increase from the third quarter's $1.8 million. Loan program income reached $0.9 million in the fourth quarter, up 71% from $0.5 million in the previous quarter. However, fourth quarter revenue declined 43% compared to $3.7 million in the fourth quarter of 2024.

For the full year 2025, total revenue was $7.7 million, down 50% from $15.2 million in 2024. The decline was driven by reduced deposit and activity income, which fell to $4.0 million from $6.4 million, and loan program income, which decreased to $2.5 million from $6.6 million. Investment income also declined to $1.2 million from $2.1 million.

The company completed a recapitalization in September 2025 that eliminated substantially all of its $18.3 million in debt and raised $6.8 million in new capital. Cash and cash equivalents increased to $6.8 million at year-end from $2.3 million at the end of 2024.

Safe Harbor entered into a Second Amended and Restated Commercial Alliance Agreement with PCCU effective October 1, 2025, which increased the company's share of loan program income to up to 65% and extended the partnership through December 31, 2031. The agreement also reduced asset hosting fees by 23%.

"Fiscal year 2025 was the most consequential year in Safe Harbor Financial's history," said CEO Terrance Mendez. "We eliminated $18.3 million in debt, returned the balance sheet to positive stockholders' equity, and remediated the majority of our previously identified material weaknesses."

The company filed a Form 12b-25 notification for a delayed filing of its Annual Report on Form 10-K, citing the need for additional time to prepare financial statements following the closing of significant transactions in 2025. The filing is expected within the 15-day extension period.

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