Key Highlights

  • USD 4.16 million of third-quarter net revenue, down 43.8% from USD 7.40 million a year earlier, while custody and trading Revenue rose 269% to USD 1.28 million on Bitcoin gift card sales.
  • Net loss was USD 2.65 million, or USD 0.05 a share, against Net Income of USD 0.55 million, or USD 0.01, a year earlier; the nine-month net loss widened to USD 41.5 million.
  • Adjusted EBITDA loss was USD 4.46 million in the quarter versus USD 4.20 million a year ago, a 6.2% deterioration, even though net revenue fell 43.8% over the same comparison.
  • Cash stood at USD 21.7 million on September 30, 2026, while the bitcoin treasury shrank to about 247 BTC worth USD 20.7 million, from 1,606 BTC worth USD 140.5 million at the end of 2025.

Merchant Offers Shrink and Drag Quarterly Revenue Lower

Fold Holdings (NASDAQ:FLD) filed its Quarterly Report on November 10, 2026, covering the three months ended September 30, 2026. Net revenue was USD 4.16 million, down 43.8% from USD 7.40 million. The company blamed the digital asset downturn that began in late 2025, with monthly transaction Volume averaging about USD 53 million against USD 78 million. Banking and payments revenue dropped 61.5% to USD 2.72 million, mainly because merchant offers revenue fell 64% to USD 2.4 million. The company is steering toward higher-margin offers, and their cost of sales fell by a similar amount. Fold runs a consumer app for saving, spending and earning rewards in dollars and bitcoin.

Gift Cards and TikTok Lift Custody and Trading Revenue

Custody and trading revenue climbed 269% to USD 1.28 million, and most of the gain came from the Bitcoin gift card program, which brought in USD 1.2 million against USD 0.2 million. Costs rose in step: custody and trading costs were USD 1.30 million versus USD 0.24 million. On the call, management said the gift card had its best quarter ever and that TikTok became the top customer Acquisition channel. It also said the Credit card reached about 2,500 cardholders, the target until a credit Facility is in place. The October launch of Fold Reserve pools customer funds in treasuries and Money Market funds, which the filing says could lower custody and trading revenue later.

Bitcoin Sales, Nasdaq Bid Notice and Funding Options

The quarterly loss was cushioned by a USD 4.08 million gain on Investment treasury bitcoin. Working Capital was positive at USD 13.8 million and the accumulated Deficit was USD 212.4 million. In 2026 the company sold 200 bitcoin in February for USD 14.4 million and 632 bitcoin in June for USD 44.7 million, using USD 20.0 million to repay its credit facility. Nasdaq sent a minimum bid price deficiency notice on July 14, 2026, and stockholders approved a reverse split on October 22, 2026, subject to board discretion. A USD 250 million Equity facility was terminated on August 27, and a USD 25 million committed equity facility was signed on September 4, with no shares sold under it by quarter end.

Where Things Stand

Revenue fell and custody revenue jumped because the two lines have different drivers. Merchant offers, a low-margin pass-through business, shrank with lower customer volume and a shift to better-priced offers, while gift cards are a new source of volume. Fold Holdings (NASDAQ:FLD) still lost USD 2.65 million in the quarter, and the adjusted EBITDA loss edged wider. Cash of USD 21.7 million, a smaller bitcoin treasury, the Nasdaq bid price notice and the possible reverse split frame the next steps, alongside the credit card financing partner management hopes to name.