FLDDW Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics

Revenue: Decreased by 21% year-over-year.
Transaction Volumes: Down 31% year-over-year, reflecting lower Bitcoin prices.
Net Loss: $29.2 million, improved from a loss of $48.9 million in Q1 2025.
Adjusted EBITDA: Negative $5.8 million, compared to negative $4.2 million in the prior year.
Operating Expenses: Reduced to $13.4 million from $16.6 million year-over-year.
Cash Position: Ended the quarter with $11.5 million in cash and equivalents, up from $7.7 million at year-end.
Bitcoin Holdings: 826 Bitcoin valued at approximately $67 million.

2. Strategic Updates and Business Highlights

Fold Credit Card: Launched in March 2026, currently has over 1,000 cardholders with a waitlist of over 8,000. The rollout is phased to manage risk and validate systems.
Bitcoin Gift Card: Strong performance with plans to restructure economics to reduce customer friction and improve retail placements.
Bitcoin Bonus Program: Launched with Steak 'n Shake, aiming to attract businesses to offer Bitcoin bonuses as employee benefits.
Infrastructure Improvements: Ongoing enhancements to support growth and scalability of products.

3. Forward Guidance and Outlook

The company expects to expand the Fold Credit Card access significantly in the coming quarters, with potential for rapid scaling.
Anticipates further product launches and platform expansions, positioning Fold as a leading financial rewards platform beyond Bitcoin.
Management is optimistic about recovering Bitcoin prices and its impact on transaction volumes and customer engagement.

4. Bad News, Challenges, or Points of Concern

Market Environment: The broader Bitcoin industry faced challenges with a nearly 50% drop in Bitcoin prices, impacting consumer behavior and spending.
Increased Losses: Despite improvements in net loss, adjusted EBITDA remains negative, indicating ongoing operational challenges.
Scaling Risks: The success of the credit card program is contingent on managing fraud and securing additional capital facilities for growth.

5. Notable Q&A Insights

Rollout Pace: Management is pleased with the current rollout of the credit card and is open to accelerating it based on positive cohort behavior and fraud management.
Institutional Interest: The Bitcoin bonus program is generating interest from various businesses, with potential for significant growth as it appeals to employee retention.
Gift Card Economics: Changes to the Bitcoin Gift Card program aim to eliminate upfront fees for customers, enhancing customer acquisition and retention.
Credit Card Goals: While specific targets for cardholder numbers were not disclosed, management expressed confidence in scaling rapidly once operational systems are validated.

Overall, while Q1 2026 presented challenges due to market conditions, Fold Holdings is focused on strategic initiatives aimed at long-term growth and establishing itself as a comprehensive financial rewards platform.

FLDDW — Fold Holdings, Inc. Warrant 2021-14.02.30 on Fold Holding -A-