SHF Holdings (SHFS) AI Stock Analysis

• Market Cap: $12.01M
• Dividend Yield: N/A
• Average Volume (3M): 1.55M
• Price to Earnings (P/E): 2.0
• Beta (1Y): 1.50
• Revenue Growth: -35.31%
• EPS Growth: -1227.86%
• Country: US
• Employees: 41
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 2,915,956
• 10 Day Avg. Volume: 4,389,529
• 30 Day Avg. Volume: 1,546,403
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.45
• Enterprise Value/Revenue: 1.37
• Enterprise Value/Gross Profit: 1.29
• Enterprise Value/Ebitda: -2.06
• 1Y Price Target: $3.50
• Price Target Upside: -15.05% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: $3.50 ▼(-15.05% Downside)

The overall stock score is primarily driven by significant financial challenges, including declining revenues and high leverage, which weigh heavily on the company's financial performance. While there is some short-term bullish momentum in technical analysis, the valuation remains unattractive due to negative earnings and lack of dividends.

Positive Factors

Strategic Partnerships

Strategic partnerships can enhance SHF Holdings' service offerings and market presence, potentially leading to increased revenue streams and a stronger competitive position.

Equity Plan Amendment

The equity plan amendment allows SHF Holdings to attract and retain talent through stock incentives, which can improve management quality and align interests with shareholders.

Cash Flow Improvements

Improvements in operating cash flow indicate better cash generation ability, which can support business operations and strategic investments despite net losses.

Negative Factors

Declining Revenues

Declining revenues reflect reduced business activity and market challenges, which can impact long-term growth prospects and financial stability.

High Leverage

High leverage limits financial flexibility and increases risk, potentially affecting the company's ability to invest in growth opportunities and manage economic downturns.

Negative Profitability

Negative profitability highlights operational challenges and inefficiencies, which can hinder long-term sustainability and shareholder value creation.

SHF Holdings Business Overview & Revenue Model

Company Description

SHF Holdings (SHFS) operates as a financial services provider, specializing in offering banking and financial solutions tailored to the needs of its clients. The company focuses on delivering comprehensive financial services, including lending, deposit solutions, and other related financial services to niche markets, ensuring customized and efficient service delivery.

How the Company Makes Money

SHF Holdings generates revenue primarily through interest income on loans provided to its clients and fees associated with its banking and financial services. The company leverages its expertise in financial solutions to cater to specific markets, enabling it to charge competitive interest rates and service fees. Additionally, SHF Holdings may engage in strategic partnerships with other financial institutions to expand its service offerings and market reach, thus potentially enhancing its revenue streams and market presence.

SHF Holdings Financial Statement Overview

Summary

SHF Holdings faces significant financial challenges with declining revenues, consistent net losses, and high leverage. The negative equity position and poor profitability metrics indicate financial instability. While there are some improvements in cash flow, the overall financial health of the company is concerning.

Income Statement

The income statement shows a concerning trend with declining revenues and consistent net losses over the years. The gross profit margin is positive, but the net profit margin is significantly negative, indicating operational inefficiencies. The revenue growth rate is negative, reflecting a decline in business activity. Both EBIT and EBITDA margins are negative, highlighting profitability challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio due to negative stockholders' equity, indicating financial instability. The return on equity is negative, reflecting poor profitability. The equity ratio is negative, suggesting that liabilities exceed assets, which is a significant risk factor for the company's financial health.

Cash Flow

Cash flow analysis shows some positive aspects, such as a recent improvement in operating cash flow. However, free cash flow growth is inconsistent, and the free cash flow to net income ratio is not favorable due to persistent net losses. The operating cash flow to net income ratio is positive, indicating some operational cash generation despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.73M	18.41M	20.28M	-32.00M	7.01M	8.04M
Gross Profit	13.52M	19.27M	18.89M	-33.21M	7.00M	8.02M
EBITDA	-8.48M	-3.75M	-17.74M	-44.19M	3.29M	5.12M
Net Income	-52.56M	-48.32M	-17.28M	-35.13M	3.29M	5.12M
Balance Sheet
Total Assets	5.96M	13.22M	67.86M	99.34M	7.52M	4.57M
Cash, Cash Equivalents and Short-Term Investments	247.32K	2.34M	4.89M	8.39M	5.50M	3.00M
Total Debt	11.54M	11.88M	15.02M	1.03M	0.00	0.00
Total Liabilities	23.81M	25.51M	33.51M	94.34M	181.50K	220.95K
Stockholders Equity	-17.86M	-12.29M	34.36M	5.11M	7.34M	4.35M
Cash Flow
Free Cash Flow	-4.09M	430.48K	-1.04M	1.68M	2.94M	4.95M
Operating Cash Flow	-4.09M	430.48K	-832.14K	1.70M	2.95M	4.95M
Investing Cash Flow	12.86K	12.39K	-2.18M	-2.90M	1.04M	5.83K
Financing Cash Flow	-1.79M	-3.01M	-488.83K	4.09M	-1.49M	-3.57M

SHF Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.12
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SHFS, the sentiment is Positive. The current price of 4.12 is above the 20-day moving average (MA) of 3.13, above the 50-day MA of 3.00, and below the 200-day MA of 4.87, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 64.76 is Neutral, neither overbought nor oversold. The STOCH value of 78.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SHFS.

SHF Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ASRV	69 Neutral	$47.25M	12.77	3.45%	4.24%	6.06%	―
Sector *	68 Neutral	$17.85B	11.54	9.95%	3.76%	9.70%	1.08%
PNBK	55 Neutral	$159.84M	―	-82.98%	―	-11.96%	-500.26%
KFFB	52 Neutral	$27.82M	―	-2.21%	3.03%	22.56%	-78.84%
GLBZ	51 Neutral	$13.40M	431.77	0.17%	2.26%	8.99%	-94.06%
SHFS	46 Neutral	$12.01M	2.00	-515.18%	―	-35.31%	-1227.86%
CARV	―	$13.20M	―	-37.16%	―	―	―

SHF Holdings Corporate Events

SHF Holdings Announces Unregistered Sales of Equity Securities

SHF Holdings announced that it has offered and sold Notes to investors, utilizing the exemption from registration provided by Section 4(a)(2) of the Securities Act and Regulation D. This move could potentially impact the company’s financial strategy and investor relations by leveraging regulatory exemptions to facilitate capital raising.

SHF Holdings Approves Equity Plan Amendment at Annual Meeting

On July 8, 2025, SHF Holdings, Inc. held its Annual Meeting of Stockholders, where an amendment to the company’s 2022 Equity Incentive Plan was approved. This amendment increases the number of shares that may be issued under the plan and provides mechanisms for automatic reserve increases to maintain specific percentages of outstanding shares. Additionally, the election of two Class I directors and the ratification of the appointment of an independent accounting firm were approved, while a shareholder proposal to evaluate company management and governance was not passed.