SHF Holdings (SHFS) AI Stock Analysis

• Market Cap: $9.77M
• Dividend Yield: N/A
• Average Volume (3M): 30.45K
• Price to Earnings (P/E): 2.0
• Beta (1Y): 1.59
• Revenue Growth: -24.72%
• EPS Growth: -172.62%
• Country: US
• Employees: 41
• Sector: Financial
• Sector Strength: 75
• Industry: Banks - Regional
• EPS (TTM): N/A
• Shares Outstanding: 2,784,458
• 10 Day Avg. Volume: 72,012
• 30 Day Avg. Volume: 30,450
• PEG Ratio: 0.02
• Price to Book (P/B): -0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.99
• Enterprise Value/Market Cap: 1.76
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 1.01
• Enterprise Value/Ebitda: 10.36
• 1Y Price Target: $2.00
• Price Target Upside: -44.44% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: $3.50 ▼(-2.78%Downside)

The overall stock score is primarily influenced by the company's weak financial performance and poor valuation metrics, which are significant concerns. However, the positive technical indicators suggest some potential for short-term gains, partially offsetting the negative financial outlook.

SHF Holdings Business Overview & Revenue Model

Company Description

SHF Holdings (SHFS) is a financial services company that primarily operates in the cannabis industry. It provides tailored financial solutions and banking services to cannabis-related businesses, which traditionally face challenges accessing conventional banking services due to regulatory constraints. The company offers a range of products including lending, depository services, and cash management solutions, enabling cannabis businesses to manage their finances more effectively and securely.

How the Company Makes Money

SHF Holdings generates revenue through a combination of interest income from loans, service fees from banking services, and other financial products tailored to the needs of the cannabis industry. The company partners with financial institutions to facilitate these services, leveraging its expertise in cannabis-related compliance and risk management. By offering essential financial services to an underserved market, SHF Holdings capitalizes on service fees and interest margins, which are key contributors to its earnings.

SHF Holdings Financial Statement Overview

Summary

SHF Holdings faces considerable financial difficulties as reflected in its income statement, balance sheet, and cash flow. The company has negative profitability, high leverage, and erratic revenue growth. The financials suggest a need for strategic restructuring to stabilize and improve financial health.

Income Statement

The income statement reflects significant challenges, with consistent negative net income and EBIT margins over recent years. The net profit margin is deeply negative, indicating substantial losses. Revenue growth has been erratic, swinging from a decline in 2022 to slight recovery but still below historical highs. The gross profit margin is also under pressure.

Balance Sheet

The balance sheet presents substantial risks, with negative stockholders' equity indicating more liabilities than assets. The debt-to-equity ratio is concerning due to negative equity, and the equity ratio is negative, highlighting financial instability. The company is heavily leveraged, which poses significant risks.

Cash Flow

The cash flow situation shows some resilience with positive operating cash flow in the latest period, but the free cash flow growth is inconsistent. The operating cash flow to net income ratio is also positive, suggesting cash generation despite net losses, but the overall cash flow position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	16.13M	18.41M	20.28M	-32.00M	7.01M	8.04M
Gross Profit	16.96M	19.27M	18.89M	-33.21M	7.00M	8.02M
EBITDA	-5.87M	-3.75M	-17.74M	-44.19M	3.29M	5.12M
Net Income	-50.68M	-48.32M	-17.28M	-35.13M	3.29M	5.12M
Balance Sheet
Total Assets	6.66M	13.22M	67.86M	99.34M	7.52M	4.57M
Cash, Cash Equivalents and Short-Term Investments	951.20K	2.34M	4.89M	8.39M	5.50M	3.00M
Total Debt	11.58M	11.88M	15.02M	1.03M	0.00	0.00
Total Liabilities	23.60M	25.51M	33.51M	94.34M	181.50K	220.95K
Stockholders Equity	-16.95M	-12.29M	34.36M	5.11M	7.34M	4.35M
Cash Flow
Free Cash Flow	-2.19M	430.48K	-1.04M	1.68M	2.94M	4.95M
Operating Cash Flow	-2.19M	430.48K	-832.14K	1.70M	2.95M	4.95M
Investing Cash Flow	12.63K	12.39K	-2.18M	-2.90M	1.04M	5.83K
Financing Cash Flow	-2.52M	-3.01M	-488.83K	4.09M	-1.49M	-3.57M

SHF Holdings Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.60
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 3.6 is above the 20-day moving average (MA) of 2.65, above the 50-day MA of 2.53, and below the 200-day MA of 5.95, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 67.29 is Neutral, neither overbought nor oversold. The STOCH value of 80.40 is Negative, 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	74 Outperform	$52.37M	14.16	3.36%	3.79%	7.80%	―
Sector *	68 Neutral	$16.73B	11.75	9.79%	3.76%	11.87%	-7.97%
GLBZ	55 Neutral	$15.79M	386.47	0.21%	7.35%	13.95%	-96.19%
KFFB	52 Neutral	$24.46M	―	-2.21%	3.03%	22.56%	-78.84%
SHFS	50 Neutral	$9.77M	2.00	-506.37%	―	-24.72%	-172.62%
PNBK	50 Neutral	$122.94M	―	-84.06%	―	-10.46%	-984.80%

SHF Holdings Corporate Events

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.

SHF Holdings and PCCU Waiver Agreement Announcement

On May 21, 2025, SHF Holdings, Inc. and Partner Colorado Credit Union entered into a Waiver agreement in which PCCU agreed to permanently waive its rights to designate directors to the company’s Board. This decision impacts the governance structure of SHF Holdings, as PCCU holds a significant ownership interest and is a major financial partner. On May 22, 2025, Donald Emmi, the Chief Legal Officer of SHF Holdings, announced his resignation effective June 6, 2025, citing personal reasons unrelated to any disagreements with the company’s operations or policies.

SHF Holdings Appoints New Director After Resignation

On May 2, 2025, Karl Racine resigned from his position as a director at SHF Holdings, Inc. for personal reasons, with no disagreements regarding company operations or policies. The same day, the company appointed Francis A. Braun III as a Class I director. Mr. Braun, with extensive experience in public accounting and financial expertise, brings a wealth of knowledge to the board, enhancing the company’s governance and strategic oversight.

SHF Holdings CFO Resignation Announced

On April 28, 2025, SHF Holdings announced the resignation of their Chief Financial Officer, James H. Dennedy, effective June 6, 2025. Mr. Dennedy’s departure is due to personal reasons and not related to any disagreements with the company’s operations or policies. The company plans to search for a new CFO, with CEO Terrance Mendez stepping in as interim CFO after the resignation date.