Key insights
- Fold Holdings Inc (FLD) Q4 2025 earnings reveal a mixed performance. While full-year revenue grew 34%, Q4 was impacted by slower Bitcoin activity and launch delays. Strategic partnerships with Visa and Stripe, along with innovative products like the Bitcoin rewards credit card, show promise. However, a significant GAAP operating loss and challenges in scaling the credit card program due to fraud controls raise concerns. Bitcoin price volatility also negatively impacted user engagement.
This article first appeared on GuruFocus.
Release Date: March 17, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Fold Holdings Inc (NASDAQ:FLD) successfully launched the Bitcoin rewards credit card, which is expected to significantly increase transaction volumes and drive revenue growth.
The company has formed strategic partnerships with Visa and Stripe, enhancing its payment infrastructure and expanding its market reach.
Fold Holdings Inc (NASDAQ:FLD) has introduced innovative products like the Bitcoin gift card and Bitcoin bonus program, which have shown promising growth and customer acquisition potential.
The company eliminated all outstanding convertible debt, simplifying its capital structure and improving financial flexibility.
Fold Holdings Inc (NASDAQ:FLD) reported a 34% year-over-year increase in full-year 2025 revenues, demonstrating strong growth despite industry challenges.
The slowdown in Bitcoin activity negatively impacted Fold Holdings Inc (NASDAQ:FLD)'s Q4 results, leading to lower transaction volumes.
Launches of the credit card and Bitcoin gift card were delayed due to third-party vendor negotiations, affecting initial growth projections.
The company reported a year-to-date GAAP operating loss of $27.8 million, a significant increase from the previous year.
Bitcoin's price volatility led to reduced engagement and slowed user growth, impacting Fold Holdings Inc (NASDAQ:FLD)'s metrics.
The company faces challenges in scaling the credit card program due to the need to fine-tune fraud and risk controls.
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Q: Can you provide insights into the Bitcoin gift card's performance in Q4, including revenue and sales breakdown? A: The Bitcoin gift card, launched this year, saw significant success, particularly through our partnership with Kroger. It experienced about 20% month-over-month growth, bringing thousands of new customers to Fold. In Q4, the gift card contributed significantly to our custody and trading revenues, adding approximately $722,000. We are in discussions with other retailers to expand this product further. (Will Reeves, CEO)
Q: What is the current status of the credit card waitlist, and how long will it take to distribute cards to everyone on it? A: The waitlist currently has over 80,000 people. We are in the process of underwriting and extending credit lines, starting with top users and moving through the waitlist in waves. The rollout speed will depend on fine-tuning our risk and fraud models. We aim to scale quickly once these controls are optimized. (Will Reeves, CEO)
Q: Can you explain the financial model of the credit card compared to the debit and gift cards? A: The credit card is designed to be a profitable product from day one, with interchange rates twice that of our debit card. It offers up to 4% back on purchases, incentivizing users to engage with our platform. We have built this card in partnership with Stripe and Visa to retain maximum economic benefits. (Will Reeves, CEO)
Q: How does the Steak and Shake partnership fit into Fold's enterprise strategy? A: The partnership allows Steak and Shake employees to receive Bitcoin bonuses, integrating Bitcoin into their financial lives. This initiative is part of our enterprise strategy to offer businesses our infrastructure for employee rewards. It provides a new revenue stream through SA contracts and helps us acquire new customers. (Will Reeves, CEO)
Q: What are the plans for managing the credit card's receivables and funding? A: We aim to retain maximum economics from the credit card program. While we will use third-party financing facilities to scale, Fold will participate in the financing as needed. This approach allows us to maintain control over the program's profitability. (Wolf Ripas, CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.