Safe Harbor Financial reports 2025 results, highlights debt elimination

Safe Harbor Financial (NASDAQ:SHFS), a leading financial technology platform for the cannabis and hemp industries, announced its financial results for the fourth quarter and full year ended December 31, 2025.

The reports reveal a company in the final stages of a major "strategic reset," characterized by a total transformation of its balance sheet and the renewal of its most critical commercial alliance.

The most significant development for the fiscal year was the elimination of substantially all of the company’s debt.

Through a recapitalization completed in September 2025, Safe Harbor removed $18.3 million in debt from its books and raised $6.7 million in new capital.

This maneuver successfully restored positive stockholders' equity, which stood at $8.2 million at year-end, a massive swing from the $12.3 million deficit reported at the close of 2024.

The company ended 2025 with $6.8 million in cash and cash equivalents, up nearly 200% year-over-year.

Operationally, the company saw a significant pivot in the fourth quarter.

While full-year 2025 revenue declined to $7.7 million (down from $15.2 million in 2024), Q4 revenue of $2.1 million represented a 12% sequential increase over the third quarter.

This late-year momentum was driven by a Second Amended Commercial Alliance Agreement (CAA) with Partner Colorado Credit Union (PCCU).

Effective October 1, 2025, the new agreement nearly doubled Safe Harbor's share of loan program income—from approximately 35% to 65%—and extended the partnership through December 31, 2031.

Consequently, loan program income for the fourth quarter surged 71% sequentially to $0.9 million.