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Ladies and gentlemen, thank you for standing by. Welcome to Fold's second quarter 2026 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. Please be advised that today's conference is being recorded. I would like now to turn the conference over to Samir Jain, Investor Relations. Please go ahead.

Thank you, operator. Good afternoon, and thank you for joining us for Fold Holdings' second quarter 2026 earnings call. Joining me on the call today are Chairman and CEO, Will Reeves, and CFO, Wolfe Repass. Before we begin, please note that the information reported on this call speaks only as of today, August 11, 2026, and therefore, any time sensitive information may no longer be accurate as of the time of any future replay, listening, or transcript reading. A replay of today's call will be available by webcast on the company's website at https://investor.foldapp.com, and more information on how to access this replay feature will be included in the company's earnings release. Comments on this call may contain forward-looking statements within the meaning of the U.S. federal securities laws.

These statements are based on our current expectations and beliefs and are subject to risks and uncertainties that could cause actual results, products, activities, or timeframes to differ materially. For example, statements suggesting or implying the company's ability or positioning for growth, as well as any statements which indicate future dates or timeframes are forward-looking statements and inherently uncertain. In some cases, you may identify forward-looking statements by terms such as believe, expect, potential, should, plan, or similar terminology. But any statement that is not a statement of a historical fact may be a forward-looking statement. These statements reflect the current views of Fold's management and are not guarantees of future performance.

Please refer to Fold's Form 10-K and other filings within the SEC for discussion of risks and uncertainties that may affect our upcoming results, future plans, and product rollouts, among other things. We will discuss certain non-GAAP financial measures during this call. These measures should not be considered a substitute for GAAP results. A reconciliation of comparable GAAP measures is included in our earnings release and SEC filings. With that, I'll pass the call to Fold CEO, Will Reeves.

Good afternoon, everyone, and thank you for joining us. Fold is entering an important new chapter. Over the past year, we've invested across consumer credit, banking infrastructure, merchant distribution, rewards, and new revenue engines. Today, much of that foundation is in place, and over the next few months, investors will begin to see those investments come together. Our credit card is performing well in early access. We've eliminated our secured debt and increased our financial flexibility. We've established the banking infrastructure to participate in the economics of customer deposits, and we're preparing to bring a much broader Fold platform to market. Everything we've built has been in service of one objective: build the most rewarding financial platform in America. That progress is especially important given the environment we've been operating through.

The second quarter remained challenging across the broader Bitcoin industry. Lower Bitcoin prices continued to pressure transaction activity, trading volume, and consumer engagement, and those conditions are reflected in our financial results. But we believe the more important story is how different Fold is becoming as a business. Historically, our economics have been heavily dependent on transaction activity. Going forward, we're building a broader financial platform designed around deeper, longer-term customer relationships and more durable sources of revenue. We believe the next generation of financial platforms won't be defined by the best individual products. They'll be defined by the strength of the customer relationship. That's the platform we're building. One that rewards customers not just for how they spend, but for how they save, build wealth, and manage their financial lives over time.

At its core, Fold is expanding from solely a transaction business into a broader financial services company. Historically, Fold generated most of its revenue from payment transactions, card products, merchant offers, and exchange volumes have driven nearly all of our historical economics. Going forward, we are expanding beyond payments into additional traditional financial services, primarily those that encourage users to deposit and hold assets on the Fold platform. This strategy allows us to participate in the economics of those assets and is intended to grow our investable cash, earn yield on that cash, and to use that yield to provide richer rewards to our customers. We believe that focusing on deepening the customer relationship can fundamentally change the economics of Fold.

They create more predictable recurring cash flows, stronger customer relationships, greater customer lifetime value, and ultimately, a business that's less dependent on transaction activity alone. We believe that's the economic foundation that allows us to sustainably deliver better products, stronger rewards, improved cash flows, and long-term growth. Delivering that strategy required infrastructure we simply didn't have a few years ago. Our recently announced partnership with Lead Bank provides the foundation that enables us to bring expanded banking capabilities to more customers, participate in deposit economics, and support the next generation of the Fold platform. Additionally, over the past year, we have been building a proprietary bank-grade core ledger, purpose-built for a multi-asset world. We believe this infrastructure is one of the most important long-term competitive advantages we have.

The second major update is who Fold will be serving. Historically, Fold primarily served Bitcoin-native customers. Going forward, we're building a platform for anyone who wants to be rewarded for managing their financial life. We believe expanding our addressable market to a broader audience will increase the value of the distribution, partnerships, and infrastructure we've already built and lead to better growth opportunities for our business. Our conviction in Bitcoin hasn't changed, and we continue to believe it's a strategic long-term asset and will continue to grow in importance within financial services. Our strategy is simple: build the best financial platform first, provide optionality to customers, and create more opportunities for customers to discover the long-term benefits of Bitcoin over time. Of course, strategy only matters if you can execute.

Our Fold Credit Card has been the proving ground for the broader platform. Today, over 2,000 customers are participating in early access. The objective was to validate underwriting, fraud systems, servicing, financing, and the customer experience before scaling, and the results have reinforced our confidence. Interchange and lending economics continued to meet or exceed our expectations, and our per-swipe economics are profitable as it currently stands. We've improved underwriting, expanded approvals for qualified customers, and built the operational confidence to support our broader rollout. During the quarter, we also de-risked our balance sheet in order to support these launches and our overall business. Specifically, we eliminated all of our secured debt to reduce treasury volatility and increase financial flexibility and kicked off initiatives to lower operational costs.

Together, these milestones give us confidence that Fold is entering its next chapter from a position of strength with the platform, capital structure, and operational foundation needed to pursue the opportunities ahead. The next few months don't consist merely of additional product launches. It's the period where investors will begin to see the foundation we've been building come together. We look forward to sharing more as those products come to market and discussing our progress with you on our next earnings call. With that, I'll turn it over to Wolfe to review our financial results.

Thanks, Will. As anyone that follows our space already knows, the second quarter continued to be a challenging environment for the broader Bitcoin ecosystem. Lower Bitcoin prices have continued to weigh on retail engagement, and that has been reflected in our numbers through the first half of the year. During the second quarter, we generated revenue of $6.1 million, a decrease of 26% year-over-year. Our GAAP operating expenses during the period were down 4% to $13.9 million, compared to $14.5 million in the second quarter of 2025. Net loss in the quarter was $9.7 million compared to a net income of $13.4 million in the prior year period. Consistent with prior quarters, we look to adjusted EBITDA as a key barometer of core business operations.

In Q2, adjusted EBITDA was negative $5.5 million, compared to negative $4.7 million in the prior year period. The principal drivers of the increased loss relate to increased payroll and contractor expenses as our headcount expanded year over year. Our numbers for the first half of 2026 reflect both the challenges posed by current headwinds in the Bitcoin space, as well as the increased investment we have made over the past two years to improve our infrastructure, our team, and to support the rollouts of major new product lines like the Fold Credit Card. Looking ahead, we expect our financial profile to evolve as we expand into yield on assets held, which we believe will result in higher, more recurring revenues, better margins, and less dependence on transactional volume.

We believe our broader strategy will also improve both the quality and predictability of our earnings over time. We are also focused on reducing operational expenses, including the elimination of certain vendors and contractors that were used to support our investments over the past year. During the quarter, we also eliminated USD 20 million in Bitcoin-backed debt under our facility with Two Prime, thereby reducing our monthly interest expense by nearly USD 145,000 going forward. We retained an additional USD 25 million of unrestricted capital for use in the business. This move was made primarily to improve financial flexibility and reduce the volatility associated with our treasury. As it currently stands, Fold is self-financing all of the receivables on our Fold Credit Card product. This is by design, as we do not currently require a third-party financing vehicle.

However, as receivables grow, we expect to expand financing capacity through strategic financing partners. Despite the challenging quarter, we believe the product foundations we have in place are well positioned to scale to larger audiences. Our priorities now are to scale the Fold Credit Card responsibly, execute on our newest product initiatives, continue managing costs carefully, and to continue to look for areas to acquire new users and expand margins. With that, I'll turn it back to Will.

Thanks, Wolfe. Before we open the line for questions, I'd leave you with one final thought. The investments we've made over the past two years weren't about improving one quarter. They were about building a fundamentally different company, one that's evolving from a transaction business into a full-featured financial services business, one serving a much larger market, and one with the foundation to become what we believe can be the most rewarding financial platform in America. We're looking forward to sharing more as our strategy unfolds over the next few months. With that operator, we'd be happy to take your questions.

Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. The first question will come from Dave Storms with Stonegate. Your line is now open.

Hello. Good afternoon. This is Maximus. I will be asking questions for Dave today. Just wanted to start off with, I guess, beyond account growth, are you seeing any other early signs that customer activity is accelerating, especially in the current challenging Bitcoin price environment? Thank you.

Hey, Maximus. Thanks for jumping on here. As most of the traditional metrics that we are looking at, transaction volume, trading volume obviously down. I think we are seeing that across the broader industry. But really what this is about is looking at where the company is going next and as we are positioned for kind of a reversal here in the market. When I look at positive signs, we have really looked at the Fold Credit Card program. We have seen transactions per user increase 4x since a customer begins using it to as they establish themselves into the program over a few months now that we have several months of data. All of this is suggesting that the card is performing exactly as we hoped it to, which would be the primary transaction card for our customers.

While we are seeing trading and Bitcoin definitely depressed in this period, we are seeing bright spots in some of the early kind of new growth products that we are teeing up. A lot of it is Fold has been building towards a more robust platform, not so tied to Bitcoin sentiment or volatility. Where that will always be a boon for us in strong Bitcoin markets, but really Fold is here to serve the entire customer. We are seeing increases in transactions on the Fold Credit Card. The spend per user is outpacing even what our projections were. We are very excited to continue the rollout of the Fold Credit Card to the wider MTU base, to the wait list, and to the new growth segment customers where we are looking to target with our upcoming launches in a few weeks.

I appreciate that. Great color. Then I wanted to move forward with the Bitcoin Gift Card. You guys have lowered the customer fee. I wanted to see, are you seeing that drive higher customer activity and I guess overall retailer interest? Also wanted to touch on the expanded distribution through TikTok Shop and what the early results are there and if you're seeing a meaningfully different customer than your existing distribution.

What we've been noticing with this card program is the strategy of the Bitcoin Gift Card is to lay distribution lines, physical distribution, and digital distribution into some of the largest networks or marketplaces in the U.S. We believe that these distribution lines we're laying today are going to make us top of mind and very accessible for when Bitcoin's price reversal occurs, and Fold will be everywhere. One of the things we've learned is as we gain distribution to new partners, they bring different types of customers. I think our first flagship customer obviously was Kroger, and being sold in a grocery context, that is a lot of gifting, where people are looking at it primarily as a gift.

What we are very excited to see is, I think the TikTok Shop that just opened up a number one, primarily a digital environment and one with a very different customer base than Kroger. We are seeing incredible results. This is one that has some of the biggest momentum we've seen of any distribution channel, and that's all happening in a very depressed Bitcoin market. You can see what's even more interesting is as it made an appearance into TikTok, you're starting to see creators create content around this, and these videos are posting 20, 50, 60,000 views per video. These are all driving customers, not just to the gift card, but to Fold in general. We believe that these lines are only going to get more valuable as market sentiment returns.

It also is helping us guide where are the most valuable distribution channels for us to focus on. I think TikTok, you're going to see is an example of what more of the names that we are going to be adding to this distribution line. We love the engagement post-redemption. We love the profile of customer. As we mentioned in the earnings call, our upcoming launches are going to allow us to speak to a much broader customer that is not necessarily just here to earn Bitcoin. We're going to be speaking to customers that look a lot like TikTok creators and those that are consuming not just Bitcoin content, but regular personal finance. We think that this upcoming summer launch is going to just make these distribution channels even more valuable.

Not just allowing us to capture more Bitcoin demand, but also just capture the 80% of Americans who are searching for really just the best rewards program out there. Fold's going to be top of mind because of these distribution lines.

I appreciate that. Thank you, and good luck the second half of the year.

Thank you. As a reminder, to ask a question, please press star one one on your telephone. The next question comes from Mike Grondahl with Northland Capital Markets. Your line's open.

Hey, guys. This is Kiyan Phelps on for Mike Grondahl here. Just one or two from us on credit cards. I think last quarter you stated the credit card pipeline was roughly 80,000 people. Any updates on the size of that going into the back half of the year?

When we look at the pipeline for our product, there are really three buckets that we are looking at. Fold today has tens of thousands of customers on the platform every month. Only a segment of those have actually gotten access. We have the wait list, which stands over 80,000. That has both continued to grow, but it is also customers are just coming direct to the platform now to get in line for the card. We have our distribution channels that we mentioned a few, like TikTok, but also not just the channel, but our TAM of people interested in Bitcoin and people just interested in the best rewards platform out there. All three of those are going to be tailwinds as we move into the scaling chapter of the credit card program.

The early access program was specifically not for scale. It was to harden our operations and make sure that our KPIs are in the right direction, the economics are correct, and that is exactly what we have seen. Almost every single metric that we look at as important to this credit card meets or exceeds our expectations and our projections. As we move to widening the credit card release, that will coincide with our upcoming product launches later this summer. That is going to both grow into that wait list, our existing MTU base, but also I think in a very important way, also speak to customers who are not necessarily just here for Bitcoin, but just truly want the most rewarding platform out there. I think we are going to deliver that to America shortly.

Okay. Great color there. Last one, the Bitcoin Bonus Program, I guess, how is that looking at the top end of the funnel as we go into the back half of the year as well?

We are seeing great feedback from the Employee Bitcoin Bonus program. This is really the first of its kind at the scale. We have Anchor, we have Steak 'n Shake, we have Bitcoin and crypto companies who are on it, Simple Mining, all who are using it for retention and for recruitment. A lot of our focus today is focusing on, number one, let us make sure those customers have a great experience and that product is dialed in, and we can easily onboard more businesses at scale. Also we can get proof points that we are directly having an impact on these companies' ability to recruit and retain talent. We think that is the case study.

That's the data that is going to allow us to break out from our individual relationships with Steak 'n Shake and start integrating the Employee Bitcoin Bonus program at large into the major paycheck and benefits portals out there. A lot of it is going to be driven by the proof points from these early customers.

Great. Thanks for taking the questions, guys. Best of luck on the back half of the year.

Thank you.

Thank you. The next question will come from Nathan Frankovitz with Cantor Fitzgerald. Your line's open.

Hey, guys. Thanks for taking my question. Just another one on the credit card scaling. Can you provide an update on the expected pace of cardholder growth over the next few quarters? I think last quarter you mentioned the gating factor being financing capacity. Is that the gating factor today, or has anything changed there? Thank you.

Yeah. Today, we are running the credit card fully off our own balance sheet today. As we've moved through early access, hardening the kind of operations of the program, the next will be expanding out into that pool of customers. We have the wait list, we have our existing MTUs, and we have our expansion into other customer segments. Really the gating factor to satisfying all that demand is to continue to find new financing partners to help us expand our ability to service beyond our own balance sheet. What you are going to see in tandem with the summer launches and wider release of the credit card is bringing on new partners that are going to be providing the financing to expand.

The interesting thing here is one of the main things we've done in the early access is to really hone in our underwriting. You know, at the very early onset of the program, our underwriting was extremely strict, and that was a lot to make sure we were scaling responsibly on our own balance sheet, making sure that we are getting good data. At the same time, that meant some good customers weren't getting through. We spent a lot of the early access defining how can we maximize great customers in, and make sure they're not getting blocked by any underwriting, while also at the same time make sure we're keeping all the risks under control. For us, as we look forward, we've really now gotten to dial that in.

Now we can bring it to a much wider audience and not deny good customers. That is the exact opposite of what we wanted to do, and one of the reasons why we didn't want to go out of the gate too fast, because you are going to create an unfortunate experience for some great people. We think we have really dialed that underwriting in now, and that's going to allow us to expand faster and make sure we're getting as much of that demand as possible. But right now, the only limiting factor in continuing to scale is continuing to bring more and more financing partners on board. That's going to be true of the life of this program.

We're going to be having strategic financing partners in that will allow us to expand the credit score box or go deeper within a given cohort. We're going to start with some announcements in the financing that will be in tandem with our summer launch. I think one of the things to keep in mind, I think maybe is the largest and most important point that we've made in this earnings call, is that Fold historically has only monetized the transactions of our customers. Our customers live rich lives. They get paid, and they do a lot of things with their money. But up until today, Fold has only monetized their transactions, and transactions are deeply dependent on market sentiment, and factors that can, like you can see in our results today, can really make that volatile.

A lot of that reason is we haven't monetized the other side of our customer base, which is their assets that they hold, which is where they park their money, where they get paid. Now with Fold's partnership with Lead Bank and our upcoming product launches, where we'll be able to talk much more freely and openly about some of these strategies, this is what it's all going to come to fruition there. We're going to be monetizing 100% of our customer base, and what that will look like is a much better customer experience for them. So when we look at the credit card, we still intend to have a credit card that really targets an upper-end customer that also is going to be bringing assets to the platform as well.

This means that even if we're sacrificing in terms of volume of customers, we're going to be onboarding more valuable customers that Fold can readily optimize beyond transactions, that we can optimize their entire financial life. I think that is the story we're going to be talking about in Q3, of how Fold has transformed from a transaction business to an entirely new dimension of monetizing the whole customer relationship on assets that they're bringing. Because Fold has always attracted a customer base that is high income, has a lot of liquid assets that they want to optimize their life around, and Fold is going to deliver them the most rewarding financial platform in America, and that's all going to become clear in the coming weeks and what we'll really get into in Q3.

Great. Thanks so much. That's helpful color. If I may, I think that's a good segue. I noticed that you commented that you'll be providing support for customers beyond Bitcoin. Do other crypto assets have a role in that story?

Fold has really, if you look at what Fold has done, is that we have made dollars and Bitcoin seamless, where you can hold Bitcoin and you can hold dollars, and they are all connected to the traditional financial tools that Americans rely on every day. The reality is that when you look at what Americans want, they want more dollars, and increasingly, they want more Bitcoin. There are groups of consumers out there who want other crypto assets because they are traders or want to speculate. Fold is about personal finance, and from what we have seen from our customer base, our interviews beyond market research, dollars and Bitcoin reign supreme, and that is what we will continue to focus on.

What Fold is going to be doing is we have already established our foothold as the premier provider of Bitcoin rewards. We are now going to use the same platform with some major improvements coming to become the premier provider of rewards in general. That is going to mean meeting customers where they are at today. 80% of consumers today are interested primarily in cash back. That is a reality that is in the market. We are not here to shy away from that. In fact, we believe those are going to be great customers for Fold that we can ultimately transition to be earning Bitcoin. One of the things we have always done well is meet people where they are today.

We are going to meet the largest segment of the market very shortly and bring them into our platform, not just because they want Bitcoin, but because they want the most rewarding financial platform out there, and that is what we are going to deliver.

Fantastic. Thank you.

Thank you. I am showing no further questions at this time. I will now turn the call back over to Will for closing remarks.

Thank you very much, Michelle. It was obviously a challenging Q2. I think the signal here is the team has put focus in, has made our investments into a new vision for Fold. It's one that we spoke about a year ago today. There have been challenges to get here, but the reality is we're here. The bulk of the investments are done. The infrastructure is set. We have incredible IP that we have developed, incredible new product expansions that allow us to speak to customer segments that are orders of magnitude larger than the ones we've been speaking to over the last few years. We think overall, this is going to drive a tremendous amount of value to our existing customers, to our new customers, but most importantly, to the equity and to Fold.

I want to say thank you to all the investors and team, advisors, and board members who was brave enough to go and invest in this very large vision through a Bitcoin bear market, and we're about to see the fruits of our labor. It is one of those amazing moments where it is the best of times and it is the worst of times. It was a difficult quarter, absolutely, across the crypto industry. But what we did during that time is going to define us in the future, and it's going to define our ability to grow, to build a great business, accelerate towards cash flows. I'm really excited to return in Q3 and discuss that with all of you. I think we'll have something we're really proud of to show you all.

So thank you all for joining today.

This concludes today's conference call. Thank you for participating, and you may now disconnect.

Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Samir Jain of Investor Relations. Please go ahead.

Thank you, operator. Good afternoon, thank you for joining us for Fold Holdings' first quarter 2026 earnings call. Joining me on the call today are Chairman and CEO, Will Reeves, and CFO, Wolfe Repass. Before we begin, please note that the information reported on this call speaks only as of today, May 12, 2026, and therefore any time-sensitive information may no longer be accurate as of the time of any future replay, listening, or transcript reading. A replay of today's call will be available by webcast on the company's website at investor.foldapp.com, more information on how to access this replay feature will be included in the company's earnings release. Comments on this call may contain forward-looking statements within the meaning of the U.S. Federal Securities Laws.

These statements are based on our current expectations and beliefs and are subject to risks and uncertainties that could cause actual results, products, activities, or time frames to differ materially. For example, statements suggesting or implying the company's ability or positioning for growth, as well as any statements which include future dates or time frames are forward-looking statements and inherently uncertain. In some cases, you may identify forward-looking statements by terms such as believe, expect, potential, should, plan, or similar terminology. Any statement that is not a statement of historical fact may be a forward-looking statement. These statements reflect the current views of Fold's management and are not guarantees of future performance. Please refer to Fold's Form 10-K and other filings within the SEC for discussion of risks and uncertainties that may affect our upcoming results, future plans, and product rollouts, among other things.

We will discuss certain non-GAAP financial measures during this call. These measures should not be considered a substitute for GAAP results. A reconciliation to comparable GAAP measures is included in our earnings release and SEC filings. With that, I'll pass the call to Fold CEO, Will Reeves.

Thanks, Samir. Good afternoon, everyone, and thanks for joining us. Q1 was a challenging quarter across the broader Bitcoin industry. Lower Bitcoin prices, pressured transaction volumes, trading activity, and consumer engagement. Fold saw that pressure in our results. As with past drawdown cycles, we believe the fundamental value proposition, technological value, and network effects of Bitcoin remain very strong. We are focused on what we control, and we continue to put our energy and focus into building our products and serving our customers. Over the last several quarters, we have laid the foundation for Fold's next phase. We launched the Fold credit card, expanded Bitcoin access across retail platforms, advanced our infrastructure, simplified our capital structure, and strengthened the acquisition and rewards engine we believe can scale Fold significantly from here. That foundation is now in market.

In that vein, let's talk about some of the important developments this quarter. The Fold credit card is a foundational product for us. If Fold is going to become the primary financial platform for Bitcoin-minded consumers, we need to be present across savings, rewards, exchange, and everyday spending. The credit card completes what we believe is already one of the strongest consumer Bitcoin platforms in the market and materially expands both our growth opportunity and our relationship with customers over time. As of today, the Fold credit card is live with more than 1,000 cardholders. A reminder that this product officially launched into early access in March, and that we are intentionally throttling access through a phased rollout. This allows us to validate systems, economics, underwriting, servicing, and risk assumptions as we scale.

We remain on target with the rollout expectations and plan to continue expanding access through the quarters ahead as we work through our existing wait list of more than 80,000 potential users and our existing user base. We are extremely pleased with both the early demand and customer response. What is especially encouraging is the cohort behavior. Cardholders are already engaging with the multiple products in our ecosystem, validating our belief that the card can become both a powerful acquisition engine and a major driver of ecosystem engagement over time. Importantly, this cohort includes both entirely new customers and existing Fold users, deepening their engagement with the platform. We are also seeing strong signals that this is becoming a true primary card for users, exactly as we intended.

Customers are using the card across everyday purchases as well as larger spend categories like travel and major transactions, reinforcing our belief that the card can compete as a mainstream financial product, not simply as a niche Bitcoin card. Importantly, this rollout only represents the early foundations of the experience we intend to bring to market. The current release does not yet include the full reward structure, merchant experiences, benefits, and broader platform integrations that we anticipate in the future. Given the timing of the launch, the credit card did not materially contribute to Q1 results. As access expands, we expect the card to become an increasingly important contributor to the transaction volume, customer acquisition, engagement, and revenue growth. In parallel, we have also been working diligently on securing additional capital facilities to support larger scale growth of the credit card program.

While we cannot discuss specifics today, we expect to share additional updates in the near future. The Bitcoin Gift Card also remains an important part of our growth strategy and continues to perform strongly. Through this product, we have onboarded thousands of new customers and re-engaged existing users through a familiar retail experience. Many of these users are now engaging across the broader Fold ecosystem exactly as we expected. These are high-quality customers that we believe can create significant long-term value for Fold. Our flagship relationship with Kroger has been a success. We believe this model can scale nationally across additional retailers. We intend to move aggressively to capture that opportunity. To support that growth, we are restructuring our gift card economics with distribution partners to materially reduce customer friction and improve retail placement opportunities.

From a financial perspective, you should increasingly think about the gift card business as cost neutral on the front end, with the value compounding over time as users move into credit, exchange, rewards, debit, and additional Fold products, just as we've seen from the existing program. Another important milestone this quarter was the launch of Fold's Bitcoin Bonus Program with Steak 'n Shake and others, and we are already seeing meaningful interest from additional businesses exploring similar programs. Through the program, employees earn Bitcoin bonuses alongside their normal wages, turning everyday work into long-term savings and ownership. This is not a payroll replacement or a speculative trading product. It is the retention and savings tool built around long-term alignment.

We believe what begins with Steak 'n Shake has the potential to expand from here, and we believe the Bitcoin Bonus Program has the ability to become the beachhead into a much larger business platform opportunity for Fold. In many ways, this is Fold extending the value already proven on the consumer side of the platform into businesses and employers at scale. The same infrastructure behind this product can naturally expand into payroll, employee benefits, corporate treasury, corporate rewards, and corporate spending tools over time. The credit card, our retail distribution, the business offerings launched this year are becoming the foundation of Fold's core platform going forward, and what we believe can drive meaningful scale over time. We are already well into the next phase of product development and expect to provide additional guidance on upcoming launches soon.

As these products come to market, we believe Fold is increasingly positioned to emerge not only as one of the best places to acquire Bitcoin, but also one of the strongest platforms for consumers to be rewarded for their financial activity overall, not just within Bitcoin, but across the broader rewards industry. Because of the timing of the credit card rollout, many of our upcoming launches will now occur in closer succession rather than across a longer staggered timeline, making for what we expect will be a very active and exciting period ahead for Fold, with multiple launches, platform expansions, and additional developments still to come. With that, I'll turn it over to Wolfe.

Thanks, Will. Thank you to everyone for joining today. As Will mentioned, Q1 was a challenging quarter for the entire industry. In February, the price of Bitcoin was down nearly 50% from its all-time high in October, representing a significant drop in a short period of time. These pullbacks caused many consumers to risk adjust their spending and investment behaviors. Neither Fold nor many of our competitors were immune to that behavioral shift. We saw that impact both our transactional volumes, which were down 31% year-over-year for the same period, and in our revenues, which were down 21% year-over-year for the same period. February 2026 marked a bottom across most of our core KPIs over the last year. We are already seeing signs of a rebound as the price of Bitcoin shows signs of recovery.

Overall, our Q1 operating expenses were $13.4 million compared to $16.6 million in the first quarter of 2025, a decrease of approximately 19%. The primary drivers of this decrease were lower direct costs associated with revenue, which were also down 21% year-over-year for the same period, lower share-based compensation expense, and lower professional services fees. Net loss in the quarter was $29.2 million compared to a net loss of $48.9. A reminder that our net loss is impacted by non-operating items, including the change in fair value of our Bitcoin investment treasury and various entries related to financing structures like SAFE notes and convertible debt. Therefore, consistent with prior quarters, we look to Adjusted EBITDA as a better barometer of our core business operations.

In Q1, Adjusted EBITDA was negative $5.8 million compared to negative $4.2 million in the prior year period. The principal drivers of the increased loss relate to increased payroll expenses of $1 million as our headcount expanded year-over-year, and increased expenses related to product development and marketing, including net new branding efforts that are currently underway. On the balance sheet, we ended the quarter with $11.5 million in cash and cash equivalents compared to $7.7 million at year-end. Net cash used in operating activities was $6.6 million compared to $5 million in the prior year period. As previously announced, in Q1 we extinguished both of our previously existing convertible notes, eliminating the simplifying our capital structure and improving optionality with our financing options.

As of March 31st, we held 826 Bitcoin in our investment treasury, which today is valued at nearly $67 million, of which 430 Bitcoin is currently held as collateral under our Two Prime Credit Facility. Despite the challenging quarter, we believe the product foundations we have in place are now well-positioned to allow us to scale to larger audiences. As a reminder, all of our products currently generate positive contribution margins for the company. Our priorities now are to scale the credit card responsibly, continue managing fixed costs carefully, and continue to look for areas to acquire new users and expand margins. With that, I'll turn it back to Will.

Thank you, Wolfe. Despite a challenging market backdrop, we believe Fold made significant progress in the first quarter, and more importantly, laid the foundation for what comes next. What is becoming increasingly clear to us is that Fold's opportunity is far larger than simply Bitcoin rewards. We believe Fold has the opportunity to evolve from a niche Bitcoin platform into a leading financial rewards platform for the Bitcoin era, competing directly against entrenched incumbents across rewards, payments, savings, credit, and broader financial services. Many of those incumbents are built on aging systems, poor alignment with customers, high fees, weak experiences, and reward structures that increasingly fail to deliver meaningful value. We believe Fold can win by offering something fundamentally better Bitcoin access, better rewards, better value, better products, better alignment with customers.

The integrated platform we are building combines Bitcoin access, rewards, spending, saving, credit, and business services into a single ecosystem where every product strengthens the broader platform. Importantly, we believe we can compete head-on fees, rewards, and experience while we simultaneously build a powerful margin, revenue, and cash flow engine for Fold over time. We believe the foundation is now in place, and we believe upcoming releases will begin making that vision unmistakably clear. We are incredibly excited for what lies ahead. Thank you to our team, our partners, our customers, and our shareholders for your continued support. Operator, let's open the line for questions.

As a reminder, to ask a question, you will need to press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile our Q&A roster. Our first question will come from the line of Dave Storms. Stonegate, your line is open.

Evening, appreciate you taking my questions. Just want to start with the rollout. I know you mentioned that things seem to be going well. Just curious as to if you're seeing anything that would make you want to or be able to go faster or cause you to slow down in that rollout.

Hey, Dave. Thanks for jumping up and asking the question here. You know, we're actually have been very excited about the pace of the rollout. I think last time we spoke, we discussed the rollout happening kind of in the phase of a few hundred, and then we'd eventually get to a few thousand and then tens of thousands. We're already at 1,000. We're well over at 1,000 now. That's really a reflection of both the team's ability to ship, but also our assumptions kind of proving out correctly, our ability to manage fraud, our ability to underwrite and service properly.

What we're really doing now is taking that cohort and taking them through a kind of a whole billing cycle where we will have a 360 degree view of the entire program. That we can confidently scale into the tens of thousands and hundreds of thousands, which I think this program ultimately leads to. I'm very excited about the 1,000 cardholders we're at today that we are accelerating that rollout. You know, any card program is ultimately throttled by your ability to manage fraud, of which I think the team has an incredible handle on, and we're seeing very encouraging results. Also as we expand into new capital partners, and we're I think going to be coming to the market with some updates on that front.

Ultimately, that's gonna help us build on the foundation we have and really start to scale this thing to a much larger cohort. Already right now, the most important thing is do we have a product that people love and are using in ways that are confirming kind of our hypotheses? Are people using multiple products? Are they using that as their primary card? All of those things are being confirmed in real time now, not only with existing customers, but new ones. So for us, the ability to control fraud and continue to do so across the full billing cycle with this level of cardholders and then bringing more credit facilities to the table is a recipe for scaling this thing much faster than we thought of. I think we are already ahead of schedule.

Understood. That's great clarity. Thank you. I wanted to turn to maybe some of the institutional interest on the Bitcoin Bonus Program. What are you seeing towards the top of that funnel? I guess as you start to bring more corporations on board, how are you seeing that sales cycle evolve? Is that shortening? Are there things you're learning? Maybe just any more color here would be great.

I think we're early. You know, to be very honest, this is a program we just launched about a little less than a month ago. All feedback from not only employees participating, but the employers and Steak 'n Shake and some of the other businesses are really loving the program. We have seen an incredible response from businesses who wanna add this to their benefits package. It really runs the gamut from small businesses all the way up into businesses that more look like Steak 'n Shake, publicly traded, thousands of employees.

We've found something really interesting selling this product that, you know, typically, you know, selling a business on adding a corporate treasury of Bitcoin or earning rewards on their spending of Bitcoin at some level requires a commitment and belief in Bitcoin at the leadership level. When packaged in a bonus as a benefit, these operators really look to one thing, can this program recruit better employees, and will those employees stay longer than they otherwise would have? This is what this program is starting to unlock, is a whole new set of businesses that Bitcoin is relevant for. What that ultimately does is it really opens up the top of the funnel pretty tremendously.

You know, we are working through all the various business sizes that we've seen come through the sales funnel, and we're excited to be continuing to announce more participants. You know, for us, we built this program to scale to large businesses, and I think that's where a big impact is gonna be, not only for, you know, for what shareholders care for about adding more monthly transacting users to our ecosystem, but also larger contracts with these businesses. I think over the next few quarters you'll start to see this program grow and, you know, I think that you'll see a quite an interesting mix that shows really the diversity and demand for this program.

That's great. Appreciate all the commentary, and I'll get back to queue.

As a reminder, to ask a question, please press star one one on your touchtone telephone. Our next question will be coming from the line of Mike Grondahl of Northland. Mike, your line is open.

Hey, thank you guys. First on the Bitcoin Gift Card, can you kind of explain the economic change to promote distribution partners? Did the fees go from like A to B? If you could just walk us through that to start.

Mike, it's good to hear from you. Let me take a step back. Right now, Fold is sitting in a reality where all of our product lines are contributing to positive contribution margins. Every dollar in, every customer in is accretive to the business. The Fold Card is now live and in market and will begin to rapidly scale over the coming months. All Fold needs is to increase our scale, and what that ends up is a company generating cash flows and consistent growth, especially if we see the market return and Bitcoin start to perform. For us, we wanted to gear our business for maximum scale. What we learned from the Bitcoin Gift Card with its pilot season at Kroger was that it's bringing in thousands of customers.

One of my favorite customer examples of this is, I believe it is a top five spender at Fold came off a gift card now. We are seeing it become an incredible area of growth for referrals. As we look forward to the future, we wanna remove any impediment to growing this program, both for new customers coming in, but also new retailers carrying this. The number 1 area of friction that we heard was the fee. You know, that's a function of the cost associated with getting these things physically in the doors, which varies by retailer.

As we ran the numbers, looked at, you know, what are these customers doing once they're in, are they engaging with our other products, you know, we very quickly came to an obvious outcome, where removing the fees is going to generate more customers in the door. It's gonna have more retailers interested in carrying this. Ultimately, that's what we want. That's good for Fold. That's going to scale the user base much faster. When we talk about where the fees are going, you know, the customer is gonna see significantly reduced fees up front.

That's all been done based on working with our retailers to reduce their fees, so reducing the built-in cost there, and seeing the payback period that we are seeing on some of these customer cohorts coming through there. It still is very relevant to and dependent on retailer by retailer. For the customer side, making it maximally available, reducing friction, those fees are gonna go to zero.

Got it. You might still have to pay Kroger a small commission, but if I'm buying $50 of Bitcoin off a Bitcoin Gift Card, I'm not paying a commission to you anymore. Is that fair?

Yeah, correct. A lot of it was just passed on to the customer. Ultimately what it made was a, you know, a great gift, but it wasn't necessarily a great way to continue to buy. We see just by simply making this change, we see a whole different set of customers come to the product that use it more and more often. For us, the big question was, well, who are these users coming in? Are they gonna make good users? Are they gonna mature into users using multiple of our products? What we've seen is, yes, a lot of them are. Some of them are still holding it, just, you know, really holding their gift card.

Ultimately, when we look at the profile of them, we believe they're gonna grow into a great credit card holder, great debit card holder, and ultimately start buying Bitcoin. You know, we just had a customer write in and say, "You know, I came into Fold off a gift card. I was earning rewards, and now I've become a Bitcoin investor." They said that really wouldn't have happened without these types of on-ramp products that we bring. We look at the Bitcoin Gift Card as turning a wider segment of the population into future Bitcoin investors, and they're doing it through Fold.

Got it. Do you have any goals for the credit card business, number of cards September 30th, year-end 2026? How should we think about that going forward?

Yeah. I mean, for me, very, very, you know, Wolfe is gonna probably have a more specific way of talking about this. For me, it's as fast as possible to as many people as possible. You know, we have 1,000 cardholders right now running on credit lines that extend, you know, upwards of $20,000. We are seeing very strong spend. Now we need to see the billing cycle go through. We need to see, you know, how our charge-offs are. You know, how many are revolving. How, you know, what our average spend rate is.

That's all gonna go and inform, you know, not only how much we can scale within our existing confines about our facility, our credit facility that we have today, but also, you know, what facilities we need to bring to scale into later. All this data is making a very attractive value proposition for more credit facilities to come in and participate. This next month is really critical for really seeing that full life cycle. It's, it's in my belief that we scale all the way through the wait list and our full customer base within the year, absolutely, if not more.

I'll leave it to Wolfe to talk maybe a bit some of the, you know, constraints and maybe how he's thinking about it from balancing customer behavior that we're seeing really on the ground with the backing of, you know, the credit facilities that we need and all that.

Hey, Mike. Yeah, I think like Will mentioned, we do have internal targets. We have not put anything out publicly, we just gotta make sure the systems are working to start. Will sort of alluded to it, you know, a biggest piece of scaling a credit card program is securing a facility, a capital facility to go scale. This is not a dilutive equity style facility. This is like a revolving warehouse that we can pull down on to float customer receivable. We've been working very diligently on that process for quite some time now, and hopefully we'll be able to give some more updates, some more on that in the near future.

As soon as we get that locked in, as soon as our processes are up and running and we feel good about them, I think, we'll scale this as big as we can, with obviously the risk lens in mind.

Got it. Thank you.

I would now like to turn the conference back to Will Reeves for closing remarks.

Thank you all. You know, I wanna thank specifically the team at Fold who's been able to, you know, through a bear market, you know, these bear markets come and go. We've been building in Bitcoin for a while. This is not, you know, new to us. What Fold's team has demonstrated is that we're shipping some of the most important products that will have the biggest impact, and we're shipping at higher velocity and a higher quality than ever before. First and foremost, wanna say thank you to the team, of course, investors and partners and analysts for jumping on and asking questions and following the Fold story. I think, you know, we've waited a little bit longer than we wanted to to get the credit card to market.

Now that that's here, you know, there's a lot of products and launches that we haven't discussed, that kind of, you know, have been played secondary while we get through this milestone. Now that we're through it, I think this summer is going to really mark the beginning of, you know, Fold emerging as a clear leader, not just in Bitcoin, but in financial rewards overall. It's gonna be due to some of the big product launches and announcements and partnerships we're gonna be releasing this summer. I'm incredibly excited for what's ahead. Again, thank you all for, you know, participating in the journey. We truly believe that Fold has been making all the right investments, even when Bitcoin is down, which shows our, you know, our belief and confidence in where we're going.

I think we're going to see the return show up not only as the Bitcoin market returns, but as Fold moves beyond a company specifically tied to Bitcoin, but just financial rewards overall. I think it'll really be a paradigm shift. Thanks everyone for following, and I would like to say also finally, a happy birthday to my dad today. Thanks everyone, and have a great rest of the day.

This concludes today's program. Thank you for participating. You may now disconnect.

Hello, and thank you for standing by. Welcome to Fold Holdings’ Fourth Quarter 2025 Earnings Conference Call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask the question during the session, you will need to press star, one, one, on your telephone. You would then hear an automated message advising your hand is raised. To withdraw your question, please press star, one, one, again. I would now like to hand the conference over to Samir Jain. You may begin.

Thank you, operator. Good afternoon, and thank you for joining us for Fold Holdings’ Fourth Quarter and Full Year 2025 Earnings Call. Joining me on the call today are Chairman and CEO, Will Reeves, and CFO, Wolfe Repass. Before we begin, please note that the information reported on this call speaks only as of today, March 17th, 2026, and therefore, any time-sensitive information may no longer be accurate as of the time of any future replay, listening, or transcript reading. A replay of today's call will be available by webcast on the company's website, foldapp.com, and more information on how to access this replay feature will be included in the company's earnings release.

Comments on this call may contain forward-looking statements within the meaning of the U.S. Federal Securities laws. These statements are based on our current expectations and beliefs and are subject to risks and uncertainties that could cause actual results to differ materially. For example, statements suggesting or implying the company's ability or positioning for growth are forward-looking statements. In some cases, you may identify forward-looking statements by terms such as believe, expect, potential, should, plan, or similar terminology. Any of the statements that is not a statement of historical fact may be a forward-looking statement. These statements reflect the current views of Fold's management and are not guarantees of future performance.

Please refer to Fold's Form 10-K and other filings with the SEC for discussion of risks and uncertainties that may affect our upcoming results, future plans, and product rollouts, among other things. We will discuss certain non-GAAP financial measures during this call. These measures should not be considered as a substitute for GAAP results. A reconciliation to comparable GAAP measures is included in our earnings release and SEC filings. With that, I'll pass the call to Fold’s CEO, Will.

Thanks, Samir, and good afternoon, everyone, and thank you for joining us. This is our fourth earnings call as a public company and rounds out an eventful first year since our February 2025 listing. Over the past year, we've focused on building the foundation required to scale a Bitcoin financial services platform for both consumers and businesses. We've expanded the Fold ecosystem across numerous consumer products, strengthened partnerships and payments infrastructure, and continued to scale the rewards and engagement model that sits at the core of our platform. We introduced entirely new categories, such as the Bitcoin Gift Card, the Fold Bitcoin Credit Card, and Bitcoin native solutions for corporate partners.

Finally, and just as importantly, we've continued to grow and mature the organization with strategic hires and key operational partnerships. It's been a very busy and productive first year. Despite these milestones at Fold, beginning in early October, the Bitcoin ecosystem experienced a noticeable pullback. Bitcoin's price dropped from $124,000 to $87,000 by the end of the year and dropped to as low as $60,000 by early February 2026, representing a more than 50% decline in less than four months. This volatility, which is a common historical trend for this asset class, historically leads to reduced engagement across the entire industry.

When Bitcoin momentum slows, trading activity, spending activity, and overall financial activity across Bitcoin platforms tend to decline. Fold is not immune to those industry-wide dynamics, and we saw that reflected in our own metrics as revenues, transaction volumes, and user growth slowed in Q4. We have experienced a number of historical Bitcoin downturns in our company history. We have found ways to grow through each of them by focusing on what we can control, improving our products, and focusing on our customers. Which brings us to the product we've spent most of the past year building. This past week, the Fold Bitcoin Rewards Credit Card officially went live.

The internal team members who have worked so hard to bring it to life were the first to be underwritten and received their credit lines. Over the coming weeks and months, we plan to begin a staggered rollout of this product to our customers, beginning with the loyal customers at the top of our wait list. We couldn't be more excited as we believe this is a seminal moment in the history of the company. This product has been our top strategic priority over the past year because we believe it fundamentally changes the scale of what Fold can become. Credit dramatically expands our total addressable market and gives our customers the product they have asked for since the earliest days of Fold.

It increases the ability for Fold to capture more of our customers' everyday spending, makes it easier for customers to use our existing products, and brings entirely new types of users into the Fold ecosystem. As the Credit Card rollout accelerates, we expect it to meaningfully increase transaction volumes, deepen customer engagement, and drive revenue growth across the platform. Taken together, the launch of the Credit Card marks the beginning of the next phase of Fold's growth. We partnered with Visa and Stripe to bring this product to market, combining best-in-class global payments infrastructure with Fold's financial platform.

We believe the Credit Card will enable us to capture a greater share of wallet, increase lifetime value per user, and drive stronger interchange economics and accelerate new customer acquisition. Most importantly, it strengthens the stickiness of our overall product ecosystem. Customers can now acquire Bitcoin through debit, credit, merchant rewards, Gift Cards, and exchange activity within a single platform. As customers adopt more of these services, we deepen engagement and increase share of wallet. Our business is designed to attract new customers, sell them into cross-product adoption, and build long-term retention via sticky behaviors. The Credit Card is a foundational new piece to that strategy.

A good example of how we plan to achieve that strategy is via the rewards mechanism for this product. The Fold Credit Card provides for a flat, unlimited 1.5% back on all purchases, with the ability to earn up to 4% back for qualifying activities. Primary among those qualifying activities will be Bitcoin exchange activity on our platform. The more Bitcoin you buy or sell through Fold, the higher your total rewards on Credit Card purchases. Another important milestone since our last call was the launch of the Bitcoin bonus program. This product allows businesses who want to integrate Bitcoin into their financial life, including by integrating Bitcoin into payroll, bonuses, and other corporate financial programs to do so using Fold's infrastructure.

In January 2026, we announced our first partner for this program, Steak 'n Shake. Through this partnership, all of Steak 'n Shake's employees, subject to eligibility requirements, can now receive Bitcoin bonuses powered by Fold. In 2026, we expect this business line to expand as additional partners adopt the Fold platform to power employee rewards and Bitcoin-based incentive programs. This business introduces a new revenue stream for Fold beyond transaction fees. Enterprise partners will engage with Fold through annual SaaS-style contracts that scale as adoption grows across their employee base. Importantly, partner employees will also gain access to all of Fold's product offerings, subject to applicable KYC and onboarding requirements, which represents a major customer acquisition opportunity for Fold.

The Bitcoin Gift Card continues to gain traction and remains one of the most exciting opportunities for Fold. Through key partnerships with national brands like Kroger, Fold's Bitcoin Gift Card has established thousands of points of sale across the country. We are looking to build on this momentum and are currently in active discussions with other U.S.-based retailers. For Fold, the opportunity of the Bitcoin Gift Card means many things. First, this product is a low-cost, high-reach customer acquisition engine, and as we expand the product's reach, we hope to bring thousands more customers into the Fold network and drive business through our entire product ecosystem.

Second, this product has been designed to contribute meaningfully to both sales and gross profits as it scales. Finally, the Gift Card creates a bridge to further retail distribution. We are actively exploring how we can use this channel to better serve retail customers and develop captivating new products. Fold has a proven track record of launching products that attract new customers to our platform and enhance engagement with our current customers. Looking ahead, we intend to continue to build on this success by expanding our product offerings, and we continue to evaluate new product opportunities to attract new customers and improve cash flows for our business.

Our ability to grow is dependent on our ability to execute, and we believe now we have the appropriate foundations to do so. We are incredibly excited about the future of our business in 2026, and we hope to show even more positive results this year. With that, I'll turn the call over to Wolfe.

Thank you, Will, and thank you to everyone for joining today. Before getting into the numbers, I want to reiterate a few points that help frame our results for 2025. First, the slowdown in Bitcoin activity that Will mentioned affected the entire industry and contributed to lower transaction volumes during the fourth quarter. This slowdown impacted our Q4 results, which were still positive for most key metrics. Second, our Credit Card and Bitcoin Gift Card launches were delayed compared to our initial 2025 forecasts, primarily due to third-party vendor negotiations and program setup efforts. We continue to expect those products to materialize into meaningful growth products for Fold.

However, the time frames for when they do so have just been moved back as we worked out the launch time frames. Third, each of our core business lines currently generate positive gross margins on a product-level basis, and we expect this to remain the case for the Credit Card as it reaches full scale. With that context, let me briefly summarize our key results for the quarter and for the full year of 2025. In Q4, we delivered 3,000 new verified accounts, bringing total verified accounts to more than 84,000, representing a nearly 20% increase year-over-year. Year-to-date total transaction volumes were $960 million, up 46% year-over-year.

Q4 revenue was $9.1 million, an 8% increase over prior year same quarter, and full year 2025 revenues were $31.8 million, a 34% increase year-over-year. Our year-to-date GAAP operating loss was $27.8 million, compared to $5.8 million in the prior year. Our year-to-date adjusted EBITDA was -$17.2 million compared to -$6.3 million in the prior year. As of December 31st, 2025, we had nearly $63 million in net assets. Cash and cash equivalents were $7.7 million. Working capital was negative $2.3 million, inclusive of a $10 million current liability related to our Bitcoin-backed loan with Two Prime. Total Bitcoin in our treasury was 1,527, of which 1,000 Bitcoin were restricted from use and served as collateral for our convertible notes and credit facility.

In addition to our product efforts, we've also made significant changes to our capital structure over the past few months. Specifically, in February 2026, Fold eliminated all of our outstanding convertible debt, which had a combined principal value of $66.3 million. These restructuring efforts achieved several critical objectives for the company. First, the extinguishment of these convertible notes eliminated the complex restrictive covenants, consent requirements, and execution friction associated with those previous instruments. This simplification restores greater operational and financing flexibility for us going forward. Second, we strengthened our balance sheet as 521 of the company's Bitcoin were released as collateral pursuant to these transactions.

Those assets can now be strategically leveraged to support operational expenses, Credit Card warehouse, and reserve requirements, or to secure more favorable future financing arrangements. Third, the extinguishment of the convertible notes was accomplished primarily through non-dilutive means, including via the sale of 200 of our Bitcoin. The extinguishment of those convertible notes resulted in the removal of an estimated 8–10 million shares from our fully diluted share count, including potential shares issued to cover future interest payments. We believe that these changes simplify our capital structure, reduce dilution risk, and improve financial flexibility as we scale the operating business.

Looking ahead to 2026, we expect revenue growth to be driven by the rollout of the Fold Credit Card, continued expansion of our consumer products, and the growth of our newest enterprise business line. We expect transaction volumes and revenue to increase progressively throughout the year as those products scale, with particular correlation to the Fold Credit Card. Given the Credit Card just launched, we believe it would be premature to provide specific revenue figures for the full year 2026 at this time. With that, I'll turn the call back to Will.

Thanks, Wolfe. While 2025 was a foundational year for Fold, 2026 is when we expect our platform to truly begin to scale. Our team is ready. The Credit Card is launching, enterprise partnerships are growing, and our capital structure is better aligned with our operating business. The pieces are now in place. We are energized about the year ahead and confident in the direction we are heading. Operator, let's open the floor for questions.

Thank you. Ladies and gentlemen, as a reminder to ask the question, please press star, one, one, on your telephone, then wait for your name to be announced. To withdraw your question, please press star, one, one, again. Please stand by while we compile the Q&A roster. Our first question comes from the line of Mike Grondahl with Northland. Your line is open.

Hey, thanks, guys. First question kind of has to do with the Fold Bitcoin Gift Card. What were revenues in the fourth quarter related to that product? Any data on number of cards sold or dollar amount of cards sold, or how online those websites versus Kroger, kind of a breakdown of sales or revenue between those two sources?

Hey, Mike, it's good to hear from you. I'll do my best to give some insight, more insight on the Bitcoin Gift Card. As you know, this was our first year launching it. We secured inventory at Kroger, the largest grocer in the country. The other part of it is to learn as much as we can. What we were able to do is work with the partner in store and online to see where customers want this product and how best we can position it for future growth, both with new customers but also at other retailers. This was one of the most successful new Gift Card launches this year.

Very much mimicked the numbers of a brand new national chain launching their Gift Cards. On our side, we saw pretty incredible growth. If we look at it since launch, it was about a 20% month-over-month growth on that product line, which brought thousands of new customers to the Fold platform. What we've been doing is watching what those customers do next, because a critical piece here is designing it so that it's not just a place to redeem a Gift Card, but also to explore all the other services that Fold has to offer. We see an interesting mix, where we see some advanced familiar Bitcoin users come in and immediately uptake our Bitcoin exchange.

In fact, one of our largest new users of the Bitcoin exchange and Debit Card actually comes from someone giving them a Bitcoin Gift Card. They moved all of their spending and Bitcoin buying to our platform, which is amazing to see. On the other side of the spectrum, we also see customers who this is their first Bitcoin they've ever received. They are kind of going through the educational process of redeeming it and then watching Bitcoin every day. This volatility that we've seen recently certainly has given them an interesting first start to Bitcoin. Beyond its specific numbers, and I'll throw it over to Wolfe after to see how if he would like to add anything else.

We think that the Bitcoin Gift Card now has enough proof points to start scaling to many new retailers. We're in fact in negotiations with some very large U.S.-based retailers, both online and retailers to bring the product to their shelves and replicate that process. What we see is, you know, currently, Fold is still the only product out there offering this, and we have a window that we can continue to build this coalition of new retailers carrying this and see similar results. Once we start seeing things like 20% month-over-month growth, thousands of new customers coming in with essentially zero acquisition costs, that's a channel we wanna double down into.

We're working with those retailers not only how we can make the product more clear, but also position it for even more volume in those stores. Wolfe, do you have anything to add here?

Yeah. Kevin, or sorry, Mike, directing your question, as of Q3. Just a reminder, Bitcoin Gift Card sales go through our custody and trading revenues line. Through Q3, we had about $740,000 of revenue in that revenue line, and in Q4, we added an additional $722,000, which was largely due to the Bitcoin Gift Card. We haven't expressly broken out the numbers between the Gift Card and actual exchange revenues, but it's safe to assume that a majority of that was from Bitcoin Gift Card in Q4.

Got it. Maybe just one question on the Credit Card. What's the size of the wait list today? How long do you think it takes you to get a Credit Card into everybody on the wait list's hands?

Great question. Very happy to report the product that the Fold team has been working on for, you know, a year, over a year now, is now out. We are underwriting. We are extending credit lines. The first users on this was first, of course, getting the whole Fold team and those close to Fold on the card. The next step is going through the top users of Fold and the wait list, and we are gonna be going down over the coming weeks and aggressively adding as many as possible from that list. Now, the limiting factors here, this is a new program. You know, this is going to be a huge program.

We continue to believe that Bitcoin rewards or will overtake the airline miles as the preferred consumer reward in the U.S. That means that these card programs and our card program needs to scale to millions of cardholders. The way you do that on a card program that extends unsecured credit is getting the risk and fraud models correct. What we are doing is going through waves of customers coming in making sure our tooling, fraud, and risk controls are really dialed in, and that is the thing that allows us to accelerate. Once we see that those things are working and in place, we can really open the floodgates. You know, today we have over 80,000 on that list.

The wait list is going to reopen again, so we can continue to bring in more people interested, although they might not be able to get the card right away. We know the amount of demand that is currently here on this card, the amount of demand that exists in the world today that even doesn't know about our product yet, is gonna lead to that wait list continuing to grow and, you know, more pressure on us to get it out as fast to as many people on our list as possible. I don't have a specific answer on exactly how fast, because it's all gonna be reliant on how dialed in our fraud and risk controls are.

The positive thing here is we have assembled an incredible team in, on that front to operationalize and manage this program. Veterans from existing Credit Card programs, veterans from bank risk departments themselves. We have all the pieces we need. I'm very highly confident that we are going to have a in the initial few weeks of onboarding and a couple months of moving through our wait list, but then we can move to a general access very quickly.

Got it. Well, good luck, guys. Thank you.

Thank you, Mike.

Our next question comes from the line of Kevin Dede with H.C. Wainwright. Your line is open.

Oh, thank you. Well, thanks for having me on. We were just chatting about the Credit Card. Maybe you could remind us of the financial model behind it, if you wouldn't mind, Will. I know you talked to it in the past, but maybe you could characterize it versus the Debit Card that you're running and the Gift Card. We'd have sort of a relative measure on how Fold benefits from each of these separate products.

It's a great question. I think there's a lot of ways to answer it. Number one, you know, Fold has been wanting to build this product since day one. We believe a Bitcoin rewards Credit Card that's focused on people interested in saving, not those who want a trading platform, but those who want a platform to manage their day-to-day and long-term finances, is the winning product. We know that from feedback from our existing base and the proof points of the wait list. You know, of market participants, 80% are savers, conservative, traditional savers. Only 20% really align with wanting a trading experience. Fold brings the only Bitcoin rewards card into an environment that's focused on saving and long-term saving.

We built the card around savings as well. The more you save on Fold, the higher your rewards rate goes. For us, we look at growth from a few angles. Number one, we think this allows us to open up to a much wider audience that matches our existing target demo. You know, our customers who use our Debit Card today are actually primarily Credit Card users. Now they're gonna be able to double down and move their entire financial lives to Fold. We removed the last remaining hurdle. We're gonna see multiple on our existing customers' engagement on the platform, which is gonna be great.

It's gonna bring on a whole new cohort of customers that are looking for a Credit Card, and Fold just hasn't had that until today. In terms of the economics, we build this card, really, we took, many ways you could say—we took the hard path. We didn't outsource the whole program to a third party, that they get to manage and take the lion's share of the economics. We partnered with Stripe and Visa to really build this ourselves and own as much of the stack and economics as possible. From an interchange standpoint, that's two times the interchange of our Debit Card.

From the actual volume and spend capacity, you know, our Debit Card today is subject to transaction limits that prevent people from putting all of their spend through that card. Now, the Credit Card is gonna come out of the gate with, you know, $20,000 and up credit line that we're gonna be able to service our customers. We're gonna be able to grow into those over time. Overall, it's just gonna be an expansion of volume that you're gonna see moving through the platform. Interchange is 2x, and then, of course, we have the interest on the outstanding credit lines.

For us, we have made sure that this product on a unit economic basis is profitable before even factoring in any interest from the revolving credit lines. We think this is going to be a huge move to the upside that we're gonna start to realize as those balances begin to revolve. We get to see what those revolve rates are, and that will become a meaningful driver of revenue and the economics of this program. The other kind of soft benefit here is the cross-sell. You know, to get more rewards on our on the Credit Card means engaging with our other other products in the platform.

If you buy your Bitcoin through Fold, you can get up to 4% back on your purchases. If you use your Bitcoin to pay off the card, you get a minimum of 2% back on all your purchases. We've really made this product and designed it very specifically to drive the cross-sell and make it obvious to bring as much of your financial activity to the platform as possible. We're really just getting started. Wolfe, did I miss any of the key economic considerations there?

No, you got most of it. I think all that's true on day one and going forward. Another important piece here, Kevin, is that long term, as this product scales, some of the costs do not scale with the program. There's a handful of fixed costs associated with our program related to our partnership with Stripe and some of the other vendors. Those are fixed regardless of how we scale. Margins should improve over time. Then another key piece to this is, as part of our partnership with Visa, we get rebates, volume rebates, but those don't kick in until after the program's been live for a year.

Year two will be even rosier than year one. On day one, like Will said, this has been set up to be unit economics positive on a per swipe basis, as well as having the upside on the financing piece.

Thanks, Wolfe and Will. Appreciate it. Now, the Steak 'n Shake initiative on the enterprise side looks really interesting. Can you offer a window into what your, I guess, business development strategy is there and what the pipeline looks like? Maybe a little bit more detail on how you see their employees exploiting the Fold platform.

Yeah, it's a great question. You know, we've been working with Steak 'n Shake and other businesses to support them with the Fold platform, you know, over the last year in some limited capacity. You know, we looked at what we did this last year. You know, Fold has really rebuilt our team. We've rebuilt our infrastructure. We've now brought our new flagship product to market and to begin the rollout to the wait list. We looked at all of that investment and said, "How else can we support other customers, clients and ultimately more people on our platform?" We saw a major source of demand were from enterprises and businesses looking to use the exact infrastructure we've built. You know, we have checking accounts, we have the exchange, we have Debit Card, we now have Credit Card, we have rewards. The very same things our customers use Fold every day for to accumulate Bitcoin, to manage their Bitcoin, to manage their dollars, are all relevant to businesses too. We said, you know, "What's the best way for us to get started in this space?" Really, the Steak 'n Shake program is really a great example of it.

We are now enabling Steak 'n Shake to offer a service they've wanted to do and really is not provided in the market at all, and they use us as a trusted party with the infrastructure we've built to bring their employees to us, who now use us as a place, not only they manage their bonuses, but ideally also direct deposit all of their paychecks. They manage their spending. This is a really elegant way that Fold is now able to extend more value to a large group of interested businesses at the same time of onboarding their employee base as customers to us. This has a double effect for us here.

We both get these SaaS recurring contracts with the enterprise partners, but we also get the activity from their customers who are direct depositing, spending, sending money, earning their bonuses through our platform in a way that has a long-term, very sticky engagement. You know, we wanted to get this out to market with Steak 'n Shake, and we've kept it relatively quiet. Steak 'n Shake mentioned us and made it public about the fact that we were powering this infrastructure, and that has built an incredible pipeline of new partners that want to implement this.

They all run the gamut between other large publicly traded corporations with thousands of employees, all the way down to landscaping and contractors who manage, you know, three, four, five, 10 employees. We've seen just across the board, significant demand, not just for the Bitcoin bonus program, but also how can Fold's entire infrastructure we've already invested in, already built, serve them in their businesses as well. We believe we've uncovered a very deep well of demand and customers who are really ready to jump on board without us really doing any marketing here. I think what you'll see with us in the coming months is as this program gets to market, you're gonna see a lot more from the employee experience.

We already have other partners in contract stage that we are closing. Those partners have hundreds of employees, tens of employees, and we are going to be really focused on making this a very recurring and repeatable SaaS model where ultimately any business can sign up and do this. Hopefully, we get to a point where it's not just the Bitcoin bonus program where we're serving that need plus their customers' financial or their employees' financial needs, but all needs for the business, managing their treasury, managing their spending. What about rewards on their operational spending? All of this to us is what we believe is the beachhead into an incredibly large, active market that I am personally very excited to dig into.

I think for our investors and shareholders should be even more excited because this is not gonna require a lot of more operational overhead to manage. We've already made the investment this year. We've already rebuilt the application. We've rebuilt our partners. We've brought the Credit Card program to market. We now have a platform that is both very differentiated and maybe the most comprehensive Bitcoin platform out there for consumers. We believe it will also be that way for businesses.

Can you offer just maybe a little history on the development of the relationship? Will, help us understand how you two, your two companies crossed paths and whether or not you saw it as sort of an employee-driven opportunity, I guess, or the Steak 'n Shake employees wanted to be connected with a Bitcoin platform. I know the company is forward-thinking from a crypto perspective, but not every company is. I'm wondering what advantages the companies themselves see aside from the benefits to their employees.

You know, we often play the role of bridge for existing, you know, traditional corporations, traditional financial services companies, and just traditional brands. You know, Steak 'n Shake is one of the oldest fast food chains in the country. They had a group at the leadership level who was committed to Bitcoin, saw it not only as a means of payment, but also tapping into a cultural trend that they believed they had a lot to offer. Let's talk about Bitcoin not only as a method of payment, but part of identity. Let's bring in, you know, new healthy ways of offering fast food. All of this came in and very dramatically changed their entire company overnight with incredible growth.

For us, that's a story that we love to hear. We're often very much part of that. You know, we've been working and building the largest merchant network of businesses interested in Bitcoin and interested in tapping into the market of Bitcoiners because they know how valuable those customers are. We often are the bridge about, you know, how do we get involved? How do we do this? Steak 'n Shake initially started their initiative to accept payment. They saw same-store sales skyrocket. They are posting some of the best numbers in the fast food industry. They were really introduced to us as a way, how do we expand that?

How do we instead not just enable people to spend Bitcoin, but how do we enable people to earn Bitcoin through rewards? Fold is a natural place to start. Not only did we create this category from the beginning, but we're the leaders, and we have helped other businesses, national public companies, do the same. We were a natural fit. We then launched the Bitcoin Meal Deal, which every meal sold was eligible for $5 in Bitcoin. The idea is, hey, let's give people their first taste of Bitcoin through Steak 'n Shake and partnership with Fold.

That program has done remarkably well, not only bringing in thousands of customers to Fold, but also whole new marketing angle for Steak 'n Shake to differentiate themselves in a very commodified market. That success naturally rolled in here of, you know, it's really not just about, you know, enabling our customers to both spend and benefit from Bitcoin integration, but our employees too. They believe Bitcoin is an incredible long-term savings tool, and the ability to offer a Bitcoin bonus to their employees to them means lower recruiting costs. It means less retention costs because they're able to retain employees for longer without retraining.

There's an element in this bonus of a vesting schedule that really helps and encourages people to stay longer. You know, the more time that Bitcoin has, the more it is proven over its history to appreciate. This could really be meaningful amounts of value for these employees. It really stands apart as I believe one of the most forward-thinking innovative programs for American workers. We think this is a program that is completely relevant to a very broad swath of companies. Even if they don't identify at the leadership level with Bitcoin, they want to hire Bitcoiners and those interested 'cause they are loyal, they are long-term thinkers, and they are generally advanced, both from a financial standpoint and from one of someone who's really curious and plugged in.

Being able to offer that allows them to stand apart. What Fold has done is we saw this market need. We saw that it was not being fulfilled, and we said, "We have the existing infrastructure, and let's support Steak 'n Shake to do this, and let's grow it into repeatable offering that can go on autopilot that both brings more customers to Fold, but also entirely new types of customers." I think that's one of these great ones as we start to hit scale, where we are able to use the same infrastructure we've invested so deeply in and add multiples on top of it by applying this to various new customer types.

Well, congratulations on that. I remember seeing them advertise at Bitcoin in Las Vegas last year, and I just didn't know that you were the team behind making that all happen. Congratulations on that. Thanks for all the color, Will.

Thanks, Dede, Of course.

Thank you. Our next question comes from the line of Hal Goetsch with B. Riley. Your line is open.

Hey, this is Hal Goetsch from B. Riley. You know, given the people on the wait list, and generally, it takes in the industry maybe $500 or much more than $1,000 to acquire a customer for a Credit Card, have you thought about what your customer acquisition costs are going to be for maybe the first tranche of the backlog or the wait list? That's the first question. The next question is, we've seen other fintechs launch Credit Card programs and get to a certain number of users, and then they don't scale from there.

I'm just wanting to get your feel for where you think, you know, the annual volume could be in GMV or size of the credit book for it, this to be a successful launch in the first two to three years. What do you think those numbers have to be? Thanks.

Thanks, Hal. It's good to hear from you. Last year, we hit an unexpected snag. Our initial partner for the card program pulled out because they were acquired, and that program was shut down. As a result of that, we knew that we had to go back to the drawing board. What we did was say, "Hey, how do we use this as an opportunity and make this program even better?" What we were able to do is not only swap out one partner for what I believe is probably the premier payments company and financial services company, Stripe and Visa, but we are also able to make the program more attractive.

Before it was up to 3.5% back, it is now up to 4% back. We did all of that in the wait list with very minimal marketing spend. Wolfe can follow up after this with some specifics on that. Because we didn't actually end up bringing to market last year, we pulled back on a lot of the spend. That wait list kept growing. I mean, you know, we're over 80,000 people on that wait list. You know, we have stopped, you know, really marketing it. However, we will reopen it again as we see more and more as this card starts to roll out, which will inevitably bring more and more eyeballs and interest here.

That initial group on that wait list is gonna have an incredibly low acquisition cost. I would guess very similar to what our historical acquisition costs are, because it's done in a very similar way of how Fold builds product. We build something that people genuinely want, that has limited availability in the market, and we bring something that we try to make very simple, intuitive, and open. You know, the Fold Credit Card is zero annual fee. It's a beautiful metal card. I'm excited for everyone to get to see this. The reward structure is only really getting started.

It not only has the benefit of being built on the back of the largest and most rewarding merchant network out there, it also has really flat, intuitive program that I believe stacks up against any of the other cards out there in the market today. I not only expect that we are gonna move through that wait list, but we're also gonna see a lot of customers who may have already moved to one of the other cards come and jump to this program because of how rewarding and how simple and easy it is. In terms of how we think about growth here, there's a few things. Number one, again, our existing core user base that is here without the Credit Card, they're all primary Credit Card users.

Just the fact of this being made available is gonna do two things. Number one, it's going to allow Fold to swallow 100% of their monthly spending now that we can handle their bill pay, their debit needs, and their credit needs. It's also going to allow them to put more of their total financial focus to our platform. More money is going to be sitting on our platform because they're gonna be paying off their Credit Card bill with us. That means, more volume going through our Bitcoin exchange program, and this is where that cross-sell magic really starts to happen.

Even just from our core base, the fact that we're removing the friction of loading a Debit Card, we move to the credit model, is gonna lead to an explosion of a per user volumes on the platform. Now, beyond that, the Credit Card and our customers tend to be higher income. It's not uncommon for our customers needing $10,000, $20,000, $50,000 to meet their monthly spending needs. The Fold Credit Card finally gives us the form factor that we can support them wholly and comprehensively, and not just be where they earn some of their rewards or buy some of their Bitcoin. We are their core operating system for their everyday and long-term finances.

To me, this is going to have a transformative effect on GMV, not only from the existing customers, but the customers we now get to attract explicitly to the program. Wolfe, do you have any other things to add there on how to think about CAC or volumes?

No, I think the key for us is we know this product has demand. We achieved this wait list that we've been talking about for the last year or so, basically with almost zero marketing dollars spent on that. In sort of the opposite way, we actually encouraged our users to participate in our platform in order to move up on that wait list. People were paying to get there, and they want the card. Yes, there are other crypto Credit Cards out there, but there's not a good crypto Bitcoin-only Credit Card option. We have this demand, and I think we are well-positioned to capture as much of that demand as we can.

You know, if it comes to the point where we think we need to double down on marketing to continue growing that program, we can make that decision. But for right now, we don't view this as a hugely expensive product rollout for us.

Hal, just to add one thing here, Hal. For Fold, if you think about the 80,000, you know, wait list that we have there, simply moving through that wait list, you know, even adding in, you know, some conversion there, not everyone's gonna be approved for the card. But that wait list alone represents a transformation of the company on every single axis, from volumes to revenues, from cross-sell and product adoption. That is without moving beyond and getting new people interested, adding more people to the wait list or even GA. What Fold already has today is spring-loaded in terms of a complete transformation of the company on almost every front.

Terrific. You know, could you go over some of the attributes? I mean, I think is it up to 4% rewards now? 'Cause like you want this card for a high-end user to be top of wallet, right? You want it to be the card they use for almost all their spend. Could you just go over the rewards again besides the crypto rewards or what else that might be involved in getting this to become a top of wallet product for users? Thanks.

Yeah. This is what the primary audience for this product are people who are serious about building long-term savings in Bitcoin. For us, we wanted to primarily at first, because these are the people that make up our wait list, is to incentivize that group to bring their Bitcoin buying to Fold. If you do that, you can earn up to 4% on your purchases. The way that generally the card is structured is it is a free no annual fee card. You are given a metal card and your virtual cards to use for spending. You get a minimum of 1.5% back unlimited on all your spend. If you buy Bitcoin with us, you can get up to 4%.

If you use your Bitcoin to pay it off, your 1.5% turns into 2% unlimited. It really is initially speaking to the group of, "Hey, if you are serious about saving in Bitcoin, there is no more rewarding card than this." That group is an incredibly valuable customer set, and there are hundreds of thousands of people that fit that bill. Not interested in, you know, long tail crypto trading, interested in building a bedrock of long-term savings with Bitcoin and dollars, and there is no better card to do that than with the Fold Card.

Now, as we look out on more benefits, you know, you get access and can tap in to the existing rewards network that we offer today, where it is not uncommon to earn 3%, 4%, or 5% back at some of the largest national retailers and service providers here in the U.S., you know, Uber and Instacart and DoorDash all are present on the Fold platform. We are really going to look at this as really the first step. We think that what we are bringing to market is going to satisfy and attract a cohort of, you know, I personally believe hundreds of thousands of Bitcoin savers will flock to this program.

From there, we continue to build it out with new features that we see in demand from our customers. You know, if our customers want help on terms of more benefits for helping them in traveling so that they can fully drop their airline miles card, we may look into that and find travel partners and airline partners that are interested in taking advantage of this opportunity. Really, we see, what we've built is the first step, and we're gonna continue to iterate with the one thing being true, that this is the most rewarding card for Bitcoin-interested savers in the U.S. We're gonna stay very, very focused on making sure we maintain the pole position.

Thank you. Thanks, guys. Good luck. Thank you.

Thanks, Hal.

Our next question comes from the line of Nathan Frankovitz with Cantor Fitzgerald. Your line is open.

Hey, guys. This is Nathan with the Brett Knoblauch's team. Thanks for taking my question. I had another on the Credit Card. I know it just launched last week, and that you said you're dialing fraud and risk controls before scaling into the remaining wait list. Could you give any color on the pace of the ramp-up in those active cards, perhaps by the end of Q2? Separately, could you give any detail on how funding receivables from the Credit Card business?

Yeah. Primary limiter on getting out through the wait list is gonna be dialing in those controls. We have set up waves to invite new customers to the platform off the wait list, starts with several hundreds, moves to several thousands, then we'll move to tens of thousands. These stage gates will each have their own KPIs that we're watching to make sure that fraud and risk controls are correct. We're watching the behaviors of the customers. What's revolves? What are we looking on spend categories? In addition to that is watching the wait list continue to grow and inviting new customers off of that. I don't have a specific on the end of Q2.

This is part of the reason why this being such a new product that, you know, we wanna make sure that we are coming from a really educated point of view in terms of how big we think this can be by the end of the year. We think we need these next couple months to really hone that point of view in. From there, we can give far more guidance on that. We need this first because this first rollout, you know, as you guys are looking at, you know, other cards you may have covered, you know, managing fraud and risk is perhaps the number one most important thing for a Credit Card program to do.

We got an incredible team behind it that I am very confident is going to be making sure this is at a rapid pace. The benefit here is, you know, getting this card to market is reliant on multiple vendors and partners and compliance regimes that are sometimes out of your control. We saw what it means to be out of your control in this last year. Now that we're in market, it's all under Fold's control. We hold our foot on the gas and the brakes and, you know, our interests are really aligned with our shareholders, which is to get this thing out as fast as possible to as many people as possible while making sure the program is safe and sustainable.

We have the framework to do so. We have the talent to do so, but can't give any specific number. Again, we start with hundreds, move to thousands, and then tens of thousands. I think that's something that we can accomplish over the next couple of months.

Awesome. Thank you. Could you give any color on how you're funding the receivables from the Credit Card business?

I'll let Wolfe jump into this piece. This was a really important part of this. Again, we were really clear from the beginning is that we're not building this card and fully outsourcing it so that all the economics goes to, you know, third-party providers, and we're using it only as a customer acquisition tool. We believe this becomes really a credit platform at the center of Fold that we can continue to add, to evolve and build on. What that will do is allow us to retain maximum economics here. You know, many other companies look at Credit Card programs as a loss leader. Fold's is gonna be a profit generator, a profit center, and it's not only gonna do that, it's gonna drive more people to other profit centers across our app.

We built it so that we can retain maximum economics on interchange and interest as we need. We are going to be tapping third-party financing facilities to continue to scale. Fold is gonna be participating as we go, but we get to decide how much or how little we wanna participate. I'll send that over to Wolfe to give any more details here.

I think you covered it. Long-term, we wanna give ourselves the optionality to participate in the financing economics. We've structured it such that we can bring in third-party warehouse facilities or bring the balance sheet ourselves. It'll be an evolving mix as we grow the program.

All right.

Thank you. Please stand by for our next question. Our next question comes from the line of Eddie Gonzalez with Prudential. Your line is open.

Hey, this is Eddie from Prudential Advisors. Hey, Will, Wolfe, Samir, thank you guys for taking my question. Following up on the app rebuild and the launch of the unified experience from February 2026, you guys consolidated rewards, spending, and balances into one hub. Can you share any key user metrics from this new user interface after eliminating the subscription fees for Fold+? Second part is, can you tell us more about how the Bitcoin Credit Card launch fits in with this new app upgrade, helping the crossover sell to Fold's other BTC products?

Great. Great question, Eddie. We went back to kind of first principles at Fold. You know, we see our job as to be the bridge for Bitcoin to mainstream America, to make and normalize Bitcoin as a legitimate and very valuable aspect of anyone's savings strategy. We looked at our platform and said, "Well, are we living up to that? Do we match it?" We saw gating our best features behind a subscription was actually counterintuitive. It was blocking people from experiencing the platform, digging deeper and bringing all of their financial activity to us.

We have not yet, but we will be soon fully removing the Fold+ subscription from the Fold experience to what we like to say is really unleash the floodgates. That is also why the Credit Card has no annual fee associated with it. We are trying to make this card reach maximum amount of people interested, and we wanna have zero reason for you to second-guess or say, "Hey, I'll wait and see." We think people are gonna love the new experience and love the new card. The first step was let's remove all the friction. To give you, I don't have exact numbers, I don't think we can share quite yet. I think it's still early.

I'm excited about our next reporting, where we get to dig into this a little bit more granularly. Because Fold made the decision, the Fold team made a pretty, what I'd say bold decision, which was, hey, we're not only going to be building the flagship products that's gonna lead Fold to what I believe will be hundreds of thousands, millions of new users to the platform, which is the Credit Card, but we're also gonna rebuild the app itself. The decision to do so, it wasn't about necessarily a redesign or things like that. It was really about, let's build it from the ground up so that we can build faster. I had a release date.

We had an announcement the other day, where Fold shipped over 100 bug fixes, and I believe almost 10 new features in a 30-day period. That is the type of velocity that Fold used to do last year at this time, maybe would take us two months. Now we're doing that in 30 days, and that's gonna continue to progress. The Fold team is actively using AI tooling in their work. We have the most talented group of people ever to work at Fold, and it's showing up in our ability to ship and ship fast and of high quality.

The new app release gives us a foundation where we get to iterate faster and ultimately ship features at a far higher speed than we ever have before, which means a lot more cool stuff is gonna come into the hands of our customers faster. That's again why we wanted to remove any gating features to that. You know, as we move into the Credit Card launch, again, we're actively underwriting, extending credit lines. We will be moving through the Credit Card wait list. You know, you're gonna see people out in the wild with the Credit Card using it.

We will continue to update the market regularly on our ability to move through that wait list. We are very excited to show not only how fast we can get through it, but also that we're dialing it in. Fraud and risk is right, demand is high, and that's gonna be paired with, you know, getting loud about this program on media, and ultimately getting us to general access, where anybody who has a desire can get the app within a few minutes or get the card within a few minutes.

Thank you. Appreciate it, Will.

Great.

Thank you. Our next question comes from the line of Dave Storms with Stonegate. Your line is open.

Evening, and thank you for taking my questions. Just wanted to go back to maybe the costs associated with the Credit Card. Wolfe, I know you mentioned there should be some fixed cost absorption here, but with fraud and risk being the current limiter, is there a size beyond the first cohort that you would need to invest more in headcount or technology here? Or is it more about time on task to let fraud and risk catch its stride? Just trying to maybe hone in on the scalability of the card.

Yeah. This is entirely a honing in our models and our tooling. This is not new headcount. Fold always has operated from a principle of operating very lean, and that is less, you know, not first and foremost, that's actually not a cost control mechanism first and foremost. It's actually a talent acquisition approach, where being lean allows us to provide much larger opportunities for those that choose to join us. With that said, we also are onboarding people who are coming natively from being very familiar with AI tooling, of course, being experts in their field. A lot of this really is just about let's get the models right. This is not about a major need for headcount.

There really is no threshold where it becomes very abundantly clear that hiring is the only way through that scaling issue. For us, we see this primarily as a training and a modeling question. Wolfe, do you have anything to add there?

No, you covered it. I think our, you know, our primary cost on this program beyond chargebacks, which you know, the chargebacks and the write-offs piece is the piece we really wanna understand the data on before we go too crazy with scaling. A lot of that data is publicly available based on existing programs. We've got that. We've got vendor costs, whether that's Stripe or you know, if we do bring in a third-party warehouse facility. We've got some people helping us do some of the data transfers, and then obviously rewards will be a big cost component to this program.

You know, as it grows, we'll obviously consider if we need to bring in in-house headcount to support the program.For the time being, we've got the right pieces in place.

That's great color. Thank you. If I could just maybe ask one more around your balance sheet, and I recognize that you all are not a Bitcoin treasury company. But being judicious with your Bitcoin treasury has allowed you to have some pretty interesting and creative capital solutions. With treasury down about 700 coins from the start of the year maybe, should we expect any attempt to rebuild that treasury, or should we maybe look at the balance sheet more holistically and take into account, you know, some of the debt elimination and other measures that you've gone through to shore up the balance sheet?

Yeah. I mean, I think you're right. We did get rid of some Bitcoin from our top line, but we also cleared off a huge amount of debt that sat there, a huge amount of shares, convertible shares on our fully diluted cap table. The moves we made here in Q1 were intentional. I think we in some ways are trying to send a message to say, "Hey, we're not out here playing the DAT game. We're not a digital asset treasury company.

We do have Bitcoin, but we're prioritizing our operating company first, and we'll use our Bitcoin treasury to support that, when and where possible." You know, going forward, we would love to continue to add Bitcoin to our treasury where possible, but we're not going above and beyond here for financial engineering plays that do that at all costs. I think, you know, we have a really unique story with our OpCo, and we wanna really focus on that. Hopefully in the near term, we'll be generating cash flow that allow us to reinvest into building our Bitcoin treasury.

Yeah. Dave, I think we— Fold has two assets that are deeply undervalued. We believe our Bitcoin's undervalued, but even more undervalued than that is our equity. We think it takes about two seconds to look at the company. We're losing all convertible debt, showing you know 34%+ revenue growth year-over-year, even with a pretty dramatic downturn in the industry in the fourth quarter. You can go look at that against the revenue multiple we're trading at. You can look at it from our market cap versus the nominal Bitcoin that we have and even Bitcoin we have unencumbered. Really what it is is the operating company is being deeply undervalued in the market today.

When we think about our Bitcoin holdings and we think about our company, it's constantly looking and balancing these two things. Which of our undervalued assets is more undervalued at this point, and which one can help kind of rebalance that equation? We think the steps that we took over the last few months not only positions the operating company to be fully ready to support the growth of these transformational new products that we're bringing to market that are in market today, but also clears the complexity from our capital structure and allows us to really operate from a point of strength and leverage.

That was only made possible because in the past, Fold has done what we do, is make sure we have an operating company that can bring us more Bitcoin, and we can use that Bitcoin to then invest back into the company. Like Wolfe said, I absolutely look forward to the day when we're continuing to stack Bitcoin. I believe that day may be sooner than we imagine, and it's gonna be largely driven by the growth and success of the operating company. That is our Bitcoin treasury strategy, is an incredible operating company.

That's great commentary. Thank you for taking my questions.

Thank you. Ladies and gentlemen, I'm showing no further questions in the queue. I would now like to turn the call back over to Will for closing remarks.

All right, everyone. Thank you, Tawanda, for helping us through here. Thanks to everyone who got up to ask questions and have been following our stories both on the institutional side and retail side. You know, this year has been unexpected. I think everyone could say the same operating in our industry. I couldn't be more proud of the strategy and approach that our team at Fold took. You know, we decided to double down on improving our infrastructure, improving our team, improving our process in getting out these products to market that our customers have been clamoring for years now.

We're really at this inflection point where we not only have an existing business that is growing through market downturns and it accelerates in the market in good times in the market. Now we have a whole other multiple from the Bitcoin rewards Credit Card, which is going to be rolled out to that 80,000+ wait list, which alone is going to transform the company to our new enterprise offering represented by the Bitcoin bonus program, continuing to roll out new SaaS contracts, recurring revenue sources, and new employees entering the ecosystem, to the continued build-out of some of the features that we haven't really talked about much that will be hitting the platform over the next few months that are also gonna be very exciting.

I am deeply grateful for everyone who's been following this story. I am completely open for new product feedback. If you have ideas, we always love to hear them. But ultimately, Fold is committed heads down, what I think building the premier Bitcoin financial services company in the U.S., and I think 2026 is the year the world gets to know that. I look forward to the next time we get to meet and showing you all the numbers behind a lot of the vision that we've had. Again, deeply thankful for everyone showing up today. Thank you.

Ladies and gentlemen, that concludes today's conference call. Thank you for your participation. You may now disconnect.