Fold Holdings, Inc. Q1 Earnings Call Highlights: Key Insights and Future Strategies

Key Points

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Q1 results were weak as Fold said transaction volumes fell 31% year over year and revenue dropped 21%, with management blaming lower Bitcoin prices and reduced customer activity across the industry. The company also posted a net loss of $29.2 million and negative adjusted EBITDA of $5.8 million.

The new Fold credit card is now the main growth focus, with more than 1,000 cardholders in early access and an 80,000-plus waitlist. Management said the phased rollout is meant to validate underwriting and economics before scaling, and expects the card to become a bigger driver of volume and revenue.

Fold is also redesigning its gift card and employer programs to lower customer friction and expand its Bitcoin ecosystem. The company said it wants gift cards to be effectively cost neutral upfront, while the Bitcoin Bonus Program could open doors to broader business services over time.

Fold (NASDAQ:FLD) reported a difficult first quarter of fiscal 2026, with management citing a broad pullback in Bitcoin prices and related pressure on customer activity across the industry.

On the company’s May 12 earnings call, Chairman and CEO Will Reeves said lower Bitcoin prices weighed on transaction volumes, trading activity and consumer engagement. CFO Wolfe Repass said Bitcoin had fallen nearly 50% from its October all-time high by February, prompting consumers to “risk adjust their spending and investment behaviors.”

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“Neither Fold nor many of our competitors were immune to that behavioral shift,” Repass said.

Fold Holdings Faces Challenges Amid Declining Bitcoin Prices

Key Points:
Fold Holdings, Inc. (NASDAQ: FLD) has reported a challenging first quarter for fiscal 2026, with transaction volumes plummeting by 31% year-over-year and revenues down 21%. The company attributed these declines to falling Bitcoin prices and reduced customer engagement across the cryptocurrency sector. In this quarter, Fold recorded a net loss of $29.2 million, alongside a negative adjusted EBITDA of $5.8 million.

Despite these setbacks, Fold is pivoting its strategy towards its newly launched credit card, which has garnered significant interest with over 1,000 early access cardholders and an impressive waitlist of more than 80,000 potential users. Management is optimistic that the phased rollout will validate the card’s underwriting and economic viability, ultimately driving volume and revenue growth.

Revenue and Transaction Volumes Decline

During the earnings call on May 12, CEO Will Reeves highlighted the impact of lower Bitcoin prices on consumer behavior, stating that many customers have adjusted their spending and investment habits. CFO Wolfe Repass noted that Bitcoin values had dropped nearly 50% from their October peak, affecting transaction volumes and overall engagement.

Operating expenses decreased to $13.4 million from $16.6 million in the previous year, primarily due to lower direct costs and reduced professional service fees. However, the company still reported a net loss, albeit improved from the $48.9 million loss in the same quarter last year.

Credit Card Rollout Becomes Central Focus

Fold’s credit card is positioned as a key growth driver. Launched in early access in March, the card aims to integrate Bitcoin into everyday spending, rewards, and savings. Reeves emphasized that the phased rollout is designed to ensure the product’s systems and economics are sound before a broader launch.

The early feedback indicates that users are adopting the card for both everyday purchases and larger transactions, with management confident that it will become a primary financial tool for Bitcoin enthusiasts.

Gift Card Strategy Shifts Toward Lower Friction

In addition to the credit card, Fold is revamping its gift card program to reduce customer friction and improve retail partnerships. Reeves noted that fees have been a significant barrier, and the company aims to eliminate these costs to attract more users.

Bitcoin Bonus Program Targets Employers

Fold is also expanding its Bitcoin Bonus Program, which allows employees to earn Bitcoin alongside their regular wages. This initiative has received positive feedback and could pave the way for broader business services, including payroll and corporate rewards.

Looking Ahead

Despite the tough first-quarter results, Repass stated that all current Fold products are generating positive contribution margins. The company is focused on responsibly scaling its credit card program while managing costs and seeking new user acquisition opportunities.

About Fold Holdings

Fold Holdings, trading under the ticker FLD on NASDAQ, specializes in Bitcoin rewards and cryptocurrency-based consumer products. Its core offering allows users to earn Bitcoin on everyday purchases through a prepaid Visa debit card, bridging the gap between traditional spending and digital asset adoption.

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