Fold’s First Year as a Public Company: A Mixed Report Card on Growth and Losses

Fold’s First Year as a Public Company: A Mixed Report Card

Fold, the bitcoin-focused financial services firm, has wrapped up its inaugural year as a public company, and the results are a mixed bag. In its annual filing released Tuesday, the company reported a staggering net loss of $69.6 million for the full year 2025. While revenue saw a promising 34% year-over-year increase, climbing to $31.8 million, operating losses surged dramatically from $5.8 million to $27.7 million—nearly a fivefold increase that casts a shadow over the revenue growth.

The Numbers Behind the Red Ink

Fold’s adjusted EBITDA loss stood at $17.2 million, translating to an adjusted loss per share of $0.41. For investors trading under the Nasdaq ticker FFLD, these figures are likely to test their patience. The substantial gap between the reported net loss and operating loss warrants further explanation. A significant portion—over $9.6 million—stemmed from a one-time charge to retire two outstanding convertible bonds. These bonds, which can convert into company stock, were eliminated to mitigate future dilution risks for shareholders.

CEO Will Reeves framed this move as a strategic necessity. “We closed our first full year as a public company with strong execution against the goals we set coming into 2025. [The bond retirement] simplifies the balance sheet, removes structural overhang, and directs financing solely to the growth of our operating businesses,” he stated.

The remaining losses likely reflect non-cash charges typical for newly public companies, including stock-based compensation and depreciation, which inflate GAAP losses beyond actual cash burn.

Growth Amidst Challenges

On a brighter note, Fold added 13,000 new customers over the year, bringing its total to 84,000 verified accounts. Transaction volume surged to $960 million, marking a 46% increase. Additionally, the average transaction volume per customer rose by 3% year-over-year, indicating that existing users are not only sticking around but also spending slightly more.

The Credit Card Gamble

Founded in 2019, Fold has built its brand on the premise of earning Bitcoin rewards instead of traditional airline miles. The company’s flagship product, a bitcoin payments card, has paved the way for new ventures, including the recently launched Fold Credit Card and Fold For Business, which targets enterprise customers in a competitive market already populated by players like BitPay and Strike.

However, the credit card venture comes with significant costs. Credit cards necessitate capital reserves, fraud infrastructure, and regulatory compliance—expenses that far exceed those associated with debit cards. For a company already facing $27.7 million in operational losses, this move is a bold gamble.

Yet, the logic behind the credit card expansion is compelling. The U.S. credit card market processes approximately $5 trillion annually. Capturing even a small share of that market with a Bitcoin-native rewards proposition could dwarf Fold’s current transaction volume. The critical question remains: can the company’s balance sheet endure the scaling period?

Implications for Investors

Fold finds itself in a familiar yet precarious position for growth-stage fintech companies. While revenue is on the rise, losses are escalating at an even faster rate. The 34% revenue increase appears robust until one notes that operating losses expanded by a staggering 377%.

The retirement of convertible bonds is a positive sign for existing shareholders, indicating management’s focus on equity value rather than just top-line growth. However, the core business must demonstrate a clear path to profitability for this goodwill to translate into share price appreciation.

Investors should keep an eye on two key metrics moving forward: customer acquisition costs relative to lifetime value and early adoption metrics for the credit card. While adding 13,000 new accounts is commendable, it’s crucial that the cost of acquiring each account does not exceed the revenue it generates. Additionally, if Fold can successfully convert its existing 84,000 debit users into credit card holders, the economics could improve significantly, as customer acquisition costs would drop to nearly zero.

The competitive landscape is also evolving. With Bitcoin prices hovering near all-time highs and mainstream financial institutions increasingly embracing crypto products, Fold’s unique selling proposition may be diminishing. What was once a novel Bitcoin rewards card in 2020 is now becoming commonplace in 2025, as every neobank enters the fray.

Conclusion

In summary, Fold is aggressively investing in building a Bitcoin-native financial ecosystem, and the losses reflect this ambition. While revenue growth is genuine, it has yet to offset the costs associated with such a bold strategy. The credit card expansion is a strategic move in the right direction—if the company can sustain it long enough to achieve scale.

Disclosure: This article was edited by Estefano Gomez. For more information on how we create and review content, see our Editorial Policy.