Fold Holdings Reports $69.6M Net Loss in 2025 Despite Revenue Growth

Fold Holdings, Inc. (NASDAQ: FLD) concluded its first full year as a public company with mixed financial results. The Bitcoin-focused financial services firm reported a net loss of $69.6 million for the full year 2025, according to its annual filing released Tuesday. Revenue climbed 34% year-over-year to $31.8 million, but operating losses ballooned from $5.8 million to $27.7 million – a nearly fivefold increase.

The Numbers Behind the Red Ink

Fold’s adjusted EBITDA loss came in at $17.2 million, translating to an adjusted loss per share of $0.41. The gap between the $69.6 million net loss and the $27.7 million operating loss is partially explained by a one-time $9.6 million charge to retire two outstanding convertible bonds. CEO Will Reeves framed this move as strategic housekeeping, stating it simplifies the balance sheet and removes future dilution risk for shareholders. The remaining gap likely reflects non-cash charges common to newly public companies, such as stock-based compensation and depreciation.

Growth Metrics

During 2025, Fold added 13,000 modern customers, bringing the total to 84,000 verified accounts. Transaction volume hit $960 million, a 46% increase. The company also reported a 3% year-over-year increase in per-customer transaction volume to $215 million, indicating existing users are increasing their spending.

Expanding into New Markets

Founded in 2019, Fold initially gained traction with its app offering Bitcoin rewards instead of traditional rewards like airline miles. The company now offers a Bitcoin rewards credit card and Fold for Business, targeting enterprise customers.

The Credit Card Gamble

The launch of the Fold Credit Card is a capital-intensive undertaking, requiring capital reserves, fraud infrastructure, and regulatory compliance. Yet, the US credit card market processes roughly $5 trillion annually, and capturing even a small portion of that market with a Bitcoin-native rewards proposition could significantly increase Fold’s transaction volume.

Investor Considerations

Fold currently occupies a position common to growth-stage fintech companies: healthy revenue growth coupled with increasing losses. While the 34% revenue increase is positive, operating losses expanded by 377%. The convertible bond retirement is viewed favorably by investors as it reduces potential dilution. However, the core business needs to demonstrate a clear path to profitability.

Key Metrics to Watch

• Customer Acquisition Cost (CAC) vs. Lifetime Value (LTV): The company needs to ensure that the cost of acquiring new customers is less than the revenue generated over their lifetime.
• Credit Card Adoption Metrics: Converting existing debit card users to credit card holders would significantly improve the economics due to reduced customer acquisition costs.

Competitive Landscape

The competitive landscape is evolving, with mainstream financial institutions increasingly offering crypto products. Fold’s differentiation may be narrowing as Bitcoin rewards cards become more commonplace.

Bottom Line: Fold is investing aggressively in building a Bitcoin-native financial ecosystem, and the losses reflect this strategy. Revenue growth is real but not yet sufficient to offset the cost of its ambitions. The credit card expansion is a strategic move, but the company needs to secure funding to reach scale.