Stonegate Capital Partners has updated its coverage on Fold Holdings Inc. (NASDAQ: FLD) following the company's first quarter 2026 results. The quarter reflected bitcoin-market-driven pressure on activity, but did not change the core thesis; instead, it shifted the FY26 focus toward conversion and scaling across products now in market.
Revenue declined 21.1% year-over-year to $5.6 million as transaction volume fell 32% year-over-year to $172 million. Verified accounts approached 85,000 with close to 2,000 net adds. Net loss was $(29.2) million and adjusted EBITDA was $(5.8) million, though GAAP results were affected by bitcoin treasury fair value changes and financing-related items. Operating expenses declined 19% year-over-year to $13.4 million, supported by lower direct costs, lower stock-based compensation, and lower professional fees.
Management noted February marked the bottom across most core KPIs, with early improvement as bitcoin recovered. Stonegate views 1Q26 as market-driven pressure in transaction-linked activity, while Fold's broader platform strategy moved closer to commercial validation.
Key takeaways from the quarter include that 1Q26 advanced Fold's transition toward platform-led monetization. Account growth, opex discipline, and concurrent product launches support a broader revenue model beyond transaction activity. Credit card execution is the primary FY26 catalyst, with 1,000+ cards live and an ~80,000 waitlist. Cohort spend, engagement, credit performance, and funding capacity will drive the setup. Capital structure simplification improves strategic flexibility; extinguishing the convertible notes while retaining bitcoin treasury exposure strengthens Fold's ability to scale credit, gift card, and business channels.
For more details, see the full announcement here.
