Fold Holdings, Inc. (FLDDW) Q4 2025 Earnings Call Transcript

Hello, and thank you for standing by. Welcome to Fold Holdings, Inc. Fourth Quarter 2025 Earnings Conference Call. Please note, all participants are in listen-only mode until the question-and-answer session. 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 17, 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, 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 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. But 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 within the SEC for a 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 continue 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. And 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, and 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 waitlist. 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. And 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. And 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 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, and our year-to-date adjusted EBITDA was negative $17.2 million compared to negative $6.3 million in the prior year. As of December 31, 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 and 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 million to 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.

Our first question comes from the line of Mike Grondahl with Northland.

First question kind of has to do with the full Bitcoin Gift Card. What were revenues in the fourth quarter related to that product? And 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?

Mike, it's good to hear from you. And yes, I'll do my best to give 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 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 came from someone giving them a Bitcoin gift card. They moved all of their spending in Bitcoin buying to our platform, which is amazing to see. On the other side of the spectrum, we also see customers for whom this is the first Bitcoin they've ever received. They go through the educational process of redeeming it and then watching Bitcoin every day. The volatility we've seen recently certainly has given them an interesting first start to Bitcoin. Beyond specific numbers, and I'll throw it over to Wolfe after to see 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 are, in fact, in negotiations with some very large U.S.-based retailers, both online and physical retailers, to bring the product to their shelves and replicate that process. Fold is still the only product out there offering this, and we have a window to 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 want to double down on. So we're working with those retailers not only on 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?

Yes. Mike, directing your question, as of Q3, so 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. 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 the Bitcoin Gift Card in Q4.

Got it. And then maybe just one question on the credit card. What's the size of the waitlist today? And how long do you think it takes you to get a credit card into everybody on the waitlist's hands?

Great question. So very happy to report the product that the Fold team has been working on for over a year is now out. We are underwriting and extending credit lines. The first users are internal team members and those close to Fold on the card. The next step is going through the top users of Fold and the waitlist. We are going to be going down over the coming weeks and aggressively adding as many as possible from that list. The limiting factor is this is a new program that will need to scale to millions of cardholders. On a program that extends unsecured credit, you get there by getting the risk and fraud models correct. We are going through waves of customers coming in, making sure our tooling, fraud and risk controls are dialed in, and that is the thing that allows us to accelerate. Once we see those things are working and in place, we can open the flood gates. Today, we have over 80,000 on that list. The waitlist will 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 on this card and the amount of demand in the world today, even from people who don't yet know our product, will continue to grow the waitlist and put pressure on us to get cards out as fast as possible. I don't have a specific answer on exactly how fast because it's reliant on how dialed in our fraud and risk controls are. The positive thing is we have assembled an incredible team on that front to operationalize and manage this program, veterans from existing credit card programs and bank risk departments. We have all the pieces we need and I'm highly confident in our ability to accelerate. I expect an initial ramp in the initial few weeks of onboarding and a couple of months of moving through our waitlist, then moving to general access very quickly.

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

We're 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 about it in the past, but maybe you could characterize it versus the debit card that you're running and the gift card. So we'd have sort of a relative measure on how Fold benefits from each of these separate products.

It's a great question. Fold has wanted to build this product since day one. We believe a Bitcoin Rewards Credit Card focused on people interested in saving, rather than trading, is the winning product. From feedback and waitlist proof points, about 80% of market participants are savers; only 20% align with wanting a trading experience. We built the card around savings. The more you save on Fold, the higher your rewards rate goes. In terms of growth, this allows us to open up to a much wider audience that matches our existing target demo. Our customers who use our debit card today are primarily credit card users. Now they will be able to move more of their financial lives to Fold, removing the last remaining hurdle. We expect a multiple on our existing customers' engagement. We didn't outsource the whole program to a third party that would take the lion's share of the economics. We partnered with Stripe and Visa to build this ourselves and own as much of the stack and economics as possible. From an interchange standpoint, it's roughly 2x the interchange of our debit card. Our debit card today is subject to transaction limits; the credit card will come out of the gate with meaningful credit lines (we expect up to $20,000 per card for many customers), allowing more spend capacity. We've set up the product to be unit-economically profitable on a per-swipe basis before factoring in interest from revolving balances. As balances begin to revolve, interest will become a meaningful driver of revenue. The card is designed to drive cross-sell: to get more rewards you engage with other products. If you buy your Bitcoin through Fold, you can get up to 4% back on purchases. If you use your Bitcoin to pay off the card, you get a minimum of 2% back on all purchases. We've made this product specifically to drive cross-sell and bring as much of your financial activity to the platform as possible. We're just getting started. Wolfe, did I miss any key economic considerations?

No, you covered most of it. Long term, as this product scales, some of the costs do not scale with the program. We have a handful of fixed costs associated with our partnerships, such as with Stripe and other vendors. Those are fixed regardless of scale, so margin should improve over time. Another key piece is that as part of our partnership with Visa, we receive volume rebates, but those don't kick in until after the program has been live for a year. So Year Two should be even stronger than Year One. On day one, like Will said, this has been set up to be unit economic positive on a per-swipe basis with upside on the financing piece.

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

Yes. We've been working with Steak 'n Shake and other businesses to support them with the Fold platform over the last year in some limited capacity. We rebuilt our team and infrastructure, brought our new flagship product to market and began the rollout to the waitlist. We saw significant demand from enterprises and businesses looking to use the infrastructure we've built: checking accounts, the exchange, debit, credit, rewards. The Steak 'n Shake program enables them to offer a service they wanted and which the market largely did not provide. They use us as a trusted party with infrastructure to bring their employees to a platform where employees can manage bonuses, direct deposits, spending and rewards. This creates SaaS recurring contracts with enterprise partners and activity from their employees—direct deposit, spending, sending money, earning bonuses—leading to long-term sticky engagement. Steak 'n Shake publicly mentioned us, which has built an incredible pipeline of new partners wanting to implement this. These partners range from large publicly traded corporations with thousands of employees down to small businesses with a handful of employees. We have uncovered significant demand not just for the Bitcoin bonus program, but for Fold's entire infrastructure. We believe we've found a deep well of demand and customers ready to jump on board without much marketing. In the coming months as the program gets to market, you'll see more from the employee experience. We already have other partners in contract stage and we are closing them. We'll be focused on making this a recurring and repeatable SaaS model where any business can sign up. Ultimately, this can expand beyond Bitcoin bonuses to managing treasury, operational spending rewards, and more. This is the beachhead into an incredibly large active market and I'm personally excited. For our investors and shareholders, the most important part is this doesn't require a lot more operational overhead — we've already invested in the platform this year. We now have a differentiated and comprehensive Bitcoin platform for consumers and, increasingly, for businesses.

Can you offer a little history on the development of the relationship? Help us understand how your two companies crossed paths and whether you saw it as an employee-driven opportunity or the company leadership wanted it. What advantages do the companies themselves see aside from benefits to employees?

We often act as a bridge for traditional corporations and brands that want to engage with Bitcoin. Steak 'n Shake is one of the oldest fast food chains and had leadership committed to Bitcoin, seeing it as both a means of payment and a cultural differentiator. They initially started accepting Bitcoin payments and saw same-store sales increase. They were introduced to Fold as a way to expand the initiative beyond payments to let people earn Bitcoin through rewards. We launched a Bitcoin meal deal where every meal sold was eligible for $5 in Bitcoin, designed to give people their first taste of Bitcoin through Steak 'n Shake and Fold. That program brought thousands of customers to Fold and created a new marketing angle for Steak 'n Shake. For the company, offering Bitcoin bonuses means lower recruiting costs, reduced retention costs, and vesting schedules that encourage employees to stay longer. Over time, Bitcoin appreciation can create meaningful value for employees. This program is one of the most forward-thinking initiatives for American workers, and it is completely relevant to a broad swath of companies. Even companies whose leadership may not identify with Bitcoin want to attract Bitcoin-curious employees because they tend to be loyal and long-term thinkers. Fold saw a market need and the infrastructure to support Steak 'n Shake, and we have built a repeatable offering that brings new customers to Fold and grows our platform.

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

Our next question comes from the line of Harold Goetsch with B. Riley.

This is Hal Goetsch from B. Riley. Given the people on the waitlist 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 wanted to get your feel for where you think the annual volume could be in GMV or size of the credit book for this to be a successful launch in the first 2 to 3 years. What do you think those numbers have to be?

Thanks, Hal. Good to hear from you. Last year we hit an unexpected snag: our initial partner for the card program was acquired and pulled out, so we went back to the drawing board. We replaced that partner with Stripe and Visa and improved the program — the rewards now go up to 4% back. We achieved the waitlist growth with minimal marketing spend. We currently have over 80,000 people on that waitlist, and we have been conservative on marketing given the delay; however, that waitlist kept growing organically. The initial group on that waitlist has an incredibly low acquisition cost — likely similar to our historical acquisition costs — because it was built by creating a product people want with limited availability. The Fold credit card is zero annual fee, a metal card, and has a flat, intuitive rewards program that stacks up against other cards in the market. I expect we'll see people convert from other cards because of how rewarding and simple ours is. Regarding growth, our existing core user base are primary credit card users, so making a credit card available will allow us to capture more of their monthly spending and increase per-user volumes across the platform. The credit card enables higher per-user GMV, and many of our customers have higher income and need higher credit lines, which the Fold Credit Card will provide. This will be transformative for GMV, from existing customers and new customers attracted specifically to the card. Wolfe, do you want to add anything about CAC or volumes?

I think the key is we know this product has demand. We achieved this waitlist with nearly zero marketing dollars. We encouraged users to participate in the platform to move up the waitlist so people were paying to get there and they want the card. Yes, other crypto credit cards exist, but not a great Bitcoin-only credit card option. We have demand and are well positioned to capture it. If we need to double down on marketing, we can. But for right now, we don't view this as a hugely expensive product rollout for us.

And Hal, just to add: simply moving through that 80,000 waitlist, even with typical approval rates, represents a transformation of the company on volumes, revenues, cross-sell and product adoption. And that's without moving beyond the waitlist or getting to general access. What Fold has today is spring loaded for a complete transformation across almost every axis.

Terrific. And on rewards, I think it's up to 4% rewards now? What else might be involved in getting this to become a top-of-wallet product for users?

Yes. The primary audience are people serious about building long-term savings in Bitcoin. We designed the card to incentivize that group to buy Bitcoin on Fold. The structure: a free, no annual fee metal card with virtual cards for spending. You get a minimum of 1.5% back unlimited on all spend. If you buy Bitcoin with us, you can get up to 4% back. If you use your Bitcoin to pay off the card, your 1.5% turns into 2% unlimited. It's initially targeted to Bitcoin savers; it's the most rewarding card for that group. You also get access to our existing rewards network where it's common to earn 3%, 4%, 5% back at major retailers and service providers like Uber, Instacart and DoorDash. We're just getting started — we expect hundreds of thousands of Bitcoin savers to flock to this program — and we'll continue to build features customers request. If customers want travel benefits so they can drop airline miles cards, we may add travel partners. This is the first step and we plan to iterate while maintaining the pole position as the most rewarding card for Bitcoin-interested savers in the U.S.

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

This is Nathan with Brett Knoblauch's team. 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 waitlist. But could you give any color on the pace of the ramp-up in those active cards perhaps by the end of Q2? And then separately, could you give any detail on how you're funding receivables from the credit card business?

Primary limiter on getting through the waitlist is dialing in those controls. We have staged rollouts: start with several hundreds, move to several thousands, then tens of thousands. Each stage gate has KPIs to ensure fraud and risk controls are correct. We're watching customer behavior, revolve rates, spend categories, and inviting new customers off the waitlist as we gain confidence. I don't have a specific number for end of Q2; we need the next couple of months to hone our view. Managing fraud and risk is the number one priority for a credit card program, and we have an excellent team. This rollout relies on multiple vendors, partners and compliance regimes, but now it's under Fold's control. We can modulate pace — we hold the gas and the brakes — and our interest is aligned with shareholders to get the product out rapidly but safely. We will start with hundreds, move to thousands and then tens of thousands over the coming months.

Awesome. Could you give any color on how you're funding the receivables from the credit card business?

We intentionally didn't fully outsource the program to third parties to preserve economics. We built the program to allow Fold to retain maximum economics on interchange and interest. We will tap third-party financing facilities to scale when needed, and Fold will participate as appropriate. We get to decide how much or how little we participate. This gives us optionality to optimize economics over time.

Long term, we want optionality to participate in the financing economics. We've structured it so we can bring in third-party warehouse facilities or fund the balance sheet ourselves. It will be an evolving mix as we grow the program.

Our next question comes from the line of Eddie Gonzalez with Prudential.

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 Plus? And second, can you tell us more about how the Bitcoin Credit Card launch fits in with this new app upgrade, helping the cross-sell to other B2C products?

Great question, Eddie. We went back to first principles. Our job is to be the bridge for Bitcoin to mainstream America and normalize Bitcoin as part of long-term savings. Gating the best features behind a subscription was counterproductive; it blocked deeper engagement. We have decided to remove the Fold Plus subscription from the Fold experience to unleash the flood gates. The credit card also has no annual fee to maximize reach. I don't have exact numbers to share yet; it's early and we'll report more granularly in future updates. We rebuilt the app from the ground up to enable faster product iteration. Recently we shipped over 100 bug fixes and almost 10 new features in a 30-day period — that's the type of velocity we now have. The new app gives us a foundation to iterate faster and ship features at higher speed, which will enable more cross-sell. As the credit card launches, we are actively underwriting and extending credit lines, moving through the waitlist, and will update the market regularly on progress. We'll pair the rollout with marketing and general access to scale adoption.

Our next question comes from the line of Dave Storms with Stonegate.

Just wanted to go back to the costs associated with the credit card. Wolfe, you mentioned there should be some fixed cost absorption. But with fraud and risk being the current limiter, is there a size beyond the first cohort that requires more investment in headcount or technology? Or is it more about time on task to let fraud and risk catch stride? I'm trying to hone in on the scalability of the card.

This is primarily about honing our models and tooling, not major headcount. Fold operates lean by design, which also helps us attract talent by offering larger opportunities to join. We're onboarding people experienced with AI tooling and expert in their fields. Scaling is largely a training and modeling question rather than an immediate hiring problem. This isn't about a major threshold where hiring is the only way forward. We're focused on getting models right.

No, you covered it. Our primary costs beyond chargebacks are vendor costs, potential third-party warehouse facilities, data transfer support, and rewards. As the program grows, we'll consider if we need additional in-house headcount, but for now we've got the right pieces in place.

That's great color. One more on your balance sheet: I recognize you are not a Bitcoin treasury company, but being judicious with your Bitcoin treasury allowed creative capital solutions. With treasury down about 700 Bitcoins from the start of the year, should we expect any attempt to rebuild that treasury? Or should we look at the balance sheet more holistically considering the debt elimination and other measures you've taken to shore up the balance sheet?

We did reduce some Bitcoin holdings, but we also cleared off a significant amount of debt, removing convertible shares from the fully diluted cap table. These moves were intentional. We're not trying to be a pure digital asset treasury company; we prioritize the operating company first and will use our Bitcoin treasury to support operations when appropriate. We would like to add Bitcoin to our treasury when possible, but we won't do so at all costs for financial engineering. Our focus is on the operating company, and we hope to generate cash flows to reinvest into building the Bitcoin treasury.

Dave, Fold has two undervalued assets: our Bitcoin and, even more, our equity. We recently removed convertible debt, showed 34% revenue growth year-over-year despite industry downturns, and simplified our capital structure to support growth. The steps we took position the operating company to support transformational products and clear complexity from our capital structure. Those changes restore operational flexibility. We look forward to continuing to stack Bitcoin and believe that day may come sooner than expected, driven by the operating company's growth and success. Our Bitcoin treasury strategy is to build an incredible operating company.

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, and thank you, Towanda, for helping us through here, and thanks to everyone who asked questions and has been following our story, both on the institutional side and retail side. This year has been unexpected, as many in our industry would say. I couldn't be more proud of the strategy and approach our team at Fold took. We decided to double down on improving infrastructure, team, process and getting the products our customers have been clamoring for to market. We're at an inflection point with an existing business that is growing through market downturns and accelerating in good markets, plus a whole other multiple potential from the Bitcoin Rewards Credit Card, which will be rolled out to the 80,000-plus waitlist and alone will transform the company. Our new enterprise offering represented by the Bitcoin bonus program will continue to roll out SaaS contracts and recurring revenue sources, bringing new employees into the ecosystem. We also have additional features coming to the platform over the next few months that will be exciting. We are committed, heads down, to 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 meet and share the numbers behind much of this vision. Thank you.

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