Earnings Call Transcript - FLD Q4 2025

Operator, Operator

Hello, and thank you for standing by. Welcome to Fold Holdings, Inc. Fourth Quarter 2025 Earnings Conference Call. Operator Instructions: I would now like to hand the conference over to Samir Jain. You may begin.

Samir Jain, Investor Relations / Moderator

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 with 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.

William Reeves, Chairman and CEO

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.

Wolfe Repass, CFO

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.

William Reeves, Chairman and CEO

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.

Operator, Operator

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

Mike Grondahl, Analyst (Northland)

First question kind of has to do with the Fold 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?

William Reeves, Chairman and CEO

Mike, it's good to hear from you. Yes, I can give more insight on the Bitcoin Gift Card. As you know, it 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 and also at other retailers. This was one of the most successful new gift card launches this year and very much mimicked the numbers of a brand-new national chain launching their gift cards. On our side, we saw pretty incredible growth. 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 use our Bitcoin exchange. In fact, one of our largest new users of the Bitcoin exchange and debit card actually came from someone receiving a Bitcoin gift card. They moved all of their spending and 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 recent volatility has certainly given them an interesting first start to Bitcoin. So beyond specific numbers, and I'll hand 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 negotiations with very large U.S.-based retailers, both online and brick-and-mortar, to bring the product to their shelves and replicate that process. Currently, Fold is still the only product offering this, and we have a window to continue to build this coalition of new retailers carrying it and see similar results. When we see things like 20% month-over-month growth and thousands of new customers coming in with essentially zero acquisition costs, that's a channel we want to double down on. We're working with those retailers on how to make the product more clear and position it for even more volume. Wolfe, do you have anything to add here?

Wolfe Repass, CFO

Yes. Mike, just to direct your question: as of Q3, 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 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.

Mike Grondahl, Analyst (Northland)

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?

William Reeves, Chairman and CEO

Great question. Very happy to report the product 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 Fold team members and those close to Fold. The next step is going through the top users of Fold and the waitlist. We will be going down the list over the coming weeks and aggressively adding as many as possible. The limiting factors include that this is a new program and will need to scale to many cardholders. On a card program that extends unsecured credit, getting the risk and fraud models correct is essential. We will bring customers in in waves to ensure tooling, fraud and risk controls are dialed in. Once 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 to continue bringing in more interested people, although they might not get the card right away. We know the current demand on this card and the broader market demand will continue to grow the waitlist and put pressure on us to get it out as fast as possible. I don't have a specific timeline because it's reliant on how dialed in our fraud and risk controls are. The positive thing is we have assembled an experienced team to operationalize and manage this program, including veterans from existing credit card programs and bank risk departments. We are confident we will move through the initial weeks and months of onboarding and then rapidly expand to general access when controls and tooling are proven.

Operator, Operator

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

Kevin Dede, Analyst (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.

William Reeves, Chairman and CEO

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 is the winning product. From feedback and proof points of the waitlist, about 80% of the market are savers; only 20% align with a trading experience. Fold's card is designed for savers and is built around savings: the more you save on Fold, the higher your rewards rate. In terms of growth, the card opens up a wider audience that matches our target demographic. Our debit card users are primarily credit card users, and the credit card lets them move more of their financial lives to Fold. We did not outsource the program completely; we partnered with Stripe and Visa to build and own as much of the stack and economics as possible. Interchange is roughly twice the interchange of our debit card. Our debit card today has transaction limits that prevent people from putting all of their spend through it. The credit card will come out of the gate with meaningful credit lines, allowing us to service customer spending and grow over time. We've set the product to be unit-economics positive on a per swipe basis even before factoring interest from revolving credit lines. As balances begin to revolve, interest income will become a meaningful revenue driver. A soft benefit is cross-sell: to get more rewards on the credit card you engage with other Fold products. If you buy Bitcoin through Fold, you can get up to 4% back on purchases. If you use Bitcoin to pay off the card, you get a minimum of 2% back on all purchases. The product is designed to drive cross-sell and bring as much financial activity to the platform as possible. We're just getting started. Wolfe, did I miss any key economic considerations?

Wolfe Repass, CFO

No, you covered most of it. Another important piece is that long term, as this product scales, some costs do not scale with the program. There are fixed costs related to our partnership with Stripe and other vendors; those are fixed regardless of scale, so margin should improve over time. Another key piece is volume rebates from Visa that kick in after the program has been live for a year, so year two should look even better than year one. On day one, this has been set up to be unit-economic positive on a per-swipe basis with upside on the financing piece.

Kevin Dede, Analyst (H.C. Wainwright)

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?

William Reeves, Chairman and CEO

It's a great question. We've been working with Steak 'n Shake and other businesses over the last year in limited capacity. We rebuilt our team and infrastructure, launched our flagship product and began the credit card rollout. We saw demand from enterprises and businesses looking to use the same infrastructure we've built for consumers: checking accounts, exchange, debit card, credit card, rewards. The Steak 'n Shake program enables them to offer a service not broadly provided in the market. They use us as a trusted partner to bring their employees to Fold to manage bonuses and ideally direct deposit their paychecks, manage spending and earn rewards. This delivers SaaS recurring contracts for Fold and activity from employees who direct deposit, spend, send money and earn bonuses through our platform, creating long-term sticky engagement. Steak 'n Shake mentioned us publicly, which built a pipeline of new partners interested in implementing similar programs. Those partners range from large publicly traded corporations with thousands of employees to small contractors with a few employees. We've seen significant demand for the Bitcoin bonus program and for using Fold's infrastructure more broadly to serve business needs: treasury, operational spending, rewards on operational spend. We believe this is a deep well of demand and customers ready to adopt without us doing heavy marketing. We already have other partners in contract stage with hundreds of employees or tens of employees, and we will focus on making this a recurring and repeatable SaaS model where any business can sign up. This beachhead into enterprise is exciting because it leverages the existing infrastructure we invested in and can add multiple revenue streams with limited incremental overhead.

Kevin Dede, Analyst (H.C. Wainwright)

Can you offer a little history on the development of the relationship? Help us understand how your two companies cross paths and whether or not you saw it as an employee-driven opportunity, or the Steak 'n Shake employees wanted to be connected with the Bitcoin platform. I know the company is forward-thinking from a crypto perspective, but not every company is. I'm wondering what advantages the companies themselves see aside from the benefits to their employees.

William Reeves, Chairman and CEO

We often play the role of bridge for traditional corporations, financial services companies and brands. Steak 'n Shake is one of the oldest fast food chains in the country and had leadership committed to Bitcoin, seeing it not only as a means of payment but as part of identity and an opportunity to tap into cultural trends. They initially started an initiative to accept Bitcoin payments and saw same-store sales increase. They introduced us to expand further: not just enabling spending but enabling earning Bitcoin through rewards. Fold was a natural fit because we created this category early and are a leader in the space. We launched a Bitcoin meal deal where every meal sold was eligible for $5 in Bitcoin, giving people a first taste of Bitcoin through the Steak 'n Shake and Fold partnership. That program has brought thousands of customers to Fold and given Steak 'n Shake a marketing differentiation in a commodified market. For Steak 'n Shake, offering Bitcoin bonuses to employees means lower recruiting and retention costs, since bonuses can be subject to vesting schedules that encourage longer tenures. Over time, Bitcoin appreciation can create meaningful value for employees. This is a forward-thinking program for American workers and is relevant to a broad range of companies. Even companies that are not Bitcoin-first may want to attract and retain employees who are interested in Bitcoin. Fold saw the market need and supported Steak 'n Shake to implement this program while building it into a repeatable offering that brings more customers and new types of customers to Fold.

Kevin Dede, Analyst (H.C. Wainwright)

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.

Operator, Operator

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

Harold Goetsch, Analyst (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 wondering 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 two to three years. What do you think those numbers have to be?

William Reeves, Chairman and CEO

Thanks, Hal. Good to hear from you. Last year we hit an unexpected snag: our initial partner for the card program was acquired and the program was shut down. We went back to the drawing board and used it as an opportunity to make the program better. We swapped out the partner for Stripe and Visa and made the program more attractive. Before it was up to 3.5% back; it is now up to 4% back. Because we didn't bring it to market last year, we pulled back a lot of marketing spend, but the waitlist kept growing. We're over 80,000 people on that waitlist. We have stopped actively marketing it but will reopen it as the card rolls out, which will bring more attention. That initial group on the waitlist is going to have an incredibly low acquisition cost—very similar to our historical acquisition costs—because it is built on how Fold builds product: create something people want, limited availability, simple and intuitive. The Fold credit card has no annual fee and is highly competitive in rewards. I expect the waitlist to convert at low marketing cost and that many customers will switch from other cards because of how rewarding and simple our product is. Regarding growth, our core user base are primary credit card users; making credit available allows Fold to capture more of their monthly spending. This will lead to a multiple increase in per-user volume on the platform, contributing to GMV growth. The credit card customer base tends to be higher income and can carry larger credit lines, enabling Fold to service more of customers' spending. This will transform GMV not only for existing customers but also for the new customers attracted by the card. Wolfe, do you want to add anything on CAC or volumes?

Wolfe Repass, CFO

I think the key is we know this product has demand. We achieved the waitlist we've been discussing for the last year with almost zero marketing dollars. We encouraged users to participate in the platform to move up the waitlist, so people effectively paid to get there—they want the card. There's demand, and we are well positioned to capture it. If we need to double down on marketing later, we can decide to do that, but right now we don't view this as a hugely expensive product rollout.

William Reeves, Chairman and CEO

Hal, just to add one thing: the 80,000 waitlist alone represents a transformation of the company across volumes, revenues, cross-sell and product adoption. Not everyone will be approved for the card, but simply moving through that waitlist represents a significant transformation without even growing the waitlist further or going to general availability. What Fold already has is spring-loaded for a transformation across nearly every front.

Harold Goetsch, Analyst (B. Riley)

Terrific. And can you go over some of the attributes? I think it was up to 4% rewards now. What other attributes might be involved in getting this to become a top-of-wallet product for users?

William Reeves, Chairman and CEO

Yes. The primary audience for this product is people serious about building long-term savings in Bitcoin. We designed the card to incentivize that group to bring their Bitcoin buying to Fold, with up to 4% on purchases. The card is free with no annual fee and comes as a 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%. If you use your Bitcoin to pay the card off, your 1.5% becomes 2% unlimited. Initially, the card speaks to Bitcoin savers: there's no more rewarding card for this group. Additionally, you can tap into our existing rewards network where it is not uncommon to earn 3%, 4%, 5% back at some national retailers and service providers—Uber, Instacart, DoorDash are present on the Fold platform. As we add features, we may look at travel benefits or airline partnerships for customers wanting to drop airline miles cards. This is the first step, and we believe hundreds of thousands of Bitcoin savers will be attracted to this program. We'll continue to iterate with customer demand and aim to remain the most rewarding card for Bitcoin-interested savers in the U.S.

Operator, Operator

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

Nathan Frankovitz, Analyst (Cantor Fitzgerald)

Yes, 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. 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?

William Reeves, Chairman and CEO

Yes. The primary limiter on moving through the waitlist is dialing in controls. We will invite new customers from the waitlist in stages: several hundreds, then several thousands, then tens of thousands. Each stage will have KPIs we monitor to ensure fraud and risk controls are correct. We're watching customer behaviors—revolve rates, spend categories—and we are watching the waitlist growth. I don't have a specific number for active cards by the end of Q2. We need the next couple of months to hone our point of view on ramp expectations. Fraud and risk management is the number one priority for a credit card program. We have an experienced team and are focused on moving rapidly while ensuring the program is safe and sustainable. The rollout will be rapid but staged.

Nathan Frankovitz, Analyst (Cantor Fitzgerald)

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

William Reeves, Chairman and CEO

I'll let Wolfe jump into this piece. We're clear that we don't want to fully outsource the program such that third parties capture the lion's share of economics. We built this to retain maximum economics on interchange and interest. We will tap third-party financing facilities to scale, and Fold will participate as we go. We decide how much or how little we want to participate in the financing.

Wolfe Repass, CFO

I think Will covered it. Long term, we want optionality to participate in the financing economics. We've structured the program so we can bring in third-party warehouse facilities or use our own balance sheet. It will be an evolving mix as the program grows.

Operator, Operator

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

Eddie Gonzalez, Analyst (Prudential Advisors)

This is Eddie from Prudential Advisors. Following up on the app rebuild and the launch of the unified experience from February 2026, you 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 both other B2C products?

William Reeves, Chairman and CEO

Great question, Eddie. We went back to first principles: be the bridge for Bitcoin to mainstream America and normalize Bitcoin as a legitimate part of saving. We found gating our best features behind subscription was counterproductive; it blocked people from experiencing the platform and deepening their engagement. We have removed the Fold Plus subscription from the Fold experience to unleash growth. The credit card also has no annual fee to maximize reach. I don't have exact user metric numbers to share yet, but we'll report more granularly in our next update. We rebuilt the app from the ground up to allow faster product iteration. Recently, we shipped over 100 bug fixes and nearly 10 new features in a 30-day period—much faster than prior cadence. That increased velocity allows us to ship high-quality features more quickly. The new app foundation paired with the credit card rollout will support cross-sell: customers using the card will more easily engage with exchange, rewards, debit and other Fold features. We are underwriting and extending credit lines, moving through the waitlist, and will provide regular updates on our ability to scale. We aim to get to general access where anyone can get the app and the card in minutes.

Operator, Operator

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

David Storms, Analyst (Stonegate)

Just wanted to go back to maybe the costs associated with the credit card. Wolfe, I know you mentioned there should be some fixed cost absorption here. But with fraud and risk being the current limiter, is there a size beyond the first cohort that you need to invest more in headcount or technology here? 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.

William Reeves, Chairman and CEO

This is primarily about honing our models and tooling. It is not a major headcount issue. Fold operates lean to provide larger opportunities for those joining the team. We're onboarding people familiar with AI tooling and experts in their fields. Much of the work is training and modeling rather than hiring a large number of additional people. This is not a threshold where hiring is the only path to scale. It's a data and model problem we are well positioned to solve.

Wolfe Repass, CFO

Our primary costs beyond charge-offs and write-offs include vendor costs like Stripe and any third-party warehouse facility, people to help with data transfers, and rewards. We'll consider bringing in-house headcount if needed as the program grows, but for now we have the right pieces in place. We want to understand chargebacks and write-offs data before scaling aggressively, though industry data is available to help model expectations.

David Storms, Analyst (Stonegate)

That's great color. If I could ask one more around your balance sheet: I recognize you are not a Bitcoin treasury company, but being judicious with the Bitcoin treasury has allowed you to have some 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, taking into account the debt elimination and other measures you've taken to shore up the balance sheet?

Wolfe Repass, CFO

You're right. We sold some Bitcoin to eliminate convertible debt, but we also cleared a large amount of debt and removed a significant amount of potential dilution. The actions in Q1 were intentional. We are not trying to be a digital asset treasury company at all costs. We will use Bitcoin treasury to support the operating company when and where possible. We would like to continue adding Bitcoin to our treasury where practical, but we won't do so through aggressive financial engineering. We want to focus on the operating company and reinvest operating cash flows into stacking Bitcoin when appropriate.

William Reeves, Chairman and CEO

Dave, Fold has two undervalued assets: Bitcoin and, even more, our equity. We've removed convertible debt, shown 34% revenue growth year-over-year despite a challenging industry downturn, and simplified our capital structure. The steps we took position the operating company to support growth of new transformational products and clear capital structure complexity so we can operate from strength and leverage. That was only possible because Fold prioritized building an operating company that can generate cash flow and acquire Bitcoin over time. I look forward to the day we continue stacking Bitcoin; that outcome is largely driven by the operating company's growth and success.

Operator, Operator

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.

William Reeves, Chairman and CEO

All right, everyone, and thank you, Towanda, for helping us through here, and thanks for everyone who asked questions and has been following our story, both on the institutional side and retail side. This year has been unexpected; I think everyone could say the same operating in our industry. I couldn't be more proud of the strategy and approach our team at Fold took. We decided to double down on improving our infrastructure, our team, our process and getting these products to market that our customers have been clamoring for for years now. We're at an inflection point where we not only have an existing business that grows through market downturns and accelerates in better markets, but now we have a whole other multiple from the Bitcoin Rewards Credit Card, which will be rolled out to that 80,000-plus waitlist. That alone is going to transform the company. Our new enterprise offering represented by the Bitcoin bonus program will continue to roll out SaaS contracts and recurring revenue sources as new employees enter the ecosystem. There are additional features coming to the platform over the next few months that will be exciting. We are heads down, committed 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 to showing the numbers behind our vision. Thank you.

Operator, Operator

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