Fold has concluded its first year as a publicly traded company, and the results present a mixed evaluation. The bitcoin-focused financial services firm reported a net loss of $69.6 million for the entirety of 2025, as indicated in its annual filing released recently. While revenue increased by 34% compared to the previous year, reaching $31.8 million, the operational losses surged significantly from $5.8 million to $27.7 million. This nearly fivefold rise in operational losses makes the revenue growth appear less impactful.
Understanding the financials is essential. Fold's adjusted EBITDA loss stood at $17.2 million, resulting in an adjusted loss per share of $0.41. As a company listed on Nasdaq under the symbol FFLD, these figures challenge investor confidence. The variation between the overall net loss of $69.6 million and the operational loss of $27.7 million requires clarification. A substantial portion, over $9.6 million, was incurred due to a one-time charge connected to retiring two outstanding convertible bonds. Convertible bonds function as IOUs that can transform into company stock. Eliminating this debt incurs immediate costs but mitigates future dilution risks for shareholders.
CEO Will Reeves described this strategic move as necessary housekeeping, emphasizing a focus on growth and improving the company's balance sheet by reducing structural complexities.
On the growth front, the firm successfully added 13,000 new customers during the year, bringing the total to 84,000 verified accounts. Transaction volume reached $960 million, reflecting a 46% increase. Notably, per-customer transaction volume increased by 3% year-over-year, highlighting that existing users are not only remaining loyal but are also increasing their expenditures.
How is Fold expanding its offerings? Founded in 2019, Fold originally attracted attention with its concept of earning Bitcoin rewards instead of traditional airline miles. Now, the company is entering new segments with the recent introduction of the Fold Credit Card, which allows Bitcoin rewards to extend beyond just debit transactions. Additionally, Fold For Business aims at enterprise clients, targeting a potentially lucrative market where other competitors, such as BitPay and Strike, are already established.
Despite the promising outlook, the expansion into credit cards presents significant challenges. Credit cards necessitate substantial capital reserves, fraud prevention measures, and adherence to strict regulatory standards far exceeding those required for debit cards. For a company already grappling with $27.7 million in operational losses, adopting another capital-heavy product line poses a considerable risk.
However, there is a sound rationale behind this strategy. The U.S. credit card market processes approximately $5 trillion annually. Capturing even a small portion of this market with a Bitcoin-centric rewards system could greatly exceed Fold’s current transaction volume of $960 million. The critical question remains: can the company maintain its balance sheet during this scaling phase?
What implications does this have for investors? Fold occupies a challenging position common among growth-stage fintech enterprises. Although revenue is increasing robustly, losses are escalating at a faster rate. The 34% revenue growth is impressive, but the significant rise in operational losses by 377% cannot be overlooked. The retirement of convertible bonds is a positive sign for current shareholders, as it reduces potential dilution and signals management's commitment to enhancing equity value beyond merely boosting the top line.
Going forward, it is crucial to monitor two key metrics. Firstly, evaluate the cost of acquiring new customers in relation to their lifetime value. Although gaining 13,000 new accounts is commendable, it is crucial that each customer remains profitable. Secondly, observe the early adoption metrics of the credit card. If it is possible to convert existing debit users to credit card holders, there will be a drastic reduction in acquisition costs.
The competitive landscape is also evolving. With Bitcoin prices near all-time highs and mainstream financial institutions increasingly embracing cryptocurrency, Fold’s distinct advantage may be diminishing. While a Bitcoin rewards card was a novel idea in 2020, by 2025, many neobanks offer similar products.
In conclusion, Fold is investing heavily to create a Bitcoin-native financial ecosystem, and the current losses reflect this strategy. While revenue growth is tangible, it has not yet compensated for the ambitious costs. The expansion into credit cards represents a wise strategic direction, contingent on the company's ability to sustain it long enough to realize scale.