Stonegate Capital Partners has updated its coverage on Fold Holdings Inc., highlighting the financial technology company's substantial annual growth while noting recent quarterly challenges linked to cryptocurrency market conditions. The firm reported revenue of $31.8 million for fiscal year 2025, representing a 34% year-over-year increase, driven by transaction volume growth of 46% to $960 million. Verified accounts grew by 20% to more than 84,000, including approximately 13,000 net additions throughout the year.
Despite this scaling momentum, profitability remained under pressure due to ongoing investment. The company reported an operating loss of $27.7 million and adjusted EBITDA of negative $17.2 million for the fiscal year. Stonegate's analysis suggests these investments supported continued platform expansion, broader product reach, and improved monetization capabilities that position the company for future growth. The fourth quarter presented a more challenging environment, with revenue increasing 8% year-over-year to $9.1 million while key operating metrics softened.
Transaction volume declined 3% year-over-year to $215 million, and verified account growth moderated to approximately 2,000 net additions. Analysts attribute this quarterly softness primarily to weaker bitcoin market conditions rather than structural issues within Fold's business model. Stonegate's report identifies several growth drivers heading into fiscal year 2026, including the company's credit card offerings, gift card products, and Fold for Business platform. These products are expected to meaningfully expand monetization opportunities, customer engagement, and acquisition channels.
The company's substantial bitcoin treasury and flexible balance sheet provide additional liquidity to support execution as these new products scale. The updated coverage emphasizes that Fold exited fiscal year 2025 with what Stonegate describes as "real scale momentum," validating platform traction through both revenue and transaction volume growth. While the fourth quarter reflected market-driven challenges, the firm's diversified product portfolio and financial resources position it to navigate cryptocurrency market volatility while continuing to expand its user base and transaction ecosystem.
