Safe Harbor Financial Holdings, Inc., popularly known as Safe Harbor Financial (SHFS) and a distinguished provider of financial services to the cannabis industry, has disclosed robust financial and operational performance for the three- and nine-month period ending September 30, 2023.
Key Highlights of Q3 2023 Financial Results
- Total Revenue: Safe Harbor marked a remarkable 82.11% surge in revenue, soaring to $4.3 million, from $2.4 million in Q3 2022. The surge was fueled by increased investment and loan interest income, amplified deposit activity, and onboarding income.
- Operating Expenses: Escalated to $3.8 million compared to $1.6 million in the previous year, primarily attributed to higher compensation, employee benefits, marketing expenses, amortization, and depreciation.
- Net Loss: Stood at $748,067, in contrast to a net income of $1,056,235 in the prior year due to increased operating expenses.
Summary of Nine Months ended September 30, 2023
- Total Revenue: Climbed to $13.1 million, from $5.9 million in the prior year.
- Operating Expenses: Surged to $32.1 million from $4.2 million in the prior year due to escalated compensation, employee benefits, marketing expenses, amortization, and depreciation.
- Net Loss: Totaled $19.8 million, compared to a net income of $1.9 million in the prior year due to increased operating expenses.
The financial position of Safe Harbor Financial remains robust as of September 30, 2023. The company holds cash and cash equivalents amounting to $8.9 million, compared to $8.4 million on December 31, 2022.
CEO of Safe Harbor Financial, Sundie Seefried, highlighted, “As a result of our continued dedication to the industry coupled with the compliant fintech platform, we have processed over $1 billion in cannabis-related funds for each of the first three quarters of 2023. With this increased deposit base, we have also been able to increase our credit portfolio by 123% year-over-year to over $42 million in book value. Since the end of 2022, we have also significantly reduced our overall operating expenses while still being able to grow our business and further increase Adjusted EBITDA, which remained positive for the third consecutive quarter.”
Shares of SHFS were trading 0.02% down at $0.6599 per share at the time of writing on Tuesday afternoon.
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Photo: Courtesy Of Joel Muniz On Unsplash