Safe Harbor Financial's 245% YoY Q1 Net Income Boost, Anticipates Capital Increase With Possible Rescheduling
Portfolio Pulse from Nicolás Jose Rodriguez
Safe Harbor Financial Services, Inc. (NASDAQ:SHFS) reported a 245% YoY increase in Q1 net income to $2.0 million, up from a net loss of $1.4 million. Revenue slightly decreased to $4.1 million from $4.2 million, while gross profit turned positive to $325,000 from a gross loss of $1.6 million. Operating expenses dropped 35.8% to $3.7 million, and adjusted EBITDA rose 165.3% to $1.1 million. The company's loan book and income significantly increased, with notable loans originated for cannabis facilities. Safe Harbor anticipates increased capital flow with potential cannabis reclassification.
May 13, 2024 | 11:35 pm
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Safe Harbor Financial reported a significant year-over-year increase in Q1 net income, a positive shift in gross profit, and a substantial rise in adjusted EBITDA. The company's strategic focus on expanding its loan book, especially in the cannabis sector, has paid off, with expectations of further growth amid potential regulatory changes.
The substantial increase in net income and adjusted EBITDA, along with the strategic expansion in the cannabis lending sector, positions SHFS for potential growth. The anticipation of regulatory changes that could increase capital flow into financial institutions serving the cannabis industry further supports a positive outlook. The reported decrease in operating expenses and the shift from a gross loss to a gross profit are indicative of effective cost management and operational efficiency improvements.
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