Safe Harbor Financial SHFS, a key player in providing financial services to the legal cannabis industry, unveiled its financial results for the fourth quarter and full year ending on December 31, 2023.
Safe Harbor recorded a remarkable growth in annual revenue, soaring by 85.3% to $17.6 million in 2023, as compared to $9.5 million in the previous year.
Since its inception, the company has facilitated over $21.5 billion in deposits across 41 states, illustrating its significant footprint and expanding influence in the financial landscape.
Sundie Seefried, CEO of Safe Harbor Financial, emphasized the successful launch of new lending and deposit offerings in 2023, resulting in increased account fees, investment income, and loan revenue. Seefried underscored the importance of diversifying revenue streams and reducing reliance on deposit fees through a high-margin lending program.
Financial Performance Highlights
During the fourth quarter of 2023, total revenue surged by 25% to $4.5 million compared to the previous year.
Operating expenses decreased by around 16.2%, leading to a net income of $2.5 million for the quarter.
The company reported cash and cash equivalents of $4.9 million as of December 31, 2023, indicating its financial solidity and preparedness for future endeavors.
In 2023, Safe Harbor Financial’s Adjusted EBITDA spiked by 176.9% to $3.6 million, up from $1.3 million in 2022.
The company attributes this significant income growth to various factors including increased deposits and activity income, stemming from the expansion of account numbers post the acquisition of cannabis banking and payments platform Rockview Digital Solutions Inc., also known as Abaca.
Moreover, escalating employee benefits and general administrative expenses, paired with reduced professional costs, contributed to this substantial financial upswing.
Stock Performance Update
Safe Harbor’s stocks were trading down by 3.63% at $0.93 per share at the close of trading on Monday.
Learn more about these crucial developments at the upcoming Benzinga Cannabis Capital Conference in Florida on April 16 and 17, 2024. The event at The Diplomat Beach Resort will provide a platform for entrepreneurs from all scales to connect, learn, and progress. Renowned for its forward-thinking ethos and impact on the future of cannabis, mark your calendars – this conference stands as a premier event in the cannabis realm. Grab your tickets today on bzcannabis.com – Prices are set to rise soon!
Photo: AI-Generated Image.