Fold Holdings, Inc. Revenue Disclosure
4. REVENUE
Disaggregation of revenue
We disaggregate revenue by service type and by platform as follows:
|
|
|
Year Ended |
|
|||||
Revenue stream |
|
|
2025 |
|
|
2024 |
|
||
Banking and payment revenues |
|
|
$ |
30,322,364 |
|
|
$ |
23,432,996 |
|
Custody and trading revenues |
|
|
|
1,462,357 |
|
|
|
170,746 |
|
Other revenues |
|
|
|
63,663 |
|
|
|
161,000 |
|
Less: Sales returns and allowances |
|
|
|
(54,711 |
) |
|
|
(11,594 |
) |
Revenues, net |
|
|
$ |
31,793,673 |
|
|
$ |
23,753,148 |
|
The above amounts are net of reductions in revenue related to Revenue Rewards totaling $1.9 million and $1.8 million for the years ended December 31, 2025 and 2024, respectively.
Deferred revenue
Contract liabilities are classified as deferred revenue in our balance sheets. As of December 31, 2025 and December 31, 2024, the contract liability related to our deferred subscription revenues was $0.3 million and $0.3 million, respectively, and the contract liability related to an unearned portion of a bonus paid to us by Visa was $0.1 million and $0.6 million, respectively.
The activity in deferred revenue for the year ended December 31, 2025 and the year ended December 31, 2024, was as follows:
|
|
Year Ended |
|
|
Year Ended December 31, 2024 |
|
||
Beginning of the period contract liability |
|
$ |
875,466 |
|
|
$ |
1,012,010 |
|
Revenue recognized from the contract liabilities included in the beginning balance |
|
|
(771,669 |
) |
|
|
(442,045 |
) |
Increases due to cash received net of amounts recognized in revenue during the period |
|
|
262,455 |
|
|
|
305,501 |
|
End of period contract liability |
|
$ |
366,252 |
|
|
$ |
875,466 |
|
Contract costs
For the years ended December 31, 2025 and 2024, we did not incur any incremental costs to obtain and/or fulfill contracts with customers.
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.