PSQ Holdings, Inc. (PSQH) - 10-Q Summary for Period Ended June 30, 2026
Business Context and Reporting Period
This report covers the quarterly period ended June 30, 2026. PSQ Holdings, Inc. is a financial technology company that has strategically repositioned to operate as a single reportable segment: Financial Technology ("FinTech"). This segment comprises three operating units: Credova (consumer financing), PSQ Payments (payment processing), and PSQ Impact (nonprofit fundraising). The Company has classified its former Marketplace and Brands segments as discontinued operations. Notably, a 1-for-15 reverse stock split became effective on July 13, 2026, and all historical data in this filing has been retroactively adjusted to reflect this split.
Key Financial Metrics
| Metric | Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 |
|---|---|---|
| Revenues, Net | $7.13 million | $15.29 million |
| Net Loss | $(5.62) million | $(12.08) million |
| Operating Loss | $(4.79) million | $(10.92) million |
| Cash and Cash Equivalents | $6.74 million | $6.74 million (as of period end) |
| Net Working Capital | $7.47 million | $7.47 million (as of period end) |
| Revolving Line of Credit Outstanding | $7.35 million | $7.35 million (as of period end) |
| Convertible Promissory Notes | $28.45 million | $28.45 million (as of period end) |
Note: The Company reported a Net Loss per share (basic and diluted) of $(1.54) for the three months and $(3.34) for the six months ended June 30, 2026.
Material Changes vs. Prior Comparable Period
- Revenue Growth: Net revenues increased 108% year-over-year for the quarter and 136% for the six-month period, driven primarily by the launch and scaling of PSQ Payments and increased loan/lease contract sales.
- Cost Structure: Total costs and expenses increased 38% for the quarter and 25% for the six-month period. Cost of revenue rose significantly (186% QoQ) due to transaction fees associated with payment processing volume.
- Discontinued Operations: Loss from discontinued operations improved significantly, decreasing by 87% for the quarter and 93% for the six-month period compared to 2025, reflecting the wind-down of the Marketplace segment and the held-for-sale status of the Brands segment.
- Non-GAAP Performance: Segment non-GAAP operating income for the quarter was $381,400, a significant improvement from a loss of $(2.73) million in the prior year quarter. However, for the six-month period, the segment reported a non-GAAP operating loss of $(474,670) compared to $(5.54) million in the prior year.
- Headcount Efficiency: Full-time equivalent (FTE) headcount decreased by 50% (from 72 to 36) year-over-year, resulting in a 316% increase in revenue per headcount for the six-month period.
Guidance, Outlook, Risks, and Unusual Items
- Liquidity and Capital Resources: The Company reported negative cash flows from operations of $6.5 million for the six months ended June 30, 2026. Management expects existing cash, combined with proceeds from the planned sale of the EveryLife assets (Brands segment), to fund operations for at least the next 12 months. Cost-cutting initiatives, including a 50% staff reduction, are expected to yield $8.0 million in annualized cash savings.
- Asset Sale: On July 28, 2026, the Company entered a definitive agreement to sell EveryLife assets for $5.5 million in cash. Closing is expected by September 30, 2026.
- NYSE Compliance: The Company received notice of non-compliance with NYSE listing standards regarding market capitalization and stock price. A business plan was accepted, granting an 18-month compliance period. Immediate suspension and delisting will occur if the average total market capitalization falls below $15.0 million.
- Internal Controls: Management concluded that disclosure controls and procedures were not effective as of June 30, 2026, due to a material weakness in internal control over financial reporting. Remediation steps are underway.
- Unusual Items: The financial results include significant non-cash adjustments, including a $0.9 million reversal of share-based compensation expense related to executive role changes and changes in the fair value of warrant and earn-out liabilities.
Investor Verification Checklist
- Reverse Stock Split Impact: Verify that all share counts and per-share metrics in external analysis tools have been adjusted for the 1-for-15 reverse split effective July 13, 2026.
- Going Concern Status: Assess the reliance on the $5.5 million EveryLife asset sale to meet liquidity needs for the next 12 months and the risk of delay or failure of this transaction.
- NYSE Delisting Risk: Monitor the stock price and market capitalization closely, as falling below a $15.0 million average market cap triggers immediate suspension.
- Internal Control Weakness: Review the specific nature of the material weakness in internal controls and the progress of remediation efforts in future filings.
- Revenue Concentration: Note that for the six months ended June 30, 2026, one customer accounted for 27% of revenue, and one customer plus one payment partner accounted for 85% of accounts receivable.