AI Financial Corporation, a WLFI treasury firm chaired by World Liberty Financial CEO Zachary Witkoff, reported a significantly wider net loss for the quarter ended March 28, 2026. According to its earnings report released Monday, the Nasdaq-listed firm generated $4.7 million in revenue during the three months ended March 28, 2026, entirely from its fintech business focused on crypto payments. The company posted a net loss of $271.5 million for the quarter, compared to a net loss of $2.4 million a year earlier. The company's basic and diluted loss per share was $2.14 for the quarter. The company reports on a 52- or 53-week fiscal year, with fiscal 2026 ending on Dec. 26, 2026.
As of March 28, AI Financial held a working capital deficit of roughly $5.5 million. Its total current liabilities stood at $39.1 million, compared to total current assets of $32.2 million. The company used $12.3 million in cash from operations during the quarter. The filing said AI Financial's financial conditions "raise substantial doubt about the company's ability to continue as a going concern within one year after the date these financial statements are issued." According to the report, the company's ability to continue operating would depend on improving liquidity, growing revenue from its fintech segment, and potentially raising additional capital through debt or equity financing.
A major contributor to the company's loss was the decline in value of its WLFI holdings. AI Financial held 7.28 billion WLFI tokens valued at $706.4 million on March 28, down from a fair value of $1.05 billion on Dec. 27, 2025, resulting in an unrealized loss of $348.3 million. The cost basis for the tokens was $1.46 billion. The filing showed that all 7.28 billion WLFI tokens are subject to contractual lock-up terms. About 3.53 billion tokens cannot be transferred for 12 months, except for limited collateral, staking, or lending use. Another 3.75 billion tokens need several conditions before release. The company warned that the WLFI tokens are subject to significant market price risk, and "there can be no assurance that the tokens will retain their current value or that the company will be able to monetize them on favorable terms or at all."
World Liberty Financial, considered a related party to AI Financial, owns 1 million shares of AI Financial common stock and holds pre-funded warrants to purchase up to 99 million additional shares. The company also holds warrants to buy up to 20 million shares at exercise prices ranging from $7.50 to $9.75 per share. In January, AI Financial entered a master loan and security agreement with WLFI on Jan. 29 through its ALT5 Digital Holdings unit. The company previously closed a $1.5 billion funding round led by World Liberty Financial in August 2025 to launch a WLFI-focused treasury strategy. Additionally, WLFI provided a new $15 million secured loan at 4.5% interest rate collateralized by WLFI tokens with a 65% loan-to-value ratio and non-recourse structure, which contributed to the quarter's cash flow activities.
AI Financial's Nasdaq-listed shares (AIFC) closed down 9.61% at $0.91 on Monday following the earnings announcement. The company's biotechnology segment remained classified as discontinued operations during the quarter, with the firm focusing entirely on its fintech operations in the crypto payments sector. Despite the challenging financial position, management noted that the company's ability to continue as a going concern is dependent on managing liquidity, achieving revenue growth in its fintech segment, and potentially raising additional capital through debt or equity financing.
