PSQ (NYSE:PSQH) reported a narrower third-quarter loss and reaffirmed its 2026 outlook as the company completed its exit from consumer brands and focused on payments and credit. Management also said it was exploring options to protect its New York Stock Exchange listing.
Revenue rose 67% from a year earlier to $7.3 million, while net loss narrowed to $4.1 million from $12 million. The company used $1.7 million of cash in operations during the quarter, down from $2.3 million in the second quarter and $4.1 million in the first.
Chairman and CEO Dusty Wunderlich said the turnaround remains incomplete until the business funds itself. PSQ is targeting positive monthly operating cash flow on a non-GAAP basis in 2027.
Payments Growth and Lower Costs Narrow Losses
PSQ Payments volume reached $197.3 million in the third quarter, up 121% from a year earlier, while Credova originations grew 23%, Wunderlich said. He said the company had 35 employees, compared with 72 a year earlier.
Chief Accounting Officer Krista Wenzel said payments now account for almost half of revenue, compared with about a third a year ago. The shift has reduced the proportion of revenue retained after transaction costs: cost of revenue rose to $3.5 million from $1.5 million, leaving about 52 cents of every revenue dollar after those costs, compared with 67 cents a year earlier.
Even so, revenue less cost of revenue grew about 30% in dollar terms, Wenzel said. Operating expenses fell 50% to $5.5 million, although roughly $4 million of the decline reflected lower non-cash share-based compensation. Excluding that item, operating expenses fell by roughly one-fifth, she said.
Operating loss narrowed to $3.3 million from $9.7 million. The company also reported two consecutive quarters of positive non-GAAP operating income, though it remained at a non-GAAP operating loss of $100,000 for the first nine months.
EveryLife Sale and Cash Position
PSQ completed the sale of EveryLife to FreeHold Brands after the quarter ended for $5.5 million before fees and customary adjustments. Chief Financial Officer Mike Pena said PSQ received $1 million in cash at closing, with the balance payable monthly over the following 12 months.
Asked why the transaction changed from an originally announced all-cash deal to one that included a $4.5 million secured promissory note, Wunderlich said the buyer had struggled to find a bank partner. PSQ agreed to seller financing and is working with the buyer to find a bank to refinance the note, he said.
The company wound down its marketplace by the end of June. Wenzel said EveryLife remained classified as discontinued operations at September 30, and final accounting for the sale will be recorded in the fourth quarter.
PSQ ended the third quarter with $6.8 million in cash, cash equivalents and restricted cash, including $3.8 million of unrestricted cash from continuing operations. It had drawn $6.8 million on a $10 million revolving facility used to fund Credova originations, Pena said.
Of the quarter’s $1.7 million in operating cash use, about $600,000 was attributable to one-time costs, primarily severance and deal expenses, while another $650,000 represented annual payments made in the third quarter, according to Pena.
Outlook Requires Record Fourth Quarter
PSQ reaffirmed its forecast for $32 million in 2026 revenue and positive non-GAAP operating income for the full year. With $22.6 million in revenue through nine months, Pena said the company needs approximately $9.4 million in the fourth quarter, which would be its largest quarter on record.
Pena cited hunting-season and holiday demand, along with new payment merchants, as reasons for reaffirming the forecast. Integrations with LendSuite, Dealer Cash and Roja are expected to begin contributing in the fourth quarter of 2026 and into the first quarter of 2027, with growth continuing through 2027, he said.
Wunderlich said the three relationships put PSQ in front of approximately 150 lenders on three loan platforms and more than 100 auto dealers in Texas. He said credit losses and delinquencies remained within the company’s expectations.
Listing Risk and Internal Controls
Responding to a submitted question about pressure on PSQ’s 30-day average market capitalization and the NYSE’s $15 million minimum threshold, Wunderlich said the company was in discussions with the exchange almost daily. He said PSQ was exploring potential special exemptions and other capital-markets options to remain listed, but did not identify a specific resolution.
Separately, Wenzel said management concluded that a material weakness in internal control over financial reporting related to cash-flow statement presentation had been remediated as of September 30. She said the company had strengthened its review of complex transactions and added experienced accounting professionals.
About PSQ (NYSE:PSQH)
PSQ Holdings, Inc, operating under the PublicSquare brand, is a technology and commerce company focused on connecting consumers with businesses that share a commitment to family, community and other values emphasized by the company. Its platform is designed to help users discover and purchase products and services from participating merchants.
PublicSquare provides a digital marketplace that includes consumer goods, services and business listings. The company has also pursued financial technology offerings intended to support transactions within its ecosystem, including payment-related services and other tools for consumers and merchants.
PublicSquare primarily serves customers and businesses in the United States.
