BayFirst Financial Corp (BAFN) AI Stock Analysis

• Market Cap: $35.34M
• Dividend Yield: 3.74%
• Average Volume (3M): 18.82K
• Price to Earnings (P/E): 5.0
• Beta (1Y): 0.62
• Revenue Growth: 7.07%
• EPS Growth: 96.65%
• Country: US
• Employees: 305
• Sector: Financial
• Sector Strength: 73
• Industry: Banks - Regional
• EPS (TTM): -0.39
• Shares Outstanding: 4,133,637
• 10 Day Avg. Volume: 5,635
• 30 Day Avg. Volume: 18,819
• PEG Ratio: 0.03
• Price to Book (P/B): 0.50
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 0.14
• Enterprise Value/Market Cap: 3.65
• Enterprise Value/Revenue: 1.05
• Enterprise Value/Gross Profit: 2.14
• Enterprise Value/Ebitda: 6.64
• 1Y Price Target: $9.50
• Price Target Upside: 12.43% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 58 Neutral
• Price Target: $9.50 ▲(12.43% Upside)

BayFirst Financial Corp's overall stock score reflects a mix of solid financial performance and attractive valuation, offset by bearish technical indicators and negative corporate events. The company's strategic challenges and restructuring efforts are significant factors impacting the score.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and stability.

Net Interest Margin Improvement

Improved net interest margins enhance profitability, providing a buffer against economic fluctuations and supporting sustainable financial health.

Community Banking Focus

Focusing on community banking strengthens local market presence and customer loyalty, fostering stable revenue streams and competitive advantage.

Negative Factors

Increased Leverage

Higher leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Dividend Suspension

Suspending dividends may signal financial stress, affecting investor confidence and potentially limiting future capital raising capabilities.

Operational Challenges

Declining operational margins suggest inefficiencies that could hinder profitability and require strategic adjustments to maintain competitiveness.

BayFirst Financial Corp Business Overview & Revenue Model

Company Description

BayFirst Financial Corp. operates as the bank holding company for First Home Bank that provides commercial and consumer banking services for businesses and individuals. The company offers checking and savings accounts, and certificates of deposit. It also provides home loans, including residential mortgages, home equity loans, and home equity lines of credit; and business lending services comprising minority lending programs, PPP loan forgiveness services, SBA loans, and commercial lending services. In addition, the company offers treasury management, merchant, online, and investment services; and credit cards. As of January 26, 2022, it operated seven full-service office locations in St. Petersburg, Seminole, Pinellas Park, Clearwater, Sarasota, Tampa, and Belleair Bluffs, Florida; and 23 mortgage loan production offices. The company was formerly known as First Home Bancorp, Inc. and changed its name to BayFirst Financial Corp. in May 2021. BayFirst Financial Corp. was founded in 1999 and is headquartered in Saint Petersburg, Florida.

How the Company Makes Money

BayFirst Financial Corp generates revenue through several key streams, primarily from interest income on loans and investments. The company earns money by providing various loan products, including commercial loans, residential mortgages, and consumer loans, charging interest on these loans as borrowers repay them over time. Additionally, BayFirst earns fee income from services such as deposit accounts, transaction fees, and other banking services. The bank may also generate revenue from wealth management services, investment advisory, and insurance products. Strategic partnerships with other financial institutions and businesses can enhance its service offerings and increase customer acquisition, contributing positively to its earnings.

BayFirst Financial Corp Financial Statement Overview

Summary

BayFirst Financial Corp demonstrates strong financial performance with robust revenue growth, improving profitability margins, and efficient cash flow management. However, recent revenue decline in 2025 TTM requires cautious monitoring.

Income Statement

The income statement reveals a strong performance with consistently growing total revenue over the years, although there was a decline in 2025 TTM. The gross profit margin has been stable, and the net profit margin improved from a negative in 2022 to a positive in recent periods. The EBIT and EBITDA margins have also shown improvement, indicating efficient cost management. The overall trajectory is positive, with revenue growth primarily driven by an increase in gross profit.

Balance Sheet

The balance sheet shows a solid equity position with a reasonable debt-to-equity ratio, indicating low leverage. The return on equity has improved significantly over the last years, reflecting better returns to shareholders. The equity ratio is stable, pointing to a well-balanced structure between debt and equity. There are no immediate red flags, suggesting financial stability.

Cash Flow

Cash flow statements indicate robust operating cash flows, consistently covering capital expenditures with ample free cash flow. The free cash flow to net income ratio is strong, demonstrating high-quality earnings. Although there was a dip in operating cash flow in 2025 TTM, it remains positive. The company exhibits excellent cash generation ability, ensuring liquidity and financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	122.52M	125.24M	110.85M	66.41M	63.35M	134.09M
Gross Profit	60.26M	65.73M	68.32M	58.54M	59.55M	106.92M
EBITDA	19.41M	25.71M	14.79M	12.01M	16.05M	20.84M
Net Income	9.34M	12.60M	5.70M	-349.00K	24.62M	12.70M
Balance Sheet
Total Assets	1.34B	1.29B	1.12B	938.89M	917.10M	1.54B
Cash, Cash Equivalents and Short-Term Investments	101.41M	88.94M	102.61M	113.28M	143.00M	57.76M
Total Debt	61.48M	22.40M	20.96M	37.37M	12.71M	13.63M
Total Liabilities	1.24B	1.18B	1.02B	847.01M	820.80M	1.47B
Stockholders Equity	108.22M	110.92M	100.71M	91.88M	96.29M	71.07M
Cash Flow
Free Cash Flow	325.14M	388.84M	447.21M	432.19M	482.27M	-110.87M
Operating Cash Flow	325.70M	390.53M	454.80M	440.25M	495.39M	-107.82M
Investing Cash Flow	-412.01M	-515.93M	-641.28M	-510.61M	207.62M	-933.38M
Financing Cash Flow	102.83M	144.80M	178.82M	26.67M	-648.66M	985.98M

BayFirst Financial Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAFN, the sentiment is Negative. The current price of 8.45 is below the 20-day moving average (MA) of 8.69, below the 50-day MA of 11.60, and below the 200-day MA of 14.36, indicating a bearish trend. The MACD of -0.78 indicates Negative momentum. The RSI at 37.37 is Neutral, neither overbought nor oversold. The STOCH value of 20.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAFN.

BayFirst Financial Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.10B	11.66	9.93%	3.76%	9.70%	1.14%
BAFN	58 Neutral	$35.34M	4.96	8.93%	3.74%	7.07%	96.65%
SSBI	58 Neutral	$79.18M	10.38	-1.64%	3.35%	-0.03%	-126.57%
BYFC	48 Neutral	$68.05M	158.72	0.22%	―	2.54%	-174.74%
FSEA	―	$54.27M	―	-0.80%	―	―	―
CFSB	54 Neutral	$91.94M	―	>-0.01%	―	13.69%	77.14%
NSTS	―	$62.29M	―	-1.04%	―	―	―

BayFirst Financial Corp Corporate Events

BayFirst Financial Discontinues Bolt Loan Program

On August 4, 2025, BayFirst Financial Corp. announced the immediate discontinuation of its Bolt loan program, an SBA 7(a) loan product designed for small businesses, as part of a strategic review to position the company for long-term growth. This decision includes a workforce reduction of 17%, saving $6 million annually, and involves charge-offs and fair value write-downs on high-risk loans. The company plans to sell the Bolt loan balances and origination platform, while suspending dividend payments and board fees to offset impacts. These changes aim to focus resources on community banking and adapt to the evolving market landscape.

BayFirst Financial Reports Q2 Loss, Suspends Dividends

On July 30, 2025, BayFirst Financial Corp reported a net loss of $1.2 million for the second quarter, primarily due to higher provision expenses and write-downs on its loan portfolio. In response, the company has suspended dividend payments and Board fees as part of a strategic review to strengthen its balance sheet and enhance shareholder value. Despite the loss, BayFirst saw improvements in its net interest margin and growth in deposits, positioning itself as a leading community bank in Tampa Bay. The company also reported stable government guaranteed loan origination, with $106.4 million in new loans during the quarter.

BayFirst Financial Reports Q2 2025 Net Loss

BayFirst Financial Corp reported a net loss of $1.2 million for the second quarter of 2025, reflecting ongoing challenges in its credit portfolio and strategic adjustments to derisk its balance sheet. The company is focusing on strengthening its community banking operations, expanding its loan portfolio, and managing credit risk, while suspending dividends and board fees to enhance long-term shareholder value. Despite the economic uncertainties, BayFirst continues to see growth in its community bank loans and deposits, driven by a disciplined focus on relationship banking and tailored financial solutions.

BayFirst Financial Corp to Release Q2 Results Soon

BayFirst Financial Corp. announced that it will release its second quarter results on July 29, 2025, with a conference call scheduled for July 30, 2025, to discuss the outcomes. This announcement is significant for stakeholders as it provides an opportunity to gain insights into the company’s financial performance and strategic direction, potentially impacting its market position and investor confidence.