BayFirst Financial Corp (BAFN)
NASDAQ:BAFN
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BayFirst Financial Corp
(NASDAQ:BAFN)
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Rating:46Neutral
Price Target:
$6.00
▼(-20.74% Downside)
Action:ReiteratedDate:03/28/26
The score is primarily held back by weak financial performance—2025 losses and a collapse to zero operating/free cash flow—despite a manageable leverage profile. Technicals remain cautious (below key longer-term moving averages with negative MACD), while valuation is helped somewhat by the ~5% dividend yield but undermined by a negative P/E. The earnings call suggests operational progress and strong liquidity, but ongoing legacy SBA credit costs remain a material near-term overhang.
Positive Factors
Manageable leverage & equity cushion
A low-to-moderate debt-to-equity (~0.24) and sizable shareholders' equity ($87.6M) give the bank capital buffer to absorb near-term losses and support lending activity. This structural balance-sheet strength provides durable financial flexibility while the franchise repairs profitability.
Negative Factors
Profitability collapse and cash-flow failure
A large 2025 net loss and a collapse to zero operating and free cash flow materially erode internal capital generation. This undermines dividend sustainability, limits reinvestment, and forces reliance on liquidity buffers or external capital if profitability is not restored within several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Manageable leverage & equity cushion
A low-to-moderate debt-to-equity (~0.24) and sizable shareholders' equity ($87.6M) give the bank capital buffer to absorb near-term losses and support lending activity. This structural balance-sheet strength provides durable financial flexibility while the franchise repairs profitability.
Read all positive factors
BayFirst Financial Corp (BAFN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$28.14M
Dividend Yield4.1%
Average Volume (3M)11.15K
Price to Earnings (P/E)―
Beta (1Y)0.44
Revenue Growth1.63%
EPS Growth-508.72%
CountryUS
Employees305
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)-0.69
Shares Outstanding4,108,072
10 Day Avg. Volume16,746
30 Day Avg. Volume11,146
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.37
Price to Sales (P/S)0.31
P/FCF Ratio0.11
Enterprise Value/Market Cap1.56
Enterprise Value/Revenue0.45
Enterprise Value/Gross Profit1.34
Enterprise Value/Ebitda-1.84
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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....
How the Company Makes Money
BayFirst Financial Corp primarily makes money through its bank subsidiary by earning (1) net interest income and (2) noninterest income. Net interest income is generated from the spread between interest earned on interest-earning assets—primarily ...
BayFirst Financial Corp Key Performance Indicators (KPIs)
BayFirst Financial Corp Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
The call conveyed a mixed picture: operational and strategic progress (organic deposit growth, strong liquidity, treasury revenue expansion, and meaningful expense reductions) support the turnaround toward a core community banking model, but material legacy credit issues tied to unguaranteed SBA 7(a) loans, elevated net charge-offs, a Q4 net loss, and a year-over-year equity decline present significant near-term headwinds. Management expects further charge-offs but anticipates improvement over time as the SBA portfolio winds down and asset quality initiatives take effect.Positive Updates
Deposit Growth and Composition
Organic deposit growth of $12.5 million in Q4; total deposits of $1.18 billion at year-end, up $40.7 million or 3.6% year-over-year. 85% of deposits were FDIC-insured as of December 31, 2025.
Negative Updates
Net Loss and Equity Decline
Reported a net loss of $2.5 million in Q4 (improved from a $18.9 million loss in Q3). Shareholders' equity declined $23.4 million versus the end of 2024.
Read all updates
Q4-2025 Updates
Positive
Negative
Deposit Growth and Composition
Organic deposit growth of $12.5 million in Q4; total deposits of $1.18 billion at year-end, up $40.7 million or 3.6% year-over-year. 85% of deposits were FDIC-insured as of December 31, 2025.
Read all positive updates
Company Guidance
The company guided that it expects continued but diminishing legacy SBA 7(a) headwinds this year — additional charge-offs are likely though the unguaranteed SBA balance has already declined to $171.6M (down $50.4M QoQ and $51.4M YoY) — while emphasizing actions to fortify the balance sheet and tighten risk management that should improve asset quality and profitability without significant additional provision; year-end liquidity remained strong at >18%, deposits grew $12.5M in Q4 and $40.7M YoY to $1.18B (85% insured) with time deposits up $26.4M and interest‑bearing transaction deposits up $20.9M, net interest margin was 3.58%, treasury management revenue rose 69% YoY, Q4 provision was $2.0M and net charge-offs were $4.6M (annualized NCOs/avg loans 1.95% in Q4 vs. 1.24% Q3 and 1.34% in 2024), allowance for credit losses was 2.43% of loans (2.59% excluding government‑guaranteed loans), nonperforming loans excluding government guarantees were $16.9M (1.8%, up 11 bps QoQ and 45 bps YoY), shareholders’ equity was $87.6M and tangible book value was $17.22 per share — management expects ongoing SBA loan sales, continued deposit repricing to reduce high‑cost funding toward peer levels, and resulting improvements in net interest margin and competitive loan pricing.BayFirst Financial Corp Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
62
Positive
Cash Flow
22
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 104.19M | 125.24M | 110.85M | 66.41M | 63.35M |
| Gross Profit | 39.59M | 65.73M | 68.32M | 58.54M | 59.55M |
| EBITDA | -30.83M | 25.71M | 14.79M | 12.01M | 16.05M |
| Net Income | -22.94M | 12.60M | 5.70M | -349.00K | 24.62M |
Balance Sheet | |||||
| Total Assets | 1.30B | 1.29B | 1.12B | 938.89M | 917.10M |
| Cash, Cash Equivalents and Short-Term Investments | 34.49M | 88.94M | 102.61M | 113.28M | 143.00M |
| Total Debt | 20.82M | 22.40M | 20.96M | 37.37M | 12.71M |
| Total Liabilities | 1.21B | 1.18B | 1.02B | 847.01M | 820.80M |
| Stockholders Equity | 87.57M | 110.92M | 100.71M | 91.88M | 96.29M |
Cash Flow | |||||
| Free Cash Flow | 285.00M | 388.84M | 447.21M | 432.19M | 482.27M |
| Operating Cash Flow | 285.30M | 390.53M | 454.80M | 440.25M | 495.39M |
| Investing Cash Flow | -194.94M | -515.93M | -641.28M | -510.61M | 207.62M |
| Financing Cash Flow | 38.84M | 144.80M | 178.82M | 26.67M | -648.66M |
BayFirst Financial Corp Technical Analysis
Positive
7.57
Price Trends
6.49
Positive
7.07
Negative
8.97
Negative
Market Momentum
0.06
Negative
54.69
Neutral
70.06
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAFN, the sentiment is Positive. The current price of 7.57 is above the 20-day moving average (MA) of 6.10, above the 50-day MA of 6.49, and below the 200-day MA of 8.97, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 54.69 is Neutral, neither overbought nor oversold. The STOCH value of 70.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BAFN.
BayFirst Financial Corp Risk Analysis
BayFirst Financial Corp disclosed 59 risk factors in its most recent earnings report. BayFirst Financial Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BayFirst Financial Corp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $55.04M | 8.12 | 9.28% | 3.21% | 0.32% | 37.93% | |
78 Outperform | $64.00M | 3.00 | 14.54% | ― | 14.91% | 0.81% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $63.28M | 9.39 | 4.93% | 3.87% | 6.89% | ― | |
64 Neutral | $48.94M | 17.24 | 4.77% | 1.10% | 12.12% | ― | |
46 Neutral | $28.14M | -1.41 | -23.19% | 4.10% | 1.63% | -508.72% |
* Financial Sector Average
BAFN
BayFirst Financial Corp
6.85
-7.28
-51.52%
ASRV
Ameriserv Financial
3.73
1.73
86.97%
HFBL
Home Federal Bancorp Of Louisiana
17.90
4.66
35.24%
OPHC
Optimumbank Holdings
5.26
1.37
35.22%
TCBS
Texas Community
16.96
1.17
7.40%
BayFirst Financial Corp Corporate Events
Business Operations and StrategyFinancial Disclosures
BayFirst Financial Details Strategic Shift in Q4 Results
Negative
Feb 3, 2026
On January 29, 2026, BayFirst Financial Corp. held a conference call to discuss its fourth-quarter and full-year 2025 results, highlighting the completion of several major strategic actions, including its exit from the SBA 7(a) lending business, s...
Business Operations and StrategyFinancial Disclosures
BayFirst Posts Smaller Q4 Loss Amid Ongoing Restructuring
Negative
Jan 29, 2026
On January 29, 2026, BayFirst Financial Corp. reported a net loss of $2.5 million, or $0.69 per share, for the fourth quarter of 2025, sharply reduced from a $18.9 million loss in the prior quarter and reversing net income of $9.8 million a year e...
Business Operations and StrategyPrivate Placements and Financing
BayFirst Financial amends debt terms to preserve liquidity
Negative
Jan 6, 2026
On December 29, 2025, BayFirst Financial Corp. amended the terms of its $6.0 million 4.5% subordinated notes due June 30, 2031, effective December 26, 2025, so that instead of making cash interest payments, the company will capitalize interest by ...
Business Operations and StrategyFinancial Disclosures
BayFirst Financial Schedules Q4 2025 Results Release
Neutral
Dec 31, 2025
On December 31, 2025, BayFirst Financial Corp. announced plans to release its fourth-quarter 2025 financial results after the market close on January 29, 2026, followed by a management-hosted conference call and simultaneous webcast on January 30,...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.