Coastal Financial (CCB) AI Stock Analysis

• Market Cap: $1.17B
• Dividend Yield: N/A
• Average Volume (3M): 113.78K
• Price to Earnings (P/E): 34.3
• Beta (1Y): 1.09
• Revenue Growth: -2.11%
• EPS Growth: 6.48%
• Country: US
• Employees: 488
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.82
• Shares Outstanding: 15,208,963
• 10 Day Avg. Volume: 124,458
• 30 Day Avg. Volume: 113,778
• PEG Ratio: -5.37
• Price to Book (P/B): 3.53
• Price to Sales (P/S): 2.62
• P/FCF Ratio: 7.03
• Enterprise Value/Market Cap: 1.03
• Enterprise Value/Revenue: 2.17
• Enterprise Value/Gross Profit: 4.93
• Enterprise Value/Ebitda: 18.25
• 1Y Price Target: $135.00
• Price Target Upside: 76.01% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 5.81
• Revenue Forecast (FY): $649.90M

• Rating: 58 Neutral
• Price Target: $77.00 ▲(0.39% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven by solid underlying fundamentals (strong growth and a strengthened, low-leverage balance sheet) but is held back by a sharp 2025 cash flow reversal and very weak technicals (price below all key moving averages with negative MACD). Valuation is only moderate (P/E ~24.4 with no dividend yield provided), while recent corporate updates are constructive but include expense and revenue headwinds.

Positive Factors

Low Leverage / Strong Capital

Very low leverage materially improves resilience and regulatory buffers, allowing the bank to support loan growth, absorb credit losses and invest in BaaS initiatives without relying on external debt. A stronger capital base increases strategic optionality and reduces refinancing risk over the medium term.

Scaling BaaS (CCBX) Franchise

Rapidly growing BaaS metrics show durable diversification: fee-generating deposits, card accounts and large debit card base create recurring revenue, partner lock-in and network effects. A scalable CCBX platform can sustain fee income through cycles and reduce reliance on interest margins long term.

Accelerating Revenue Growth

A sharp pickup in revenue growth with positive operating margins indicates demand across lending, deposits and BaaS offerings. Sustainable top-line expansion supports reinvestment in technology and product expansion, improving long-run earnings power even as margins normalize from past peaks.

Negative Factors

Cash Flow Deterioration

The swing to negative operating/free cash flow undermines earnings quality and raises the risk of timing or working-capital issues. Persistent cash generation weakness would limit internal funding for growth, capital returns or reserves, increasing sensitivity to credit stress or volatile funding conditions.

Margin Compression

Substantial margin erosion over several years signals structural pressure on profitability, driven by revenue mix shifts and higher operating costs. Sustained lower margins constrain ROE and reduce the firm's ability to scale profits from revenue growth without further efficiency gains or pricing power improvements.

Revenue Mix & Expense Headwinds

A decline in specific revenue streams and rising noninterest expense creates earnings volatility and shows reliance on a few fee sources. If credit-enhancement income remains weak or expenses stay elevated from investments, restoring prior EPS and margin levels will require successful execution and time.

Coastal Financial Business Overview & Revenue Model

Company Description

Coastal Financial Corporation operates as the bank holding company for Coastal Community Bank that provides various banking products and services to small to medium-sized businesses, professionals, and individuals in the Puget Sound region in Washington. It accepts a range of deposit products, including demand and savings accounts, time deposits, and money market accounts. The company offers commercial and industrial loans, including term loans, small business administration loans, commercial lines of credit, working capital loans, equipment financing, borrowing base loans, and other loan products; owner-occupied and non-owner-occupied real estate loans, and multi-family residential loans; construction and land development loans; residential real estate loans; and consumer and other loans, including automobile, boat and recreational vehicle, and secured term loans, as well as overdraft protection. It also provides remote deposit capture, online and mobile banking, and direct and reciprocal deposit services, as well as debit cards. In addition, the company offers business accounts and cash management services, including business checking and savings accounts, and treasury services, as well as banking as a service (BaaS), a platform that allows broker dealers and digital financial service providers to offer their clients banking services. It operates 14 full-service banking locations. Coastal Financial Corporation was founded in 1997 and is headquartered in Everett, Washington.

How the Company Makes Money

Coastal Financial generates revenue primarily through interest income from loans and mortgages, fees from account services, and investment management services. The bank earns interest on various loan products, including personal loans, business loans, and mortgages, which are typically higher than the interest paid on customer deposits. Additionally, CCB collects fees for services such as account maintenance, ATM usage, and overdraft protection. Revenue is also supplemented through investment advisory services, where the bank offers wealth management and financial planning to clients, earning fees based on assets under management. Strategic partnerships with local businesses and community organizations enhance customer acquisition and retention, further contributing to the bank's profitability.

Coastal Financial Financial Statement Overview

Summary

Income statement trends are solid with strong 2025 revenue growth (~25%) and positive margins, and the balance sheet looks meaningfully stronger with low leverage (debt-to-equity ~0.12). The key drag is cash flow quality: 2025 operating/free cash flow turned slightly negative (about -$1.5M) after strong prior years, raising near-term earnings quality and volatility concerns.

Income Statement

Revenue growth has been strong over the last several years, with 2025 accelerating to ~25% versus a modest ~0.3% in 2024. Profitability remains solid (2025 net margin ~7.1%), but margins have compressed materially from earlier years (net margin ~25.6% in 2021 and ~17.5% in 2022), signaling a tougher earnings environment. Operating profitability is still positive (2025 operating margin ~9.3%), yet down from 2021–2022 levels, which is a key watch item.

Balance Sheet

Leverage looks conservative and improving, with debt-to-equity at ~0.12 in 2025 (down from ~1.42 in 2020), suggesting a much stronger capital position than earlier in the period. Equity has grown meaningfully alongside asset growth, supporting balance-sheet resilience. Returns on equity remain healthy (~9.6% in 2025), though down from peak levels seen in 2021–2023, indicating that profitability has not kept pace with the expanding capital base.

Cash Flow

Cash generation deteriorated sharply in 2025, with operating cash flow and free cash flow turning slightly negative (about -$1.5M) versus very strong positive levels in 2024 and 2023. This creates a clear quality-of-earnings concern in the most recent year, even though prior-year cash flow conversion was strong (free cash flow was close to net income in 2022–2024). The magnitude of the swing suggests elevated volatility and warrants scrutiny of working-capital and timing effects.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	661.23M	576.61M	440.43M	232.25M	105.46M
Gross Profit	349.04M	175.26M	164.79M	132.79M	91.90M
EBITDA	61.24M	61.87M	59.46M	52.43M	35.96M
Net Income	46.99M	45.22M	44.58M	40.63M	27.00M
Balance Sheet
Total Assets	4.74B	4.12B	3.75B	3.14B	2.64B
Cash, Cash Equivalents and Short-Term Investments	34.27M	452.55M	582.63M	439.46M	848.49M
Total Debt	58.00M	53.28M	53.86M	52.82M	59.19M
Total Liabilities	4.25B	3.68B	3.46B	2.90B	2.43B
Stockholders Equity	490.96M	438.70M	294.98M	243.49M	201.22M
Cash Flow
Free Cash Flow	246.15M	249.89M	185.29M	64.26M	27.25M
Operating Cash Flow	254.58M	259.79M	191.54M	67.10M	29.85M
Investing Cash Flow	-555.00K	-608.57M	-594.01M	-987.95M	-239.64M
Financing Cash Flow	-3.34M	318.17M	543.46M	449.83M	859.84M

Coastal Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.70
• 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 CCB, the sentiment is Negative. The current price of 76.7 is below the 20-day moving average (MA) of 80.88, below the 50-day MA of 97.41, and below the 200-day MA of 102.26, indicating a bearish trend. The MACD of -5.64 indicates Negative momentum. The RSI at 34.93 is Neutral, neither overbought nor oversold. The STOCH value of 59.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CCB.

Coastal Financial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CASH	82 Outperform	$1.96B	11.28	22.83%	0.27%	7.80%	19.38%
STEL	74 Outperform	$1.86B	15.57	6.38%	1.82%	-4.40%	-8.80%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
LOB	65 Neutral	$1.54B	15.19	6.31%	0.33%	10.41%	-19.43%
LKFN	63 Neutral	$1.43B	12.22	13.50%	3.37%	-2.90%	-1.47%
CCB	58 Neutral	$1.17B	34.25	10.01%	―	-2.11%	6.48%
CLBK	55 Neutral	$1.86B	25.11	1.34%	―	-3.60%	-8.63%

Coastal Financial Corporate Events

Coastal Financial Highlights Growth and AI-Focused Expansion

On January 29, 2026, Coastal Financial Corporation released investor presentation materials detailing its financial and operational performance for the quarter ended December 31, 2025, highlighted by continued loan and deposit growth, technology investments, and expansion of its BaaS-driven CCBX platform. In the fourth quarter of 2025, total loans receivable rose 1.2% to $3.75 billion and deposits increased 4.3% to $4.14 billion, while core net revenue grew 6.8% despite a 4.6% decline in total revenue tied to lower credit enhancement revenue and higher noninterest expense that pressured diluted EPS to $0.82 and ROA to 1.09%. The company sold $2.98 billion of loans, swept $843.6 million of deposits off balance sheet for insurance and liquidity income, and acquired the GreenFi climate-focused brand to strengthen its strategic optionality. Coastal also reported strong growth in its CCBX franchise, with deposits in that segment up $182.9 million, off-balance-sheet credit card accounts climbing 39% quarter over quarter to 550,977, and fee-earning CCBX debit cards increasing to 8.7 million, while advancing multiple artificial intelligence initiatives and outlining a defined AI roadmap to improve efficiency, risk management, and customer experience and to support future digital asset and digital deposit offerings.

The most recent analyst rating on (CCB) stock is a Hold with a $124.00 price target. To see the full list of analyst forecasts on Coastal Financial stock, see the CCB Stock Forecast page.