Coastal Financial (CCB) AI Stock Analysis

• Market Cap: $1.15B
• Dividend Yield: N/A
• Average Volume (3M): 113.78K
• Price to Earnings (P/E): 36.8
• Beta (1Y): 1.08
• 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: 2.12
• Enterprise Value/Gross Profit: 4.83
• Enterprise Value/Ebitda: 17.85
• 1Y Price Target: $135.00
• Price Target Upside: 79.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 5.81
• Revenue Forecast (FY): $649.90M

• Rating: 61 Neutral
• Price Target: $82.00 ▲(8.72% Upside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is led by solid underlying financial strength (growth and improved capitalization) but is held back by the sharp 2025 cash flow deterioration and clearly bearish technical trend. Valuation is also a modest headwind due to the elevated P/E, partially offset by positive recent corporate developments.

Positive Factors

Conservative Balance Sheet

A materially lower debt-to-equity and meaningful equity growth improve capital resilience and regulatory flexibility. That conservative leverage reduces refinancing risk, supports lending capacity and loss-absorbing ability, and underpins durable stability through economic cycles.

Expanding BaaS / CCBX Franchise

Rapid growth in fintech-driven deposits, cards and off-balance-sheet accounts strengthens recurring fee streams and scale advantages in BaaS. Platform expansion diversifies revenue beyond net interest margins and builds sticky client relationships that support durable fee generation.

Stronger Board Tech Oversight

Adding an experienced fintech director enhances governance over platform strategy, risk and technology investments. Improved board-level expertise should accelerate product development discipline, oversight of BaaS risks, and alignment of tech initiatives with long-term growth objectives.

Negative Factors

Cash Flow Deterioration

A swing to slightly negative operating and free cash flow signals weaker cash conversion and raises quality-of-earnings concerns. Persistent or recurring cash deficits would constrain internal funding for loan growth, tech investment, and capital returns, increasing reliance on external financing.

Margin Compression

Sustained margin compression reduces earnings power and limits reinvestment capacity. If higher noninterest expense and lower credit-enhancement revenue persist, return on equity could remain pressured despite equity growth, making sustained profitability dependent on restoring margins or scaling higher-margin activities.

Earnings & Liquidity Volatility from Balance-Sheet Actions

Large loan sales and deposit sweeps can boost near-term liquidity and income but may mask core lending growth and create volatile revenue timing. Repeated reliance on such actions risks unpredictability in net interest income and loan servicing economics, complicating sustainable earnings visibility.

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 primarily makes money through (1) net interest income and (2) noninterest income. Net interest income is earned on the spread between interest and fees collected on earning assets—primarily commercial and consumer loans (and, where applicable, securities and other interest-earning assets)—and the interest paid on funding sources such as customer deposits and other borrowings. Noninterest income includes service charges and fees from traditional banking activities (e.g., deposit-related fees and other banking service fees) and revenue associated with its Banking-as-a-Service (BaaS) program, which generally generates fee income by providing embedded banking capabilities (such as deposit account programs, card/payment and funds movement services, and related operational/compliance services) to fintech partners. Key factors influencing earnings include the level and mix of loans and deposits, overall interest rate conditions (which affect margins), credit performance (provision for credit losses), and the scale and activity levels of BaaS/fintech partner programs. Specific partner names, pricing terms, and the precise breakdown of revenue by stream: null.

Coastal Financial Financial Statement Overview

Summary

Strong revenue growth and a much-improved, conservatively levered balance sheet support durability, but the 2025 swing to slightly negative operating/free cash flow is a meaningful quality-of-earnings risk. Profitability remains positive yet has compressed materially versus 2021–2022.

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	-525.65M	-608.57M	-594.01M	-987.95M	-239.64M
Financing Cash Flow	555.52M	318.17M	543.46M	449.83M	859.84M

Coastal Financial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 75.42
• 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 75.42 is below the 20-day moving average (MA) of 78.43, below the 50-day MA of 92.88, and below the 200-day MA of 101.97, indicating a neutral trend. The MACD of -3.86 indicates Negative momentum. The RSI at 41.08 is Neutral, neither overbought nor oversold. The STOCH value of 60.36 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	$1.97B	11.28	22.83%	0.27%	7.80%	19.38%
STEL	74 Outperform	$1.79B	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	$1.47B	15.19	6.31%	0.33%	10.41%	-19.43%
LKFN	63 Neutral	$1.39B	12.22	13.50%	3.37%	-2.90%	-1.47%
CCB	61 Neutral	$1.15B	36.84	10.01%	―	-2.11%	6.48%
CLBK	55 Neutral	$1.79B	30.45	1.34%	―	-3.60%	-8.63%

Coastal Financial Corporate Events

Coastal Financial Adds Fintech Veteran Chapman to Board

On March 11, 2026, Coastal Financial Corporation appointed Jeffrey M. Chapman, a veteran financial technology executive with more than 25 years of experience in banking technology, digital transformation, payments, and data-driven platforms, to its Board of Directors, bringing the board’s size to twelve members. Chapman will receive standard non-employee director cash and restricted stock compensation, has no disclosed related-party arrangements or conflicts of interest, and is expected to serve on the Board’s Technology Committee and the CCBX Oversight Committee, signaling a continued strategic focus on technology governance and fintech-oriented growth.

The appointment underscores Coastal Financial’s intent to deepen its expertise in digital banking and platform development as competition intensifies in technology-driven financial services. By placing Chapman on key oversight committees, the company is strengthening board-level oversight of its technology initiatives and CCBX operations, which may influence product innovation, risk management, and partnership strategies important to shareholders and banking-as-a-service stakeholders.

The most recent analyst rating on (CCB) stock is a Hold with a $77.00 price target. To see the full list of analyst forecasts on Coastal Financial stock, see the CCB Stock Forecast page.

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.