FinWise (FINW)
NASDAQ:FINW
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FinWise
(NASDAQ:FINW)
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Rating:61Neutral
Price Target:
$17.50
▲(4.35% Upside)
Action:ReiteratedDate:04/09/26
The score is driven primarily by mixed financial quality: strong balance sheet leverage and solid revenue momentum are offset by margin compression and two years of negative operating/free cash flow. Earnings-call guidance supports continued growth and margin uplift from credit-enhanced products, but credit costs and potential NPL migration remain key risks. Technically, the trend is mixed with negative MACD and price below longer-term averages, while valuation (P/E ~14.3) appears reasonable.
Positive Factors
Loan Originations Momentum
Sustained high origination volumes drive durable net interest income and scale for lending-related fees. A multi-quarter origination run‑rate expands interest‑earning assets and supports long‑term revenue growth, making NII less reliant on short-term rate swings and bolstering program economics.
Negative Factors
Weak Cash Generation
Consecutive years of negative operating and free cash flow weaken internal funding for growth and elevate reliance on deposits or external financing. Over time, persistent cash outflows constrain capital allocation, limit cushion for credit shocks, and may restrict shareholder returns or reinvestment.
Read all positive and negative factors
Positive Factors
Negative Factors
Loan Originations Momentum
Sustained high origination volumes drive durable net interest income and scale for lending-related fees. A multi-quarter origination run‑rate expands interest‑earning assets and supports long‑term revenue growth, making NII less reliant on short-term rate swings and bolstering program economics.
Read all positive factors
FinWise (FINW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$229.36M
Dividend YieldN/A
Average Volume (3M)16.72K
Price to Earnings (P/E)14.3
Beta (1Y)0.66
Revenue Growth26.54%
EPS Growth2.73%
CountryUS
Employees196
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.27
Shares Outstanding13,676,859
10 Day Avg. Volume14,165
30 Day Avg. Volume16,716
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)1.19
Price to Sales (P/S)1.52
P/FCF Ratio-0.04
Enterprise Value/Market Cap0.97
Enterprise Value/Revenue1.47
Enterprise Value/Gross Profit2.41
Enterprise Value/Ebitda8.72
Forecast
1Y Price Target
$20.00Price Target Upside19.26% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.66
Revenue Forecast (FY)$235.21M
FinWise Business Overview & Revenue Model
Company Description
FinWise Bancorp operates as the bank holding company for FinWise Bank that provides various banking products and services to individual and corporate customers. It offers various deposit products, including interest and noninterest bearing demand,...
How the Company Makes Money
FinWise makes money primarily through a combination of (1) net interest income and (2) non-interest income tied to its BaaS and related banking activities.
1) Net interest income (spread income)
- FinWise earns interest on loans and other interes...
FinWise Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call presented strong business momentum—notably 22% YoY originations growth, full-year net income up 26%, expanding credit-enhanced balances that boosted NII and NIM, and healthy product/partnership pipeline—while also disclosing near-term headwinds including elevated Q4 net charge-offs, higher provisions, rising noninterest expenses and a higher efficiency ratio. Management characterized the servicing-standard-related charge-offs as a prudent, largely one-time adjustment and highlighted guidance for continued organic credit-enhanced growth and stable core originations; however, risks remain from lumpiness in NPL migrations, SBA processing seasonality, and a measured ramp for payments/BIN revenue. Overall, positives around scale, margin expansion, and product traction meaningfully outweigh the near-term credit and expense noise, with a balanced but favorable forward outlook.Positive Updates
Full-Year Net Income Growth
Net income grew 26% for fiscal 2025, demonstrating material year-over-year profitability improvement for the company.
Negative Updates
Elevated Net Charge-Offs in Q4
Quarterly net charge-offs rose to $6.7 million in Q4 versus $3.1 million in the prior quarter; $1.5 million was from credit-enhanced programs (reimbursed) and $5.2 million from the remainder of the portfolio, with $1.2 million attributable to updated servicing standards.
Read all updates
Q4-2025 Updates
Positive
Negative
Full-Year Net Income Growth
Net income grew 26% for fiscal 2025, demonstrating material year-over-year profitability improvement for the company.
Read all positive updates
Company Guidance
Management's guidance emphasized originations and credit‑enhanced growth: originations through the first four weeks of January are tracking at a quarterly run rate of about $1.4 billion (used as the baseline for quarterly 2026 originations), and annualizing that baseline with a 5% growth assumption implies roughly $5.9 billion for full‑year 2026; organic credit‑enhanced balances are expected to grow about $8–$10 million per month on average (with variability), the firm will continue selling guaranteed portions of SBA loans as market conditions permit, and quarterly net charge‑offs for the non‑credit‑enhanced portfolio are modeled at about $3.5 million; management warned up to ~$10 million of watch‑list loans could migrate to NPL in Q1 2026. They also reiterated that net interest margin should rise when including credit‑enhanced income (Q4 NIM was 11.42% vs. 9.01% prior quarter) but would likely decline excluding that income, they aim to steadily lower the core efficiency ratio over time (Q4 reported 50.5%), and suggested using a 26% tax rate in models.FinWise Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
86
Very Positive
Cash Flow
32
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 150.96M | 97.46M | 86.59M | 90.22M | 81.09M |
| Gross Profit | 92.09M | 70.45M | 64.98M | 75.27M | 71.78M |
| EBITDA | 21.76M | 22.28M | 27.62M | 38.14M | 43.31M |
| Net Income | 16.09M | 12.74M | 17.46M | 25.11M | 31.58M |
Balance Sheet | |||||
| Total Assets | 977.13M | 745.98M | 586.22M | 400.78M | 380.21M |
| Cash, Cash Equivalents and Short-Term Investments | 39.84M | 106.06M | 116.97M | 100.57M | 85.75M |
| Total Debt | 4.41M | 5.37M | 6.49M | 7.33M | 1.05M |
| Total Liabilities | 783.94M | 572.26M | 431.17M | 260.32M | 264.77M |
| Stockholders Equity | 193.19M | 173.72M | 155.06M | 140.46M | 115.44M |
Cash Flow | |||||
| Free Cash Flow | -5.70B | -19.89M | 4.81M | 53.94M | -11.57M |
| Operating Cash Flow | -28.42M | -14.99M | 12.27M | 61.15M | -9.23M |
| Investing Cash Flow | -126.91M | -132.38M | -152.87M | -35.83M | 24.26M |
| Financing Cash Flow | 209.57M | 139.56M | 157.01M | -10.51M | 23.35M |
FinWise Technical Analysis
Neutral
16.77
Price Trends
16.68
Positive
17.32
Negative
17.70
Negative
Market Momentum
-0.10
Negative
60.62
Neutral
88.06
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FINW, the sentiment is Neutral. The current price of 16.77 is above the 20-day moving average (MA) of 15.83, above the 50-day MA of 16.68, and below the 200-day MA of 17.70, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 60.62 is Neutral, neither overbought nor oversold. The STOCH value of 88.06 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FINW.
FinWise Risk Analysis
FinWise disclosed 65 risk factors in its most recent earnings report. FinWise 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
FinWise Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $333.19M | 8.59 | 11.73% | 2.91% | 8.17% | 21.95% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $323.72M | 9.19 | 11.13% | 3.61% | 15.66% | ― | |
62 Neutral | $346.53M | 5.58 | 15.78% | 3.06% | 9.90% | ― | |
61 Neutral | $229.36M | 14.30 | 8.00% | ― | 26.54% | 2.73% | |
58 Neutral | $281.16M | 17.77 | 6.27% | 2.40% | -6.25% | -38.79% | |
57 Neutral | $351.04M | 19.51 | 8.45% | 2.13% | 7.29% | 33.75% |
* Financial Sector Average
FINW
FinWise
16.77
1.73
11.50%
FRST
Primis Financial
14.03
5.58
66.09%
TSBK
Timberland Bancorp
42.26
12.81
43.51%
CHMG
Chemung Financial
58.35
14.60
33.37%
ISBA
Isabella Bank
47.89
25.54
114.23%
LNKB
LINKBANCORP
8.64
2.15
33.17%
FinWise Corporate Events
Business Operations and StrategyExecutive/Board Changes
FinWise Announces CEO Succession and Leadership Continuity Plan
Positive
Apr 8, 2026
On April 6, 2026, FinWise Bancorp executed a planned leadership transition in which long-serving CEO Kent Landvatter stepped down from the chief executive role but remained with the company and its bank subsidiary as Executive Chairman, with no ch...
Business Operations and StrategyFinancial Disclosures
FinWise Posts Strong 2025 Growth Amid Higher Credit Costs
Positive
Mar 26, 2026
In March 2026, FinWise reported its fourth-quarter and full-year 2025 results, highlighting strong revenue growth but pressure on earnings from higher credit costs. Net interest income rose to $24.6 million in the fourth quarter of 2025 from $15.5...
Business Operations and StrategyFinancial Disclosures
FinWise Bancorp Reports Strong Q4 and 2025 Earnings Growth
Positive
Jan 29, 2026
On January 29, 2026, FinWise Bancorp reported its fourth-quarter and full-year 2025 results, highlighting continued growth and profitability driven by strong loan production and expanding margins. Loan originations reached $1.6 billion in the four...
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.