FinWise (FINW)
NASDAQ:FINW
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FinWise
(NASDAQ:FINW)
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Rating:57Neutral
Price Target:
$16.00
▼(-7.14% Downside)
Action:ReiteratedDate:05/01/26
The score is primarily held back by deteriorating cash-flow quality and margin compression despite strong revenue growth and a low-leverage balance sheet. Technicals are also weak with the stock trading below key moving averages and negative MACD. Valuation is reasonable on P/E, while the latest earnings call and recent events reinforce a mixed outlook: growth momentum and strong capital, but elevated credit losses, rising NPL risk, and efficiency pressure.
Positive Factors
Strong Loan Origination Growth
Sustained high origination volumes expand interest-earning assets and support durable net interest income as the company scales. Persistent origination strength also deepens partner relationships in BaaS programs, creating recurring revenue potential and improving leverage of fixed operating costs over time.
Negative Factors
Elevated, concentrated SBA credit exposure
Concentration in legacy SBA vintages creates a persistent vulnerability to higher charge-offs and migrating NPLs. This structural credit overhang requires elevated provisions, constrains earnings predictability, and can persist across multiple quarters as vintages season and losses materialize.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Loan Origination Growth
Sustained high origination volumes expand interest-earning assets and support durable net interest income as the company scales. Persistent origination strength also deepens partner relationships in BaaS programs, creating recurring revenue potential and improving leverage of fixed operating costs over time.
Read all positive factors
FinWise (FINW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$205.04M
Dividend YieldN/A
Average Volume (3M)16.72K
Price to Earnings (P/E)18.9
Beta (1Y)0.69
Revenue Growth52.39%
EPS Growth21.13%
CountryUS
Employees196
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.20
Shares Outstanding13,706,039
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 Cap1.02
Enterprise Value/Revenue1.33
Enterprise Value/Gross Profit2.87
Enterprise Value/Ebitda8.98
Forecast
1Y Price Target
$20.00Price Target Upside16.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.65
Revenue Forecast (FY)$237.21M
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 primarily makes money through (1) net interest income and (2) non-interest income. Net interest income is earned on interest from loans and interest-earning assets (such as commercial loans and other credit products) minus interest paid on...
FinWise Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Neutral
The call presents a mixed near-term picture: the business shows clear growth momentum (strong originations, rapid scaling of a credit-enhanced product, interchange growth, a strengthening partner pipeline and a robust capital position) but is contending with meaningful near-term headwinds (elevated and concentrated SBA charge-offs, weaker noninterest income, a worsening efficiency ratio and deposit/asset runoff). Management reaffirmed key longer-term targets and emphasized that the credit issues are concentrated and actively managed, while also cautioning that charge-offs and NPLs may remain elevated over the next few quarters. Overall, the tone is cautiously constructive on long-term opportunity but guarded on near-term earnings and credit performance.Positive Updates
Strong Loan Originations
Total loan originations of $1.7 billion in Q1 2026, up 38% year-over-year and above the company baseline guidance of $1.4 billion quarterly.
Negative Updates
Elevated Net Charge-Offs
Quarterly net charge-offs rose to $9.4 million in Q1 2026 from $6.7 million in Q4 2025 (+~40.3% sequential). Charge-offs included $4.8M from credit-enhanced strategic program loans, $2.3M from program loans without credit enhancement, and $2.2M from core SBA retained balances.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Loan Originations
Total loan originations of $1.7 billion in Q1 2026, up 38% year-over-year and above the company baseline guidance of $1.4 billion quarterly.
Read all positive updates
Company Guidance
Management reiterated a baseline quarterly origination run rate of $1.4 billion (Q2 run rate through the first 4 weeks of April ~ $1.4B) and suggested annualizing that baseline with a 5% growth assumption for 2026; credit‑enhanced balances are expected to grow organically about $8–$10 million per month on average (Q1 credit‑enhanced balance was $109M), with growth skewed to the middle/back half of 2026 and management still comfortable with reaching the year‑end cadence implied by that ramp; they guided quarterly net charge‑offs for non‑credit‑enhanced loans of roughly $4–$5 million and noted up to ~$10 million of watch‑list loans could migrate to NPLs in Q2, while NIM is expected to increase when including credit‑enhanced balances (but gradually decline on an ex‑credit‑enhancement basis), the efficiency ratio target remains to move back toward the mid‑50s (management said about $2M of incremental revenue would be needed to get to ~60% today), and to use a 27% tax rate for modeling.FinWise Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
86
Very Positive
Cash Flow
32
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 157.91M | 150.96M | 97.46M | 86.59M | 90.22M | 81.09M |
| Gross Profit | 73.09M | 92.09M | 70.45M | 64.98M | 75.27M | 71.78M |
| EBITDA | 23.40M | 21.76M | 22.28M | 27.62M | 38.14M | 43.31M |
| Net Income | 15.64M | 16.09M | 12.74M | 17.46M | 25.11M | 31.58M |
Balance Sheet | ||||||
| Total Assets | 899.44M | 977.13M | 745.98M | 586.22M | 400.78M | 380.21M |
| Cash, Cash Equivalents and Short-Term Investments | 33.92M | 163.40M | 106.06M | 116.97M | 100.57M | 85.75M |
| Total Debt | 0.00 | 4.41M | 5.37M | 6.49M | 7.33M | 1.05M |
| Total Liabilities | 702.83M | 783.94M | 572.26M | 431.17M | 260.32M | 264.77M |
| Stockholders Equity | 196.61M | 193.19M | 173.72M | 155.06M | 140.46M | 115.44M |
Cash Flow | ||||||
| Free Cash Flow | -1.47B | -5.70B | -19.89M | 4.81M | 53.94M | -11.57M |
| Operating Cash Flow | -1.46B | -28.42M | -14.99M | 12.27M | 61.15M | -9.23M |
| Investing Cash Flow | 1.36B | -126.91M | -132.38M | -152.87M | -35.83M | 24.26M |
| Financing Cash Flow | 148.75M | 209.57M | 139.56M | 157.01M | -10.51M | 23.35M |
FinWise Technical Analysis
Positive
17.23
Price Trends
16.48
Positive
17.21
Positive
17.79
Negative
Market Momentum
0.12
Negative
61.87
Neutral
58.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FINW, the sentiment is Positive. The current price of 17.23 is above the 20-day moving average (MA) of 16.15, above the 50-day MA of 16.48, and below the 200-day MA of 17.79, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 61.87 is Neutral, neither overbought nor oversold. The STOCH value of 58.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $318.29M | 10.89 | 11.73% | 2.91% | 6.74% | 20.50% | |
68 Neutral | $325.59M | 9.19 | 11.13% | 3.61% | 4.67% | 27.33% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $364.15M | 11.20 | 11.47% | 3.06% | 9.62% | 1059.18% | |
58 Neutral | $318.45M | 7.06 | 7.33% | 2.40% | -5.59% | -20.05% | |
57 Neutral | $205.04M | 18.87 | 8.70% | ― | 52.39% | 21.13% | |
57 Neutral | $300.58M | 16.79 | 8.45% | 2.13% | 8.94% | 37.35% |
* Financial Sector Average
FINW
FinWise
14.96
0.94
6.70%
FRST
Primis Financial
14.70
6.10
70.89%
TSBK
Timberland Bancorp
40.37
10.58
35.53%
CHMG
Chemung Financial
66.09
21.05
46.72%
ISBA
Isabella Bank
40.99
15.23
59.14%
LNKB
LINKBANCORP
8.69
2.15
32.96%
FinWise Corporate Events
Business Operations and StrategyFinancial Disclosures
FinWise Bancorp grows loans but faces rising credit costs
Negative
Apr 30, 2026
For the quarter ended March 31, 2026, FinWise Bancorp reported loan originations of $1.7 billion, up from $1.6 billion in the prior quarter and $1.3 billion a year earlier, alongside net interest income of $28.1 million, reflecting strong growth i...
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...
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.