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FinWise (FINW)
NASDAQ:FINW
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FinWise
(NASDAQ:FINW)
Rating:69Neutral
Price Target:
$16.50
▲(2.29%Upside)
FinWise (FINW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$213.16M
Dividend YieldN/A
Average Volume (3M)57.51K
Price to Earnings (P/E)17.5
Beta (1Y)0.60
Revenue Growth10.74%
EPS Growth-27.38%
CountryUS
Employees196
SectorFinancial
Sector Strength74
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.29
Shares Outstanding13,214,827
10 Day Avg. Volume18,545
30 Day Avg. Volume57,511
Financial Highlights & Ratios
PEG Ratio-7.65
Price to Book (P/B)1.11
Price to Sales (P/S)0.00
P/FCF Ratio-4.68
Enterprise Value/Market Cap0.42
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit1.24
Enterprise Value/Ebitda0.94
Forecast
1Y Price Target
$19.00Price Target Upside17.79% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
FinWise Business Overview & Revenue Model
Company DescriptionFinWise (FINW) is a financial technology company that operates primarily in the banking and lending sectors. The company offers a range of digital banking solutions including personal and business loans, online banking services, and financial management tools. FinWise is committed to leveraging technology to streamline financial services, making them more accessible and efficient for consumers and businesses alike.
How the Company Makes MoneyFinWise makes money through a variety of revenue streams. The primary source of revenue is interest income from its lending products, including personal and business loans. The company charges interest on the loans it provides, which constitutes a significant portion of its earnings. Additionally, FinWise generates revenue from service fees associated with its online banking and financial management tools. These fees may include account maintenance charges, transaction fees, and other service-related fees. Furthermore, FinWise may partner with other financial institutions or fintech companies to offer co-branded or white-labeled products, earning revenue through partnership agreements and shared profits.
FinWise Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q1-2025)
| % Change Since: 6.68%|
Next Earnings Date:Oct 23, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While there was strong loan origination, asset growth, and strategic developments with new partnerships, challenges included a decline in the net interest margin, increased non-interest expenses, and a slight decline in the tangible shareholders equity to assets ratio. Overall, the highlights and lowlights were fairly balanced.Q1-2025 Updates
Positive Updates
Strong Loan Origination and Asset Growth
Loans originated totaled approximately $1.3 billion for the first quarter. Asset growth was solid, and credit quality saw improvement with declines in non-performing loan balances and net charge-offs compared to the previous quarter.
Tangible Book Value Increase
The tangible book value per common share increased to $13.42 from $13.15 in the previous quarter.
New Strategic Program with Bakkt
FinWise announced a new strategic program agreement with fintech Bakkt to provide business installment loans to small and medium-sized businesses.
SBA Loan Growth and Strategy
Despite a slight decrease in SBA 7(a) loan originations, the bank saw growth in equipment leasing and owner-occupied commercial real estate lines. The SBA guaranteed balances and strategic program loans held-for-sale made up 44% of the total portfolio at the end of Q1.
Decrease in Provision for Credit Losses
The provision for credit losses was $3.3 million in Q1, a decrease from $3.9 million in the prior quarter, driven by lower charge-offs.
Negative Updates
Net Interest Margin Decline
The net interest margin declined to 8.27% from 10% in the prior quarter, driven by seasonal decline in origination volume, addition of lower-yielding loans, and decreased yield in SBA and other variable rate loans.
Increase in Non-Interest Expense
Non-interest expense increased to $14.3 million from $13.6 million in the prior quarter, primarily due to higher salaries and professional services expenses.
Slight Decline in Tangible Shareholders Equity to Assets Ratio
The tangible shareholders equity to assets ratio decreased to 22% from 23.3% at year-end 2024.
SBA Loan Origination Decline
SBA 7(a) loan originations ticked down slightly quarter-over-quarter, driven by a lower average loan size.
Company Guidance
During FinWise Bancorp's first quarter 2025 earnings call, the company provided guidance on several key financial metrics and strategic initiatives. The call highlighted that loans originated totaled approximately $1.3 billion, with solid asset growth and improved credit quality as both non-performing loan (NPL) balances and net charge-offs decreased compared to the previous quarter. The company's tangible book value per share increased to $13.42 from $13.15 in the prior quarter. FinWise remains well-capitalized, with a tangible shareholders equity to assets ratio of 22%, down from 23.3% at year-end 2024, reflecting planned growth in assets. The company also announced a new strategic program agreement with fintech Bakkt, which will involve providing business installment loans to small and medium-sized businesses and integrating a credit-enhanced balance sheet program. For 2025, FinWise anticipates gradual growth progression, driven by existing and new program originations, with a significant contribution expected from the credit-enhanced balance sheet program in the second half of the year. The provision for credit losses was reduced to $3.3 million in Q1 from $3.9 million in the previous quarter, attributed to lower charge-offs. The net interest margin (NIM) declined to 8.27% from 10% in the prior quarter, impacted by a change in the mix of originations and lower rates on variable rate loans. The company expects the NIM to continue declining due to a strategic shift to lower-risk loans, although net interest income (NII) is projected to grow with recovery in origination volumes and portfolio growth. The effective tax rate is expected to be around 27.5% for 2025.FinWise Financial Statement Overview
Summary
FinWise demonstrates strong revenue growth and operational efficiency, supported by a stable balance sheet with low leverage. However, significant cash flow concerns due to negative operating and free cash flows indicate potential liquidity challenges.Income Statement
FinWise has shown a strong revenue growth trajectory in recent years, with a notable increase in total revenue from $54.54 million in 2022 to $78.63 million in TTM 2025. The gross profit margin is robust, consistently maintaining high levels over the years, indicating effective cost management. However, the net profit margin has declined slightly in the TTM period due to reduced net income. Despite this, the EBIT margin remains healthy, reflecting good operational efficiency.78
Positive
Balance Sheet
The company's balance sheet demonstrates stability with a favorable equity ratio, indicating a strong equity base relative to total assets. The debt-to-equity ratio is low, reflecting low leverage and reduced financial risk. Return on Equity (ROE) has shown some volatility but remains positive. The increase in stockholders' equity and total assets over the years is a positive sign, though the decrease in cash and cash equivalents raises some liquidity concerns.70
Positive
Cash Flow
FinWise's cash flow from operations has shown a negative trend in the TTM period, which is concerning. The free cash flow has also been negative, indicating potential challenges in covering capital expenditures and dividend payments from operating cash flows. However, the company has managed to maintain a positive financing cash flow, suggesting reliance on external financing. The cash flow to net income ratios highlight the need for improved cash generation from operations.65
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 97.46M | 86.59M | 90.22M | 81.09M | 43.83M |
| Gross Profit | 70.45M | 64.98M | 75.27M | 71.78M | 36.84M |
| EBITDA | 22.28M | 27.62M | 38.14M | 43.31M | 16.15M |
| Net Income | 12.74M | 17.46M | 25.11M | 31.58M | 11.20M |
Balance Sheet | |||||
| Total Assets | 745.98M | 586.22M | 400.78M | 380.21M | 317.51M |
| Cash, Cash Equivalents and Short-Term Investments | 106.06M | 116.97M | 100.57M | 85.75M | 47.38M |
| Total Debt | 5.37M | 6.49M | 7.33M | 1.05M | 101.01M |
| Total Liabilities | 572.26M | 431.17M | 261.75M | 264.77M | 271.64M |
| Stockholders Equity | 173.72M | 155.06M | 140.46M | 115.44M | 45.87M |
Cash Flow | |||||
| Free Cash Flow | -19.89M | 4.81M | 53.94M | -11.57M | 18.99M |
| Operating Cash Flow | -14.99M | 12.27M | 61.15M | -9.23M | 19.59M |
| Investing Cash Flow | -132.38M | -152.87M | -35.83M | 24.26M | -130.22M |
| Financing Cash Flow | 139.56M | 157.01M | -10.51M | 23.35M | 123.23M |
FinWise Technical Analysis
Neutral
16.13
Price Trends
14.89
Positive
15.50
Positive
16.47
Negative
Market Momentum
0.30
Negative
55.23
Neutral
74.91
Neutral
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 16.13 is above the 20-day moving average (MA) of 15.51, above the 50-day MA of 14.89, and below the 200-day MA of 16.47, indicating a neutral trend. The MACD of 0.30 indicates Negative momentum. The RSI at 55.23 is Neutral, neither overbought nor oversold. The STOCH value of 74.91 is Neutral, 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
Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $205.60M | 11.56 | 11.15% | 3.54% | 2.26% | 3.83% | |
78 Outperform | $207.18M | 10.90 | 6.62% | 3.21% | 4.86% | 800.59% | |
76 Outperform | $247.02M | 12.39 | 8.69% | ― | 17.89% | 351.71% | |
72 Outperform | $224.08M | 10.36 | 9.67% | 3.24% | 10.36% | 10.16% | |
72 Outperform | $208.59M | 20.85 | 8.85% | 1.35% | 4.92% | 55.04% | |
69 Neutral | $213.16M | 17.48 | 7.16% | ― | 10.74% | -27.38% | |
68 Neutral | ¥746.02B | 10.95 | 7.55% | 3.23% | 7.81% | 14.63% |
* Financial Sector Average
Performance Comparison
FINW
FinWise
16.13
3.81
30.93%
CFFI
C&F Financial
69.18
12.74
22.57%
HWBK
Hawthorn Bancshares
29.89
8.98
42.95%
OPOF
Old Point Financial
41.36
23.72
134.47%
FVCB
FVCBankcorp
13.25
0.37
2.87%
VABK
Virginia National Bankshares
38.13
0.62
1.65%
FinWise Corporate Events
Business Operations and Strategy
FinWise Highlights Strategic Approach in Recent Presentation
Positive
Jun 30, 2025
FinWise Bancorp’s recent presentation highlights its differentiated business model, which offers growth opportunities while maintaining a strong focus on compliance and risk management. The company boasts a well-capitalized position and a highly experienced team, positioning itself strongly in the fintech industry. The announcement underscores FinWise’s strategic approach to managing credit risk through a credit-enhanced balance sheet and disciplined underwriting, which may have positive implications for its stakeholders.
The most recent analyst rating on (FINW) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on FinWise stock, see the FINW Stock Forecast page.
Executive/Board ChangesShareholder Meetings
FinWise Shareholders Elect Directors at Annual Meeting
Neutral
Jun 26, 2025
On June 26, 2025, FinWise Bancorp held its 2025 Annual Meeting of Shareholders where shareholders elected two director nominees to serve until the 2028 Annual Meeting or until their successors are elected. Additionally, the appointment of Baker Tilly US, LLP as the Company’s independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified. The meeting saw participation from shareholders representing 10,031,316 shares of common stock, indicating strong shareholder engagement in the company’s governance processes.
The most recent analyst rating on (FINW) stock is a Buy with a $13.00 price target. To see the full list of analyst forecasts on FinWise stock, see the FINW Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
FinWise Reports Q1 2025 Financial Results
Positive
Apr 30, 2025
FinWise Bancorp reported its first quarter 2025 financial results, highlighting loan originations of $1.3 billion and a net income of $3.2 million. Despite a challenging macro environment, the company maintained stable loan originations and improved credit quality metrics, with a decrease in non-performing loan balances. The company also announced a new strategic program agreement to provide lending and a Credit Enhanced Balance Sheet product, aiming for long-term growth and shareholder value.
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.