FinWise (FINW) AI Stock Analysis

• Market Cap: $188.44M
• Dividend Yield: N/A
• Average Volume (3M): 53.87K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 0.57
• Revenue Growth: 10.74%
• EPS Growth: -27.38%
• Country: US
• Employees: 196
• Sector: Financial
• Sector Strength: 78
• Industry: Banks - Regional
• EPS (TTM): 0.23
• Shares Outstanding: 13,214,827
• 10 Day Avg. Volume: 130,026
• 30 Day Avg. Volume: 53,873
• PEG Ratio: -6.99
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -4.28
• Enterprise Value/Market Cap: 0.38
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 0.99
• Enterprise Value/Ebitda: 0.76
• 1Y Price Target: $19.00
• Price Target Upside: 33.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 62 Neutral
• Price Target: ―

FinWise's overall score reflects solid financial performance characterized by revenue growth and a stable balance sheet. However, liquidity concerns due to negative cash flows and a bearish technical outlook weigh on the score. While strategic partnerships are promising, challenges such as declining net interest margins need addressing. Moderate valuation provides some support.

FinWise Business Overview & Revenue Model

Company Description

FinWise (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 Money

FinWise 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 Financial Statement Overview

Summary

FinWise demonstrates strong revenue growth and operational efficiency with a stable balance sheet and low leverage. However, cash flow challenges due to negative operating and free cash flows indicate potential liquidity concerns.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	100.17M	97.46M	86.59M	90.22M	81.09M	43.83M
Gross Profit	72.36M	70.45M	64.98M	75.27M	71.78M	36.84M
EBITDA	22.51M	22.28M	27.62M	38.14M	43.31M	16.15M
Net Income	12.62M	12.74M	17.46M	25.11M	31.58M	11.20M
Balance Sheet
Total Assets	804.13M	745.98M	586.22M	400.78M	380.21M	317.51M
Cash, Cash Equivalents and Short-Term Investments	150.41M	106.06M	116.97M	100.57M	85.75M	47.38M
Total Debt	5.23M	5.37M	6.49M	7.33M	1.05M	101.01M
Total Liabilities	626.77M	572.26M	431.17M	261.75M	264.77M	271.64M
Stockholders Equity	177.36M	173.72M	155.06M	140.46M	115.44M	45.87M
Cash Flow
Free Cash Flow	-43.70M	-19.89M	4.81M	53.94M	-11.57M	18.99M
Operating Cash Flow	-38.36M	-14.99M	12.27M	61.15M	-9.23M	19.59M
Investing Cash Flow	-138.48M	-132.38M	-152.87M	-35.83M	24.26M	-130.22M
Financing Cash Flow	181.31M	139.56M	157.01M	-10.51M	23.35M	123.23M

FinWise Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 14.26
• 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 FINW, the sentiment is Neutral. The current price of 14.26 is above the 20-day moving average (MA) of 14.24, below the 50-day MA of 14.60, and below the 200-day MA of 16.39, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 48.43 is Neutral, neither overbought nor oversold. The STOCH value of 28.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FINW.

FinWise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FVCB	75 Outperform	$211.40M	11.47	8.16%	―	17.18%	305.35%
VABK	73 Outperform	$197.45M	11.10	11.15%	3.93%	2.26%	3.83%
HWBK	72 Outperform	$190.89M	10.04	6.62%	2.90%	4.86%	800.59%
CFFI	70 Outperform	$201.05M	9.29	9.67%	2.96%	10.36%	10.16%
OPOF	70 Outperform	$203.84M	20.37	8.85%	1.40%	4.92%	55.04%
Sector *	64 Neutral	$6.68B	10.87	6.50%	5.05%	24.88%	-1.54%
FINW	62 Neutral	$188.44M	15.45	7.16%	―	10.74%	-27.38%

FinWise Corporate Events

FinWise Shareholders Elect Directors at Annual Meeting

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.

FinWise Reports Q1 2025 Financial Results

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.

FinWise Streamlines Bylaw Amendment Process

On April 16, 2025, FinWise Bancorp’s Board of Directors approved amendments to the company’s 2016 and 2019 Stock Plans, ensuring that any modifications to awards under these plans cannot reduce the exercise price of an outstanding option without stockholder approval, unless explicitly allowed by the plan terms. Additionally, the Board amended the company’s bylaws to replace the 66 ⅔% supermajority shareholder vote requirement for bylaw amendments with a majority vote standard, streamlining the process for future changes.