FinWise (FINW) AI Stock Analysis

• Market Cap: $239.40M
• Dividend Yield: N/A
• Average Volume (3M): 16.72K
• Price to Earnings (P/E): 15.6
• Beta (1Y): 0.52
• Revenue Growth: 26.54%
• EPS Growth: 2.73%
• Country: US
• Employees: 196
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.27
• Shares Outstanding: 13,586,921
• 10 Day Avg. Volume: 14,165
• 30 Day Avg. Volume: 16,716
• PEG Ratio: 0.52
• Price to Book (P/B): 1.19
• Price to Sales (P/S): 1.52
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 1.52
• Enterprise Value/Gross Profit: 2.49
• Enterprise Value/Ebitda: 9.01
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $21.00 ▲(19.25% Upside)

The score is driven primarily by solid financial performance (strong revenue growth, healthy profitability, and very low leverage) and supportive technical momentum. This is tempered by weak cash flow generation and credit/expense risks highlighted on the earnings call, while valuation appears reasonable but not notably cheap and there is no dividend yield provided.

Positive Factors

Loan originations growth

Sustained high-originations expand interest-earning assets and support long-term NII growth. A persistent origination engine underpins scalable revenue, strengthens partner relationships, and provides a recurring funding base that can drive durable balance-sheet and fee income expansion.

Very low leverage / capital cushion

Extremely low leverage and a solid equity ratio provide a durable buffer against credit stress and allow the bank to absorb losses without immediate capital raises. This financial flexibility supports conservative growth, regulatory resilience, and ongoing investment in BaaS capabilities.

BaaS & credit-enhanced product traction

Growing credit-enhanced balances plus product launches and payments traction diversify noninterest income and boost NIM. A scalable BaaS model with expanding partner pipeline supports recurring fees, cross-sell opportunities, and structural revenue diversification over multiple quarters.

Negative Factors

Weak operating and free cash flow

Earnings are not converting into positive operating cash or free cash flow, reducing internal funding for growth and capital needs. Persistent negative cash flow can force reliance on external funding, constrain investments, and heighten sensitivity to liquidity shocks over the medium term.

Elevated credit losses and NPL migration risk

Rising charge-offs and potential migration of watchlist loans to NPL can materially increase provisions, erode capital, and reduce NII if loan yields are impaired. Credit volatility creates ongoing underwriting and reserve pressure that can depress returns for multiple quarters.

Rising noninterest expense and efficiency pressure

Higher operating costs and an elevated efficiency ratio signal structural expense scaling issues. If costs remain elevated relative to revenue growth, margin compression can persist, requiring sustained revenue acceleration or expense control to restore long-term profitability.

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, NOW, money market, and checking and savings accounts, as well as time deposits and certificates of deposits. The company also provides small business administration, residential and commercial real estate, consumer, and commercial non-real estate loans. In addition, it offers debit cards, remote deposit capture, online banking, mobile banking, and direct deposit services; and cash management and treasury services. The company operates one full-service banking location in Sandy, Utah; and a loan production office in Rockville Centre, New York. FinWise Bancorp was founded in 1999 and is headquartered in Murray, Utah.

How the Company Makes Money

FinWise generates revenue through several key streams. Primarily, the company earns interest income from its consumer and small business loans, where borrowers repay principal amounts along with interest over time. Additionally, it charges fees associated with loan origination and servicing, which contribute significantly to its earnings. The company also generates revenue through transaction fees from payment processing services and potential partnerships with other financial institutions that offer complementary services. Strategic partnerships with fintech platforms and financial service providers further enhance its revenue opportunities, allowing for cross-selling and increased customer acquisition.

FinWise Financial Statement Overview

Summary

Strong top-line momentum and profitability (TTM revenue growth 15.7%, net margin 14.1%) supported by a very low leverage balance sheet (debt-to-equity 0.025). However, negative operating/free cash flow and deteriorating cash metrics are a meaningful risk, alongside generally declining margins.

Income Statement

FinWise has shown a strong revenue growth rate of 15.7% in the TTM, indicating a positive trajectory. The gross profit margin is healthy at 53.8%, although it has decreased from previous years. The net profit margin of 14.1% is solid, reflecting good profitability. However, margins have generally declined over the years, suggesting potential challenges in maintaining cost efficiency.

Balance Sheet

The company maintains a very low debt-to-equity ratio of 0.025, indicating strong financial stability and low leverage risk. Return on equity is reasonable at 8.3%, though it has decreased from previous years. The equity ratio of 20.9% suggests a solid capital structure, providing a cushion against potential financial distress.

Cash Flow

FinWise's cash flow situation is concerning, with negative operating and free cash flows in the TTM. The free cash flow to net income ratio is close to 1, indicating that net income is not translating into positive cash flow. The negative free cash flow growth rate of -29.7% highlights significant cash flow management challenges.

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	8.82M	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	0.00	-19.89M	4.81M	53.94M	-11.57M
Operating Cash Flow	0.00	-14.99M	12.27M	61.15M	-9.23M
Investing Cash Flow	0.00	-132.38M	-152.87M	-35.83M	24.26M
Financing Cash Flow	0.00	139.56M	157.01M	-10.51M	23.35M

FinWise Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.61
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FINW, the sentiment is Negative. The current price of 17.61 is below the 20-day moving average (MA) of 17.97, below the 50-day MA of 17.95, and above the 200-day MA of 17.32, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 45.77 is Neutral, neither overbought nor oversold. The STOCH value of 47.42 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FINW.

FinWise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSBK	79 Outperform	$308.30M	10.15	11.48%	2.91%	8.17%	21.95%
LNKB	77 Outperform	$344.99M	10.07	13.09%	3.61%	15.66%	―
FINW	72 Outperform	$239.40M	15.58	8.00%	―	26.54%	2.73%
CHMG	72 Outperform	$302.04M	19.43	5.69%	2.40%	-6.25%	-38.79%
ISBA	68 Neutral	$367.12M	20.45	8.27%	2.13%	7.29%	33.75%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FRST	58 Neutral	$352.66M	5.68	2.25%	3.06%	9.90%	―

FinWise Corporate Events

FinWise Bancorp Reports Strong Q4 and 2025 Earnings Growth

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 fourth quarter and $6.1 billion for 2025, a 22% year-over-year increase, while full-year net income rose 26% to $16.1 million, with diluted earnings per share at $1.13. Fourth-quarter net interest income climbed to $24.6 million and net income to $3.9 million, with an efficiency ratio of 50.5%, reflecting improved productivity versus the prior year despite a modest sequential decline in earnings. Nonperforming loans increased to $43.7 million as of December 31, 2025, with a significant portion guaranteed by the Small Business Administration, and balances in the company’s credit-enhanced product grew to $118 million, ahead of management expectations. Management emphasized that these results demonstrate the payoff from multi-year investments, a scalable business model, and sustained momentum in revenue growth and cost control, reinforcing FinWise’s capital strength and its capacity to continue building tangible book value per share.

The most recent analyst rating on (FINW) stock is a Hold with a $19.00 price target. To see the full list of analyst forecasts on FinWise stock, see the FINW Stock Forecast page.