FinWise (FINW) AI Stock Analysis

• Market Cap: $236.72M
• Dividend Yield: N/A
• Average Volume (3M): 16.72K
• Price to Earnings (P/E): 17.9
• Beta (1Y): 0.63
• Revenue Growth: 13.75%
• EPS Growth: -15.50%
• Country: US
• Employees: 196
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.29
• Shares Outstanding: 13,519,230
• 10 Day Avg. Volume: 14,165
• 30 Day Avg. Volume: 16,716
• PEG Ratio: -0.55
• Price to Book (P/B): 1.16
• Price to Sales (P/S): 2.07
• P/FCF Ratio: -10.13
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 2.62
• Enterprise Value/Ebitda: 8.91
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 66 Neutral
• Price Target: $20.00 ▲(10.25% Upside)

FinWise's overall stock score reflects solid financial performance with strong revenue growth and a robust balance sheet. However, technical indicators suggest short-term bearish momentum, and valuation metrics indicate moderate pricing. The earnings call provided mixed signals with strong growth in loan origination but concerns over credit losses and net interest margin.

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

FinWise shows strong revenue growth and operational efficiency with a stable balance sheet. However, cash flow concerns due to negative operating cash flows and free cash flows suggest 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.

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	106.99M	97.46M	86.59M	90.22M	81.09M	43.83M
Gross Profit	75.63M	70.45M	64.98M	75.27M	71.78M	36.84M
EBITDA	22.19M	22.28M	27.62M	38.14M	43.31M	16.15M
Net Income	13.53M	12.74M	17.46M	25.11M	31.58M	11.20M
Balance Sheet
Total Assets	842.49M	745.98M	586.22M	400.78M	380.21M	317.51M
Cash, Cash Equivalents and Short-Term Investments	120.25M	106.06M	116.97M	100.57M	85.75M	47.38M
Total Debt	4.96M	5.37M	6.49M	7.33M	1.05M	101.01M
Total Liabilities	660.53M	572.26M	431.17M	261.75M	264.77M	271.64M
Stockholders Equity	181.96M	173.72M	155.06M	140.46M	115.44M	45.87M
Cash Flow
Free Cash Flow	-51.40M	-19.89M	4.81M	53.94M	-11.57M	18.99M
Operating Cash Flow	-49.11M	-14.99M	12.27M	61.15M	-9.23M	19.59M
Investing Cash Flow	-155.50M	-132.38M	-152.87M	-35.83M	24.26M	-130.22M
Financing Cash Flow	205.71M	139.56M	157.01M	-10.51M	23.35M	123.23M

FinWise Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 18.14
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 18.14 is below the 20-day moving average (MA) of 18.83, below the 50-day MA of 19.24, and above the 200-day MA of 17.08, indicating a neutral trend. The MACD of -0.45 indicates Positive momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 27.75 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
LNKB	77 Outperform	$261.40M	6.89	13.14%	4.18%	39.91%	―
TSBK	74 Outperform	$253.82M	9.46	10.87%	3.14%	9.16%	12.12%
ISBA	69 Neutral	$261.35M	16.37	7.69%	3.20%	8.16%	10.10%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FINW	66 Neutral	$236.72M	17.91	7.47%	―	13.75%	-15.50%
CHMG	65 Neutral	$239.74M	21.09	5.74%	2.49%	-6.25%	-38.27%
FRST	53 Neutral	$237.81M	80.42	0.79%	4.05%	14.96%	―

FinWise Corporate Events

FinWise Bancorp’s Earnings Call: Growth Amid Challenges

The recent earnings call for FinWise Bancorp painted a picture of both optimism and caution. On the positive side, the company reported robust growth in loan originations and SBA lending, alongside improved efficiency metrics. However, challenges such as increased provisions for credit losses and a decline in net interest margin were also highlighted. Despite these hurdles, FinWise Bancorp’s inclusion in the Russell 2000 Index and the success of its strategic programs suggest a promising future.

FinWise Bancorp Reports Strong Q2 2025 Results

FinWise Bancorp, a Utah-based bank holding company, specializes in providing banking and payment solutions to fintech brands through its subsidiary, FinWise Bank. The company operates in the financial services sector, leveraging API-driven infrastructure to support deposit, lending, and payment programs.

FinWise Reports Strong Q2 2025 Financial Results

FinWise Bancorp reported strong financial results for the second quarter of 2025, with loan originations reaching $1.5 billion, an increase from $1.3 billion in the previous quarter. The company’s net income rose to $4.1 million, supported by disciplined expense management and strategic growth initiatives. Despite a decrease in net interest margin, FinWise’s focus on better credit quality loan products has led to increased net interest income. The company remains optimistic about its long-term growth prospects and the positive impact of its new products and infrastructure investments.

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.