FinWise (FINW) AI Stock Analysis

• Market Cap: $247.96M
• Dividend Yield: N/A
• Average Volume (3M): 16.72K
• Price to Earnings (P/E): 16.9
• 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): 0.34
• Shares Outstanding: 13,586,921
• 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: 0.80
• Enterprise Value/Revenue: 1.60
• Enterprise Value/Gross Profit: 2.45
• Enterprise Value/Ebitda: 7.99
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 68 Neutral
• Price Target: $19.50 ▲(6.85% Upside)

FinWise's overall score is driven by strong financial performance and positive earnings call highlights, despite technical weaknesses and cash flow challenges. Strategic partnerships and revenue growth are significant positives, but cash flow management and market momentum need improvement.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a positive trajectory and expanding market presence, supporting long-term business sustainability.

Strategic Partnerships

New partnerships can enhance product offerings and market reach, driving future growth and competitive positioning.

Financial Stability

Low leverage risk and strong financial stability provide a cushion against potential financial distress, supporting long-term operations.

Negative Factors

Declining Margins

Declining margins suggest challenges in maintaining cost efficiency, which could impact profitability and competitive edge over time.

Cash Flow Challenges

Negative cash flows indicate potential liquidity issues, which can hinder reinvestment and growth opportunities, affecting long-term viability.

Credit Loss Provisions

Increased credit loss provisions reflect rising risk in the loan portfolio, potentially impacting future profitability and financial health.

FinWise Business Overview & Revenue Model

Company Description

FinWise (FINW) is a financial technology company specializing in providing innovative banking solutions and services, primarily targeting both consumer and small business markets. The company operates in the fintech sector, offering products such as personal loans, payment processing solutions, and digital banking services. With a focus on leveraging technology to enhance customer experience, FinWise aims to simplify financial transactions through user-friendly platforms and tailored financial products.

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 demonstrates solid financial health with strong revenue growth and profitability margins. The balance sheet is robust, with low leverage and a strong equity position. However, cash flow challenges persist, requiring attention to ensure sustainable financial performance.

Income Statement

FinWise shows a positive trajectory in revenue growth with a 6.81% increase in TTM, indicating strong market performance. The gross profit margin remains robust at 70.69%, although slightly lower than previous years. Net profit margin is healthy at 12.65%, but has decreased from previous highs, suggesting some pressure on profitability. EBIT and EBITDA margins are stable, reflecting efficient operational management.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.027, indicating minimal leverage and financial risk. Return on equity is moderate at 7.70%, showing decent profitability relative to shareholder equity. The equity ratio is solid, reflecting a strong capital base and financial stability.

Cash Flow

Cash flow analysis reveals challenges, with negative operating cash flow and free cash flow in the TTM period. However, free cash flow growth is positive at 17.61%, indicating improvement. The free cash flow to net income ratio is above 1, suggesting that the company is generating sufficient cash relative to its net income, despite current cash flow difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	123.78M	97.46M	86.59M	90.22M	81.09M	43.83M
Gross Profit	80.58M	70.45M	64.98M	75.27M	71.78M	36.84M
EBITDA	24.75M	22.28M	27.62M	38.14M	43.31M	16.15M
Net Income	14.97M	12.74M	17.46M	25.11M	31.58M	11.20M
Balance Sheet
Total Assets	899.93M	745.98M	586.22M	400.78M	380.21M	317.51M
Cash, Cash Equivalents and Short-Term Investments	105.63M	106.06M	116.97M	100.57M	85.75M	47.38M
Total Debt	4.68M	5.37M	6.49M	7.33M	1.05M	101.01M
Total Liabilities	712.16M	572.26M	431.17M	260.32M	264.77M	271.64M
Stockholders Equity	187.76M	173.72M	155.06M	140.46M	115.44M	45.87M
Cash Flow
Free Cash Flow	-40.62M	-19.89M	4.81M	53.94M	-11.57M	18.99M
Operating Cash Flow	-35.84M	-14.99M	12.27M	61.15M	-9.23M	19.59M
Investing Cash Flow	-137.42M	-132.38M	-152.87M	-35.83M	24.26M	-130.22M
Financing Cash Flow	193.12M	139.56M	157.01M	-10.51M	23.35M	123.23M

FinWise Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.25
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 18.25 is above the 20-day moving average (MA) of 18.00, above the 50-day MA of 18.22, and above the 200-day MA of 17.09, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 50.30 is Neutral, neither overbought nor oversold. The STOCH value of 72.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FINW.

FinWise Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSBK	82 Outperform	$286.54M	9.92	11.48%	2.89%	8.17%	21.95%
CHMG	78 Outperform	$277.16M	20.87	5.69%	2.35%	-6.25%	-38.79%
LNKB	77 Outperform	$325.51M	8.48	13.09%	3.55%	15.66%	―
ISBA	75 Outperform	$415.02M	23.01	8.27%	2.07%	7.29%	33.75%
FINW	68 Neutral	$247.96M	16.95	8.00%	―	26.54%	2.73%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FRST	67 Neutral	$331.22M	38.68	2.25%	3.01%	9.90%	―

FinWise Corporate Events

FinWise Reports Strong Q3 2025 Financial Results

FinWise Bancorp reported strong financial results for the third quarter of 2025, with loan originations reaching $1.8 billion, a net income of $4.9 million, and diluted earnings per share of $0.34. The company’s performance was driven by strategic investments, robust loan originations, and disciplined expense management, leading to significant revenue growth and an improved efficiency ratio. FinWise also announced new strategic program agreements and is actively pursuing further partnerships to enhance its strategic initiatives, aiming for long-term growth and value creation for shareholders.