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FinWise
(NASDAQ:FINW)
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Rating:56Neutral
Price Target:
$15.00
▼(-12.94% Downside)
Action:Reiterated
Date:06/26/26
FINW scores below average primarily due to materially weak cash flow quality and signs of weakening profitability, despite strong revenue growth and a conservatively levered balance sheet. Technicals are neutral-to-soft with the stock below longer-term moving averages, while valuation looks reasonable on P/E but lacks dividend support. The earnings call reinforces a mixed setup: growth and product ramp potential, but elevated charge-offs/NPL risk and efficiency pressure keep the overall score restrained.
Positive Factors
Strong Origination Growth
Sustained high origination volumes reflect durable demand and successful scaling of lending programs and BaaS partnerships. A consistent origination baseline supports long-term net interest income and fee opportunities, underpinning revenue diversification even as credit cycles ebb and flow.
Negative Factors
Deep Negative Operating Cash Flow
Persistently large negative operating and free cash flows signal that reported earnings are not being converted into cash, increasing reliance on balance sheet funding or equity actions. Over months this weak cash quality constrains capital deployment and raises refinancing risk under stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Origination Growth
Sustained high origination volumes reflect durable demand and successful scaling of lending programs and BaaS partnerships. A consistent origination baseline supports long-term net interest income and fee opportunities, underpinning revenue diversification even as credit cycles ebb and flow.
Read all positive factors
FinWise (FINW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$192.71M
Dividend YieldN/A
Average Volume (3M)16.72K
Price to Earnings (P/E)11.9
Beta (1Y)0.57
Revenue Growth70.23%
EPS Growth20.19%
CountryUS
Employees196
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.18
Shares Outstanding13,706,039
10 Day Avg. Volume14,165
30 Day Avg. Volume16,716
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)1.19
Price to Sales (P/S)1.52
P/FCF Ratio-6.73
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue1.06
Enterprise Value/Gross Profit1.74
Enterprise Value/Ebitda7.09
Forecast
1Y Price Target
$20.00Price Target Upside16.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)1.65
Revenue Forecast (FY)$237.21M
FinWise Business Overview & Revenue Model
Company Description
FinWise Bancorp, the parent company of FinWise Bank, delivers a comprehensive suite of banking solutions to both personal and business clients. Its diverse range of deposit offerings includes demand accounts (both interest and non-interest bearing...
How the Company Makes Money
FinWise primarily makes money through (1) net interest income and (2) non-interest income. Net interest income is earned on interest from loans and interest-earning assets (such as commercial loans and other credit products) minus interest paid on...
FinWise Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 2026
Earnings Call Sentiment Neutral
The call presents a mixed near-term picture: the business shows clear growth momentum (strong originations, rapid scaling of a credit-enhanced product, interchange growth, a strengthening partner pipeline and a robust capital position) but is contending with meaningful near-term headwinds (elevated and concentrated SBA charge-offs, weaker noninterest income, a worsening efficiency ratio and deposit/asset runoff). Management reaffirmed key longer-term targets and emphasized that the credit issues are concentrated and actively managed, while also cautioning that charge-offs and NPLs may remain elevated over the next few quarters. Overall, the tone is cautiously constructive on long-term opportunity but guarded on near-term earnings and credit performance.Positive Updates
Strong Loan Originations
Total loan originations of $1.7 billion in Q1 2026, up 38% year-over-year and above the company baseline guidance of $1.4 billion quarterly.
Negative Updates
Elevated Net Charge-Offs
Quarterly net charge-offs rose to $9.4 million in Q1 2026 from $6.7 million in Q4 2025 (+~40.3% sequential). Charge-offs included $4.8M from credit-enhanced strategic program loans, $2.3M from program loans without credit enhancement, and $2.2M from core SBA retained balances.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Loan Originations
Total loan originations of $1.7 billion in Q1 2026, up 38% year-over-year and above the company baseline guidance of $1.4 billion quarterly.
Read all positive updates
Company Guidance
Management reiterated a baseline quarterly origination run rate of $1.4 billion (Q2 run rate through the first 4 weeks of April ~ $1.4B) and suggested annualizing that baseline with a 5% growth assumption for 2026; credit‑enhanced balances are expected to grow organically about $8–$10 million per month on average (Q1 credit‑enhanced balance was $109M), with growth skewed to the middle/back half of 2026 and management still comfortable with reaching the year‑end cadence implied by that ramp; they guided quarterly net charge‑offs for non‑credit‑enhanced loans of roughly $4–$5 million and noted up to ~$10 million of watch‑list loans could migrate to NPLs in Q2, while NIM is expected to increase when including credit‑enhanced balances (but gradually decline on an ex‑credit‑enhancement basis), the efficiency ratio target remains to move back toward the mid‑50s (management said about $2M of incremental revenue would be needed to get to ~60% today), and to use a 27% tax rate for modeling.FinWise Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
80
Positive
Cash Flow
18
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 172.53M | 150.96M | 97.46M | 86.59M | 90.22M | 81.09M |
| Gross Profit | 105.22M | 92.09M | 70.45M | 64.98M | 75.27M | 71.78M |
| EBITDA | 25.75M | 26.62M | 22.28M | 27.62M | 38.14M | 43.31M |
| Net Income | 15.64M | 16.09M | 12.74M | 17.46M | 25.11M | 31.58M |
Balance Sheet | ||||||
| Total Assets | 899.44M | 977.13M | 745.98M | 586.22M | 400.78M | 380.21M |
| Cash, Cash Equivalents and Short-Term Investments | 96.95M | 163.40M | 106.06M | 116.97M | 100.57M | 85.75M |
| Total Debt | 0.00 | 4.41M | 5.37M | 6.49M | 7.33M | 1.05M |
| Total Liabilities | 702.83M | 783.94M | 572.26M | 431.17M | 260.32M | 264.77M |
| Stockholders Equity | 196.61M | 193.19M | 173.72M | 155.06M | 140.46M | 115.44M |
Cash Flow | ||||||
| Free Cash Flow | 8.77M | -34.19M | -19.89M | 4.81M | 53.94M | -11.57M |
| Operating Cash Flow | 12.89M | -28.42M | -14.99M | 12.27M | 61.15M | -9.23M |
| Investing Cash Flow | -105.26M | 5.54B | -132.38M | -152.87M | -35.83M | 24.26M |
| Financing Cash Flow | 69.04M | 209.57M | 139.56M | 157.01M | -10.51M | 23.35M |
FinWise Technical Analysis
Negative
17.23
Price Trends
14.19
Negative
15.25
Negative
16.76
Negative
Market Momentum
-0.09
Positive
42.96
Neutral
8.06
Positive
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 17.23 is above the 20-day moving average (MA) of 14.40, above the 50-day MA of 14.19, and above the 200-day MA of 16.76, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 42.96 is Neutral, neither overbought nor oversold. The STOCH value of 8.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FINW.
FinWise Risk Analysis
FinWise disclosed 66 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $339.11M | 10.98 | 11.67% | 2.91% | 6.73% | 20.50% | |
72 Outperform | $360.38M | 19.88 | 7.33% | 2.40% | -5.59% | -20.56% | |
69 Neutral | $390.10M | 8.38 | 11.47% | 3.06% | 9.62% | 1059.18% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
64 Neutral | $286.34M | 14.45 | 8.74% | 2.13% | 8.94% | 37.42% | |
56 Neutral | $192.71M | 11.89 | 8.24% | ― | 70.23% | 20.19% |
* Financial Sector Average
FINW
FinWise
13.88
-1.47
-9.58%
FRST
Primis Financial
15.74
4.93
45.58%
TSBK
Timberland Bancorp
43.06
11.83
37.88%
CHMG
Chemung Financial
75.06
23.90
46.71%
ISBA
Isabella Bank
39.12
9.24
30.95%
FinWise Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
FinWise Shareholders Expand Stock Plan and Elect Directors
Positive
Jun 25, 2026
At its June 25, 2026 annual meeting of shareholders, FinWise Bancorp investors approved an amendment to the company’s 2019 Stock Plan, increasing the number of common shares available for equity awards by 750,000 to a total of 2,530,000, wit...
Business Operations and StrategyStock Buyback
FinWise Bancorp Launches New Common Stock Repurchase Program
Positive
May 21, 2026
On May 21, 2026, FinWise Bancorp announced that its board had approved a common stock repurchase program covering up to 685,000 shares, or about 5% of its outstanding stock as of May 19, 2026. The program, which runs through May 31, 2028, allows b...
Business Operations and StrategyFinancial Disclosures
FinWise Bancorp grows loans but faces rising credit costs
Negative
Apr 30, 2026
For the quarter ended March 31, 2026, FinWise Bancorp reported loan originations of $1.7 billion, up from $1.6 billion in the prior quarter and $1.3 billion a year earlier, alongside net interest income of $28.1 million, reflecting strong growth i...
Business Operations and StrategyExecutive/Board Changes
FinWise Announces CEO Succession and Leadership Continuity Plan
Positive
Apr 8, 2026
On April 6, 2026, FinWise Bancorp executed a planned leadership transition in which long-serving CEO Kent Landvatter stepped down from the chief executive role but remained with the company and its bank subsidiary as Executive Chairman, with no ch...
Business Operations and StrategyFinancial Disclosures
FinWise Posts Strong 2025 Growth Amid Higher Credit Costs
Positive
Mar 26, 2026
In March 2026, FinWise reported its fourth-quarter and full-year 2025 results, highlighting strong revenue growth but pressure on earnings from higher credit costs. Net interest income rose to $24.6 million in the fourth quarter of 2025 from $15.5...
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.