Medallion Financial (MFIN)
NASDAQ:MFIN
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Medallion Financial
(NASDAQ:MFIN)
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Rating:71Outperform
Price Target:
$11.00
▲(15.30% Upside)
Action:Reiterated
Date:06/13/26
The score is driven primarily by solid overall financial health (strong recent cash generation and improving leverage, but sharp revenue contraction) and a very attractive valuation (low P/E and high dividend yield). Technicals are supportive with price above key moving averages, while corporate events add a modest positive boost due to resolution of the SBA default and governance stability.
Positive Factors
Strong operating cash generation
Consistent, strong operating cash flow that covers net income by ~2.7x and rising free cash flow provides durable internal funding for lending growth, dividends, and loss absorption. This reduces reliance on volatile wholesale funding and supports long-term capital allocation flexibility.
Negative Factors
Sharp revenue contraction
A ~35% TTM revenue decline reflects lost originations or portfolio run-off that materially reduces scale economies. Sustained top-line weakness constrains net interest income expansion, limits fee income growth, and makes margins and dividend policy more sensitive to modest shocks over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong operating cash generation
Consistent, strong operating cash flow that covers net income by ~2.7x and rising free cash flow provides durable internal funding for lending growth, dividends, and loss absorption. This reduces reliance on volatile wholesale funding and supports long-term capital allocation flexibility.
Read all positive factors
Medallion Financial (MFIN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$220.26M
Dividend Yield4.44%
Average Volume (3M)43.20K
Price to Earnings (P/E)5.6
Beta (1Y)0.75
Revenue Growth9.67%
EPS Growth-6.40%
CountryUS
Employees174
SectorFinancial
Sector Strength70
IndustryFinancial - Credit Services
Share Statistics
EPS (TTM)1.57
Shares Outstanding23,112,663
10 Day Avg. Volume47,971
30 Day Avg. Volume43,203
Financial Highlights & Ratios
PEG Ratio0.29
Price to Book (P/B)0.57
Price to Sales (P/S)0.66
P/FCF Ratio1.86
Enterprise Value/Market Cap1.81
Enterprise Value/Revenue1.18
Enterprise Value/Gross Profit1.65
Enterprise Value/Ebitda3.10
Forecast
1Y Price Target
$11.25Price Target Upside17.92% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)1.12
Revenue Forecast (FY)N/A
Medallion Financial Business Overview & Revenue Model
Company Description
Medallion Financial Corp. (MFIN), encompassing its various subsidiaries, functions as a diversified financial services provider throughout the United States. The company's operations are distinctly segmented into Recreation Lending, Home Improveme...
How the Company Makes Money
Medallion Financial primarily makes money through net interest income and fee-based income generated from lending and banking operations.
1) Net interest income (core earnings driver)
- Loan origination and portfolio interest: The company origina...
Medallion Financial Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive tone driven by record annual results, growth in net interest income, increased loan balances and originations, strong equity gains, improved book values, and successful diversification (strategic partnerships). However, the quarter also showed notable credit and expense headwinds: a sizable provision build, elevated recreation net charge-offs and delinquency, higher operating expenses, and potential margin pressure from rate moderation. Management presented clear actions (talent additions, capital availability, data-driven underwriting) and expects disciplined mid-teens growth in key lines, suggesting confidence in resolving near-term credit and margin dynamics while pursuing sustainable growth.Positive Updates
Record Year and Top-Line Growth
2025 marked a record year with increases in net interest income, net income, originations, and portfolio size. Total originations were $421,000,000 for the quarter and $1,500,000,000 for the full year. Total loans reached $2,567,000,000, up 3% year-over-year.
Negative Updates
Elevated Provision for Credit Losses
Provision for credit losses spiked to $27,700,000 in Q4 (up from $18,600,000 in 3Q and $20,600,000 in prior-year quarter). Drivers included recharacterization of loans from held-for-sale to held-for-investment, allowance coverage step-up (from ~5.0% to 5.32%), and additional commercial loan provisions.
Read all updates
Q4-2025 Updates
Positive
Negative
Record Year and Top-Line Growth
2025 marked a record year with increases in net interest income, net income, originations, and portfolio size. Total originations were $421,000,000 for the quarter and $1,500,000,000 for the full year. Total loans reached $2,567,000,000, up 3% year-over-year.
Read all positive updates
Company Guidance
Management guided that 2026 will emphasize disciplined, accretive growth — targeting mid‑teens growth across the loan book (with mid‑teens growth called out for home improvement) while scaling recreation and the fast‑growing strategic partnership channel — noting the company ended 2025 with $2.567B of total loans, Q4 originations of $421M (including a record $258.3M from strategic partnerships), January origination rates of ~14.5% for recreation and ~10% for home improvement, a Q4 net interest margin of 8.04% (FY 8.06%) that management said could dip below 8% if recreation pricing is reduced, and an expectation that net interest income growth will outpace rising non‑interest operating costs; they also said the elevated Q4 provision of $27.7M should not be a run‑rate item even as allowances grow with the book (recreation allowance 5.32% and 90+ day delinquencies 0.82%, home improvement allowance 2.41% and 90+ day delinquencies 0.16%), and confirmed continued capital returns (quarterly dividend $0.12/sh and ongoing buybacks).Medallion Financial Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
66
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 338.61M | 353.31M | 291.79M | 254.51M | 198.43M | 179.21M |
| Gross Profit | 240.88M | 341.81M | 127.12M | 153.76M | 132.19M | 143.44M |
| EBITDA | 128.74M | 186.63M | 69.15M | 91.28M | 73.08M | 88.39M |
| Net Income | 39.50M | 43.04M | 35.88M | 55.08M | 43.84M | 54.11M |
Balance Sheet | ||||||
| Total Assets | 2.95B | 2.96B | 2.87B | 2.59B | 2.26B | 1.87B |
| Cash, Cash Equivalents and Short-Term Investments | 96.30M | 261.75M | 101.17M | 106.87M | 81.66M | 106.25M |
| Total Debt | 265.35M | 316.28M | 288.59M | 253.06M | 229.93M | 231.23M |
| Total Liabilities | 2.44B | 2.45B | 2.43B | 2.18B | 1.89B | 1.52B |
| Stockholders Equity | 408.08M | 408.62M | 370.17M | 342.99M | 301.74M | 287.04M |
Cash Flow | ||||||
| Free Cash Flow | 131.34M | 126.28M | 115.51M | 113.76M | 108.74M | 78.73M |
| Operating Cash Flow | 131.34M | 126.28M | 115.51M | 113.76M | 108.74M | 78.73M |
| Investing Cash Flow | -205.82M | -124.49M | -335.78M | -340.70M | -449.00M | -238.32M |
| Financing Cash Flow | 55.14M | 30.20M | 239.99M | 271.18M | 321.38M | 172.04M |
Medallion Financial Technical Analysis
Negative
9.54
Price Trends
9.42
Positive
9.39
Positive
9.60
Negative
Market Momentum
0.08
Positive
47.66
Neutral
25.41
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MFIN, the sentiment is Negative. The current price of 9.54 is below the 20-day moving average (MA) of 9.68, above the 50-day MA of 9.42, and below the 200-day MA of 9.60, indicating a neutral trend. The MACD of 0.08 indicates Positive momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 25.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MFIN.
Medallion Financial Risk Analysis
Medallion Financial disclosed 42 risk factors in its most recent earnings report. Medallion Financial 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
Medallion Financial Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $220.26M | 5.56 | 9.85% | 4.44% | 9.67% | -6.40% | |
69 Neutral | $342.54M | 6.98 | 13.16% | 2.99% | 10.51% | 53.17% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
62 Neutral | $211.34M | 10.52 | 6.34% | ― | 12.28% | 1.64% | |
59 Neutral | $236.01M | 14.00 | 4.63% | ― | -3.81% | ― | |
56 Neutral | $367.98M | -68.94 | -7.04% | ― | 405.40% | 96.15% | |
45 Neutral | $103.68M | -0.32 | -193.33% | ― | -1578.63% | -2350.69% |
* Financial Sector Average
MFIN
Medallion Financial
9.53
0.63
7.13%
CPSS
Consumer Portfolio Services
9.74
-0.19
-1.91%
RM
Regional Management
37.20
10.28
38.18%
LPRO
Open Lending
3.11
1.16
59.49%
SUIG
Sui Group Holdings
1.35
-0.50
-27.03%
OPRT
Oportun Financial
5.16
-1.66
-24.34%
Medallion Financial Corporate Events
Executive/Board ChangesShareholder Meetings
Medallion Financial Shareholders Back Board and Governance Slate
Positive
Jun 12, 2026
Medallion Financial Corp. held its 2026 annual meeting of shareholders on June 9, 2026, with 73% of eligible common stock represented, ensuring a quorum for key governance decisions. Shareholders elected the company’s slate of Class III dire...
Executive/Board Changes
Medallion Financial Announces CEO Retirement and Succession Plan
Neutral
Jun 12, 2026
On June 11, 2026, Medallion Bank announced that Chief Executive Officer Donald Poulton intends to retire from his role effective June 30, 2026. As part of the leadership transition, Poulton was appointed to join the bank’s board of directors...
Business Operations and StrategyRegulatory Filings and Compliance
Medallion Financial Resolved SBA Default, Stabilizing Capital Structure
Positive
Jun 12, 2026
On June 11, 2026, the Small Business Administration informed Medallion Capital, Inc. that background checks for two previously submitted candidates were satisfactorily completed, resolving an earlier disclosed event of default tied to its outstand...
Business Operations and StrategyFinancial DisclosuresShareholder Meetings
Medallion Financial Prevails Again in ZimCal Proxy Battle
Positive
Jun 10, 2026
On June 10, 2026, Medallion Financial Corp. reported preliminary results from its 2026 annual meeting of stockholders, held on June 9, showing shareholders re-elected all three company-nominated directors and rejected the rival slate proposed by a...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
Medallion Financial Nears Resolution of SBA Default Issue
Positive
Jun 4, 2026
On June 3, 2026, the Small Business Administration notified Medallion Capital that its submission of two board candidates had cured a previously disclosed event of default on its outstanding SBA debentures, pending satisfactory background checks o...
Business Operations and StrategyPrivate Placements and Financing
Medallion Financial Completes $75 Million Senior Notes Offering
Positive
Apr 28, 2026
On April 28, 2026, Medallion Financial Corp. completed a $75 million private placement of senior unsecured notes to a group of institutional investors led by JP Morgan Investment Management Inc. The notes, which mature on May 1, 2031 and carry a f...
Business Operations and StrategyLegal ProceedingsRegulatory Filings and Compliance
SBA Default on Debentures Puts Medallion Financial Under Review
Negative
Apr 3, 2026
As of March 31, 2026, approximately 3% of Medallion Financial Corp.’s consolidated borrowings, totaling $73.5 million, consisted of SBA debentures issued to its subsidiary Medallion Capital, Inc., providing long-term, fixed-rate funding at r...
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.