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FinWise (FINW)
NASDAQ:FINW
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FinWise
(NASDAQ:FINW)
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Rating:68Neutral
Price Target:
$19.50
▲(9.67% Upside)
FinWise's overall score is driven by strong financial performance and positive earnings call insights, highlighting growth in loan originations and strategic partnerships. However, technical indicators suggest bearish trends, and cash flow issues need addressing. The valuation is moderate, with no dividend yield to attract income investors.
FinWise (FINW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$236.72M
Dividend YieldN/A
Average Volume (3M)16.72K
Price to Earnings (P/E)17.9
Beta (1Y)0.63
Revenue Growth13.75%
EPS Growth-15.50%
CountryUS
Employees196
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.34
Shares Outstanding13,519,230
10 Day Avg. Volume14,165
30 Day Avg. Volume16,716
Financial Highlights & Ratios
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 Cap0.84
Enterprise Value/Revenue1.85
Enterprise Value/Gross Profit2.62
Enterprise Value/Ebitda8.48
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
FinWise Business Overview & Revenue Model
Company DescriptionFinWise (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 MoneyFinWise 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 Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 04, 2026
Earnings Call Sentiment Positive
The earnings call highlighted strong operational execution and growth in loan originations, revenue, and net income. New strategic partnerships are expected to further drive growth. However, challenges such as the impact of the government shutdown on SBA lending and an increase in credit loss provisions were noted.Q3-2025 Updates
Positive Updates
Strong Loan Originations
Loan originations reached $1.8 billion, marking a 21% increase quarter-over-quarter and a 24% increase year-over-year.
Significant Revenue and Net Income Growth
Net income increased by 19% from the previous quarter and 42% year-over-year, with diluted earnings per share rising to $0.34.
New Strategic Agreements
Announced agreements with DreamFi and Tallied Technologies, expected to bring substantial credit enhanced portfolio balances.
Increase in Tangible Book Value
Tangible book value per share increased to $13.84 from $13.51, reflecting ongoing value creation for shareholders.
Negative Updates
Impact of Government Shutdown on SBA Lending
SBA 7(a) loan originations declined 7.8% quarter-over-quarter due to typical seasonality and the federal government shutdown.
Provision for Credit Losses Increase
Total provision for credit losses increased to $12.8 million from $4.7 million in the prior quarter.
Net Charge-offs and Non-Performing Loans
Quarterly net charge-offs were $3.1 million, slightly up from the prior quarter, with $3 million in loans migrating to non-performing status.
Company Guidance
During the FinWise Bancorp Third Quarter 2025 Earnings Conference Call, the company reported strong financial performance, with loan originations reaching $1.8 billion, a 21% quarter-over-quarter increase, and credit enhanced balances growing to $41 million. The tangible book value per share rose to $13.84 from $13.51 in the prior quarter, reflecting ongoing shareholder value creation. Net income for the quarter was $4.9 million, a 19% increase from the previous quarter, with diluted earnings per share rising to $0.34. Net interest income increased to $18.6 million, and the net interest margin was at 9.01%. The company also announced new strategic program agreements with DreamFi and Tallied Technologies, expected to contribute significantly to credit enhanced balances, projecting a total of approximately $115 million by year-end. Despite some challenges due to a government shutdown impacting SBA lending operations, the company remained focused on disciplined growth and operational excellence. The call highlighted FinWise's strategic execution and commitment to long-term value creation, with expectations for continued growth in credit enhanced loan balances and strategic program loans in 2026.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 | 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 | 23.32M | 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
Negative
17.78
Price Trends
19.17
Negative
17.66
Positive
17.12
Positive
Market Momentum
-0.40
Positive
41.09
Neutral
36.31
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 17.78 is below the 20-day moving average (MA) of 18.28, below the 50-day MA of 19.17, and above the 200-day MA of 17.12, indicating a neutral trend. The MACD of -0.40 indicates Positive momentum. The RSI at 41.09 is Neutral, neither overbought nor oversold. The STOCH value of 36.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FINW.
FinWise Risk Analysis
FinWise disclosed 65 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 |
|---|---|---|---|---|---|---|---|
| ― | $262.15M | 6.96 | 13.09% | 4.29% | 15.66% | ― | |
| ― | $247.74M | 9.34 | 10.87% | 3.25% | 9.16% | 12.12% | |
| ― | $264.07M | 16.41 | 8.27% | 3.16% | 7.29% | 33.63% | |
| ― | $236.72M | 17.91 | 7.47% | ― | 13.75% | -15.50% | |
| ― | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
| ― | $245.25M | 18.54 | 5.74% | 2.52% | -6.25% | -38.27% | |
| ― | $264.67M | 30.50 | 2.25% | 3.74% | 9.78% | ― |
* Financial Sector Average
FINW
FinWise
17.82
1.09
6.52%
FRST
Primis Financial
10.74
-0.08
-0.74%
TSBK
Timberland Bancorp
31.37
3.41
12.20%
CHMG
Chemung Financial
51.19
4.63
9.94%
ISBA
Isabella Bank
35.12
14.32
68.85%
LNKB
LINKBANCORP
6.99
0.11
1.60%
FinWise Corporate Events
FinWise Bancorp Reports Strong Q3 2025 Results
Oct 30, 2025
FinWise Bancorp, a Utah-based bank holding company, operates in the financial sector, providing banking and payment solutions to fintech brands through its subsidiary, FinWise Bank. The company is known for its strategic program lending and credit-enhanced balance sheet program.
Business Operations and StrategyFinancial Disclosures
FinWise Reports Strong Q3 2025 Financial Results
Positive
Oct 29, 2025
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.
The most recent analyst rating on (FINW) stock is a Hold with a $20.00 price target. To see the full list of analyst forecasts on FinWise stock, see the FINW Stock Forecast page.
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.