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Esquire Financial Holdings
(NASDAQ:ESQ)
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Rating:75Outperform
Price Target:
$131.00
▲(17.43% Upside)
Action:Reiterated
Date:10/07/26
Overall score is driven primarily by strong financial performance (profitability, conservative leverage, and solid returns) and a constructive earnings call centered on growth and merger confidence. These positives are partially offset by weaker near-term technical momentum and a valuation profile that is reasonable but not compelling given the low dividend yield.
Positive Factors
Sustained Revenue Growth and Profitability
The multi-year revenue increase demonstrates substantial expansion in the company’s earnings base, while consistently high margins indicate that growth has remained profitable. This combination supports continued investment, strengthens operating resilience, and provides a durable foundation for future earnings generation.
Negative Factors
Uneven Cash-Flow Stability
Although free cash flow has generally remained positive, inconsistent growth and volatile operating cash-flow coverage make the durability and comparability of cash generation less predictable. This can complicate capital planning and reduce confidence that reported earnings will translate steadily into deployable cash.
Read all positive and negative factors
Positive Factors
Negative Factors
Sustained Revenue Growth and Profitability
The multi-year revenue increase demonstrates substantial expansion in the company’s earnings base, while consistently high margins indicate that growth has remained profitable. This combination supports continued investment, strengthens operating resilience, and provides a durable foundation for future earnings generation.
Read all positive factors
Esquire Financial Holdings (ESQ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.47B
Dividend Yield0.64%
Average Volume (3M)185.96K
Price to Earnings (P/E)19.0
Beta (1Y)0.67
Revenue Growth19.99%
EPS Growth10.00%
CountryUS
Employees151
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)6.34
Shares Outstanding12,104,583
10 Day Avg. Volume135,016
30 Day Avg. Volume185,958
Financial Highlights & Ratios
PEG Ratio1.26
Price to Book (P/B)3.07
Price to Sales (P/S)5.40
P/FCF Ratio15.68
Enterprise Value/Market Cap0.54
Enterprise Value/Revenue4.44
Enterprise Value/Gross Profit5.16
Enterprise Value/Ebitda10.30
Forecast
1Y Price Target
$125.00Price Target Upside12.05% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)7.07
Revenue Forecast (FY)$212.17M
Esquire Financial Holdings Business Overview & Revenue Model
Company Description
Esquire Financial Holdings, Inc. functions as the parent entity for Esquire Bank, National Association, delivering a diverse array of commercial banking and financial services across the United States. Its clientele includes the legal sector, smal...
How the Company Makes Money
Esquire Financial Holdings makes money primarily through its banking subsidiary, Esquire Bank, N.A., via a mix of net interest income and noninterest income. Net interest income is generated by earning interest and fees on interest-earning assets ...
Esquire Financial Holdings Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 27, 2026
Earnings Call Sentiment Positive
The call was strongly optimistic, led by 16% year-over-year adjusted earnings growth, exceptionally strong loan and deposit growth, healthy litigation pipelines, solid credit quality, substantial liquidity and capital, and confidence in the Signature merger and Chicago expansion. The main challenges were merger-related expenses, a $1.6 million multifamily charge-off, modest pressure on net interest margin from elevated cash, lower litigation yields than in prior quarters, and slower expected merchant revenue growth than payment volume growth. Overall, the highlights significantly outweighed the lowlights.Positive Updates
Strong Adjusted Earnings Growth
Q2 GAAP net income was $13 million, or $1.49 per diluted share. Excluding approximately $1.1 million of pretax merger-related expenses, adjusted net income was $14 million, or $1.60 per diluted share, with adjusted earnings increasing 16% year over year.
Negative Updates
Merger-Related Expenses
Q2 results included approximately $1.1 million of pretax merger-related expenses associated with the acquisition of Signature Bank Corporation.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Adjusted Earnings Growth
Q2 GAAP net income was $13 million, or $1.49 per diluted share. Excluding approximately $1.1 million of pretax merger-related expenses, adjusted net income was $14 million, or $1.60 per diluted share, with adjusted earnings increasing 16% year over year.
Read all positive updates
Company Guidance
The Signature merger is scheduled to close on August 1, 2026; stand-alone NIM is expected to “hang around 6%,” while combined NIM is expected to start “right in that 5.40%, 5.50% range overall,” “call it, 5.45%,” on Day 1, likely more reflective in a full quarter for December than in a partial quarter for September. For the next 4 to 6 quarters, the indirect merchant model volume is expected to grow somewhere around 10%, while revenue tends to grow somewhere around 3% or 5%; over the next year, if not 1.5 years, moving Signature’s non-litigation commercial customers to a direct merchant acquiring platform is expected to be a “slow and steady process.”Esquire Financial Holdings Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
90
Very Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 179.89M | 164.50M | 138.27M | 121.64M | 85.92M | 65.56M |
| Gross Profit | 154.91M | 139.79M | 120.12M | 109.00M | 80.78M | 57.77M |
| EBITDA | 77.61M | 72.20M | 62.57M | 58.42M | 41.35M | 24.94M |
| Net Income | 52.75M | 50.85M | 43.66M | 41.01M | 28.52M | 17.93M |
Balance Sheet | ||||||
| Total Assets | 2.51B | 2.37B | 1.89B | 1.62B | 1.40B | 1.18B |
| Cash, Cash Equivalents and Short-Term Investments | 541.62M | 482.39M | 368.07M | 287.32M | 273.39M | 297.54M |
| Total Debt | 0.00 | 2.64M | 0.00 | 0.00 | 0.00 | 0.00 |
| Total Liabilities | 2.20B | 2.08B | 1.66B | 1.42B | 1.24B | 1.04B |
| Stockholders Equity | 313.85M | 289.60M | 237.09M | 198.56M | 158.16M | 143.74M |
Cash Flow | ||||||
| Free Cash Flow | 60.20M | 56.68M | 39.06M | 39.40M | 37.56M | 27.14M |
| Operating Cash Flow | 67.57M | 59.84M | 42.21M | 42.40M | 38.80M | 30.08M |
| Investing Cash Flow | -375.87M | -362.09M | -308.27M | -215.40M | -221.50M | -170.49M |
| Financing Cash Flow | 387.51M | 411.81M | 227.17M | 174.09M | 197.67M | 224.38M |
Esquire Financial Holdings Technical Analysis
Positive
111.56
Price Trends
120.75
Positive
118.64
Positive
112.94
Positive
Market Momentum
-0.40
Negative
54.57
Neutral
66.74
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ESQ, the sentiment is Positive. The current price of 111.56 is below the 20-day moving average (MA) of 119.98, below the 50-day MA of 120.75, and below the 200-day MA of 112.94, indicating a bullish trend. The MACD of -0.40 indicates Negative momentum. The RSI at 54.57 is Neutral, neither overbought nor oversold. The STOCH value of 66.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESQ.
Esquire Financial Holdings Risk Analysis
Esquire Financial Holdings disclosed 46 risk factors in its most recent earnings report. Esquire Financial Holdings 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
Esquire Financial Holdings Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $1.47B | 18.96 | 17.82% | 0.64% | 19.99% | 10.00% | |
72 Outperform | $1.52B | 8.89 | 10.11% | 2.50% | 44.64% | 252.66% | |
72 Outperform | $1.66B | 11.03 | 11.75% | 1.31% | 2.81% | 23.43% | |
69 Neutral | $1.70B | 13.81 | 8.67% | 2.60% | 14.80% | 226.31% | |
69 Neutral | $1.08B | 10.79 | 10.22% | 1.10% | 10.54% | 28.24% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | $1.59B | 18.94 | 2.59% | 4.99% | 10.46% | -39.66% |
* Financial Sector Average
ESQ
Esquire Financial Holdings
120.18
16.96
16.43%
DCOM
Dime Community Bancshares
38.39
8.96
30.45%
OCFC
Oceanfirst Financial
16.04
-1.88
-10.48%
CNOB
ConnectOne Bancorp
30.06
5.04
20.15%
BY
Byline Bancorp
36.74
9.62
35.48%
MCB
Metropolitan Bank Holding
86.31
8.17
10.46%
Esquire Financial Holdings Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Esquire Financial Completes Acquisition of Signature Bancorporation
Positive
Aug 3, 2026
Effective August 1, 2026, Esquire Financial Holdings completed its previously announced acquisition of Illinois-based Signature Bancorporation through a series of holding company and bank-level mergers, with Signature Bank now operating as “...
Business Operations and StrategyDividends
Esquire Financial Declares Regular Quarterly Dividend for Shareholders
Positive
Jul 30, 2026
On July 30, 2026, Esquire Financial Holdings, Inc., the parent of Esquire Bank, declared a regular quarterly dividend of $0.20 per share for holders of its common stock. The dividend will be payable on September 1, 2026, to shareholders of record ...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Esquire Financial posts strong Q2 results, prepares merger
Positive
Jul 23, 2026
Esquire Financial Holdings reported that for the quarter ended June 30, 2026, net income rose 9.2% year over year to $13.0 million, or $1.49 per diluted share, with adjusted earnings of $14.0 million, or $1.60 per share, despite merger-related exp...
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.