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FinWise (FINW)
NASDAQ:FINW
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FinWise
(NASDAQ:FINW)
Rating:62Neutral
Price Target:―
FinWise (FINW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$192.54M
Dividend YieldN/A
Average Volume (3M)17.59K
Price to Earnings (P/E)15.8
Beta (1Y)0.57
Revenue Growth10.74%
EPS Growth-26.67%
CountryUS
Employees196
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.23
Shares Outstanding13,214,827
10 Day Avg. Volume15,306
30 Day Avg. Volume17,585
Financial Highlights & Ratios
PEG Ratio-4.80
Price to Book (P/B)1.05
Price to Sales (P/S)0.00
P/FCF Ratio-21.75
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue0.55
Enterprise Value/Gross Profit2.49
Enterprise Value/Ebitda3.96
Forecast
1Y Price Target
$19.00Price Target Upside30.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
FinWise Business Overview & Revenue Model
Company DescriptionFinWise (FINW) is a financial technology company that operates in the banking and financial services sectors. The company focuses on providing innovative digital banking solutions and financial technology services to individuals, small businesses, and financial institutions. FinWise offers a range of products including digital payment solutions, lending platforms, and financial management tools that are designed to enhance the efficiency and accessibility of financial services.
How the Company Makes MoneyFinWise makes money through a diversified revenue model that includes transaction fees, interest income, and subscription fees. The company earns transaction fees from payment processing services and digital transactions facilitated through its platforms. Interest income is generated from lending activities, where FinWise offers loans to individuals and small businesses. Additionally, the company offers premium financial management tools and services on a subscription basis. Key partnerships with financial institutions and technology providers also contribute to the company's earnings by expanding its service offerings and customer base.
FinWise Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -3.77%|
Next Earnings Date:Jul 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of positive and negative aspects. While there was strong loan origination, asset growth, and strategic developments with new partnerships, challenges included a decline in the net interest margin, increased non-interest expenses, and a slight decline in the tangible shareholders equity to assets ratio. Overall, the highlights and lowlights were fairly balanced.Q1-2025 Updates
Positive Updates
Strong Loan Origination and Asset Growth
Loans originated totaled approximately $1.3 billion for the first quarter. Asset growth was solid, and credit quality saw improvement with declines in non-performing loan balances and net charge-offs compared to the previous quarter.
Tangible Book Value Increase
The tangible book value per common share increased to $13.42 from $13.15 in the previous quarter.
New Strategic Program with Bakkt
FinWise announced a new strategic program agreement with fintech Bakkt to provide business installment loans to small and medium-sized businesses.
SBA Loan Growth and Strategy
Despite a slight decrease in SBA 7(a) loan originations, the bank saw growth in equipment leasing and owner-occupied commercial real estate lines. The SBA guaranteed balances and strategic program loans held-for-sale made up 44% of the total portfolio at the end of Q1.
Decrease in Provision for Credit Losses
The provision for credit losses was $3.3 million in Q1, a decrease from $3.9 million in the prior quarter, driven by lower charge-offs.
Negative Updates
Net Interest Margin Decline
The net interest margin declined to 8.27% from 10% in the prior quarter, driven by seasonal decline in origination volume, addition of lower-yielding loans, and decreased yield in SBA and other variable rate loans.
Increase in Non-Interest Expense
Non-interest expense increased to $14.3 million from $13.6 million in the prior quarter, primarily due to higher salaries and professional services expenses.
Slight Decline in Tangible Shareholders Equity to Assets Ratio
The tangible shareholders equity to assets ratio decreased to 22% from 23.3% at year-end 2024.
SBA Loan Origination Decline
SBA 7(a) loan originations ticked down slightly quarter-over-quarter, driven by a lower average loan size.
Company Guidance
During FinWise Bancorp's first quarter 2025 earnings call, the company provided guidance on several key financial metrics and strategic initiatives. The call highlighted that loans originated totaled approximately $1.3 billion, with solid asset growth and improved credit quality as both non-performing loan (NPL) balances and net charge-offs decreased compared to the previous quarter. The company's tangible book value per share increased to $13.42 from $13.15 in the prior quarter. FinWise remains well-capitalized, with a tangible shareholders equity to assets ratio of 22%, down from 23.3% at year-end 2024, reflecting planned growth in assets. The company also announced a new strategic program agreement with fintech Bakkt, which will involve providing business installment loans to small and medium-sized businesses and integrating a credit-enhanced balance sheet program. For 2025, FinWise anticipates gradual growth progression, driven by existing and new program originations, with a significant contribution expected from the credit-enhanced balance sheet program in the second half of the year. The provision for credit losses was reduced to $3.3 million in Q1 from $3.9 million in the previous quarter, attributed to lower charge-offs. The net interest margin (NIM) declined to 8.27% from 10% in the prior quarter, impacted by a change in the mix of originations and lower rates on variable rate loans. The company expects the NIM to continue declining due to a strategic shift to lower-risk loans, although net interest income (NII) is projected to grow with recovery in origination volumes and portfolio growth. The effective tax rate is expected to be around 27.5% for 2025.FinWise Financial Statement Overview
Summary
FinWise demonstrates strong revenue growth and operational efficiency with a stable balance sheet and low leverage. However, cash flow challenges due to negative operating and free cash flows indicate potential liquidity concerns.Income Statement
FinWise has shown a strong revenue growth trajectory in recent years, with a notable increase in total revenue from $54.54 million in 2022 to $78.63 million in TTM 2025. The gross profit margin is robust, consistently maintaining high levels over the years, indicating effective cost management. However, the net profit margin has declined slightly in the TTM period due to reduced net income. Despite this, the EBIT margin remains healthy, reflecting good operational efficiency.78
Positive
Balance Sheet
The company's balance sheet demonstrates stability with a favorable equity ratio, indicating a strong equity base relative to total assets. The debt-to-equity ratio is low, reflecting low leverage and reduced financial risk. Return on Equity (ROE) has shown some volatility but remains positive. The increase in stockholders' equity and total assets over the years is a positive sign, though the decrease in cash and cash equivalents raises some liquidity concerns.70
Positive
Cash Flow
FinWise's cash flow from operations has shown a negative trend in the TTM period, which is concerning. The free cash flow has also been negative, indicating potential challenges in covering capital expenditures and dividend payments from operating cash flows. However, the company has managed to maintain a positive financing cash flow, suggesting reliance on external financing. The cash flow to net income ratios highlight the need for improved cash generation from operations.65
Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 78.63M | 69.82M | 64.00M | 5.45M | 79.82M | 42.07M | Gross Profit |
| 76.16M | 69.82M | 57.46M | 573.00K | 74.29M | 42.07M | EBIT |
| 16.20M | 25.64M | 23.81M | 35.36M | 42.27M | 15.14M | EBITDA |
| 6.20M | 0.00 | 27.62M | 36.53M | 42.15M | 15.44M | Net Income Common Stockholders |
| 12.62M | 12.74M | 17.46M | 25.11M | 31.58M | 11.20M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 115.79M | 109.16M | 116.97M | 100.57M | 85.75M | 47.38M | Total Assets |
| 610.83M | 745.98M | 586.22M | 402.21M | 380.21M | 317.51M | Total Debt |
| 6.20M | 5.37M | 6.49M | 8.76M | 1.05M | 101.01M | Net Debt |
| -109.59M | -100.70M | -110.49M | -91.80M | -84.70M | 53.62M | Total Liabilities |
| 448.35M | 572.26M | 431.17M | 261.75M | 264.77M | 271.64M | Stockholders Equity |
| 162.48M | 173.72M | 155.06M | 140.46M | 115.44M | 45.87M |
| Cash Flow | Free Cash Flow | ||||
| -8.86M | -19.89M | 4.81M | 53.94M | -11.57M | 18.99M | Operating Cash Flow |
| -5.15M | -14.99M | 12.27M | 61.15M | -9.23M | 19.59M | Investing Cash Flow |
| -110.58M | -132.38M | -152.87M | -35.83M | 24.26M | -130.22M | Financing Cash Flow |
| 120.49M | 139.56M | 157.01M | -10.51M | 23.35M | 123.23M |
FinWise Technical Analysis
Negative
14.55
Price Trends
14.97
Negative
16.59
Negative
16.30
Negative
Market Momentum
-0.19
Negative
46.85
Neutral
29.08
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 14.55 is below the 20-day moving average (MA) of 14.67, below the 50-day MA of 14.97, and below the 200-day MA of 16.30, indicating a bearish trend. The MACD of -0.19 indicates Negative momentum. The RSI at 46.85 is Neutral, neither overbought nor oversold. The STOCH value of 29.08 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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $214.22M | 9.90 | 9.67% | 2.69% | 10.36% | 10.16% | |
69 Neutral | $198.38M | 19.83 | 8.85% | 1.44% | 4.92% | 55.04% | |
68 Neutral | $202.63M | 10.63 | 6.62% | 2.60% | 4.86% | 800.59% | |
64 Neutral | $12.77B | 9.77 | 7.59% | 16985.66% | 12.30% | -7.71% | |
64 Neutral | $198.59M | 11.16 | 11.15% | 3.67% | 2.26% | 3.83% | |
62 Neutral | $192.54M | 15.76 | 7.16% | ― | 10.74% | -26.67% | |
62 Neutral | $203.30M | 11.14 | 8.16% | ― | 17.18% | 305.35% |
* Financial Sector Average
Performance Comparison
FINW
FinWise
14.55
4.44
43.92%
CFFI
C&F Financial
65.25
20.80
46.79%
HWBK
Hawthorn Bancshares
29.72
10.70
56.26%
OPOF
Old Point Financial
39.10
24.55
168.73%
FVCB
FVCBankcorp
11.41
0.77
7.24%
VABK
Virginia National Bankshares
36.90
8.72
30.94%
FinWise Corporate Events
Business Operations and StrategyFinancial Disclosures
FinWise Reports Q1 2025 Financial Results
Positive
Apr 30, 2025
FinWise Bancorp reported its first quarter 2025 financial results, highlighting loan originations of $1.3 billion and a net income of $3.2 million. Despite a challenging macro environment, the company maintained stable loan originations and improved credit quality metrics, with a decrease in non-performing loan balances. The company also announced a new strategic program agreement to provide lending and a Credit Enhanced Balance Sheet product, aiming for long-term growth and shareholder value.
Spark’s Take on FINW Stock
According to Spark, TipRanks’ AI Analyst, FINW is a Neutral.
FINW’s overall score reflects its solid financial performance, characterized by strong revenue growth and a stable balance sheet. However, the stock’s technical indicators suggest a bearish trend, and the valuation is moderate without a dividend yield. The earnings call highlighted strategic growth initiatives but also underscored challenges with rising nonperforming loans and credit losses.
To see Spark’s full report on FINW stock, click here.
Business Operations and StrategyRegulatory Filings and Compliance
FinWise Streamlines Bylaw Amendment Process
Neutral
Apr 22, 2025
On April 16, 2025, FinWise Bancorp’s Board of Directors approved amendments to the company’s 2016 and 2019 Stock Plans, ensuring that any modifications to awards under these plans cannot reduce the exercise price of an outstanding option without stockholder approval, unless explicitly allowed by the plan terms. Additionally, the Board amended the company’s bylaws to replace the 66 ⅔% supermajority shareholder vote requirement for bylaw amendments with a majority vote standard, streamlining the process for future changes.
Spark’s Take on FINW Stock
According to Spark, TipRanks’ AI Analyst, FINW is a Neutral.
FinWise’s overall score is driven by solid financial performance, particularly in revenue growth and a strong balance sheet. However, technical indicators show a bearish trend, and challenges in cash flow management and nonperforming loans present risks. The company’s moderate valuation and positive earnings call sentiment provide some balance, but the absence of a dividend yield and ongoing operational challenges limit the score potential.
To see Spark’s full report on FINW stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.