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FinWise
(NASDAQ:FINW)
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Rating:51Neutral
Price Target:
$14.00
▼(-0.78% Downside)
Action:Reiterated
Date:08/19/26
The score is held back primarily by extremely negative TTM cash flow and margin/return compression, despite a conservatively positioned balance sheet. Technicals also lean weak with negative MACD and price below key longer-term averages. Offsetting these, valuation is moderate (P/E 13.31) and the latest earnings call showed solid operating traction and strong capitalization, but with significant near-term credit headwinds.
Positive Factors
Strong capitalization and low leverage
Very low debt-to-equity and strong regulatory capital provide resilience against credit volatility and funding stress. Growing equity also gives FinWise flexibility to invest in its platform, support partners, and absorb losses without relying heavily on external capital.
Negative Factors
Severely negative cash generation
Sustained cash outflows materially weaken earnings quality and can increase dependence on deposits or other funding sources. If the imbalance reflects persistent balance-sheet or working-capital demands, it could constrain lending growth and reduce liquidity flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong capitalization and low leverage
Very low debt-to-equity and strong regulatory capital provide resilience against credit volatility and funding stress. Growing equity also gives FinWise flexibility to invest in its platform, support partners, and absorb losses without relying heavily on external capital.
Read all positive factors
FinWise (FINW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$194.15M
Dividend YieldN/A
Average Volume (3M)25.11K
Price to Earnings (P/E)13.6
Beta (1Y)0.63
Revenue Growth89.08%
EPS Growth-1.15%
CountryUS
Employees198
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)1.03
Shares Outstanding13,882,680
10 Day Avg. Volume21,053
30 Day Avg. Volume25,108
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$17.33Price Target Upside22.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)0.72
Revenue Forecast (FY)$195.91M
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 makes money primarily through banking income streams: (1) Net interest income: it earns interest on loans and other interest-earning assets and pays interest on deposits and other funding sources; the spread between these drives a core por...
FinWise Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: several operational and commercial positives (origination resilience, stronger NIM, significant noninterest income growth, a strengthened sales pipeline, a strategic Tallied acquisition, and healthy capital ratios) were offset by material near-term credit challenges (a large sequential increase in provisions, elevated and concentrated net charge-offs from a legacy pool, withdrawn guidance on credit-enhanced balances, and modest net income/EPS that missed expectations). Management emphasized these credit issues are finite, actively managed, and that the broadened pipeline and product investments should drive growth over the next 12–24 months.Positive Updates
Loan Originations Beat Expectations
Originations of $1.6B in the quarter exceeded guidance of $1.4B and were slightly below the prior quarter's $1.7B; management also noted originations are roughly +8% year-over-year.
Negative Updates
Earnings Shortfall and Low Net Income
Reported net income of $2.1M and diluted EPS of $0.15 which management acknowledged were short of expectations; results were pressured by higher provision expense in the retained loan portfolio.
Read all updates
Q2-2026 Updates
Positive
Negative
Loan Originations Beat Expectations
Originations of $1.6B in the quarter exceeded guidance of $1.4B and were slightly below the prior quarter's $1.7B; management also noted originations are roughly +8% year-over-year.
Read all positive updates
Company Guidance
Management provided specific forward-looking metrics: they expect loan originations of about $1.6 billion in Q3 and a baseline $1.4 billion in Q4; quarterly net charge-offs for non‑credit‑enhanced loans of roughly $4–$5 million (with the strategic partner‑retained portfolio running just over $2 million); an anticipated migration to nonperforming loans of about $7 million in Q3; credit‑enhanced balances were $121 million at 6/30/26 (prior ~ $217 million year‑end guidance withdrawn, but some growth still expected in 2026); net interest margin is expected to increase when including credit‑enhanced balances (Q2 NIM was 13.69%), but to gradually decline excluding excess credit‑enhancement income; the company targets a lower core efficiency ratio over time (Q2 efficiency was 53.1% including credit‑enhancement effects, 63.9% excluding them); use a 27% tax rate for modeling; Tallied integration and transition costs are expected to be roughly $4 million over the coming year (weighted to the next two quarters); and the bank remains well‑capitalized with an 18.1% bank leverage ratio and >22% holding company leverage, having repurchased 29.7k shares for about $400k under a 685k‑share authorization.FinWise Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
86
Very Positive
Cash Flow
12
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 202.03M | 150.96M | 97.46M | 86.59M | 90.22M | 81.09M |
| Gross Profit | 116.55M | 92.09M | 70.45M | 64.98M | 75.27M | 71.78M |
| EBITDA | 22.00M | 26.62M | 22.28M | 27.62M | 38.14M | 43.31M |
| Net Income | 13.67M | 16.09M | 12.74M | 17.46M | 25.11M | 31.58M |
Balance Sheet | ||||||
| Total Assets | 925.31M | 977.13M | 745.98M | 586.22M | 400.78M | 380.21M |
| Cash, Cash Equivalents and Short-Term Investments | 6.11M | 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 | 726.12M | 783.94M | 572.26M | 431.17M | 260.32M | 264.77M |
| Stockholders Equity | 199.19M | 193.19M | 173.72M | 155.06M | 140.46M | 115.44M |
Cash Flow | ||||||
| Free Cash Flow | -1.33B | -34.19M | -19.89M | 4.81M | 53.94M | -11.57M |
| Operating Cash Flow | -1.33B | -28.42M | -14.99M | 12.27M | 61.15M | -9.23M |
| Investing Cash Flow | 1.28B | 5.54B | -132.38M | -152.87M | -35.83M | 24.26M |
| Financing Cash Flow | 58.24M | 209.57M | 139.56M | 157.01M | -10.51M | 23.35M |
FinWise Technical Analysis
Negative
14.11
Price Trends
14.02
Negative
14.30
Negative
15.78
Negative
Market Momentum
<0.01
Negative
49.84
Neutral
54.81
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 14.11 is above the 20-day moving average (MA) of 13.95, above the 50-day MA of 14.02, and below the 200-day MA of 15.78, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.84 is Neutral, neither overbought nor oversold. The STOCH value of 54.81 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 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $361.18M | 11.58 | 11.72% | 2.50% | 6.41% | 17.50% | |
76 Outperform | $409.05M | 12.22 | 12.98% | 1.60% | 18.42% | 190.13% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
67 Neutral | $406.21M | 7.58 | 12.75% | 2.44% | 13.18% | 1682.10% | |
63 Neutral | $305.46M | 14.72 | 8.48% | 2.80% | 11.11% | 24.17% | |
51 Neutral | $194.15M | 13.58 | 7.04% | ― | 89.08% | -1.15% |
* Financial Sector Average
FINW
FinWise
13.99
-5.70
-28.94%
FRST
Primis Financial
16.38
5.54
51.18%
TSBK
Timberland Bancorp
46.45
12.54
37.00%
CHMG
Chemung Financial
84.84
32.86
63.21%
ISBA
Isabella Bank
40.04
8.76
28.02%
FinWise Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
FinWise Bancorp Reports Strong Q2 Growth Amid Credit Costs
Positive
Jul 29, 2026
For the quarter ended June 30, 2026, FinWise Bancorp reported loan originations of $1.63 billion, up from $1.48 billion a year earlier, and net interest income of $28.7 million, nearly double the prior-year quarter. However, net income declined to...
Business Operations and StrategyM&A Transactions
FinWise Bancorp Acquires Tallied Credit Card Platform In-House
Positive
Jul 20, 2026
On July 20, 2026, FinWise Bancorp announced it had acquired the Tallied Technologies credit card operating platform and related assets, bringing its co-branded card issuing and processing technology fully in-house. The cloud-native, API-first syst...
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...
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.