Latest news with #TFIN
Yahoo
18-07-2025
- Business
- Yahoo
Triumph Financial Inc (TFIN) Q2 2025 Earnings Call Highlights: Revenue Surge and Strategic Moves
Revenue Growth: Core transportation business experienced significant revenue growth. Credit Quality: Material improvement in credit quality. Financial Recoupment: Successful resolution and financial recoupment from the United States Postal Service. Release Date: July 17, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Triumph Financial Inc (NASDAQ:TFIN) successfully resolved a long-standing financial issue with the United States Postal Service, recovering funds owed. The core transportation business experienced significant revenue growth, indicating strong performance in this sector. Credit quality improved materially, suggesting better financial health and risk management. The acquisition and integration of Greenscreens is expected to enhance Triumph's data models and expand its market reach. The company's payments segment showed a notable improvement in EBITDA margin, with expectations for continued growth. Negative Points The quarter was described as 'noisy,' indicating potential volatility or unexpected events impacting results. The integration of Greenscreens is expected to initially result in a $3 million quarterly earnings drag. Triumph Financial Inc (NASDAQ:TFIN) faces competitive pressures, particularly in the intelligence and factoring sectors. Noninterest expenses have increased, particularly in corporate segments, due to investments in information security and infrastructure. The factoring business's average invoice size was impacted by market pressures and a shift in customer mix, potentially affecting revenue. Q & A Highlights Warning! GuruFocus has detected 4 Warning Sign with FRA:871. Q: Can you provide insights on the Greenscreens acquisition and its integration into Triumph? A: Aaron Graft, CEO, explained that Greenscreens is being integrated into Triumph over the next 90 days, enhancing their models with Triumph's $40 billion of audit and payment data. Dawn Favier, President of Intelligence, noted early positive results, with increased engagement from top freight brokers and a rise in average contract value from $37,000 to $80,000. The intelligence segment is expected to grow the fastest among Triumph's transportation businesses. Q: What are the expectations for the EBITDA margin in the payments segment? A: Todd Ritterbusch, President of Payments and Banking, stated that the EBITDA margin, which was 14% this past quarter, is expected to continue improving as revenues scale faster than expenses. The long-term goal is to achieve an EBITDA margin above 40%. Q: How does Triumph plan to monetize its TriumphPay network? A: Todd Ritterbusch highlighted that TriumphPay has been creating significant value for clients, and the company is now focusing on capturing a fair share of that value. Repricing conversations with clients have begun and are expected to accelerate, particularly with larger brokers in the coming quarters. Q: Can you discuss the competitive landscape, particularly regarding DAT's acquisition of ALCO payment platform? A: Aaron Graft acknowledged DAT's entry into the factoring space with the acquisition but emphasized that competition is a part of capitalism. Triumph remains focused on its strengths and continues to compete with numerous factoring companies. Q: What are the expectations for credit trends and charge-offs for the remainder of the year? A: Aaron Graft noted that normalized charge-offs were less than $1 million, indicating a strong credit performance. Todd Ritterbusch added that credit losses are expected to remain at the low end of historical ranges, with no significant deviations anticipated. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
Triumph Financial's (NASDAQ:TFIN) Q2: Beats On Revenue
Financial services company Triumph Financial (NASDAQ:TFIN) announced better-than-expected revenue in Q2 CY2025, with sales up 2.8% year on year to $108.1 million. Its GAAP profit of $0.15 per share was significantly above analysts' consensus estimates. Is now the time to buy Triumph Financial? Find out in our full research report. Triumph Financial (TFIN) Q2 CY2025 Highlights: Net Interest Income: $88.68 million vs analyst estimates of $87.87 million (flat year on year, 0.9% beat) Net Interest Margin: 6.4% vs analyst estimates of 6.5% (64 basis point year-on-year decrease, 7.5 bps miss) Revenue: $108.1 million vs analyst estimates of $106.3 million (2.8% year-on-year growth, 1.7% beat) EPS (GAAP): $0.15 vs analyst estimates of $0.05 ($0.10 beat) Market Capitalization: $1.47 billion Company Overview Originally focused on traditional banking before pivoting to serve the transportation sector, Triumph Financial (NASDAQ:TFIN) provides specialized financial services to the trucking industry, including payments processing, factoring, banking, and data intelligence solutions. Sales Growth Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities. Thankfully, Triumph Financial's 6.8% annualized revenue growth over the last five years was decent. Its growth was slightly above the average bank company and shows its offerings resonate with customers. We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Triumph Financial's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 1.5% over the last two years. Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business. This quarter, Triumph Financial reported modest year-on-year revenue growth of 2.8% but beat Wall Street's estimates by 1.7%. Net interest income made up 85.3% of the company's total revenue during the last five years, meaning Triumph Financial barely relies on non-interest income to drive its overall growth. Markets consistently prioritize net interest income growth over fee-based revenue, recognizing its superior quality and recurring nature compared to the more unpredictable non-interest income streams. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Tangible Book Value Per Share (TBVPS) Banks are balance sheet-driven businesses because they generate earnings primarily through borrowing and lending. They're also valued based on their balance sheet strength and ability to compound book value (another name for shareholders' equity) over time. This is why we consider tangible book value per share (TBVPS) the most important metric to track for banks. TBVPS represents the real, liquid net worth per share of a bank, excluding intangible assets that have debatable value upon liquidation. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights. Triumph Financial's TBVPS grew at a sluggish 1.8% annual clip over the last five years. On a two-year basis, however, dynamics have changed as TBVPS dropped by 7.8% annually ($22.70 to $19.31 per share). Over the next 12 months, Consensus estimates call for Triumph Financial's TBVPS to grow by 38.7% to $26.79, elite growth rate. Key Takeaways from Triumph Financial's Q2 Results We liked how revenue and EPS beat analysts' EPS expectations this quarter. On the other hand, its net interest margin missed and its tangible book value per share missed as well. Overall, we think this was a mixed quarter. The market seemed to be hoping for more, and the stock traded down 2% to $62.11 immediately after reporting. Is Triumph Financial an attractive investment opportunity at the current price? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here, it's free. 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Yahoo
23-06-2025
- Business
- Yahoo
TFIN Q1 Deep Dive: Payments Progress Amid Freight Headwinds and Strategic Investments
Financial services company Triumph Financial (NASDAQ:TFIN) missed Wall Street's revenue expectations in Q1 CY2025, with sales flat year on year at $100.8 million. Its non-GAAP loss of $0.03 per share was significantly below analysts' consensus estimates. Is now the time to buy TFIN? Find out in our full research report (it's free). Revenue: $100.8 million vs analyst estimates of $104.8 million (flat year on year, 3.8% miss) Adjusted EPS: -$0.03 vs analyst estimates of $0.04 (significant miss) Adjusted Operating Income: $2.22 million vs analyst estimates of $4.01 million (2.2% margin, 44.6% miss) Market Capitalization: $1.29 billion Triumph Financial's first quarter results were marked by persistent challenges in the transportation sector, which management cited as a primary driver behind underwhelming financial performance. CEO Aaron Graft acknowledged the headline numbers reflected a difficult freight environment but emphasized that most operational metrics in transportation and the Payments segment improved. Management also pointed to better credit quality and ongoing investments as efforts to position the company for future growth, noting, "As hard as things are right now, what I like about it is that we have an objective test to see if what we have built creates value that is durable enough to grow in a harsh business environment." Looking ahead, Triumph Financial's guidance is shaped by expectations for revenue growth from its Payments business, further monetization of client relationships, and the integration of upcoming product offerings. Management believes additional upside could come from initiatives such as the rollout of Green Screens and Load Pay, alongside enhanced pricing strategies for legacy clients. CFO Timothy Switzer stressed the importance of expanding the next-generation audit platform, stating that less than half of the opportunity has been realized to date. Management also highlighted the potential for credit quality to improve further, with a focus on resolving outstanding issues in the equipment finance portfolio. Triumph Financial's leadership linked this quarter's subdued results to external freight market pressures, while highlighting internal progress in payments technology and credit risk management. Payments segment momentum: Management reported ongoing improvements in key performance indicators within the Payments segment, noting clients are increasingly adopting new technology and product offerings. The company highlighted opportunities to further monetize both new and existing relationships, citing legacy clients as a source of untapped value. Credit quality progress: The team pointed to tangible improvements in credit metrics, particularly in transportation and equipment finance. CFO Timothy Switzer explained that much of the work done to address credit stress in the equipment finance portfolio is now yielding benefits, with continued optimism for further improvements over the next few quarters. Factoring market dynamics: CEO Aaron Graft described a return of large trucking companies to the factoring market, as some clients who previously left during stronger freight cycles are now seeking stability amid tighter commercial banking conditions. Management believes this shift could provide incremental revenue growth opportunities. Strategic investments in technology: The launch and integration of new products such as Green Screens and Load Pay were cited as key to the company's long-term strategy. While Green Screens is pending regulatory approval, leadership views these investments as critical to enhancing data monetization and delivering differentiated value to the transportation ecosystem. Legacy contract repricing: The company is actively focused on upgrading legacy clients to new pricing structures and next-generation platforms. Early conversations have reportedly been positive, with management confident that value delivered by modernized offerings supports higher pricing for both audit and payments services. Management's outlook centers on accelerating revenue growth through product adoption, strategic pricing, and operational improvements, while navigating ongoing freight market volatility and macroeconomic uncertainty. Payments and product expansion: Leadership expects the Payments segment and integrated offerings like Load Pay and Green Screens to drive revenue in the coming quarters. Management anticipates that further adoption of these products, combined with expanded monetization of existing clients, will improve margins and support growth. Legacy pricing and contract migration: The company aims to migrate more clients to its next-generation audit platform and updated pricing structures. Management said these efforts are in early stages, with significant revenue opportunities yet to be captured through repricing and cross-selling within the current customer base. Credit risk and macro headwinds: Management acknowledged risks from freight market weakness, potential tariff changes, and broader economic uncertainty. However, they believe past efforts to address credit issues in equipment finance position Triumph Financial to withstand further volatility, provided the macro environment remains relatively stable. Looking forward, our analyst team will be tracking (1) the ramp-up and monetization of Green Screens and Load Pay following regulatory clearance, (2) progress on migrating clients to next-generation payment and audit platforms with updated pricing, and (3) sustained improvements in credit quality, especially within the equipment finance portfolio. Execution on repricing and operational milestones will also be central to evaluating Triumph Financial's performance. Triumph Financial currently trades at $54.57, up from $49.82 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
Associated Press
29-01-2025
- Business
- Associated Press
Kirby McInerney LLP Announces Investigation Against Triumph Financial, Inc. (TFIN) on Behalf of Investors
NEW YORK, Jan. 29, 2025 (GLOBE NEWSWIRE) -- The law firm of Kirby McInerney LLP is investigating potential claims against Triumph Financial, Inc. ('Triumph' or the 'Company') (NASDAQ:TFIN). The investigation concerns whether Triumph and/or certain of its officers have violated the federal securities laws and/or engaged in other unlawful business practices. [LEARN MORE ABOUT THE INVESTIGATION] On January 22, 2025, after market hours, Triumph released its fourth quarter 2024 financial report, missing consensus estimates on revenue and earnings per share. The Company attributed their below-average earnings, in part, to credit costs being higher than they should have been. Triumph stated liquid credit was responsible for 62% of credit expenses in the quarter and 'derisking and shrinking this portfolio has taken time and been frustrating' with the Company having to 'learn lessons here that we will not forget.' Triumph also warned that first quarter 2025 earnings were expected to be even lower, and it does not anticipate material revenue will be generated from recently announced initiatives during the first half of 2025. On this news, the price of Triumph shares declined by $13.11, or approximately 14.3%, from $91.97 per share on January 22, 2025, to close at $78.86 on January 23, 2025. If you purchased or otherwise acquired Triumph securities, have information, or would like to learn more about this investigation, contact Thomas W. Elrod of Kirby McInerney LLP by email at [email protected], or by filling out the form below to discuss your rights or interests with respect to these matters without any cost to you. Kirby McInerney LLP is a New York-based plaintiffs' law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Contacts Kirby McInerney LLP Thomas W. Elrod, Esq. 212-699-1180
