Latest news with #TriumphFinancial
Yahoo
18-07-2025
- Business
- Yahoo
Much happened at Triumph Financial during the quarter; USPS dispute settled
An eventful quarter at Triumph Financial produced an earnings report that made some financial numbers seem less important than usual. But as has been the case with Triumph Financial (NASDAQ: TFIN) for most of its recent history, the company's communications in its earnings release focuses on financial performance only to a limited degree. There's far more about strategy and underlying numbers supporting that strategy. On that front, Triumph Financial's earnings per share on a GAAP basis of 15 cents per share were 10 cents per share better than forecasts, according to SeekingAlpha. Revenue was slightly higher than forecasts. However, one of the big developments at Triumph Financial for the quarter boosted that bottom line: the settlement of a long-standing dispute with the United States Postal Service. The settlement had a positive impact on pretax income both for the company's three-month and six-month net income of $12.4 million and $11.5 million, respectively. As a result of the dispute with the USPS, Triumph has been carrying a $19.4 million receivable on its books since the issue first arose. With the settlement, Graft said in his letter that Triumph Financial now has recovered all of that and more. Dispute goes back to Covenant deal The just-settled dispute over a wayward payment goes back to the Triumph acquisition of the factoring business of Covenant Logistics (NYSE: CVLG) in 2020. Triumph's stock has slid since the earnings release. Triumph Financial's stock price closed Thursday at $61.99, down from the $63.58 close that occurred just before the earnings release. On Friday, a day that stocks fell broadly, Triumph closed at $58.62, down 5.44% for the day. For the freight sector, the Triumph Financial quarterly report has voluminous data that says much about the state of the freight market as well as broader long-range plans for the company. Much of it can be found in CEO Aaron Graft's accompanying letter to shareholders where he shares not just hard information on his company's business but a philosophical outlook. That letter from Graft released Wednesday was longer than usual. Graft even joked about it on the earnings call with analysts–unique among the genre in that it is a video call–when he wondered 'not sure how many of you made it through all 34 pages of the letter that was published last evening.' Positive developments at Triumph Financial, even in the midst of a weak freight market, included the fact that annualized combined revenue in transportation–factoring, payments and intelligence–reached $237 million, up from $206 million in the prior quarter. The USPS settlement is not in that figure. In his letter, Graft said he believes the opportunity is $1 billion, 'and nothing has changed my view.' The financial impact from the USPS settlement came in Triumph Financial's factoring segment. Of the group's 13.3% quarter-on-quarter sequential improvement in revenue, 3.4% of that growth came from the USPS settlement. The group's operating margin of 48.5% saw 24.7% of that come from the USPS. Previous Graft letters and earnings call commentary have focused overwhelmingly on the company's payments network, which provides fast pay and audit services. EBITDA in the payments sector was positive for the third time in the last four quarters. The payments sector includes the audit functions that Triumph Financial acquired more than four years ago in its purchase of HubTran. It includes the quick pay activities that previously existed under the TriumphPay banner The positive EBITDA margin in payments was 13.9%. It was slightly negative in the first quarter, and was 0.5% and 8.6% in the last two quarters of 2024, respectively. Big push on intelligence But it was Triumph Financial's relatively new intelligence sector and the second quarter acquisition of Green Screens that got a large amount of attention. The intelligence group also includes the late 2024 purchase of Isometric Technologies Inc. (ISO). As a group, it is tiny so far: just $1.7 million in revenue for the quarter. But Graft in his letter said the third quarter will be used to establish a 'true base line of revenue and margin so investors can measure our performance in future periods.' The more significant role that Triumph Financial sees for its Intelligence unit is that it grows the entire package of offerings in its 'value chain' that Graft laid out in his letter. It starts with the audit services of the payments sector, which Graft said will create trust among its broker customers. With that trust established, Graft wrote, the broker customers and their truckers will look to Triumph for financing. The next step will be that some of those customers will request a digital wallet to receive those payments, an offering that is at the core of Triumph's LoadPay product. Separately, brokers will want to use the sea of data Triumph Financial holds to aid in their internal pricing models, Graft wrote. And that gets down to the intelligence unit. 'When you offer a data product, broker customers will also realize that you have a broad database of objective metrics on how carriers perform on certain loads, which they will want to help influence their routing guides, so they will ask for that to be added to the data product,' Graft wrote. One key metric in Triumph Financial's earnings has been the average invoice size it either processed in its payments segments or factored by its factoring unit. That latter number in particular has long been a focus of investors and others. During the call, Graft said Triumph might have been in error in pushing that number. 'We started training investors to look at average invoice size back when all we did was factoring,' Graft said. He said given the wider footprint of the payments unit, the size of the average invoice in that sector was more indicative of market conditions. But neither number showed any strength in freight markets. The average invoice size in payments fell sequentially to $1,186, down from $1,222 in the first quarter. But that number was higher than in the prior three quarters, including a year-ago second quarter number of $1,103. As for the factoring sector, the average invoice size there was $1,663. That is well below the second quarter figure of $1,769 and a year ago number of $1,738. Kimberly Fisk, the president of Triumph's factoring segment, said changes in the company's customer base for its factoring offerings are responsible for some of the decline in the average invoice size in that group. A change in the factoring customer mix 'As you go upmarket, you might get a diversified mix of carriers that might be doing different types of hauling,' she said on the earnings call. 'And so some might do some shorter regional type loads, which will reduce your invoice price.' If those shorter hauls are taken out of the equation, Fisk said, the average invoice price is closer to $1,200. Factoring overall has been experiencing solid growth measured by volume. The second quarter figure of 1.7 million invoices purchased came out to a purchased volume of $2.87 billion. That volume is 13.3% more than in the first quarter, but with the lower average invoice size, the purchased volume was only up 6.1%, which is still a solid sequential growth. Triumph Financial's Factoring as a Service (FaaS) offering, which offers a platform for third parties to provide their own factoring services to their own customer base, pulled in a significant new partner during the quarter: RXO. Although the RXO (NYSE: RXO) deal was announced this month, after the second quarter's close, it still could be seen as an extension of the activity at Triumph Financial that director of investor relations Luke Wyss said on the call provided a 'noisy quarter.' The partnership between RXO and Triumph involves both the FaaS offering and LoadPay. As for LoadPay, Graft's letter said the company had opened its 2,000th load pay account in June after a soft marketing rollout. By July 14, that number was up at 2,729. The 58 days from customer 1,000 to 2,000 is expected to be less than on the road to 3,000, Graft said. LoadPay's digital wallet allows the payments unit at Triumph Financial to make its payments directly to a driver or other customer's digital wallet. More articles by John Kingston At a conference of mostly green investors, AlFleet pushes marriage of AI and trucking Oregon ties itself closer to California's Advanced Clean Trucks rule, even though it may have no future A smaller Marten turns in a second quarter of 2025 much like a year earlier The post Much happened at Triumph Financial during the quarter; USPS dispute settled appeared first on FreightWaves. Sign in to access your portfolio
Yahoo
18-07-2025
- Business
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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. Error al recuperar los datos Inicia sesión para acceder a tu cartera de valores Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos Error al recuperar los datos
Yahoo
15-07-2025
- Business
- Yahoo
Triumph Financial (TFIN) Reports Earnings Tomorrow: What To Expect
Financial services company Triumph Financial (NASDAQ:TFIN) will be announcing earnings results this Wednesday afternoon. Here's what to look for. Triumph Financial missed analysts' revenue expectations by 3.8% last quarter, reporting revenues of $100.8 million, flat year on year. It was a disappointing quarter for the company, with a significant miss of analysts' tangible book value per share estimates and a significant miss of analysts' net interest income estimates. Is Triumph Financial a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Triumph Financial's revenue to grow 1.2% year on year to $106.3 million, in line with the 2.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Looking at Triumph Financial's peers in the banks segment, only FB Financial has reported results so far. It missed analysts' revenue estimates by 43.5%, posting year-on-year sales declines of 40.1%. Read our full analysis of FB Financial's earnings results here. There has been positive sentiment among investors in the banks segment, with share prices up 11.6% on average over the last month. Triumph Financial is up 12.3% during the same time and is heading into earnings with an average analyst price target of $60.50 (compared to the current share price of $65.45). Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Sign in to access your portfolio
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. 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