The EPS miss and deteriorating credit metrics (NPLs doubling to 2.64%) are the primary negatives, partially offset by strong transportation revenue growth. Watch the Q4 earnings call for updates on the three CRE relationships driving credit losses and progress toward the 2027 expense target of $400M. The CEO's illustrative $3.50 EPS for 2027 provides a framework for operating leverage if credit normalizes.
Price Chart
Executive Summary
Triumph Financial reported Q3 2026 net income of $12.6M ($0.52 diluted EPS), missing the consensus estimate of $0.60 by 13.3%. Transportation revenue grew 37.8% YoY to $81.7M, driven by strong Factoring (+43.6% YoY) and Payments (+27.2% YoY) segments. However, credit quality deteriorated sharply with non-performing loans rising to 2.64% of total loans (from 1.65% in Q2) and credit loss expense of $5.2M, concentrated in three CRE relationships. Management introduced a 2027 non-interest expense target of $400M and outlined a path to ~$3.50 EPS assuming normalized credit costs and low-double-digit transportation revenue growth.
Key Financial Metrics
Key Facts
- Q3 2026 GAAP diluted EPS of $0.52 vs consensus $0.60 (miss of 13.3%)
- Net income available to common stockholders of $12.6M, up from $0.9M in Q3 2025
- Transportation revenue grew 37.8% YoY to $81.7M
- Factoring segment revenue of $57.0M, up 43.6% YoY, with operating margin of 43.0%
- Payments segment revenue of $23.5M, up 27.2% YoY, with EBITDA margin of 30.8%
- Credit loss expense of $5.2M, up from $2.7M in Q2 2026
- Non-performing loans to total loans increased to 2.64% from 1.65% in Q2 2026
- Total classified assets increased to $172M from $169M in Q2 2026
- Management guided for Q4 2026 core expense of ~$100M
- Management introduced 2027 non-interest expense target of $400M
- CEO outlined illustrative 2027 EPS of ~$3.50 assuming normalized credit and low-double-digit revenue growth
Financial Impact
EPS miss of $0.08 vs consensus; credit loss expense of $5.2M; non-performing loans at 2.64% of total loans
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Factoring | $57.0M | +43.6% |
| Payments | $23.5M | +27.2% |
| Intelligence | $2.4M | +0.9% |
| Banking | — | — |
Risk Factors
- Credit quality deterioration in CRE portfolio with three specific relationships driving NPLs to 2.64%
- Intelligence segment revenue growth sluggish at 0.9% YoY with negative EBITDA margin of (50.3)%
- Cost of interest bearing deposits rose to 4.42% from 3.84% in Q2 2026, compressing net interest margin to 5.93% from 6.15%
- Management's 2027 EPS target of ~$3.50 is contingent on normalized credit and low-double-digit revenue growth, both uncertain
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001539638-26-000036 |
| Document: tfin-20261021.htm | 0001539638-26-000036 |
| Document: 0001539638-26-000036-index-headers.html | 0001539638-26-000036 |
| Document: 0001539638-26-000036-index.html | 0001539638-26-000036 |
| Document: 0001539638-26-000036.txt | 0001539638-26-000036 |
| 8-K Data (Synthetic) | 0001539638-26-000036 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $62.21 $63.45 | ▼ −1.99% | ▼ −2.52% | $63.45 (−1.99%) |
Mar 11, 2026 32w ago | DEFA14A | $55.59 $55.45 | ▼ −0.25% | ▲ +0.35% | $63.45 (+14.14%) |
US Market Status
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