Core Viewpoint - Capital One Financial Corp. is acquiring fintech startup Brex for $5.15 billion, enhancing its technology-driven corporate finance and payments capabilities [1] Group 1: Acquisition Details - The acquisition will be financed with 50% cash and 50% stock [1] - Brex is recognized as a leading financial technology firm, which will be integrated into Capital One's commercial banking and payments business [1] Group 2: Brex's Business Model - Brex, founded in 2017, specializes in corporate cards and cash management tools for startups and technology companies, later expanding to larger enterprises [2] - The platform combines payments, expense management, and banking services, positioning Brex at the intersection of fintech and enterprise software [2] Group 3: Relevance to Crypto and Digital Assets - Brex is becoming increasingly relevant in the crypto and digital assets sector, with plans to launch native stablecoin payments by September 2025 [3] - The company aims to be the first global corporate card platform to enable instant balance payments using stablecoins [3] Group 4: Strategic Implications - The acquisition would provide Capital One with a foothold in emerging payment technologies while integrating Brex into a major U.S. bank [5] - As stablecoins and crypto-related infrastructure approach financial mainstream, this move positions Capital One advantageously in the evolving financial landscape [5]

Group 1 - Capital One will acquire Brex for $5.15 billion in a half-cash, half-stock deal, expected to close in mid-2026 [1][2] - This acquisition follows Capital One's previous significant purchase of Discover Financial Services for $51.8 billion [2] - The deal aims to enhance Capital One's business payments capabilities, particularly in the startup sector [1][3] Group 2 - Brex specializes in corporate card services, expense management, and payment solutions for businesses [4] - The company has formed partnerships with financial institutions like Stripe and Fifth Third to broaden its product offerings and distribution [4] - Brex's CEO stated that the merger will enhance growth by leveraging Brex's expertise in payments and spend management with Capital One's scale and brand [5] Group 3 - Capital One plans to allocate approximately $950 million for transaction-related costs, including integration and retention compensation over the next three years [3] - The acquisition is seen as a strategic move to accelerate Capital One's journey in the business payments marketplace [3]

Fourth Quarter 2025 Results January 22, 2026 C O N F I D E N T IAL Forward-Looking Statements This presentation and related communications should be read in conjunction with the financial statements, notes, and other information contained in Capital One's Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. Please note that the following materials containing information regarding Capital One's financial performance is preliminary and based on Capital One's data avail ...

Capital One Financial Corp. (NYSE:COF) shares dropped in Thursday's extended trading after the company released its fourth quarter earnings report, missing earnings estimates. Capital One confirmed it entered into a definitive agreement to acquire fintech company Brex Inc. for $5.15 billion, with approximately 50% cash and 50% stock consideration.Here's a look at the key figures from the quarter. COF stock is moving. Watch the price action here.The Details: Capital One reported quarterly earnings of $3.86 p ...

Core Viewpoint - Capital One Financial Corporation has announced a definitive agreement to acquire Brex for a total transaction value of $5.15 billion, combining stock and cash [1] Company Overview - Brex is described as a modern, AI-native software platform that provides intelligent finance solutions [1] - The platform facilitates businesses in issuing corporate cards, automating expense management, and making secure, real-time payments [1] - Brex utilizes AI agents to enhance its service offerings [1]

Financial Performance - Net interest income for Q4 2025 was $12,466 million, a 54% increase compared to Q4 2024's $8,098 million[5] - Total net revenue reached $15,583 million in Q4 2025, up 37% from $10,190 million in Q4 2024[5] - Net income for Q4 2025 was $2,134 million, down 33% from $4,750 million in Q4 2024[5] - Non-interest income for Q4 2025 was $3,117 million, reflecting a 49% increase from Q4 2024, driven by higher discount and interchange fees[8] - Total net revenue for the year ended December 31, 2025, reached $53,434 million, compared to $39,112 million for the previous year, representing a year-over-year growth of approximately 36.7%[19] - Total net revenue for Q4 2025 was $11,693 million, reflecting a 1% increase from Q3 2025 and a 59% increase compared to Q4 2024[20] Credit Losses and Provisions - Provision for credit losses increased to $4,142 million in Q4 2025, a 53% rise from $2,642 million in Q4 2024[5] - The provision for credit losses in Q4 2025 was $4,142 million, a 57% increase compared to Q4 2024, indicating a significant rise in expected credit losses[8] - The allowance for credit losses increased to $23,409 million in Q4 2025, a 44% increase from Q4 2024, highlighting a cautious approach to credit risk management[7] - The net charge-off rate for Q4 2025 was 3.45%, up 29 basis points from Q3 2025, indicating a rise in loan defaults[7] - The net charge-offs for the year ended December 31, 2025, totaled $13,102 million, compared to $3,833 million for the three months ended December 31, 2025, indicating a significant increase in charge-offs[18] Expenses and Efficiency - Non-interest expense totaled $9,342 million in Q4 2025, reflecting a 13% increase from $6,089 million in Q4 2024[5] - Total non-interest expense for 2025 was $30,498 million, a 42% increase compared to 2024, driven by higher salaries and marketing costs[8] - The efficiency ratio for Q4 2025 was 59.95%, an increase of 615 basis points from Q4 2024, suggesting a decline in operational efficiency[7] - Adjusted operating expense (non-GAAP) for Q4 2025 was $6,459 million, an increase from $4,499 million in Q4 2024, reflecting a year-over-year growth of 43.6%[29] Assets and Capital - Total assets as of Q4 2025 were $669,009 million, a 36% increase from $490,144 million in Q4 2024[6] - Common equity at the end of Q4 2025 was $108,209 million, a 93% increase from $55,938 million in Q4 2024[6] - Capital ratios showed a common equity Tier 1 capital of 14.3% in Q4 2025, an increase of 80 basis points from Q4 2024, reflecting improved capital strength[7] - The company reported total capital of $88.001 billion as of December 31, 2025, up from $87.853 billion in September 2025[26] Loans and Deposits - Loans held for investment at the end of Q4 2025 were $453,622 million, a 38% increase from $327,775 million in Q4 2024[6] - Total deposits reached $475,771 million in Q4 2025, up 31% from Q4 2024[10] - Interest-bearing deposits increased by 33% year-over-year, reaching $448,386 million in Q4 2025[10] - Average deposits increased by 33% year-over-year to $418,673 million, with period-end deposits also rising to $423,932 million[22] Shareholder Returns - The company declared a dividend of $0.80 per common share in Q4 2025, a 33% increase from $0.60 in Q4 2024[5] - The adjusted diluted earnings per share (EPS) for Q4 2025 was $3.86, compared to $5.95 in Q3 2025 and $4.06 in Q1 2025[28] Charge-Off Rates and Delinquency - Domestic credit card net charge-off rate decreased to 4.93% in Q4 2025 from 5.25% in Q4 2024, a reduction of 30 basis points[16] - Total credit card net charge-off rate improved to 4.91% in Q4 2025 compared to 6.02% in Q4 2024, reflecting a decrease of 111 basis points[16] - Total consumer banking net charge-off rate was 1.88% in Q4 2025, down from 2.38% in Q4 2024, a decline of 50 basis points[16] - 30+ day performing delinquency rate for domestic credit cards was 3.99% in Q4 2025, up from 3.60% in Q4 2024, an increase of 10 basis points[16] Miscellaneous - The company expects recoveries of $3.3 billion included as a benefit to the allowance for credit losses from Discover loans acquired[13] - Discover integration expenses amounted to $352 million in Q4 2025, with cumulative expenses of $1.109 billion for the year[28]

Capital One said Thursday that it was acquiring startup Brex for $5.15 billion.The credit card lender said it would pay for the company, known as a startup that lends to other startups, for 50% cash and 50% stock.Shares of the bank fell about 4% after the news. This story is developing. Please check back for updates. ...

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Capital One Financial will acquire fintech firm Brex in a cash and stock deal valued at $5.15 billion, the company said on Thursday. ...

The deal would give the credit-card issuer access to technology used by thousands of companies for corporate credit cards. ...