Triumph Financial (NasdaqGS:TFIN) FY Conference November 18, 2025 04:00 PM ET Company ParticipantsAaron Graft - CEOConference Call ParticipantsNone - Analyst 2None - Analyst 1NoneHere, our next fireside chat with Triumph Financial, based in Dallas, Texas. Triumph Financial is a financial and technology company focused on payments, factoring, intelligence, and banking. Their goal is to modernize and simplify freight transactions. TFIN's brands include Triumph, TBK Bank, and LoadPay. With us from the company ...

Core Insights - Triumph Financial, Inc. will present at the Stephens Annual Investment Conference on November 18, 2025, at 3:00 p.m. CST [1] - The presentation will be available via live webcast on the company's website [1] Company Overview - Triumph is a financial and technology company that focuses on modernizing and simplifying freight transactions through payments, factoring, intelligence, and banking [2] - The company is headquartered in Dallas, Texas, and its portfolio includes brands such as Triumph, TBK Bank, and LoadPay [2]

DALLAS, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Triumph (NYSE: TFIN), a financial and technology company focused on modernizing and simplifying freight transactions, announced that NFI, one of the largest third-party logistics companies in North America, has expanded its relationship to include Triumph’s Payment and Audit solutions. By deepening its integration with Triumph’s Payment and Audit services into its carrier network, NFI aims to accelerate payments, automate invoice auditing, and improve operational e ...

Core Insights - Triumph has been recognized as No. 4 on the FreightWaves 2026 FreightTech 25 list, highlighting its innovative contributions to the transportation and logistics industry [1][2] Company Achievements - Triumph earned its position on the FreightTech 25 list due to its integration of payments, audit automation, liquidity solutions, digital banking, and intelligence into a unified freight operating system, which enhances customer service and profitability [2] - The company has accelerated innovation through strategic acquisitions, including Greenscreens.ai and Isometric Technologies, leading to the development of Triumph Intelligence, which utilizes over $70 billion in freight data for pricing insights and margin optimization [3] Product Developments - Triumph announced its role in powering the Trusted Freight Exchange (TFX), a digital freight exchange aimed at reducing fraud and inefficiency in freight transactions by combining its solutions with Highway's Carrier Identity® engine [4] - The company launched the NextGen Audit solution for automating invoice validation and the LoadPay business bank account for truckers, providing instant funding and expense management tools [5] Leadership Perspective - The CEO of Triumph emphasized the company's commitment to helping customers navigate challenging market conditions and the importance of innovation in addressing real challenges within the freight industry [6]

Core Insights - Triumph Financial (NYSE: TFIN) is a regional bank that has established a niche in the transportation industry, but its shares have significantly underperformed this year [1] Company Overview - Triumph Financial focuses on the transportation sector, indicating a specialized approach within the banking industry [1] Performance Analysis - The bank's shares have greatly underperformed in the current year, suggesting potential challenges or market conditions affecting its stock performance [1]

Core Insights - The company is focused on achieving 20% annual growth in transportation revenue while also driving margin expansion through operational efficiency [2][10][21] - A restructuring initiative has been implemented to reduce the expense run rate by 5%, with most savings expected in the fourth quarter [3][4][30] - The company has successfully integrated its products and services, enhancing its value proposition in the transportation market [7][19] Revenue Growth Strategy - The company aims to grow its factoring segment by 20%, leveraging a robust go-to-market strategy and bundled products [10][15][42] - The payments business is expected to grow significantly, with a focus on enhancing customer relationships and expanding the payments network [17][20][63] - The intelligence segment is projected to grow, with a pilot program aimed at obtaining critical shipper data to enhance service offerings [44][45] Operational Efficiency - The company has made significant investments in technology, spending $110 million to enhance its operational capabilities [32][33] - A focus on efficiency is emphasized, with plans to maintain flat expenses while driving revenue growth [30][31] - The integration of various business segments is aimed at reducing duplication and improving overall operational effectiveness [35][63] Market Position and Competitive Landscape - The company holds a strong market position, touching a significant portion of invoices in the transportation sector, which provides a competitive edge [60][61] - The company emphasizes a customer-centric approach, aiming to deliver a comprehensive value chain that includes liquidity solutions, digital banking, and intelligence [40][42][63] - The competitive landscape is characterized by a need for integrated solutions, with the company leveraging its extensive data and technology to maintain its leadership [62][63]

Financial Data and Key Metrics Changes - The company reported continued revenue growth in its payments business despite a challenging market environment [2][4] - A restructuring effort is expected to reduce the expense run rate by 5%, with most savings starting in Q4 [6][7] - The company anticipates flat expenses while expecting revenue to increase in the upcoming year [5][41] Business Line Data and Key Metrics Changes - The transportation revenue is targeted to grow by 20% annually, with a focus on operational efficiency and margin expansion [7][34] - The factoring segment has shown mid to high single-digit revenue growth, with a target of 20% growth moving forward [16][34] - The intelligence segment has integrated its products and is expected to contribute significantly to revenue growth in 2026 [12][40] Market Data and Key Metrics Changes - The company has a strong presence in the for-hire market, touching approximately 6% to 7% of all trucks on the road [44] - The company is positioned to benefit from potential market distortions due to regulatory changes affecting driver availability [42][49] Company Strategy and Development Direction - The company is focused on enhancing its value proposition through technology investments and operational efficiency [6][60] - A customer-centric approach is emphasized, aiming to provide a comprehensive suite of services beyond just factoring [68][70] - The company plans to leverage its payments network to enhance its intelligence offerings and drive growth [110][114] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenges posed by the freight market but remains optimistic about revenue growth and margin expansion [5][41] - The company is committed to improving efficiency and maintaining a flat expense structure while targeting significant revenue growth [61][62] - Management expressed confidence in the company's ability to navigate the current economic landscape and capitalize on market opportunities [49][115] Other Important Information - The company is winding down non-core lending activities to focus on its transportation business and community banking [96][98] - Updates on the Tricolor credit situation indicate a cautious but positive outlook regarding collateral recovery [99][102] Q&A Session Summary Question: When will the fully integrated product for the Intelligence segment be available? - The fully integrated product is currently in the market, with significant progress made in integration efforts [12][14] Question: What is the expected revenue growth for the factoring segment next year? - The target for growth in the factoring segment is 20%, driven by a robust go-to-market strategy [16][34] Question: How much of the TPAY volume is onboarded? - All TPAY payment volume is onboarded, but full revenue charging has not yet commenced [23][25] Question: What is the retention rate for new accounts? - The retention rate is high, with around 70% of accounts linked and funded shortly after opening [53][54] Question: What are the expectations for expense management in 2026? - The company aims to maintain expenses at approximately 96.5% of revenue, focusing on efficiency improvements [56][58] Question: How does the company view competition in the market? - The company recognizes competition but believes its integrated value chain and data capabilities provide a significant advantage [106][110]

Company Overview - Triumph Financial's market capitalization was $1.1 billion as of October 13, 2025 [10] - The company's revenue for the trailing twelve months (TTM) ending September 30, 2025, was $422 million [10] - Net income to common shareholders for the same period was $6.8 million [10] - The U S freight and logistics industry represents a $990 billion market based on gross freight revenue from U S trucking on primary shipments [13] - Trucking accounts for 72 6% of freight carried in the U S [13] Business Segments - Factoring's annualized revenue is $155 million [15] - Payments' annualized revenue is $73 million [15] - Intelligence's annualized revenue is $9 million [15] - Triumph Network includes 535 brokers, 57 factors, 75 shippers, and over 173,000 carriers (TTM) [15] - Triumph handles payments for 43 of the top 100 freight brokers, disbursing over $166 million every day [22] - Triumph is the second-largest transportation factoring firm, purchasing $47 million in invoices daily [23] Sustainable Business Practices - Women represent 61% of the company's overall team members [75] - Ethnic minorities represent 43% of the company's overall team members [75] - In 2024, 424 team members volunteered 8,366 hours, supporting 398 organizations [77] - $54,190 was donated through the Matching Gifts Program in 2024 [79]

Core Insights - Triumph Financial (TFIN) reported quarterly earnings of $0.19 per share, exceeding the Zacks Consensus Estimate of $0.12 per share, with an earnings surprise of +58.33% [1] - The company posted revenues of $109.28 million for the quarter ended September 2025, missing the Zacks Consensus Estimate by 1.55% [2] - The stock has underperformed, losing about 46.8% since the beginning of the year compared to the S&P 500's gain of 13% [3] Earnings Performance - Triumph Financial has surpassed consensus EPS estimates two times over the last four quarters [2] - The company had an earnings surprise of +275% in the previous quarter, where it reported earnings of $0.15 against an expected $0.04 [1] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.29 on revenues of $115.07 million, and for the current fiscal year, it is $0.56 on revenues of $435.34 million [7] - The estimate revisions trend for Triumph Financial was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial - Miscellaneous Services industry, to which Triumph Financial belongs, is currently in the top 39% of Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Oportun Financial Corporation (OPRT), another company in the same industry, is expected to report quarterly earnings of $0.26 per share, reflecting a significant year-over-year change of +1200% [9]

Financial Performance - For the nine months ended September 30, 2025, net income available to common stockholders was $3.7 million, or $0.16 per diluted share, down from $9.8 million, or $0.42 per diluted share for the same period in 2024[242]. - Net income for the three months ended September 30, 2025, was $1.7 million, a decrease of $3.6 million or 68.1% compared to $5.3 million for the same period in 2024[268]. - Net income for the nine months ended September 30, 2025, was $6.1 million, a decrease of $6.2 million or 49.8% compared to $12.3 million for the same period in 2024[338]. Revenue and Income Segments - The Banking segment generated 58% of total segment revenue, while the Factoring segment contributed 30%, Payments segment 11%, and Intelligence segment 1% for the nine months ended September 30, 2025[240]. - Noninterest income for the three months ended September 30, 2025, was $21.4 million, up from $17.5 million in 2024, representing a 22.3% increase[263]. - Noninterest income increased by $3.951 million, or 22.6%, to $21.448 million compared to $17.497 million in the same period of 2024[274]. - Noninterest income rose by $8.4 million, or 16.8%, to $58.0 million compared to $49.7 million in 2024[339]. - Total revenue for the nine months ended September 30, 2025, was $50.918 million, an increase of 21.7% from $41.861 million in the same period of 2024[398]. Assets and Loans - As of September 30, 2025, the company had total assets of $6.357 billion, total loans held for investment of $4.987 billion, and total deposits of $4.955 billion[234]. - Total assets increased to $6,357.1 million as of September 30, 2025, compared to $5,948.975 million at the end of 2024[264]. - Total loans held for investment increased by $440 million during the nine months ended September 30, 2025, with Banking loans increasing by 6.6% to $3.559 billion[243][245]. - Gross loans as of September 30, 2025, were $4,986,922,000, compared to $5,150,806,000 at the end of 2024, indicating a reduction in loan volume[307]. - Loans held for investment increased to $4.987 billion, up from $4.547 billion at the end of 2024[409]. Expenses and Costs - The company recognized $3.1 million in expenses related to a reduction in force during the three months ended September 30, 2025[251]. - Noninterest expense rose by $8.068 million, or 8.4%, to $103.714 million from $95.646 million in the previous year[274]. - Noninterest expense increased by $21.4 million, or 7.5%, to $304.7 million, primarily due to higher salaries and benefits[339]. - Salaries and employee benefits increased by $4.7 million, or 8.6%, to $60.192 million for the three months ended September 30, 2025, which included $3.1 million of severance expenses[294]. Credit and Losses - Credit loss expense for the period was $4.284 million, a slight increase of $21, or 0.5%, from $4.263 million in the previous year[274]. - Credit loss expense on loans decreased by $0.9 million, or 17.9%, to $4.249 million for the three months ended September 30, 2025, compared to $5.174 million in the same period of 2024[283]. - The allowance for credit losses (ACL) on loans was $33.5 million as of September 30, 2025, down from $40.7 million as of December 31, 2024, representing a decrease in the ACL to total loans ratio from 0.90% to 0.67%[286]. - Total credit loss expense decreased by $9.4 million, or 65.7%, from $14.3 million in 2024 to $4.9 million in 2025[356]. Segment Performance - The Payments segment processed 8.8 million invoices, paying Carriers a total of $10.662 billion during the three months ended September 30, 2025, compared to 6.3 million invoices for $7.091 billion in the same period a year ago[249]. - The Factoring segment reported a net income before income tax expense of $27,075,000 for Q3 2025, compared to $29,074,000 in Q3 2024, reflecting a decline in profitability[306]. - Noninterest income in the Payments segment increased by $2.2 million, or 33.9%, to $8.462 million for the three months ended September 30, 2025, compared to $6.322 million in the same period a year ago[326]. - Operating income in the Factoring segment rose by $15.2 million, or 77.3%, compared to the same period in 2024[391]. Tax and Regulatory - The effective tax rate for the three months ended September 30, 2025, was (33)%, compared to 15% for the same period in 2024, influenced by lower pre-tax income and increased estimated research and development tax credits[296]. - The effective tax rate increased to 34% for the nine months ended September 30, 2025, compared to 16% in the same period of 2024[369]. Strategic Initiatives - The company plans to focus on technology initiatives, including artificial intelligence, to enhance efficiency and profitability in its factoring segment[261]. - The company acquired Greenscreens AI, Inc. for $139.1 million in cash and $12.7 million in common stock on May 8, 2025[252]. - The company launched a data intelligence segment in Q4 2024, enhancing its service offerings through acquisitions of Isometric Technologies Inc. and Greenscreens AI, Inc.[372].