Diamond Hill Capital, an investment management company, released its “Small Cap Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fourth quarter posted another period of favorable gains for equity markets, with the Russell 2000 Index returning 2.19%, roughly in line with the Russell 1000 Index’s 2.41% gain. Health care (+18.6%) emerged as the best-performing sector in the Russell 2000 Index. Heightened uncertainty and geopolitical risks contributed to a mixed ma ...

Investors might want to bet on Triumph Financial (TFIN) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual in ...

Core Insights - The company reported progress towards its long-term goals, emphasizing revenue growth and operational efficiency despite challenging market conditions in the trucking industry [3][4][5] - The management team aims to enhance transaction confidence in the industry by strengthening their network for secure data and payment transmission [4][6] - Load Pay is expected to significantly contribute to revenue growth, with a target of tripling its annualized revenue from $1.5 million in 2025 to $4.5 million in 2026 [10][11] Financial Performance - The company achieved a 30% EBITDA margin in its core payments business, with expectations to maintain or exceed this level in 2026 [5][27] - The factoring segment's pretax margin improved to approximately 33% in Q4 2025, driven by technology and automation enhancements [20][22] - The company anticipates continued revenue growth in the payments segment, with a projected 25% increase in payments revenue for 2026 [25][30] Strategic Initiatives - The company plans to open between 7,000 to 12,000 new accounts in Load Pay, aiming for higher utilization rates to increase revenue per account [10][11] - There is a focus on cross-selling opportunities, with only 22% of customers currently using both payments and audit services, indicating significant room for growth [16][17] - The management is optimistic about leveraging artificial intelligence and machine learning to enhance operational efficiency and drive margins higher in the factoring business [22][23] Market Positioning - The company has successfully integrated JB Hunt into its network, which is expected to bolster revenue contributions [5][25] - The management acknowledges the evolving nature of the payments network and its potential to create efficiencies for factoring companies, although adoption rates may vary [36][40] - The company is committed to maintaining a strong balance sheet to navigate unforeseen market cycles while pursuing growth opportunities [6][7]

On profitability, Graft said management expects to “grow revenue and hold expenses in check” in 2026. As one example, he said the company’s core payments business is currently producing an EBITDA margin above 30% and should trend higher in 2026, with a longer-term goal of 50% or greater. He also positioned LoadPay as a future contributor to more capital-efficient margins inside the payments segment, calling the industrial logic of directly connecting payors and payees across the bank’s payment rails “increa ...

Financial Data and Key Metrics Changes - The company reported a focus on revenue growth and lean operations, with non-recurring items positively impacting results, indicating a strong operational focus [1][2] - The core payments business is expected to maintain an EBITDA margin above 30% in 2026, with a long-term goal of achieving 50% or greater [4][5] Business Line Data and Key Metrics Changes - LoadPay exited the quarter with annualized revenue of $1.5 million, with expectations to triple this amount in 2026 through a combination of account growth and increased revenue per account [11][12] - The pre-tax margin for factoring improved to around 33% in the fourth quarter, driven by technology and automation, with expectations for continued margin expansion [26][27] Market Data and Key Metrics Changes - The company anticipates a flat freight market for the upcoming year, which will influence growth projections for the factoring business [18][19] - The percentage of payments charged a fee increased from 31% to 35% in the fourth quarter, indicating improved monetization of the payments network [22][23] Company Strategy and Development Direction - The management aims to strengthen the network for secure data and payment transmission, which has led to revenue growth despite challenging market conditions [3] - The strategy includes building a strong balance sheet to withstand economic cycles while improving margins and profitability [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the trajectory towards profitability, emphasizing the importance of linking and funding accounts to drive revenue growth [12][14] - The company acknowledged the need for efficiency improvements in the face of expected expense increases in the first quarter [10] Other Important Information - The company is focused on cross-selling opportunities, with only 14% of current audit and payment customers using the intelligence solution, indicating significant growth potential [47] - Management noted that the network's growth has not followed initial expectations, but long-term prospects remain positive [57] Q&A Session Summary Question: Expense outlook for Q4 2026 - Management confirmed that the $6 million savings from the sale of a building and airplane is included in the first quarter estimate and will be part of the run rate going forward [10] Question: LoadPay revenue growth assumptions - LoadPay expects to open between 7,000 and 12,000 accounts in 2026, with a revenue target of $750 per account [12] Question: Contribution of Factoring as a Service to growth - Factoring as a Service is growing faster than other segments but remains immaterial in terms of overall growth contribution [18] Question: Cross-selling opportunities with audit and payment customers - There is significant room for improvement in cross-selling, with many customers not yet utilizing both services [21] Question: Expected revenue contribution from Trusted Freight Exchange - The Trusted Freight Exchange is still new, and while it is expected to drive revenue growth, the largest opportunity lies in cross-selling with existing customers [47] Question: Risks associated with credit loss expense - The company focuses on understanding the risks associated with underlying borrowers, with a short duration on average in the factoring business [69][70] Question: Strategic benefits of the ABL business - The ABL business was expected to complement transportation-related offerings but has not performed as anticipated [72]

Financial Data and Key Metrics Changes - The company reported a focus on revenue growth and lean operations, with non-recurring items positively impacting results, indicating a strong operational focus [1][2] - The core payments business is expected to trend above a 30% EBITDA margin in 2026, aiming for 50% or greater in the long term [4][5] Business Line Data and Key Metrics Changes - LoadPay exited the quarter with annualized revenue of $1.5 million, with guidance to triple this amount in 2026 through a combination of account growth and increased revenue per account [11][12] - The pre-tax margin for the factoring segment improved to around 33% in the fourth quarter, driven by technology and automation [26][29] Market Data and Key Metrics Changes - The company anticipates a flat freight market for the upcoming year, which will influence growth projections [19] - The percentage of invoices monetized in the payments segment increased from 31% to 35% in the fourth quarter, with further increases expected in the first quarter [22][38] Company Strategy and Development Direction - The management aims to strengthen the network for secure data and payment transactions, which has led to revenue growth despite a challenging trucking industry [3][5] - The company is focused on maintaining a strong balance sheet to withstand unforeseen cycles while improving margins and profitability [5][6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth trajectory, emphasizing the importance of efficiency and balance sheet strength [2][3] - The company acknowledged the need for continued efficiency improvements in the face of seasonal expense increases [10] Other Important Information - The company has successfully integrated most legacy contract customers into its NextGen Audit, which is expected to enhance cross-selling opportunities [20][21] - The Trusted Freight Exchange (TFX) is still new, with the largest growth opportunities seen in cross-selling to existing audit and payment customers [46] Q&A Session Summary Question: Expense outlook and impact of asset sales - Management confirmed that the $6 million savings from the sale of a building and airplane is included in the first quarter expense estimates [10] Question: LoadPay revenue growth assumptions - LoadPay's revenue growth is expected from opening 7,000 to 12,000 accounts and increasing utilization, with top accounts generating over $5,000 annually [12][14] Question: Contribution of Factoring as a Service to growth - Factoring as a Service is growing rapidly but remains immaterial to overall growth; projections assume a flat freight market [18] Question: Cross-selling opportunities with audit and payment customers - Only 14% of current audit and payment customers use the intelligence solution, indicating significant cross-selling potential [46] Question: Credit loss expense and risk management - The company focuses on understanding the risks associated with underlying borrowers, emphasizing tight credit policies [68][69]

Financial Data and Key Metrics Changes - The company reported a focus on revenue growth and lean operations, with non-recurring items positively impacting results, indicating a strong performance trajectory towards long-term goals [1][4] - The core payments business is expected to maintain an EBITDA margin above 30% in 2026, aiming for 50% or greater in the long term [5][40] Business Line Data and Key Metrics Changes - LoadPay exited the quarter with annualized revenue of $1.5 million, with guidance to triple this amount in 2026 through a combination of account growth and increased revenue per account [11][12] - The pre-tax margin for factoring improved to around 33% in Q4, driven by technology and automation, with expectations for continued margin expansion [24][27] Market Data and Key Metrics Changes - The company anticipates a flat freight market for the upcoming year, which will influence growth projections for the factoring business [18] - The percentage of payments charged a fee increased from 31% to 35% in Q4, with December reaching 38% [21] Company Strategy and Development Direction - The management's strategy focuses on strengthening the network for secure data and payment transmission, aiming to translate this vision into profits [4][5] - The company is committed to maintaining a strong balance sheet to withstand unforeseen cycles while working through legacy assets [6] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges in the trucking industry but expressed confidence in the company's value proposition and growth trajectory [4] - The company is focused on improving cross-selling opportunities, particularly between audit and payment customers, to drive revenue growth [44] Other Important Information - The company has welcomed J.B. Hunt to its network, which is expected to contribute positively to revenue [4][32] - Management emphasized the importance of maintaining capital for resilience during downturns [6] Q&A Session Summary Question: Expense outlook and impact of asset sales - Management confirmed that the $6 million savings from the sale of a building and airplane are included in the first quarter expense estimates [10] Question: LoadPay revenue growth assumptions - LoadPay's revenue growth will come from opening 7,000 to 12,000 accounts and increasing utilization, with a target of $750 revenue per account [11] Question: Factoring as a Service contribution to growth - Factoring as a Service is growing rapidly but remains a small percentage of overall growth; projections assume a flat freight market [17] Question: Cross-selling opportunities with audit and payment customers - Only 14% of current audit and payment customers use the intelligence solution, indicating significant cross-selling potential [44] Question: Expected revenue contribution from J.B. Hunt - Specific revenue contributions from J.B. Hunt cannot be disclosed, but it aligns with previous guidance on pricing relationships [34] Question: Credit loss expense and risk management - The company reported a negative credit loss expense, indicating recoveries exceeded new provisions; focus remains on understanding borrower risks [66][68] Question: ABL business strategy - The ABL business was expected to complement transportation offerings but has not performed as anticipated, leading to non-transportation-related exposure [70]

分组1 - Triumph Financial (TFIN) reported quarterly earnings of $0.77 per share, significantly exceeding the Zacks Consensus Estimate of $0.29 per share, and up from $0.13 per share a year ago, representing an earnings surprise of +168.57% [1] - The company achieved revenues of $120.08 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 7.98%, compared to $103.56 million in the same quarter last year [2] - Triumph Financial shares have increased approximately 10.8% since the beginning of the year, outperforming the S&P 500's gain of 1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.18 on revenues of $109 million, and for the current fiscal year, it is $1.76 on revenues of $472.66 million [7] - The Zacks Industry Rank for Financial - Miscellaneous Services is in the top 37% of over 250 Zacks industries, indicating that the industry is performing well [8] - Another company in the same industry, Brookfield Asset Management, is expected to report quarterly earnings of $0.42 per share, reflecting a year-over-year change of +5%, with revenues anticipated to be $1.39 billion, up 12.6% from the previous year [9][10]

Triumph Financial reported a fourth quarter with numbers that backed up signs of a strengthening freight market as it added two significant new customers for its Triumph Network payment process. Between its Factoring segment and its Payments arm, which includes the Triumph Network that audits and pays its brokerage clients and is seen as the long-term core of the company, there were data points in the quarterly report that demonstrated freight market strength. Triumph Financial (NYSE: TFIN) said the ave ...

Financial Performance - Net income for Q4 was $18.4 million, or $0.77 per diluted share, with a focus on durable progress in network growth, revenue, and margin expansion[1]. - The recurring annualized exit earnings run rate for Q4 is estimated at approximately $1.00 per share, providing a baseline for core operating performance in 2026[4]. - Net income available to common stockholders significantly improved to $18,412 thousand compared to $907 thousand in the prior quarter[65]. - Net income for the three months ended December 31, 2025, was $19,214 thousand, compared to $16,090 thousand for the same period in 2024, reflecting a year-over-year increase of 19.8%[67]. - Basic earnings per common share increased to $0.77 from $0.04 in the previous quarter, demonstrating significant earnings growth[65]. - Net income available to common stockholders for the quarter ended December 31, 2025, was $18,412 thousand, a significant increase from $3,036 thousand in the same quarter of the previous year[79]. Revenue Growth - Total transportation revenue growth was 4.1% for the quarter, with expectations for Payments revenue growth in Q1 to exceed 5% and EBITDA margin to exceed 30%[4]. - Payments revenue grew 0.7% quarter-over-quarter to an annualized run rate of $74.5 million, with fee revenue increasing by 10%[14]. - Revenue growth in the core audit and payments business is projected to exceed 20% over the next year, driven by new relationships and deepening existing customer engagements[18]. - Total revenue for the quarter was $2.3 million, with an average contract value (ACV) of $39 thousand and a gross margin of 88%[38]. - Total revenue in LoadPay for Q4 2025 was $0.3 million, up 58.3% from the previous quarter, with an annualized run rate revenue of $1.5 million[20]. - Total revenue from the Factoring segment was $39,653,000, compared to $41,934,000 in the previous quarter[73]. - Total revenue for the Payments segment was $18,628,000, a slight increase from $18,503,000 in the prior quarter[74]. Operational Efficiency - The company added significant customers, including BlueGrace and J.B. Hunt, contributing to revenue ramp and margin expansion, serving 67 of the top 100 freight brokers[4]. - AI and machine learning are being leveraged to enhance operational efficiency and customer offerings, contributing to the $30 million in recognized expense savings[13]. - The average time to approve an invoice through AI tools is approximately 12 seconds, with purchase decisions occurring within 23 seconds[34]. - The company aims for approximately 20% transportation revenue growth while maintaining a $96.5 million expense base exiting Q4 2026[8]. - Reported expenses for Q4 were $98.1 million, with a goal to reduce ongoing annual operating expenses by over $30 million by the end of Q1 2026[5]. Asset Management - Total assets increased to $6,380,588 thousand from $6,357,149 thousand in the previous quarter, reflecting a growth of 0.37%[65]. - Loans held for investment rose to $4,991,307 thousand, up from $4,986,922 thousand, indicating a slight increase of 0.05%[65]. - Total assets increased to $6,380,588 thousand as of December 31, 2025, up from $5,948,975 thousand a year earlier, representing a growth of 7.3%[66]. - Total deposits decreased to $4,950,216 thousand as of December 31, 2025, from $5,186,098 thousand in September 2025, a decline of 4.5%[66]. Credit Quality - Non-performing loans to total loans decreased by 0.21% to 1.15% due to improvements in equipment finance[56]. - The allowance for credit losses was $36,511 thousand as of December 31, 2025, compared to $40,714 thousand a year earlier, indicating a reduction of 10.8%[66]. - The company reported a credit loss benefit of $(1,764) thousand for the three months ended December 31, 2025, compared to an expense of $4,453 thousand in the same period of 2024, indicating an improvement in credit quality[67]. Market Engagement - The breadth and depth of the network engagement increased, with annualized figures of $71 billion and $117 billion, respectively[1]. - Triumph Financial defines Network engagement as the amount of freight processed through its payments, audit, full AP automation, and rate intelligence products, indicating broker volume density in the market[1]. Future Outlook - The company anticipates significant growth in the Intelligence segment during 2026 as new products are rolled out[39]. - Forward-looking statements in the shareholder letter reflect the company's beliefs and expectations but are not guarantees of future performance[62]. - The company will hold a conference call on January 27, 2026, at 9:30 a.m. central time to review financial results[59].