Triumph Financial(US:TFIN)2026-01-26 21:13Financial 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].