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Flagstar Financial (FLG) Reports Q2 Loss, Misses Revenue Estimates

Company Performance - Flagstar Financial reported a quarterly loss of $0.14 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.12, but an improvement from a loss of $1.05 per share a year ago, indicating a significant year-over-year recovery [1] - The company posted revenues of $496 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 5.64% and down from $671 million in the same quarter last year [2] - Over the last four quarters, Flagstar Financial has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Flagstar Financial shares have increased by approximately 29.2% since the beginning of the year, significantly outperforming the S&P 500's gain of 8.2% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.01 on revenues of $560.29 million, while for the current fiscal year, it is -$0.29 on revenues of $2.16 billion [7] Industry Outlook - The Zacks Industry Rank for Banks - Northeast, which includes Flagstar Financial, is currently in the top 21% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Flagstar Financial's stock performance [5]