Economic and Credit Risks - The company is exposed to various economic risks, including potential constraints on growth and profitability due to a weakening U.S. economy and elevated interest rates [133]. - The company faces credit risk associated with its loan portfolio, particularly in the context of rising interest rates which could lead to increased delinquencies and defaults [136]. - A significant portion of the loan portfolio consists of commercial finance products, which may expose the company to additional credit risk due to clients lacking sufficient operating history or cash flows [139]. - The company’s agriculture loans are at risk of credit defaults due to fluctuations in commodity prices, which could negatively impact borrowers' cash flows and collateral values [140]. - The company may experience increased delinquencies or defaults in its relatively new loan portfolio as it lacks seasoning, potentially leading to higher provisions for loan losses [141]. - The company has significant concentrations in large loans to a small number of borrowers, which increases credit risk [144]. - The company anticipates additional loan losses in the future, potentially requiring further provisions for loan losses [149]. Operational and Regulatory Risks - The company is subject to operational risks, including system failures, cybersecurity threats, and the accuracy of financial statements, which could adversely affect its financial condition [134]. - Changes in government monetary policies and economic conditions could have an adverse effect on the company’s business and financial results [133]. - The company is subject to extensive federal and state regulations that may significantly limit operations and affect lending practices, capital structure, and investment practices [227]. - The company's risk management strategies may not fully mitigate risk exposures in all market environments, potentially leading to significant financial losses [223]. - The company may be required to remediate adverse examination findings from regulatory agencies, which could lead to restrictions on growth and operational practices [236]. Competition and Market Position - The company faces intense competition in the financial services industry, which may pressure pricing and profitability [160]. - The competitive landscape in the payments and financial technology industries is intense, with risks from both existing competitors and potential new entrants [197]. - The company anticipates significant competitive pressures from well-capitalized future competitors offering discounted services and lower processing rates, which may negatively impact financial performance [199]. - The competitive landscape is expected to change, with competitors potentially integrating competing platforms or features, which could adversely affect the company's market position [201]. Financial Performance and Condition - As of December 31, 2025, the company reported approximately $69.9 million in nonperforming assets, representing about 1.10% of total assets [145]. - The Allowance for Credit Loss (ACL) was 0.73% of total loans and 63.44% of total nonperforming loans as of December 31, 2025 [149]. - The company has historically relied on acquiring additional banks with excess liquidity to offset the faster growth of its loan portfolio compared to organic growth of transactional deposits [221]. - The company experienced a liquidity challenge in early 2023, but believes its liquidity ratios meet or exceed regulatory guidelines [341]. - Net income for 2025 was $25,359, compared to $16,090 in 2024 and $41,081 in 2023, indicating a decline in profitability year-over-year [352]. Technology and Innovation - The company plans to focus on technology initiatives, including artificial intelligence, to enhance efficiency and customer experience in its factoring segment [346]. - The company plans to expand its financial technology services and increase adoption among customers, which may involve establishing new partnerships and complying with regulatory requirements [174]. - The company must continually enhance its network platform to remain competitive, as the market is characterized by rapid change and innovation [191]. Customer and Market Dynamics - The company faces risks related to customer retention, as contracts are generally month-to-month, and customers may choose not to renew their services [169]. - Approximately 42% of the company's revenues were derived from the transportation industry as of December 31, 2025, with 97% of the factored receivables portfolio consisting of invoices from transportation clients [164]. - The company aims to increase the adoption of its full payments platform functionality to generate fee income based on transaction volume [173]. Security and Compliance - The company processes large amounts of sensitive information, and any security breach could materially impact its business and reputation, especially as cyber incidents are increasing in sophistication and frequency [181]. - The company has implemented multiple security measures to protect its network platform, but evolving techniques used by attackers may hinder its ability to prevent breaches [182]. - The company relies on third-party service providers for data processing, which introduces risks of security breaches that could result in unauthorized access to sensitive information [183]. - Any material security breach could damage the company's reputation, require significant capital to remediate, and expose it to litigation or regulatory actions [184]. Financial Metrics and Ratios - Total assets increased to $6,380,588 in 2025 from $5,948,975 in 2024 and $5,347,334 in 2023, reflecting growth in the company's balance sheet [352]. - Total liabilities increased to $5,438,817 in 2025 from $5,058,056 in 2024, indicating a rise in the company's obligations [352]. - The return on average tangible common equity improved to 4.27% in 2025, compared to 2.20% in 2024 [354]. - The past due to total loans ratio improved to 2.72% in 2025, down from 3.27% in 2024 [354]. - The effective tax rate increased from 21% in 2024 to 23% in 2025, influenced by research and development tax credits [384].

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]

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].

Core Insights - BlueGrace Logistics has joined the Triumph Network to enhance payment efficiency and transparency for carriers [1][2][3] - The integration with Triumph's payment platform aims to improve back-office efficiency and strengthen relationships with carriers [2][3] - BlueGrace's adoption of Triumph's solutions is expected to minimize payment discrepancies and deliver greater value to partners [3] Company Overview - Triumph (NYSE: TFIN) is a financial and technology company focused on modernizing freight transactions through payments, factoring, and banking solutions [4] - BlueGrace Logistics is one of the largest Managed Logistics providers in the U.S., serving over 10,000 customers annually with a proprietary technology platform, BlueShip [5]

Core Points - Triumph Financial announced a quarterly cash dividend of $17.81 per share on its 7.125% Series C Fixed-Rate Non-Cumulative Perpetual Preferred Stock [1] - Holders of depositary shares will receive $0.44525 per depositary share, with the dividend payable on December 30, 2025, to holders of record as of December 15, 2025 [1] Company Overview - Triumph Financial is a financial and technology company focused 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]

Triumph Financial (TFIN) FY Conference Summary Company Overview - Triumph Financial is a financial and technology company based in Dallas, Texas, focused on modernizing freight transactions through payments, factoring, intelligence, and banking [1][3] - The company operates under brands including Triumph, TBK Bank, and LoadPay [1] Core Business Model - Triumph Financial is characterized as a community bank that audits and pays more truckers than any other entity globally, emphasizing its role in the trucking market [3][6] - The company processes approximately $50 billion in payments annually for major freight brokers, including C.H. Robinson and RXO [11] Market Position and Strategy - Triumph Financial claims to touch 70% of all freight transactions, paying half and auditing about 65% of invoices [6] - The company aims to create defensible earnings through a network that integrates auditing, payment, and intelligence into the workflow of freight transactions [10] - The focus is on reducing friction in payment processes, which is critical given the average invoice size of around $1,500 [6] Industry Challenges - The trucking industry is currently experiencing a goods recession, with falling tonnages and a significant number of improperly licensed drivers contributing to market instability [16][20] - Regulatory enforcement of existing laws is seen as necessary to ensure fair competition and reduce shadow capacity in the market [24] Financial Performance and Growth Targets - Triumph Financial aims for 20% top-line growth, with specific targets for its three segments: intelligence, payments, and factoring [32][34] - The intelligence segment is expected to grow significantly, while payments have shown a growth rate of 25%-30% in recent quarters [34] - The factoring business, which generated $155 million in revenue, is expected to grow at low double digits [34] Recent Developments - The company has undergone a reorganization to focus on a customer-centric approach, aiming to enhance efficiency and reduce expenses [28][30] - LoadPay, a new offering, is positioned as a comprehensive financial companion for truckers, integrating various financial services [43][44] Capital Management - Triumph Financial does not intend to grow its balance sheet but aims to increase revenue and profitability while maintaining capital ratios [54][55] - The company is cautious about M&A activities, focusing instead on enhancing existing products and services [55] Risk Management - The primary risks in factoring include fraud risk from truckers and credit risk from account debtors, with a strong emphasis on verification processes to mitigate these risks [56][57] - The average charge-offs in the factoring business have been about 25 basis points, indicating strong credit quality management [57] Conclusion - Triumph Financial is positioned as a key player in the freight payment and banking sector, leveraging technology to streamline processes and enhance customer experience while navigating industry challenges and aiming for sustainable growth [10][31]

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]

Core Insights - Triumph has expanded its relationship with NFI to include Payment and Audit solutions, aiming to modernize freight transactions and enhance operational efficiency [1][5] - NFI's integration of Triumph's services is intended to accelerate payments, automate invoice auditing, and strengthen carrier relationships through advanced technology [2][3] Company Overview - Triumph (NYSE: TFIN) is a financial and technology company focused on modernizing freight transactions, with a portfolio that includes Triumph, TBK Bank, and LoadPay [6] - NFI is a leading North American supply chain solutions provider, generating over $3.6 billion in annual revenue and employing over 18,000 associates [7] Service Benefits - Triumph's Audit and Payments solutions streamline workflows, reduce errors, and enable secure, real-time transactions, benefiting carriers with faster payments and greater transparency [4][5] - NFI has also adopted Triumph's Intelligence solution to enhance data-driven decision-making and operational insights across its network [3]