Live Oak Bancshares Soars Near 52-Week High on Major Earnings Beat
The small business lender's stock jumped over 6% after Q4 EPS beat estimates by 58%, boosted by strong loan growth and a significant gain from a fintech investment sale.
Shares of Live Oak Bancshares (NYSE: LOB) surged more than 6% in recent trading, pushing the stock toward its 52-week high after the company posted fourth-quarter financial results that significantly outpaced analyst expectations. The Wilmington, North Carolina-based bank, a leading lender to small businesses, demonstrated robust health in its core operations alongside a profitable divestment.
For the fourth quarter of 2025, Live Oak reported earnings per share of $0.95, a stunning 58% beat of the $0.60 consensus estimate. Revenue for the quarter landed at $172.9 million, exceeding forecasts of $147.9 million by 17%. The strong performance sent shares to an intraday price of approximately $39, just shy of its 52-week high of $41.40, lifting the company's market capitalization to over $1.7 billion.
The impressive quarterly results were driven by a combination of strong underlying growth and a strategic financial move. According to the company's fourth-quarter report, a key contributor was a $24.1 million pre-tax gain from the sale of the bank's stake in Apiture, a cloud-based digital banking solutions provider. This sale highlights the value generated from Live Oak's strategy of investing in financial technology companies.
Beyond the one-time gain, the bank's core lending engine showed considerable strength. Net interest income for the quarter grew 26.3% year-over-year, a clear indicator of a healthy and expanding loan portfolio. For the full year of 2025, Live Oak's total loan production increased by a formidable 20%, underscoring sustained demand from the small business community it serves and its ability to capture that growth effectively.
Wall Street analysts currently hold a cautiously optimistic view of the bank. Based on current ratings, the stock has two 'buy' or equivalent ratings and three 'hold' ratings, with no analysts recommending to sell. The consensus 12-month price target sits at $42.50, suggesting analysts see modest additional upside from its current trading level.
Investors will be closely watching how Live Oak Bancshares leverages the proceeds from its Apiture stake sale and whether the powerful momentum in its core small business lending can be sustained into 2026. The Q4 results signal a company that is successfully executing on both its primary banking mission and its secondary fintech investments, providing a dual engine for growth as it navigates the year ahead.