FinWise stock rises on 66% revenue beat, strong loan growth
Utah-based lender reports Q4 revenue of $46.9M, exceeding analyst estimates by wide margin
FinWise Bancorp shares climbed more than 1% on Thursday after the Utah-based regional lender reported fourth-quarter revenue that exceeded analyst expectations by 66%, driven by stronger-than-expected loan growth.
The company reported revenue of $46.9 million for the quarter, handily beating the $28.2 million consensus estimate among analysts. Loan originations reached $1.6 billion for the quarter, surpassing the company's own guidance of $1.4 billion and helping drive the revenue surge.
"We remain confident in our ability to continue delivering long-term value for our shareholders," the company said in its earnings announcement, highlighting what management characterized as strong execution across its lending platforms.
For the full year 2025, net income grew 26% to $16.1 million, with earnings per share rising to $1.13 from $0.93 in the prior year. Total loan originations for 2025 reached $6.1 billion, including $3.9 million in net income for the fourth quarter specifically.
The performance marks a significant acceleration for FinWise, which has built its business around personal and small business loans through its subsidiary, FinWise Bank. The company's quarterly revenue growth of 66% and earnings growth of 36% year-over-year outpaced many regional bank peers that have faced pressure from higher interest rates and slowing loan demand.
FinWise shares, which traded at $18.45 at market close, have gained more than 37% over the past 12 months and are hovering near their 52-week high of $22.49. The stock's performance reflects growing investor confidence in the company's ability to execute its lending strategy despite challenging macroeconomic conditions for smaller banks.
Analysts maintain a generally bullish outlook on the stock, with an average target price of $22.67, according to market data. The company currently holds a consensus rating of "buy" from covering analysts, with two buy recommendations and one strong buy rating.
The strong quarterly results come at a time when regional banks have faced increased scrutiny following the failures of several mid-sized lenders in 2023 and 2024. FinWise, with its market capitalization of approximately $247 million, has positioned itself as a niche player focused on specific lending markets rather than competing directly with larger institutions.
The company's profitability metrics have shown improvement, with a profit margin of 18.7% and return on equity of 8.36% over the trailing twelve months. Its price-to-earnings ratio of 17.3 compares favorably to many regional bank peers, while its price-to-book ratio of 1.31 suggests the market values the company above its liquidation value—a sign of confidence in future earnings potential.
Looking ahead, investors will be watching whether FinWise can maintain its loan origination momentum amid potentially moderating consumer demand. The company's guidance and commentary on credit quality trends in upcoming quarters will be particularly important for assessing whether the strong fourth-quarter performance represents sustainable growth or a temporary boost from specific market conditions.
The stock's relatively low beta of 0.82 suggests it may offer some defensive characteristics compared to the broader market, though its heavy exposure to consumer lending makes it sensitive to changes in unemployment rates and consumer spending patterns.