NASDAQ$TFIN

Triumph Financial Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Earnings decreased due to a decline in factoring revenue, influenced by lower invoice prices and weaker seasonal volumes, but strategic investments in TriumphPay and operational improvements were highlighted.

Triumph Financial reported a net income of $10.2 million, or $0.43 per diluted share, for the first quarter. The decrease in earnings was primarily driven by a $7.8 million decline in factoring revenue due to lower invoice prices and seasonal weakness. Despite market headwinds, TriumphPay made progress, and the company focused on improving operations and managing risks.

  • Net income to common stockholders was $10.2 million, or $0.43 per diluted share.
  • Factoring revenue decreased by $7.8 million due to lower invoice prices and weaker seasonal volumes.
  • TriumphPay's EBITDA margin improved to -66% driven by increased intersegment interest income and reduced noninterest expense.
  • The company acquired assets from Truckstop Pay to deepen connections with the freight brokerage community.

Headline financials

Total Revenue

$104M

Previous: $111M-6.1%
EPS (adj)

$0.43

Previous: $0.93-53.8%
Non-Performing Assets Ratio

0.9%

Previous: 0.9%+1.1%
Free Cash Flow

$11M

Previous: $24.3M-54.7%
Net Income

$11M

Previous: $24.3M-54.7%
Operating Income

$71.7M

Previous: $83.5M-14.1%
Gross Profit

$104M

Previous: $111M-5.7%
Cash & Equivalents

$418M

Previous: $414M+1.0%
Total Assets

$5.63B

Previous: $6.08B-7.4%
Stock-Based Comp

$2.88M

Previous: $4.95M-41.8%

Revenue & EPS history

Triumph Financial · Revenue · Quarterly

$104M

Q1 2023-6.1%vs Q1 2022
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Revenue by segment

Triumph Financial · $46.2M total across 2 segments · Q1 2023

  • Factoring
    $39.5M-32.2%
  • Payments
    $6.72M-16.8%

Forward guidance

The company anticipates continued pressure on near-term earnings due to the freight recession but sees opportunities for growth through strategic initiatives and potential M&A activities. Minimal expense growth is expected without offsetting revenue growth, and investments in TriumphPay will align with profitable customer onboards.

Tailwinds

  • TriumphPay's EBITDA margin is expected to improve.
  • The company is exploring M&A opportunities accretive to TriumphPay.
  • A partnership with Highway to combat double brokering enhances network value.
  • The acquisition of Truckstop Pay's assets will add 30 freight broker clients and nearly $900 million in annualized payment volume.
  • Future investments in TriumphPay will align with profitable customer onboards.

Headwinds

  • Near-term earnings will remain under pressure due to the freight recession.
  • The freight market is expected to continue contracting into the second quarter.
  • Rate pressure on deposits is expected to continue.
  • Expense growth will be minimal without offsetting revenue growth.
  • The precise impact of aligning Triumph Supply Chain Financing with TriumphPay is difficult to project due to freight market uncertainty.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2023

Historical avgQ1 2023

-0.5%

Avg return

Earnings day

-0.2%

Avg return

5 days after

+3.7%

Avg return

30 days after

48%

26 / 54 earnings

Positive

+12.5%

Q2 2020

Best reaction

-13.9%

Q4 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.9%+1.9%-0.6%
Q4 2025-7.2%-10.6%-16.3%
Q3 2025+7.3%+25.4%+9.4%
Q2 2025-2.6%-2.0%+7.0%
Q1 2025-2.4%-3.0%+22.8%
Q4 2024-13.9%-14.5%-26.6%
Q3 2024+7.9%+9.0%+21.6%
Q2 2024-12.6%-7.7%-10.3%
Q1 2024-9.6%-7.9%+1.7%
Q4 2023-5.2%-6.5%-2.6%
Q3 2023+1.3%+1.0%+17.6%
Q2 2023+0.3%+0.7%-5.2%
Q1 2023-3.3%-0.9%+0.8%
Q4 2022-2.2%+2.9%+15.0%
Q3 2022-10.1%-17.2%+4.7%
Q2 2022+6.9%+4.5%+8.1%
Q1 2022-6.4%-8.1%-19.6%
Q4 2021-12.4%-18.8%-13.9%
Q3 2021+0.0%+6.3%+18.9%
Q2 2021+2.3%+2.9%+10.2%
Q1 2021-0.4%+0.5%-8.6%
Q4 2020+4.2%+10.1%+28.5%
Q3 2020+3.9%+8.1%+11.2%
Q2 2020+12.5%+10.2%+18.4%
Q1 2020-4.3%-8.3%-7.7%
Q4 2019+6.0%+5.2%+10.3%
Q3 2019+1.1%+5.8%+5.5%
Q2 2019+7.8%+9.2%+7.0%
Q1 2019-4.6%-7.3%-2.6%
Q4 2018-9.1%-4.2%+3.0%
Q3 2018-2.0%-7.2%+0.2%
Q2 2018-1.6%-1.4%+2.7%
Q1 2018+2.0%+0.5%+3.8%
Q4 2017+7.2%+6.9%+15.6%
Q3 2017-0.6%+1.3%-5.1%
Q2 2017+7.8%+14.1%+8.7%
Q1 2017-3.7%-9.8%-12.9%
Q4 2016+3.6%+5.9%+5.6%
Q3 2016-4.1%-5.8%+11.4%
Q2 2016+4.1%+2.2%+9.7%
Q1 2016+0.2%
Q4 2015-0.2%
Q4 2012-0.2%
Q3 2015-1.0%
Q2 2015+3.1%
Q1 2014+0.2%
Q1 2015+2.7%
Q2 2014-0.2%
Q4 2013-0.2%
Q1 2013-0.2%
Q4 2014-2.5%
Q2 2013+1.0%
Q3 2013+1.0%
Q3 2014+1.0%

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