NASDAQ$TFIN

Triumph Financial Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Net income decreased due to freight recession and rising funding costs, while TriumphPay showed momentum.

Triumph Financial reported a net income of $6.8 million, or $0.29 per diluted share, for the second quarter of 2023. The results were impacted by the ongoing freight recession and rising funding costs, but TriumphPay demonstrated significant momentum.

  • Earnings declined due to the ongoing freight recession and rising funding costs.
  • Funding costs increased as loan growth was funded with more expensive wholesale funding.
  • Credit metrics remained solid, and credit costs were in line with expectations.
  • TriumphPay experienced significant momentum with new logos and improved EBITDA margins.

Headline financials

Total Revenue

$103M

Previous: $150M-31.2%
EPS (adj)

$0.29

Previous: $1.74-83.3%
Non-Performing Assets Ratio

0.7%

No prior period
Free Cash Flow

$7.65M

Previous: $44.2M-82.7%
Net Income

$7.65M

Previous: $44.2M-82.7%
Operating Income

$61M

Previous: $134M-54.4%
Gross Profit

$103M

Previous: $147M-29.8%
Cash & Equivalents

$417M

Previous: $724M-42.4%
Total Assets

$5.65B

Previous: $5.96B-5.1%
Stock-Based Comp

$3.32M

Previous: $7.88M-57.9%

Revenue & EPS history

Triumph Financial · Revenue · Quarterly

$103M

Q2 2023-31.2%vs Q2 2022
Beat estimate in 2 of 15 quarters(13%)
ActualEstimate

Revenue by segment

Triumph Financial · $39.8M total across 2 segments · Q2 2023

  • Factoring
    $36.4M-49.0%
  • Payments
    $3.45M-76.2%

Forward guidance

Triumph Financial expects expenses to remain roughly flat for the remainder of 2023, with potential increases of $1-2 million per quarter for resiliency-related projects. The company anticipates that any additional expense growth will be the result of supporting new clients and increased volumes.

Tailwinds

  • Expenses are expected to remain roughly flat for the remainder of 2023.
  • Additional expense growth will primarily support new clients and increased volumes.
  • The company is focused on helping clients navigate the difficult operating environment.
  • TriumphPay is expected to reach EBITDA break-even by the end of 2024, possibly sooner.
  • Triumph Financial's credit position is considered solid, and the freight market is expected to trend higher.

Headwinds

  • The freight market remains under pressure.
  • Resiliency-related projects could add $1-2 million to the quarterly run rate beginning in Q3.
  • Revenue volatility impacts the business, preventing earnings guidance.
  • Pricing pressures remain and utilization trends are still below long-term averages in Factoring.
  • The level of lending opportunities with attractive risk-adjusted returns is less than anticipated at the beginning of the year.

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 Q2 2023

Historical avgQ2 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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