3Q26
Filed Oct 21, 2026Triumph Financial reported net income available to common stockholders of $12.6 million, or $0.52 per diluted share, as Transportation revenue increased 37.8% year over year and Factoring operating margin reached 42.96%.
Transportation growth, Factoring margin expansion and Payments profitability strengthened materially, while Banking credit expense increased to $5.2 million and Intelligence revenue remained nearly flat with a negative EBITDA margin.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net income available to common stockholders, three months ended September 30, 2026GAAP | $12.63M | – | – |
| Net income, three months ended September 30, 2026GAAP | $13.43M | – | – |
| Diluted earnings per common share, three months ended September 30, 2026GAAP | $ 0.52 | – | – |
| Basic earnings per common share, three months ended September 30, 2026GAAP | $ 0.53 | – | – |
| Net income available to common stockholders, nine months ended September 30, 2026GAAP | $28.75M | – | – |
| Diluted earnings per common share, nine months ended September 30, 2026GAAP | $ 1.19 | – | – |
| Total interest income, three months ended September 30, 2026GAAP | $130.6M | – | – |
| Net interest income, three months ended September 30, 2026GAAP | $103.1M | – | – |
| Credit loss expense (benefit), three months ended September 30, 2026GAAP | $5.22M | – | – |
| Total noninterest income, three months ended September 30, 2026GAAP | $22.55M | – | – |
| Total noninterest expense, three months ended September 30, 2026GAAP | $102.0M | – | – |
| Net income before income tax, three months ended September 30, 2026GAAP | $18.49M | – | – |
| Income tax expense, three months ended September 30, 2026GAAP | $5.06M | – | – |
| Transportation revenue, three months ended September 30, 2026other | $81.67M | 6.8 % | 37.8 % |
| Factoring operating income, three months ended September 30, 2026other | $ 24,467,000 | – | – |
| Factoring operating margin, three months ended September 30, 2026non-GAAP | 42.96 % | 9.1 % | 107.4 % |
| Payments pre-tax operating income, three months ended September 30, 2026other | $ 4,154,000 | – | – |
| Payments EBITDA, three months ended September 30, 2026non-GAAP | $ 7,243,000 | – | – |
| Payments EBITDA margin, three months ended September 30, 2026non-GAAP | 30.8 % | 19.8 % | 83.3 % |
| Payments EBITDA margin excluding LoadPay, three months ended September 30, 2026non-GAAP | 39.0 % | 14.7 % | 38.3 % |
| Intelligence pre-tax operating loss, three months ended September 30, 2026other | $ (2,573,000) | – | – |
| Intelligence gross margin, three months ended September 30, 2026non-GAAP | 84 % | – | – |
| Intelligence EBITDA margin, three months ended September 30, 2026non-GAAP | (50.3) % | (38.4) % | (46.8) % |
| Banking operating income, three months ended September 30, 2026other | $24.08M | – | – |
| Net interest margin, three months ended September 30, 2026GAAP | 5.93 % | – | – |
| Total assets, September 30, 2026GAAP | $7.68B | – | – |
| Loans held for investment, September 30, 2026GAAP | $5.68B | – | – |
| Deposits, September 30, 2026GAAP | $6.47B | – | – |
| Total cash and cash equivalents, September 30, 2026GAAP | $1.03B | – | – |
| Non-performing loans to total loans, September 30, 2026other | 2.64 % | – | – |
| Past due to total loans, September 30, 2026other | 3.08 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| FactoringClient growth, market-share gains, higher invoice values, and continued improvement in processing productivity. | $ 56,951,000 | 7.5 % | 43.6 % |
| PaymentsContractual repricing, invoice growth and new relationships. | $ 23,535,000 | 5.6 % | 27.2 % |
| IntelligenceDifficult market conditions for smaller brokers, product-renewal shortcomings, and customer churn constrained growth. | $ 2,360,000 | (1.2) % | 0.9 % |
| Transportation revenueFactoring revenue growth, Payments revenue growth, and modest Intelligence revenue growth. | $81.67M | 6.8 % | 37.8 % |
4Q 2026 and 2027 outlook
- Operating expenses4Q core expense of approximately $100 million; total non-interest expenses of < $400mm for the year 2027.
- NoteFor the year 2027, the North Star metric tied to total non-interest expenses will be < $400mm.
- NoteThe company stated that it will need to realize at least $20 million of efficiencies from its current run rate.
- NoteThe company stated that if it delivers its North Star expense metric, records normalized credit costs and grows Transportation revenue by low double digits over 2026, the EPS output is roughly $3.50.
- NoteThe company expects operating income in Payments to continue to grow over the next several quarters through organic revenue growth and cost savings, with less contribution from repricing.
Capital returns
- Dividends on preferred stock: $ 801 (Dollars in thousands) for the three months ended September 30, 2026.
- Treasury stock, at cost: $ (272,840) (Dollars in thousands) as of September 30, 2026.
What drove it
- Transportation revenue increased 37.8 % year over year, with management stating that roughly 1/3 of that growth was organic versus purely market tailwinds.
- Factoring purchased volume reached $ 4,503,394,000, average transportation invoice size was $ 2,210, and customers totaled 7,947.
- Factoring operating margin was 42.96 %, above the stated long-term target of > 40%.
- Payments processed 9,467,000 invoices and $ 15,132,596,000 of payment volume; broker revenue per invoice was $ 1.43 and product attachment ratio was 1.33.
- LoadPay revenue was $ 791,000, up 262.8% YoY and 21.3% QoQ, while funding totaled $ 223,017,000.
- Mortgage warehouse servicing deposits averaged $2.6 billion during the quarter and supported low-risk incremental net interest income, according to management.
Concerns
- Credit loss expense was $ 5,220 (Dollars in thousands), driven primarily by commercial real estate exposures and provisioning associated with transportation-business growth.
- Non-performing loans to total loans increased by 0.99% to 2.64%, while past due to total loans increased by 0.89% to 3.08%.
- The largest increase in non-performing loans came from a $38.4 million relationship comprised of 4 loans where unauthorized liens were placed behind Triumph.
- Intelligence revenue was $ 2,360,000, up only 0.9 % year over year, and Intelligence EBITDA margin was (50.3) %.
- Net interest margin was 5.93 %, compared with 6.29 % in the prior-year quarter and 6.15 % in the prior quarter.
- Noninterest expense included $1.1 million of technology and occupancy expenses that management does not expect to recur, although it considers them core expenses.
What to watch
- Whether Factoring can sustain client additions, which were 706 net new clients year-to-date, while maintaining operating margin above its > 40% long-term target.
- Payments operating-income growth, expense reductions, and progress toward margin expansion as LoadPay investment continues.
- LoadPay utilization, including active carrier accounts, revenue per active carrier account, and funding growth.
- Resolution of the three CRE relationships that concentrated the deterioration in asset-quality metrics.
- Whether Intelligence can convert transaction-backed data into repeatable products, durable recurring revenue, improved retention, and better profitability.
- Delivery against 4Q core expense of approximately $100 million and the 2027 total non-interest expense target of < $400mm.
Balance sheet and cash flow
- Total cash and cash equivalents: $ 1,032,524 (Dollars in thousands) as of September 30, 2026.
- Total assets: $ 7,680,282 (Dollars in thousands) as of September 30, 2026.
- Total deposits: $ 6,467,973 (Dollars in thousands) as of September 30, 2026.
- Loans held for investment: $ 5,684,505 (Dollars in thousands) as of September 30, 2026.
- Federal Home Loan Bank advances: — as of September 30, 2026.
- Subordinated notes: $ 70,000 (Dollars in thousands) as of September 30, 2026.
- Junior subordinated debentures: $ 43,491 (Dollars in thousands) as of September 30, 2026.
- Total stockholders' equity: $ 978,560 (Dollars in thousands) as of September 30, 2026.
- Operating cash flow and free cash flow were not reported.
Analysis
Triumph Financial produced a substantially improved third quarter, with net income available to common stockholders of $12.6 million and diluted EPS of $0.52, compared with $0.9 million and $0.04 in the prior-year quarter. Transportation revenue was $81.7 million, up 37.8%, led by Factoring revenue growth of 43.6% and Payments revenue growth of 27.2%. Management stated that roughly one-third of Transportation revenue growth was organic rather than purely market-driven. Total noninterest expense was $102.0 million, essentially flat with the prior quarter and below the $103.7 million reported a year earlier.
Factoring was the core earnings driver. Revenue reached $57.0 million, purchased volume reached $4.5 billion, and operating income was $24.5 million. Operating margin expanded to 42.96% from 20.71% in the prior-year quarter and 39.39% in the prior quarter. The segment added customers, with client count rising to 7,947 and year-to-date net client additions reaching 706. The average transportation invoice size increased to $2,210 from $1,690 a year earlier, while management also cited market-share gains and processing productivity. Direct cost to service an invoice declined 20.1% from 3Q25 to 3Q26.
Payments continued to scale profitability. Revenue increased to $23.5 million, payment-processing volume increased to 9.5 million invoices, and pre-tax operating income increased to $4.2 million from $2.8 million in the prior quarter. Payments EBITDA margin improved to 30.8%, while EBITDA margin excluding LoadPay reached 39.0%. LoadPay remained investment-heavy, with a pre-tax operating loss of $2.1 million, but revenue rose to $0.8 million and funding increased to $223.0 million. The company is focusing on moving LoadPay from account acquisition toward primary-account utilization.
Banking remained profitable but was the principal source of volatility. Banking operating income was $24.1 million, broadly flat sequentially, as higher net interest income and fee income plus lower operating expenses were offset by higher credit expense. Credit loss expense was $5.2 million. Non-performing loans to total loans reached 2.64%, and past due to total loans reached 3.08%, with deterioration concentrated in three CRE relationships. Net interest margin was 5.93%, down from 6.29% a year ago and 6.15% in the prior quarter. Management continues to focus on reducing non-core credit exposures and making Banking a more predictable contributor.
Intelligence remains the weakest operating area. Revenue was $2.4 million, up 0.9% year over year but down 1.2% sequentially, while EBITDA margin was negative 50.3%. Management attributed the weak growth to difficult conditions for smaller brokers, churn, insufficient product embedding in customer workflows, and inconsistent translation of differentiated data into repeatable customer value. The company is changing the 2027 North Star framework by replacing Intelligence gross margin with an enterprise non-interest expense target of less than $400mm. For 4Q, management expects core expense of approximately $100 million and identified automation, Payments monetization, vendor management, process redesign, and simplification of non-core activities as the route to 2027 efficiency.
Management, verbatim
For the first time in several years, the external freight environment and the internal maturity of our platform are moving in our favor at the same time.
Aaron P. Graft, Founder, Vice Chairman and CEO
The task now is increasingly straightforward: convert what we have built into revenue growth, operating leverage, and earnings.
Aaron P. Graft, Founder, Vice Chairman and CEO
We are now accountable for converting those investments into revenue growth, margin expansion and earnings.
Aaron P. Graft, Founder, Vice Chairman and CEO
Not in the filing
stated, not guessed- Consolidated total revenue was not reported as a labeled line item.
- GAAP gross margin was not reported.
- Consolidated operating income was not reported as a labeled line item.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Common-stock repurchases during the period were not reported.
- Common-stock dividend information was not reported.
- A formal full-year revenue, gross margin, operating expense, or tax-rate guidance range was not reported.
- Previous-release outlook was not provided, so prior-guidance comparisons cannot be made.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.