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Sep 30, 2024
Triumph Financial Q3 2024 Earnings Report
Reported net income to common stockholders and TriumphPay returned to EBITDA positive.
Key Takeaways
Triumph Financial reported a net income to common stockholders of $4.5 million, or $0.19 per diluted share, for the third quarter. Expenses were within the target range, and TriumphPay returned to a positive EBITDA.
The freight recession is ongoing, with bankruptcies occurring weekly, but capacity is leaving the system slowly.
Expenses were within the target range, remaining under $97 million and intending to do the same in Q4.
TriumphPay returned to EBITDA positive despite the freight recession and investments.
LoadPay and Factoring as a Service (FaaS) deployment has commenced with C.H. Robinson, aiming for $1 billion revenue from the transportation fintech platform.
Triumph Financial
Triumph Financial
Triumph Financial Revenue by Segment
Revenue by Segment
Banking Revenue
CapyFin.comFactoring Revenue
CapyFin.comPayments Revenue
CapyFin.com Forward Guidance
Triumph Financial does not provide forward guidance but anticipates Q4 expenses to remain below $97 million, with a possible one-time item related to tenant exits in the acquired headquarters building. Seasonality is expected to soften Q1 2025 earnings due to typical factoring volume reduction and expense pressures.
Positive Outlook
- Q4 expenses are expected to be below $97 million.
- Potential for a one-time item related to tenant exits in the acquired headquarters building.
- Long-term optimism remains despite potential short-term discomfort.
- Capital is well-stewarded, with $260 million of excess capital relative to the CET1 target.
- Value creation for long-term shareholders is a priority.
Challenges Ahead
- The freight market is currently soft.
- Catastrophic weather events and geopolitics will add volatility.
- Seasonality is expected to make Q1 softer.
- Factoring volumes typically reduce in Q1 by 4% to 6%.
- Expense pressures tied to compensation resets and health insurance premium changes in Q1.