FinWise Q3 EPS $0.73 as Net Income Rebounds to $10.0M; $6.5M Tallied Gain, Card Exit
FINW is trading near its 52-week low of $9.58 (15% above the low).
Summary
FinWise earned $10.0 million, or $0.73 per diluted share, in Q3 2026, including a $6.5 million one-time gain on the Tallied acquisition. Credit-enhanced loan balances nearly doubled to $146.2 million, driving net interest income to $41.9 million.
Key Events · Earnings and Guidance · FINW
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Q3 Net Income Rebounds to $10.0M
Diluted EPS was $0.73 versus $0.15 in Q2 2026 and $0.34 a year ago; net income was $10.0 million versus $2.1 million in Q2.
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$6.5M One-Time Tallied Gain Inflates Results
Results include a $6.5 million pre-tax bargain purchase gain from the July 20, 2026 Tallied Technologies acquisition, exempt from income tax because related deferred taxes were recorded in acquisition accounting. Excluding it, continuing-operations pre-tax income was $13.3 million.
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Credit-Enhanced Balances Nearly Double
Credit-enhanced loan balances reached $146.2 million from $74.2 million at June 30, 2026, pushing net interest income to $41.9 million and net interest margin to 19.58% from 13.83%.
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Credit Card Business Being Exited
The Board approved exiting the credit card receivable portfolio while retaining the Tallied technology platform; the business is now reported as discontinued operations with a $0.4 million quarterly loss, and a sale is expected by Q2 2027.
Analysis · FINW · Finance
Net income jumped to $10.0 million from $2.1 million last quarter, but $6.5 million of that is a one-time bargain purchase gain from the Tallied acquisition, so the underlying run-rate is closer to $3.5 million. The real operating story is credit-enhanced lending: balances nearly doubled to $146.2 million, lifting net interest income to $41.9 million and net interest margin to 19.58%. That model shifts credit losses to fintech partners, which is why the $46.7 million provision is offset dollar-for-dollar by $45.4 million of credit enhancement income — but it also concentrates counterparty risk in those partners' reserve accounts. Management is also exiting the credit card receivable business it just bought into, keeping only the technology, with a sale targeted by the second quarter of 2027.
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In the 30 days to Oct 29, 2026, 31.1% of the 1661 measured filings Wiseek scored 7 moved their stock by 5% or more by the next session's close. The median move was 0.00%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, FINW was trading at $10.98 on NASDAQ in the Finance sector, with a market capitalization of approximately $150.2M. The 52-week trading range was $9.58 to $19.86. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.