Flagstar Q3 EPS of $0.01 Misses; 2027 Targets Pushed to 2028, Guidance Cut Sharply
FLG is trading near its 52-week low of $10.57 (5.5% above the low).
Summary
Flagstar earned $0.01 per diluted share in Q3 2026, missing the $0.08 consensus, and pushed its 2027 objectives to 2028 while cutting FY2026 adjusted EPS guidance to $0.10-$0.15 from $0.40-$0.50 as higher rates drove credit costs up.
Key Events · Earnings and Guidance · FLG
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Q3 EPS of $0.01 Misses Consensus
Net income attributable to common stockholders was $3 million, or $0.01 per diluted share, versus $0.06 in Q2 2026 and the $0.08 analyst estimate.
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2027 Objectives Pushed to 2028
Management said the full realization of long-term strategic objectives has shifted to 2028 from 2027 given the higher-for-longer rate environment.
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Guidance Cut Across the Board
FY2026 diluted adjusted EPS guidance fell to $0.10-$0.15 from a prior $0.40-$0.50, and FY2027 to $0.85-$0.95 from $1.60-$1.70; FY2026 net income guidance dropped to $85-$95 million from $225-$300 million.
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Credit Costs Jump on NYC Multi-Family
The provision for credit losses rose $58 million to $76 million, driven by higher rates including on the NYC rent-regulated multi-family portfolio; criticized/classified loans increased $670 million, or 6%.
Analysis · FLG · Finance
The $0.01 diluted EPS versus the $0.08 consensus is bad enough, but the guidance reset is the real story. Management pushed its 2027 financial objectives out to 2028 and cut FY2026 diluted adjusted EPS guidance to $0.10-$0.15 from a prior $0.40-$0.50, with FY2027 cut to $0.85-$0.95 from $1.60-$1.70. A higher-for-longer rate environment is driving credit costs: the provision for credit losses jumped $58 million to $76 million, driven by the New York City rent-regulated multi-family book, and criticized/classified loans rose $670 million, or 6%, sequentially. Offsetting that, net interest income rose 5% to $460 million, the margin expanded 4 basis points to 2.17%, C&I loans grew $2.0 billion (11%), and CET1 at 12.38% leaves $1.2 billion of excess capital. The franchise is still improving operationally; the payoff timeline just moved a year to the right.
How filings like this one have moved
In the 30 days to Oct 23, 2026, 36.8% of the 1044 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.77%. 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, FLG was trading at $11.15 on NYSE in the Finance sector, with a market capitalization of approximately $4.7B. The 52-week trading range was $10.57 to $15.44. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.