Medallion Financial Q1 profit drops as equity gains fall

Medallion Financial

29/04/2026 21:49

Overview

US specialty lender's Q1 net income and EPS fell sharply from prior year

Net interest income grew 5% year-over-year to $54.1 mln in Q1

Company raised quarterly dividend to $0.14 per share after quarter-end

Outlook

Company expects continued strong consumer demand for loan products and improved credit performance

Medallion says it is investing in technology and talent to support sustained loan origination growth

Company says its business model is designed to perform across cycles and provide resilience

Result Drivers

LOWER EQUITY GAINS - Net income declined mainly due to a $0.3 mln gain on equity investments versus $9.4 mln a year ago

LOAN ORIGINATION GROWTH - Loan originations rose 34% year-over-year, driven by strong demand in recreation and home improvement segments

CREDIT PERFORMANCE - Credit losses in recreation and home improvement segments declined, reflecting improved credit performance

Company press release: ID:nGNX5TnY8l

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
$0.20
Q1 Net Income
$5 mln
Q1 Net Interest Income
$54.10 mln
Q1 Dividend
$0.12
Q1 Net Interest Margin
8.00%


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for Medallion Financial Corp is $11.75, about 24.9% above its April 28 closing price of $9.41

The stock recently traded at 6 times the next 12-month earnings vs. a P/E of 6 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)