Medallion Financial Q1 2026 Earnings Report

Medallion Financial EPS Results

• Actual EPS: $0.20
• Consensus EPS: $0.25
• Beat/Miss: Missed by -$0.05
• One Year Ago EPS: N/A

Medallion Financial Revenue Results

• Actual Revenue: $79.07 million
• Expected Revenue: $56.15 million
• Beat/Miss: Beat by +$22.92 million
• YoY Revenue Growth: N/A

Medallion Financial Announcement Details

• Quarter: Q1 2026
• Date: 4/29/2026
• Time: After Market Closes
• Conference Call Date: Thursday, April 30, 2026
• Conference Call Time: 9:00AM ET

Medallion Financial (NASDAQ:MFIN) Corporation is a specialty finance company that provides asset-based lending solutions to small and mid-sized businesses in the United States. The company’s core business activities include secured loans collateralized by business assets such as insurance premiums, commercial real estate, maritime assets and portfolio receivables. Through its insurance premium finance division, Medallion offers short-term loans that allow policyholders to spread insurance costs over multiple payments, while its portfolio financing arm provides funding against a borrower’s existing asset portfolios.

Founded in 1998 and headquartered in Minneapolis, Minnesota, Medallion Financial originally established itself in the taxi medallion lending market, extending loans secured by New York City cab medallions. Over time, the company diversified its book of business to include a broader range of asset classes and geographic markets across the U.S. This evolution has enabled Medallion to mitigate concentration risk and capitalize on financing niches underserved by traditional banks.

Under the leadership of President and Chief Executive Officer Christopher M. Steckler, Medallion Financial emphasizes disciplined underwriting and risk management. The company maintains a lean operating model, originating most loans directly through its in-house credit team. Medallion’s approach combines customized financing solutions with ongoing portfolio oversight, positioning it as a resource for businesses seeking flexible funding structures backed by tangible collateral.

Medallion Financial Q1 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Medallion reported one of its strongest origination quarters with $377 million in originations and a record loan portfolio of $2.62 billion, led by a 64% increase in recreational and 32% increase in home-improvement originations.
• Neutral Sentiment: Credit trends are improving — 90+ day delinquencies are low (recreational 0.57%, home improvement 0.17%) and net charge-offs moderated year-over-year, though allowances remain elevated (rec 5.19%, HI 2.49%).
• Neutral Sentiment: Net interest income grew 5% to $54.1 million and NIM ticked up to 8%, but GAAP net income declined to $5 million from $12 million a year earlier due to lower equity investment gains.
• Positive Sentiment: Management strengthened funding and shareholder returns — closed a $75 million notes offering led by JPMorgan and raised the next quarterly dividend to $0.14 per share — while investing in technology and adding staff to scale origination and strategic partnership programs.

Presentation

[Operator]

Greetings, and welcome to the Medallion Financial Corp. first quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce Val Ferraro of The Equity Group. Please go ahead.

[Val Ferraro, Associate at The Equity Group]

Thank you, and good morning. Welcome to Medallion Financial Corp.'s first quarter 2026 earnings call. Joining me today are Andrew Murstein, President and Chief Executive Officer, Anthony Cutrone, Executive Vice President and Chief Financial Officer, and Justin Haley, President of Medallion Bank.

[Val Ferraro, Associate at The Equity Group]

Certain statements made during the call today constitute forward-looking statements. Such forward-looking statements are subject to both known and unknown risks and uncertainties that could cause actual results to differ materially from such statements. Those risks and uncertainties are described in our earnings press release issued yesterday and in our filings with the SEC. The forward-looking statements made today are as of the date of this call, and we do not undertake any obligation to update these forward-looking statements. In addition to our earnings press release, you can find our first quarter supplement presentation on our website by visiting medallion.com and clicking Investor Relations.

[Val Ferraro, Associate at The Equity Group]

The presentation is near the top of the page. With that, I'll turn it over to Andrew.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

Thank you, and good morning, everyone. The first quarter of 2026 marked the continuation of solid performance across our core financial metrics and operating segments. Notably, we delivered one of our strongest loan volume quarters on record, reflecting exceptional demand for our products and the success of our loan origination growth efforts. Compared to the first quarter of 2025, we reported increases in net interest income, originations, and portfolio size, reflecting the strength of our platform and consistent execution across our business lines.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

Loan demand remained healthy, which allowed us to generate $377 million in origination volume for the quarter. Credit performance was solid, and total loans reached a record $2.62 billion. Our results demonstrate our ability to continue scaling the business profitably as we execute our strategy, which I will now walk through in further detail.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

I'll start with consumer lending, our largest and most profitable business, which continues to anchor our performance with interest income of $73.4 million for the quarter, up 4.5% compared to the same period of last year. Within the consumer lending segments, the rec loan book grew 8% to $1.67 billion on March 31, 2026, representing 64% of our total loans. Originations for the quarter grew 64% to $142.5 million compared to $86.8 million a year ago, and interest income rose 7% to $54 million. Delinquencies of 90+ days were just 0.57% of gross recreational loans, and the allowance for credit losses was 5.19% as compared to 5.0% a year ago.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

As a reminder, the allowance is forward-looking and designed to absorb all future expected losses. The home improvement loan book grew to $814.9 million at March 31, 2026, representing 31% of our total loans, and interest income was $19.4 million. Originations for the quarter grew 32% to $64.4 million versus $48.8 million last year. Delinquencies of 90+ days were just 0.17% of gross home improvement loans, and the allowance for credit losses was 2.49%, consistent with a year ago. Importantly, we are originating loans to individuals in these niches that have strong credit quality with average FICOs on new originations now at 687 for rec and 781 for home improvement. The vast majority of our book falls within the super prime to near prime part of the credit spectrum, and that concentration has improved over the years.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

Moving on to our commercial segment, though we did not have any new originations in the first quarter, the portfolio increased to $119.6 million from $116.1 million last year, with an average interest rate of 14.18% compared to 13.14% a year ago. Additionally, as of March 31st, we have more than two dozen equity investments with a book value of just $8.1 million on our balance sheet. These equity components are a result of our long-term strategic investments, and while the timing of exits is inherently unpredictable, we remain confident in our pipeline.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

During the quarter, gains from equity investments were just $0.3 million. Our strategic partnership program, which produces origination fees and approximately two to five days of interest before we sell the loans to the partner or the other third parties, had another good quarter with $170 million of originations. Total loans held as of quarter-end in the strategic partnership program were $10.8 million. Our partners today originated consumer loans, most of which are outside of the rec and home improvement loans we originate for our portfolio. Although this program represents a small part of fees and interest generated at Medallion Financial, it has produced approximately $1.2 million of revenue this quarter, representing a further diversification of our income sources. We continue to work on our growing pipeline of new partner prospects and expect to add new partners over time.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

Furthermore, we are taking a very methodical approach to growth to ensure we continue to do it in a way that keeps us safe and sound. From a capital allocation perspective, we remain committed to our shareholders. During the quarter, we paid a dividend of $0.12 per share and continue to prioritize organic growth and meaningful tangible shareholder return. Additionally, subsequent to quarter end, our board of directors approved a second quarter dividend of $0.14 per share, representing a 16.7% increase from last quarter and a 75% increase since we reinstated a dividend the first quarter of 2022. Looking ahead, I am confident in the strength of our platform and the opportunities in front of us. Our diversified and proven business model, experienced management team, and disciplined loan origination approach positions us well to continue generating consistent risk-adjusted returns.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

Our approach is increasingly analytical and data-driven, supported by digital tools that help optimize underwriting, origination, servicing, and overall portfolio visibility. Our investments in technology over the years, from a full migration to the cloud to business process automation work, a new loan servicing system, and tighter integrations with our sources of loan volume are generating meaningful value today. The evolution of our advanced technical and analytical capabilities will allow us to grow the business while assessing risk with greater precision than ever, which will help us maintain consistently strong performance across operating environments. Additionally, as announced this week, we are pleased to have closed a $75 million notes offering led by JPMorgan Investment Management, strengthening our funding partnerships and positioning us well for continued growth. I also wanted to briefly touch on our SBIC program.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

We remain committed to our long-term standing relationship with the SBA and have submitted two qualified management candidates for approval by the SBA. More broadly, we have deep confidence in the abilities of our management team. With that, I'll now turn it over to Anthony, who will provide some additional insight into our quarter.

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

Thank you, Andrew. Good morning, everyone. For the first quarter, net interest income grew 5% to $54.1 million from $51.4 million a year ago. Our net interest margin was 8% during the quarter, up 6 basis points from a year ago. Our total interest yields for the quarter increased 5 basis points from a year ago to 11.7%, with our average cost of borrowings in the quarter being 4.28% compared to 4.16% a year ago. During the quarter, our average cost of deposits at Medallion Bank was 3.95% compared to 3.80% in the prior year quarter. As of March 31st, the weighted average coupon of recreation loans was 15.11% and was 9.82% for home improvement loans.

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

During the quarter, we originated loans at rates averaging around 14.75% for recreation loans and 10% for home improvement loans. Currently, in April, we have originated recreation loans at similar rates and home improvement loans at rates of approximately 9.5%. Our total loan portfolio reached $2.62 billion at March 31st, up 5% from a year ago. Total loans included $1.6 billion of recreation loans, $815 million of home improvement loans, and $120 million of commercial loans. For the quarter, the average yield on our total loan portfolio increased to 12.15% from 12.04% a year ago.

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

Our provision for credit losses was $22.5 million for the quarter, a decrease from $27.7 million in the fourth quarter and a slight increase from $22 million in the prior year quarter. Net charge-offs in the recreation portfolio during the quarter were $17.7 million or 4.38% compared to 4.67% in the 2025 quarter and were $2.9 million or 1.44% of the average home improvement portfolio compared to 1.55% in the 2025 quarter. Turning to expenses, operating costs totaled $22.4 million during the quarter, up from $20.8 million in the prior year quarter.

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

The increase over the prior year was largely due to higher employee costs as well as higher loan servicing and collection expenses, all of which are associated with our growing loan portfolio. As we continue to expand our platforms, grow our business, and look to becoming a sizably larger enterprise over the next several years, we anticipate higher operating costs. As we've stated previously, we expect in the long term our net interest income to outpace any growth we experience in operating costs in the near term. For the quarter, net income attributable to our shareholders was $5 million or $0.20 per diluted share. Compared to $12 million or $0.50 per share in the prior year quarter, with that prior year quarter including $9.1 million of higher equity gains compared to the current.

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

As mentioned in the past, gains from equity investments in the commercial portfolio do not adhere to any specific trend and may fluctuate from quarter to quarter. Our net book value per share as of March 31st was $17.10, up from $16.36 a year ago. Our adjusted tangible book value per share, which excludes the value of goodwill, intangible assets, and the deferred tax liability associated with both, was $11.83 at the end of the quarter, up from $10.90 a year ago. That covers our first quarter results. Andrew and I are now happy to take your questions.

[Operator]

Thank you. We will now be conducting a question and answer session. If you like to ask a question, please press star one on your telephone keypad. The confirmation tone will indicate your line is in the question queue. You may press star two to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star key. One moment please while we poll for questions.

[Operator]

Our first question is from Mike Grondahl with Northland Securities.

[Mike Grondahl, Analyst at Northland Securities]

Hey, guys. Thank you. Andrew, in the press release, it talks about significant technology change and adding talented people. I know on the year-end call you talked a little bit about some of the investments you were gonna be making. Any way to kind of quantify the investment in 1Q, what you think it's gonna be for 2026, and kind of specifically where you're spending the money?

[Andrew Murstein, President and CEO at Medallion Financial Corp]

Good morning, Mike. Talking about talented people, we have, our new President of Medallion Bank, Justin Haley, on the call, and, that's right in his wheelhouse. Justin, why don't you jump in and answer that, please?

[Justin Haley, President at Medallion Bank]

Hi, Mike. It's nice to meet you.

[Mike Grondahl, Analyst at Northland Securities]

Howdy, Justin.

[Justin Haley, President at Medallion Bank]

Yeah. Our tech investment has been going on for several years. We have a pretty consistent run rate. We're an agile shop, we really are focused on incremental improvement over time. You don't see anything in Q1 that's significant, you should expect to see generally increasing technology investment marginally over where we are today. The last significant capital improvement was in Q4 of 2024 when we launched our loan origination system. The next one that we have on the docket is likely in the first half of 2027 as we focus on our loan origination. Our I'm sorry, I think I said loan origination system first, it should be second. As far as talent goes, we had a press release earlier in the year. We hired a new SVP of sales and marketing.

[Justin Haley, President at Medallion Bank]

He comes from a bank that has deep experience in home improvement. We're expecting growth there. We've hired a new VP of marketing. We've hired a new VP of credit. We're adding talent into our technology operations and our lending operations teams. This is all to support growth. You saw some increase in salaries and benefits as a result. I would expect to see similar growth in that over time. We could grow our head count at the bank by 30 to 40 this year as we scale up.

[Mike Grondahl, Analyst at Northland Securities]

Got it. You said 30 to 40 people over the course of the year, Justin?

[Justin Haley, President at Medallion Bank]

Yes.

[Mike Grondahl, Analyst at Northland Securities]

Got it.

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

Yeah. Just to put that into context, you know, head count increased just at the Bank by 10 people in Q1. I mean, we're right on track to hit those levels.

[Mike Grondahl, Analyst at Northland Securities]

Got it. Anthony, maybe one for you. Just at a high level, how are you thinking about credit quality, you know, the rec, the home improvement book? How are things kinda trending?

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

I think, you know, home improvement, I think we're comfortable where credit is right now. On the rec side, we definitely see it improving, and it's a decent start to the year. I mean, year-over-year, charge-offs in home improvement are down 11 basis points. On the rec, they're down even larger than that, when we look at Q1 of 2025. I think, you know, we know there's still a ways to go with rec. It's still higher than, you know, historically we'd like, you know, it's been and where we'd like to see it. But we've made some changes in terms of pricing. Not necessarily credit, but we're, you know, wanna make sure that we're not pricing ourselves out. This, you know, this business historically for us, we're a second-look lender.

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

We wanna make sure that we stay a second-look lender and that we're not falling, you know, towards the bottom of the stack. We've brought our new origination prices in line with where competition is, and we think over time that'll improve, you know, the credit and give us a better credit-adjusted yield on this portfolio.

[Mike Grondahl, Analyst at Northland Securities]

Got it. Just lastly, how should we think about higher oil prices and, you know, kinda your credit outlook, you know, especially on the rec side? Does it matter?

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

I think it matters to some extent. You know, again, you know, with the type of recreational vehicles we're financing, these aren't huge cabin cruisers in the, you know, that are, you know, trolling the seas. These are smaller boats, so the gas impact isn't as significant as those larger ticket items. You know, there's an impact to Our borrower, you know, definitely at the lower end of the borrower spectrum, there's probably more tightness. That's not our borrower per se. You know, we've spoken about, you know, the composition of our borrower in the past. You know, these are individuals that, you know, have, you know, W-2 wages, you know, approaching, if not exceeding six figures.

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

You know, it's something that we're cognizant of, but we haven't seen any major impact. I mean, if things change sizably, obviously, you know, I think all lenders like us will be impacted.

[Mike Grondahl, Analyst at Northland Securities]

Fair. Okay. Hey, thank you, guys.

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

Thanks, Mike.

[Operator]

Thank you. Our next question is from Christopher Nolan with Ladenburg Thalmann.

[Christopher Nolan, Analyst at Ladenburg Thalmann]

Hey, Anthony. On tangible book value you gave, does that include all goodwill and tangible assets?

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

Yeah.

[Christopher Nolan, Analyst at Ladenburg Thalmann]

Excludes, I should say.

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

Yeah, it excludes the all goodwill, all intangible assets, and then we add back that approximate $42 million of deferred tax liability.

[Christopher Nolan, Analyst at Ladenburg Thalmann]

The tax rate, should we expect it to go back to the low 30s or so?

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

Yeah. I think it's a little high this quarter, and that's just a function of, you know, it's Q1. A lot of the non-deductible expenses get, you know, factored in, you know, Q1. As you know, pre-tax income increases, we would expect that to settle in the lower 30s.

[Christopher Nolan, Analyst at Ladenburg Thalmann]

Got it. Justin, are a lot of the tech investments you're making, are they gonna be services where you're basically integrating in, API and application program interface? Are you buying boxes and hiring coders?

[Justin Haley, President at Medallion Bank]

We have a team of software engineers. We are focused on offering greater services to our clients. It is that API integration. It's also more tools at the point of sale, and then investments in-house that'll streamline the operation as it scales up.

[Christopher Nolan, Analyst at Ladenburg Thalmann]

What does this mean for working with your strategic partners? Does this suddenly mean that you'll have the ability to scale in terms of those loans that you take in and sell or not really?

[Justin Haley, President at Medallion Bank]

It'll definitely help. Yeah, as we add partners that have greater volume. We need those kinds of tools to allow us to process that volume. What we do in the strategic partnership business is we provide compliance services and oversight of their platforms. We can do that at greater scale with these kinds of investments.

[Christopher Nolan, Analyst at Ladenburg Thalmann]

Okay. This is a question you may not wanna answer, but what's the ROI you expect on these investments?

[Justin Haley, President at Medallion Bank]

Let's, let's say that we anticipate providing the returns over time that we're used to providing. We'll bake it into the overall model.

[Christopher Nolan, Analyst at Ladenburg Thalmann]

That doesn't help the cause. Okay, great. Andrew, the $8 million in equity investments that you mentioned, thank you, what's the fair value on that, please?

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

We don't, we don't record it at fair value. Again, you know, it's hard to say because, you know, we account for these at cost less impairment. Some of them have values in excess of where we're carrying them. These are small business concerns overwhelmingly, so, you know, they're not in public securities that trade. It's, it's hard to say, and that's why, you know, we don't disclose that. You know, we recognize the income when there's an exit.

[Christopher Nolan, Analyst at Ladenburg Thalmann]

Well, you guys have not been.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

No, I'll.

[Christopher Nolan, Analyst at Ladenburg Thalmann]

You guys have not been sporting today.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

I'll give you a little more color. It's always the same way. The CFO is very black and white. Just to add some color to it, we're getting a lot of great looks at fintech companies. One, excuse me, which we did not invest in was a company called Kashable, but they're one of our biggest strategic partners, as we've said before, and they just got a $30 million-$50 million investment in this week by Goldman Sachs. That's gonna probably pick up their loan volumes substantially, which will help our SP business continue to grow. In the past, we were in the first round of a company called Upgrade, which was Renaud Laplanche's company. We had a small investment there, but that went up, actually about 100-fold.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

We still own a little piece of that there. I think we got in at $0.10 a share and got out at most of our positions about $10 a share. The Strategic Partnership does a lot for us. In addition to just nice fee income business, it lets us get these early looks at fintech companies.

[Christopher Nolan, Analyst at Ladenburg Thalmann]

Now, that's a spicy answer. Thank you very much. Good stuff. I guess as a final question, and just general. You know, it sounds like between the tech investments and you guys talking up the strategic partnerships, it sounds like the company is drifting more and more towards those type of loans and less towards its traditional bread and butter, you know, RV and home improvement and all that stuff. Is that a fair characterization?

[Andrew Murstein, President and CEO at Medallion Financial Corp]

I don't think so, honestly. I think the, you know, the, those businesses, the RV, marine, and home improvement are just tremendous cash flow businesses. They let us take looks at other lines of business, which are still small, but there's just so much growth in the existing lines that we continue to go after. We did that $75 million debt deal this week. It was nice to be able to bring in such a prestigious name as JPMorgan. You know, we've never really reached those levels as a company before. That had an investment-grade rating. That's gonna give us a lot of dry powder just to continue to block and tackle in our existing lines of business.

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

Yeah. What I'll add to that is, you know, looking ahead, you know, in the coming years, you know, we're expecting growth, asset growth, loan growth, you know, around 10%. You know, 2025, we only grew at 3. I think much of that is gonna come in our traditional lines, the consumer loans.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

You have a very hungry group between the three of us on the phone today, and a lot of experience too. The three of our goals are to take the company from $3 billion in assets to $5 billion in assets in the next five years. I think we can accomplish that.

[Christopher Nolan, Analyst at Ladenburg Thalmann]

Well, between your good looks and Anthony's great haircut, I'm sure that helped charm JPMorgan. Okay.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

That helps. Okay.

[Anthony Cutrone, EVP and CFO at Medallion Financial Corp]

Thanks, Chris.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

That plus the numbers. The numbers help as well.

[Operator]

Thank you. There are no further questions at this time. I'd like to hand the floor back over to Andrew Murstein for any closing remarks.

[Andrew Murstein, President and CEO at Medallion Financial Corp]

Thank you. Before closing the call, I'd just like to reinforce our commitment to delivering strong risk-adjusted returns to our shareholders. We remain confident in the strength of our loan book and our ability to execute on the opportunities ahead. We look forward to updating you on our progress next quarter, and I hope you have a great rest of your day. Thank you.

[Operator]

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participating.

Participants

Executives

• Andrew Murstein, President and CEO
• Anthony Cutrone, EVP and CFO

Analysts

• Christopher Nolan, Analyst at Ladenburg Thalmann
• Justin Haley, President at Medallion Bank
• Mike Grondahl, Analyst at Northland Securities
• Val Ferraro, Associate at The Equity Group