Executive Summary

Q2 2025 delivered a clean beat on EPS and revenue versus Wall Street consensus, aided by non-core USPS litigation recovery; diluted EPS was $0.15 vs consensus $0.048; total revenue was ~$108.1M vs consensus $105.1M. Management projects a more “core” expense run-rate beginning in Q3 *. Values retrieved from S&P Global.
Transportation businesses accelerated: Payments revenue +13.5% q/q with EBITDA margin at 13.9%, Factoring revenue +13.3% q/q with operating margin 48.5% (USPS added ~3.4 pts to revenue growth and ~24.7 pts to margin) .
Strategic catalysts: Greenscreens integration (Intelligence segment run-rate ~$9.7M annualized) and RXO going live on FaaS; LoadPay accounts reached 2,729 by July 14 and are targeted at 5,000–10,000 by YE25, creating multi-pronged monetization and network effects .
Credit quality improved materially (NPLs/loans down to 1.20%; classified assets -$58.2M), with USPS settlement removing $19.4M from nonaccruals; normalized net charge-offs were < $1M excluding USPS/PCD loan impacts .
Near-term stock narrative: evidence of monetization (repricing legacy Payments, FaaS scale, LoadPay adoption) and improving credit underpin estimate revisions; watch Q3 expense normalization (~$104M), Greenscreens amortization ($1.8M/quarter), and Payments margin trajectory .

What Went Well and What Went Wrong

What Went Well

Payments monetization and scale: Payments revenue rose 13.5% q/q to $17.23M; EBITDA margin improved to 13.9% with clear plans to bring legacy customers to standard pricing. “I expect EBITDA margin to continue to improve… My long-term goal is to get us above 40%.” (Ritterbusch) .
Factoring margin expansion and automation: Operating margin improved to 48.5%, supported by USPS settlement and instant decision model deployed across the portfolio (human-free purchasing decisions on specific invoices) .
Network engagement and product synergy: Network engagement reached 63% of brokered TL freight; Greenscreens adds $13.4B of transactional volume; Intelligence run-rate ~$9.7M annualized and early pipeline ACVs nearly doubled (from ~$37k to ~$80k) (Favier) .

What Went Wrong

Noisy quarter due to non-core items: USPS recoveries and various one-time expenses (Greenscreens transaction costs, HQ termination fees) created a ~$5.3M pre-tax boost but complicated the core earnings read-through .
Payments segment still negative operating income: Despite margin progress, Payments pre-tax operating income was -$0.654M; further repricing and scale are needed to reach long-term targets .
Expense run-rate remains elevated: Noninterest expense was ~$100.8M in Q2, with management signaling Q3 at ~ $104M including Greenscreens-related amortization—execution on flat-to-down expenses vs rising revenues is critical .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Net Interest Income ($USD Millions)	$87.92	$84.38	$88.68
Noninterest Income ($USD Millions)	$17.17	$17.19	$19.38
Revenue ($USD Millions)	$105.08 (calc from above)	$101.57 (calc from above)	$108.06 (calc from above)
Diluted EPS ($)	$0.08	$(0.03)	$0.15
Net Income to Common ($USD Millions)	$1.95	$(0.78)	$3.62
Net Interest Margin (%)	7.07%	6.49%	6.43%

Segment breakdown (selected)

Segment Metric	Q1 2025	Q2 2025
Banking: Net Interest Income ($M)	$52.02	$52.41
Banking: Noninterest Income ($M)	$7.00	$7.99
Banking: Operating Income ($M)	$27.58	$26.37
Factoring: Total Revenue ($M)	$35.96	$40.76
Factoring: Operating Income ($M)	$6.92	$19.75
Factoring: Operating Margin (%)	19.24%	48.46%
Payments: Total Revenue ($M)	$15.18	$17.23
Payments: EBITDA Margin (%)	(0.1)%	13.9%
Payments: Pre-tax Operating Income ($M)	$(2.99)	$(0.65)
Intelligence: Revenue ($M)	$0.40	$1.72
Intelligence: Operating Income ($M)	$(2.61)	$(5.99)

KPIs (Payments and Factoring)

KPI	Q2 2024	Q1 2025	Q2 2025
Payments: Invoice Volume (#)	6,062,779	7,182,044	8,500,565
Payments: Payment Volume ($)	$6,687,587,000	$8,777,825,000	$10,081,206,000
Payments: Fee Revenue ($)	$6,131,000	$6,903,000	$8,105,000
Payments: Total Revenue ($)	$13,862,000	$15,184,000	$17,231,000
Payments: Network Engagement (%)	46.6%	50.4%	63.3%
LoadPay Accounts (#)	—	778	2,367 (end Q2)
LoadPay Funding ($)	—	$4,986,000	$22,212,000
Payments: EBITDA Margin (%)	(10.4)%	(0.1)%	13.9%
Factoring: A/R Purchased ($)	$2,542,327,000	$2,707,805,000	$2,873,659,000
Factoring: Invoices Purchased (#)	1,432,366	1,497,644	1,697,851
Factoring: Yield on Avg Receivables (%)	14.14%	12.75%	13.40%
Factoring: Operating Margin (%)	12.48%	19.24%	48.46%
Avg Transportation Invoice Size ($)	$1,738	$1,769	$1,663

Notes on non-core items: USPS net impact $12.36M positive (interest/fees +$1.213M; legal expense recovery +$7.376M; ACL recovery +$3.773M); other non-recurring items net $(7.09)M; pre-tax operating income impact $5.27M .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Noninterest expense (Company)	Q3 2025	N/A	~$104M including Greenscreens opex and intangible amortization	New
Greenscreens intangible amortization ($)	Q3–Q4 2025	N/A	~$1.8M per quarter; ~69% Intelligence, ~31% Payments	New
LoadPay Accounts (#)	YE 2025	5,000–10,000 (reiterated from Q4’24)	5,000–10,000 reaffirmed	Maintained
Payments EBITDA margin target	Long-term	N/A	>40% (management goal)	New
Preferred dividend (TFINP)	Q2 2025	N/A	$0.44525 per depositary share; payable 6/30/25	Declared

Earnings Call Themes & Trends

Topic	Q4 2024 (Prev Mentions)	Q1 2025 (Prev Mentions)	Q2 2025 (Current Period)	Trend
Payments monetization	Market share >50%; EBITDA improvement focus	Plan to reprice legacy clients; revenue split back-half weighted	Fee % of payments up to 28.5%; EBITDA margin 13.9%; long-term >40% target	Improving
FaaS rollout	CHRW launch; scale expected in 2H’25	One customer live; RXO in back-half	RXO live July 21; pipeline building	Accelerating
LoadPay adoption	YE25 target 5–10k accounts	Early monetization; account seasoning matters	2,367 accounts at Q2-end; 2,729 by July 14; features/cards; targeting 5–10k YE	Accelerating
Intelligence (Greenscreens/ISO)	Introduced segment; client pull for neutral, precise data	Acquisition expected Q2 close; monetization in back half	Close completed; run-rate ~$9.7M; pipeline ACV rising; 2× model accuracy vs competitors (testing)	Improving
AI/automation	Touch-free processing concept; instant decision emerging	Instant decision ramp; efficiency gains	Instant decision active across portfolio; treasury integration hits 100% match for integrated debtors	Improving
Credit & macro (tariffs, recession risk)	Focus on portfolio seasoning; balance prudence and growth	Provision expected at low end of historical range; cautious on tariffs	NPLs down; classified assets down; normalized NCOs < $1M; vigilance on tariffs	Improving but watchful
Deposits mix	Drive market share; float usage	Discussed balance between warehouse and float	NIB growth mostly mortgage warehouse; ~half from Payments float	Stable

Management Commentary

“It was the textbook definition of a noisy quarter, but there were encouraging signals within the noise.” (Shareholder letter opening) .
“I expect EBITDA margin to continue to improve… My long-term goal is to get us above 40%.” (Payments) .
“Network engagement now totals 63% of all brokered freight… our transportation network engages with $70 billion of unique annualized volume.” .
“Instant decision uses our data extraction technology, risk models and machine learning to make purchasing decisions… without human intervention.” .
“We acquired Greenscreens.ai to change how freight industry participants approach pricing strategy… backed by the scale, quality and connectivity of data inside the Triumph Network.” .

Q&A Highlights

Greenscreens integration and revenue cadence: Intelligence run-rate ~~$10M with expense drag (~~$4M/quarter incl. amortization); pipeline ACVs rising to ~$80k, with broader distribution via Triumph’s broker network (Favier/Voss) .
Payments margin and repricing: Focused effort to reprice legacy clients based on demonstrable value, aiming for sustained EBITDA margin expansion to >40% (Ritterbusch) .
LoadPay monetization: Interchange ~1.9% in early days; account-level revenue scales with multiple cards per account and broader spend capture; YE25 target 5–10k accounts .
Credit normalization: Ex-USPS/PCD impacts, net charge-offs < $1M; provision expected at low end of historical range amid cautious macro (Graft/Ritterbusch) .
Supply chain finance: Viewed as a natural liquidity solution to improve broker cash flows and protect carriers; expected to expand alongside Payments/Audit .

Estimates Context

Metric	Q2 2024 Consensus	Q2 2024 Actual	Beat/Miss	Q1 2025 Consensus	Q1 2025 Actual	Beat/Miss	Q2 2025 Consensus	Q2 2025 Actual	Beat/Miss
EPS ($)	0.22*	0.08	Miss	0.042*	-0.03	Miss	0.048*	0.15	Beat
Revenue ($USD Millions)	104.08*	100.93	Miss	104.54*	100.24*	Miss	105.10*	108.76*	Beat

Values retrieved from S&P Global. Company revenue for table references is net interest income + noninterest income .

Implications: Street likely revises upward near-term EPS and revenue for Payments-led monetization and Intelligence integration, while recognizing Q2’s non-core USPS effects.

Key Takeaways for Investors

EPS and revenue beats were driven by both core growth (Payments, Factoring) and non-core USPS recoveries; expect cleaner expense/run-rate in Q3 around ~$104M .
Payments repricing and scale are the near-term driver; watch EBITDA margin progression toward management’s >40% long-term goal and continued fee penetration .
FaaS expansion (RXO live) and LoadPay adoption (2,729 accounts by mid-July; YE target 5–10k) are catalysts to deepen monetization across the network .
Intelligence (Greenscreens/ISO) is set to grow fastest over 2–3 years; early signs include ACV expansion and lane coverage/accuracy improvements; amortization ~$1.8M/quarter in H2 .
Credit quality improved materially; normalized NCOs < $1M; monitor tariff/recession risks but provision guidance indicates low end of historical range .
Focus on Payments fee revenue acceleration (bringing all customers to fair pricing), cross-sell Audit + Payments, and conversion of Greenscreens clients to network services .
Tactical trading: Positive estimate revisions and margin narrative may support near-term outperformance; watch Q3 print for expense normalization and continued Payments margin gains.

Triumph Financial, Inc. (TFIN)·Q2 2025 Earnings Summary