Medallion Financial Corp. Achieves Strong Q3 2025 Performance

Medallion Financial Corp. Financial Results Overview

Medallion Financial Corp. (NASDAQ: MFIN) is a versatile finance entity specializing in granting and managing consumer and commercial loans. The company recently revealed its financial achievements for the period ending September 30, 2025, showcasing significant growth and a positive outlook for the upcoming quarters.

Highlights from Q3 2025

During the third quarter of 2025, Medallion reported a net income of $7.8 million, translating to $0.32 per share. Notably, this figure included a one-time charge of $3.5 million related to the redemption of preferred stock, which, when excluded, results in a more favorable net income of $11.3 million. This is an increase from the previous year's Q3 income of $8.6 million or $0.37 per share.

Growth in Revenue

In terms of interest earnings, the net interest income for Q3 2025 rose by 6% to reach $55.7 million, compared to $52.7 million in the same quarter last year. The net interest margin on gross loans also improved to 8.21%, showcasing the company’s efficiency in managing its lending activities.

Record Loan Originations

The total loan originations surged to $427.4 million, up from $275.6 million in Q3 2024. This figure encompassed a remarkable $208.4 million from strategic partnership loans, a startling increase against the $39.9 million from the year before, underscoring Medallion's thriving relationships with fintech partners.

Portfolio Growth and Credit Performance

As of the end of September 2025, Medallion’s loan portfolio stood at a solid $2.56 billion, reflecting a 3% year-over-year increase from $2.485 billion. The company maintains a disciplined approach to credit risk as evidenced by a credit loss provision that decreased from $20.2 million in the previous year to $18.6 million.

Net Book Value and Dividends

Moreover, the company reported a net book value per share of $17.07, a significant increase of 9% compared to the previous year’s value of $15.70, indicating strong financial health. In terms of shareholder returns, Medallion declared a quarterly cash dividend of $0.12 per share, reinforcing its commitment to providing value to stockholders.

Executive Insights

Andrew Murstein, President and COO, commented on the results, highlighting the record achievements and the company's ongoing momentum across various lending avenues. He emphasized the diverse business lines contributing to the overall performance, particularly the rapid growth in strategic partnerships, which is a cornerstone for future expansion.

Expanding Strategic Partnership Programs

The strategic partnership loan program has shown exceptional scalability, contributing significantly to the company's growth strategy. With a total of $208 million in loan originations this quarter alone, the company is optimistic about its continued growth trajectory in this area.

Sector Performance Overview

The performance of various segments reveals encouraging trends: - The Recreation Lending segment achieved originations of $141.7 million. - Home Improvement loans accounted for $59.7 million in new originations. - Commercial Lending saw a steady $17.5 million in originations. These figures represent not only successful execution across different markets but also resilience in the face of economic fluctuations.

Tax Medallion Loans and Asset Recovery

Furthermore, Medallion collected considerable cash from taxi medallion-related assets this quarter, yielding net recoveries that substantially benefited the financial results. This diligence in asset management reinforces Medallion's commitment to maintaining a healthy balance sheet and maximizing returns for its shareholders.

Conclusion: A Positive Outlook Ahead

With a robust balance sheet and multiple avenues for revenue growth, Medallion Financial Corp. is well-positioned for the future. As it continues to strengthen its operations through innovation and strategic partnerships, Medallion remains committed to enhancing value for its investors.

Frequently Asked Questions

What were Medallion Financial Corp.'s net income results for Q3 2025?

Medallion Financial reported a net income of $7.8 million for Q3 2025, or $0.32 per share, which excluded a one-time charge related to preferred stock redemption.

How much did loan originations increase in Q3 2025?

The company saw loan originations grow to $427.4 million, significantly higher than the $275.6 million reported in Q3 2024.

What was the company's net book value per share?

The net book value per share reached $17.07 as of September 30, 2025, a 9% increase from a year earlier.

What is the strategic partnership loan program's growth?

Medallion's strategic partnership loan program originated $208 million this quarter, showing a remarkable increase from $39.9 million in the previous year.

How does Medallion's balance sheet look?

As of September 30, 2025, Medallion's total assets were $2.900 billion, up from $2.880 billion the previous year.

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