Triumph Financial, Inc. Q1 FY2026 earnings call

• Shift in tone from talking about product development to revenue and margin. • Factoring operating margin 80% better than a year ago, payments network growing rapidly. • Grew transportation revenue 23% last year, expect 20% growth this year. • Still investing in load pay and intelligence despite not being profitable yet. • Committed to vision despite freight recession challenges.

Factoring: Operating margin is 80% better than a year ago. Payments network: Growing rapidly and on its way to achieving a 50% EBITDA margin. Transportation: Grew transportation revenue over the last year by 23%, expect to grow at least 20% again this year. Bank segment: Yields impacted by rate environment and additional mortgage warehouse deposits.

• Expect to grow transportation revenue at least 20% this year. • Target 15% greater transportation revenue growth annually, which could generate about a dollar per share of earnings if operating income and corporate expense stay relatively flat. • ABL and liquid credit portfolios expected to be wound down within next 2-3 quarters, provision to grind lower.

• Uncertainty around Supreme Court case on broker liability which could inject volatility. • Impact of higher oil prices on demand if it slows down the overall economy. • Geopolitical risks that could affect the freight market.

Q: About the North Star commentary and earnings relation, A: Target 15% greater transportation revenue growth, which at current margins could generate about a dollar per share of earnings.

Q: About yields in segments, A: Bank segment yields impacted by rate environment and mortgage warehouse deposits; factoring and payment segments by mix shift and industry efficiency.

Q: About freight environment and pricing, A: Supply side driven, seeing structural change in trucking capacity, spot rate improving, but uncertain on oil price impact on demand.

Q: About Supreme Court case on broker liability, A: Uncertain, but government's licensing regulation and enforcement welcome, could create friction in business.

Q: About factoring invoice purchase volume and outlook, A: First quarter saw some client growth, pipeline solid, quarter over quarter increase expected.

Q: About payment side revenue per invoice and target, A: Price on per customer basis should be $1.25 for core service, audit adds about a dollar per invoice, pricing ramps about 3-4 quarters.

Q: About expenses, A: $80 million quarterly expenses aspirational, tech spend mostly in place, corporate expenses to grow at most inflation, operating businesses expenses to grow slower than revenue.

Q: About intelligence product demand and pricing, A: Demand strong, 50 net new logos in past two quarters, building density before increasing pricing.

Q: About ABL and liquid credit portfolios, A: Likely wound down within next 2-3 quarters, provision to grind lower