Triumph Financial (TFIN) investor relations material

Executive summary

• Achieved progress on stated goals, including revenue growth and lean operations, with several non-recurring items positively impacting results in the quarter.

• Focus remains on strengthening the payments network, driving efficiency, and maintaining a strong balance sheet to support long-term growth.

• Welcomed J.B. Hunt to the payments network, now serving 8 of the 10 largest freight logistics companies.

Financial highlights

• Core payments business reported a 29.5% EBITDA margin in Q4, with expectations to exceed 30% in Q1 and trend toward 50% long-term.

• Factoring segment achieved a pre-tax margin of 33% in Q4, up significantly year-over-year, driven by automation and headcount reduction.

• LoadPay exited the quarter with $1.5 million annualized revenue, with guidance to triple this in 2026.

• 35% of payments in Q4 were monetized with a fee, up from 31% in the prior quarter; this rose to 38% in December.

• Realized $6 million in annual savings from the sale of a building and airplane, now included in the expense run rate.

• Negative credit loss expense in the quarter due to higher recoveries than new provisions or charge-offs.

Outlook and guidance

• Core payments business expected to maintain or exceed a 30% EBITDA margin in 2026, with a long-term goal of 50% or greater.

• LoadPay revenue projected to triple in 2026, driven by both account growth (7,000–12,000 new accounts) and increased revenue per account.

• Factoring margins expected to continue expanding through 2026 and 2027, targeting over 40% long-term.

• Payments revenue growth for 2026 guided at 25%, with J.B. Hunt's contribution already embedded in the outlook.

• Assumes a flat freight market for 2026, with organic growth in factoring and payments segments.