Regional banking company Flagstar Financial (NYSE: FLG) will be reporting results this Friday morning. Here’s what you need to know.
Flagstar Financial missed analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $496 million, down 26.1% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue and net interest income estimates.
Is Flagstar Financial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Flagstar Financial’s revenue to decline 17.1% year on year to $516.4 million, improving from the 40.2% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Flagstar Financial has missed Wall Street’s revenue estimates five times over the last two years.
Looking at Flagstar Financial’s peers in the thrifts & mortgage finance segment, some have already reported their Q3 results, giving us a hint as to what we can expect. PennyMac Financial Services delivered year-on-year revenue growth of 10.6%, beating analysts’ expectations by 9.9%, and PennyMac Mortgage Investment Trust reported revenues up 22.7%, topping estimates by 2.1%. PennyMac Financial Services traded up 7.2% following the results while PennyMac Mortgage Investment Trust was also up 8.4%.
Read our full analysis of PennyMac Financial Services’s results here and PennyMac Mortgage Investment Trust’s results here.
Questions about potential tariffs and corporate tax changes have caused much volatility in 2025. While some of the thrifts & mortgage finance stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.6% on average over the last month. Flagstar Financial is down 1.1% during the same time and is heading into earnings with an average analyst price target of $13.72 (compared to the current share price of $11.54).
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