CARE earnings analysis
What we found in CARE's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Carter Bankshares reported a significant decline in Q1 2026, with revenue of $41.9 million, down from $63 million in Q1 2025, and a diluted EPS of $0.4 compared to $0.39 in the prior year. This performance was notably below consensus estimates, reflecting difficulties in achieving expected growth despite past successes. Management cited ongoing headwinds but did not provide numerical guidance for the future.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline
- Revenue decreased to $41.9 million from $63 million in Q1 2025, a 33.56% decline.
- Gross Margin
- Gross margin reduced to 45.6%, down from 58.9% in Q1 2025.
- Drop in EPS
- EPS fell to $0.4 compared to $0.39 in Q1 2025, a reduction of 2.56%.
- Cash Flow Impact
- Free cash flow decreased to $5 million, down from $8 million in the previous quarter.
- Market Risk Note
- Management indicated heightened sensitivity to ongoing market interest rate fluctuations.
- Lawsuit Risk
- Carter Bankshares is facing a lawsuit seeking over $500 million related to loan transactions, which could impact financial performance.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Earnings Miss
- Actual EPS of $0.4 fell short of estimates by 87.5%.
- Revenue Shortfall
- Actual revenue of $41.9 million was 65.25% below the estimated $120.6 million.
- Ongoing Litigation
- A lawsuit involving claims of $500 million against the company poses a significant legal risk.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.4
- Gross margin
- 45.6%
What they said about what is next.
No numeric forward guidance provided for future revenue or EPS.
The filing reads worse than the one before it.
What came before.
- 10-K · March 5, 2026
- Carter Bankshares ended 2025 with $4.9 billion in assets and a two-state, 64-branch footprint, completed a May 23, 2025 branch purchase that added $55.9 million of deposits, and elected to become a financial holding…
- 10-Q · August 4, 2025
- Carter Bankshares reported strong Q2 results driven by higher net interest income and lower provision expense. Revenue (net interest income + noninterest income) rose to $37,267,000 from $33,625,000 a year ago and…
- 10-Q · May 8, 2025
- Carter Bankshares reported Q1 2025 revenue of $37.039M and diluted EPS of $0.39, beating consensus and showing year-over-year improvement. Net income rose to $8.953M and loans and deposits increased, though cash…
- 10-K · March 7, 2025
- The 2024 10-K describes Carter Bankshares (CARE) as a $4.7 billion-asset regional bank (65 branches) shifting from balance-sheet restructuring toward a prudent growth strategy focused on organic loan/deposit growth, fee…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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