10-Q · May 8, 2026
Coastal Financial Corporation reported Q1 2026 revenue of $149.4 million with diluted EPS of $0.78. Revenue increased by 12.5% year-over-year, attributed to loan growth and BaaS program income. However, EPS fell short…
Earnings analysis · 10-Q
CCB earnings analysis
Filed August 7, 2026 · Our reading of the company's report
The latest report
Second-quarter revenue of $178.074 million was broadly flat sequentially and materially above the $150 million prior-year quarter, but diluted EPS deteriorated to a $2.76 loss from positive EPS of $0.78 in Q1 2026 and…
Read full summary
Second-quarter revenue of $178.074 million was broadly flat sequentially and materially above the $150 million prior-year quarter, but diluted EPS deteriorated to a $2.76 loss from positive EPS of $0.78 in Q1 2026 and $0.71 in Q2 2025. The filing describes an asset-sensitive balance sheet, with modeled net interest income downside of 13.7% under a 400-basis-point rate decline. No quantitative forward guidance was provided in the supplied 10-Q text, while stock-price volatility was added as a risk factor following recent results.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-2.76
What stood out
-
Revenue stable, EPS swung to loss
Second-quarter revenue was $178.074 million, up from $178 million in Q1 2026 and $150 million in Q2 2025. Diluted EPS was a loss of $2.76 versus $0.78 in Q1 2026 and $0.71 in Q2 2025, indicating a sharp earnings deterioration despite stable-to-higher revenue.
-
CCBX repricing remains substantial
The company reported that approximately 97% of CCBX loans and the majority of CCBX deposits fully reprice with market-rate changes, supporting balance-sheet flexibility as interest rates change.
-
Balance sheet remains asset sensitive
As of June 30, 2026, the static balance-sheet simulation projected net interest income changes of 6.0% under a +400-basis-point shock and (13.7%) under a -400-basis-point shock over 12 months.
-
Segment rate sensitivity differs
Management stated that the community-bank loan portfolio is only approximately 20%-25% adjustable rate, while the CCBX portfolio is predominantly adjustable rate; this creates different interest-rate sensitivities across the two businesses.
-
No reported control deficiencies
Disclosure controls and procedures were concluded effective, and management reported no changes during the six months ended June 30, 2026 that materially affected, or were reasonably likely to materially affect, internal control over financial reporting.
-
No share repurchases
The company did not repurchase any equity securities during the six months ended June 30, 2026 and has no authorized share-repurchase program.
What to watch
-
Downside from falling rates
A -400-basis-point rate shock is modeled to reduce 12-month net interest income by 13.7% on a static balance sheet as of June 30, 2026, versus a 12.8% reduction as of December 31, 2025.
-
Uncertain interest-rate path
The company states that future rate changes are uncertain and likely tied to inflation; the filing notes the Fed Funds target range had been reduced to a top end of 3.75% as of the filing date.
-
Newly emphasized stock volatility
The filing adds that the stock price declined significantly after results for the period ended June 30, 2026 and may remain volatile, with potential effects on equity compensation, employee retention, litigation exposure and impairment risk.
Management's outlook
No explicit quantitative revenue or EPS outlook was provided in the supplied 10-Q text; outlook appears deferred to the earnings release or call.
Earlier filings 4
10-K · February 27, 2026
Coastal Financial’s 2025 10-K shows continued balance-sheet scale and CCBX (BaaS) growth, with total assets of $4.74 billion and net interest income rising $37.0 million to $310.1 million. Profitability was roughly…
10-Q · August 8, 2025
Coastal Financial reported Q2 2025 diluted EPS of $0.71 and total operating revenue (net interest income + noninterest income) of $119,430,000. Revenue and noninterest income declined versus both the prior quarter and…
10-Q · May 9, 2025
Coastal Financial reported net income of $9.73M and diluted EPS of $0.63 for the quarter ended March 31, 2025, driven by higher net interest income of $76.06M and a lower provision for credit losses of $55.78M. Total…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.