First Foundation Inc. (NYSE:FFWM) reported financial results for the fourth quarter of 2025 that fell significantly short of Wall Street's expectations, leading to a negative reaction in pre-market trading. The financial services company, which operates both banking and wealth management divisions, posted a loss for the quarter where analysts had anticipated a profit.
Earnings and Revenue Miss
The core figures from the report reveal a substantial deviation from consensus estimates.
- Earnings Per Share (EPS): The company reported a non-GAAP loss of $0.04 per share. This contrasted sharply with the analyst estimate for a profit of $0.0306 per share.
- Revenue: Quarterly revenue came in at $48.36 million, which was well below the estimated $62.56 million.
This dual miss on both the top and bottom lines represents a clear negative surprise for investors and analysts tracking the firm's performance.
Market Reaction
The immediate market response to the earnings release was punitive. In pre-market trading, shares of First Foundation were indicated down approximately 3.7%. This sell-off suggests investors are reassessing the company's near-term profitability and growth trajectory following the disappointing quarterly figures. The pre-market decline adds to a period of lackluster performance, with the stock down slightly over the past month.
Press Release Summary
The company's press release served primarily as an announcement that the detailed fourth quarter 2025 earnings report is available on its investor relations website. It did not provide specific financial highlights, management commentary, or a forward-looking outlook within the release text. The announcement reiterated First Foundation's business model, emphasizing its integrated platform of banking and wealth management services designed to combine comprehensive products with personalized client service.
Looking Ahead
With no formal guidance provided in the release, investor attention will likely turn to analyst models for future expectations. Current consensus estimates for the coming periods are already established.
- For the first quarter of 2026, analysts are forecasting revenue of approximately $63.38 million and EPS of $0.0357.
- For the full 2026 fiscal year, the sales estimate stands at around $273.56 million with a revenue estimate of $0.29172.
Management's upcoming commentary, typically provided in an earnings conference call, will be critical for understanding the drivers behind the Q4 miss and whether these challenges are expected to persist, potentially impacting these forward-looking estimates.
For a detailed breakdown of historical earnings, future estimates, and analyst revisions, readers can review the data on First Foundation's earnings and estimates page.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any security. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
