Flagstar Financial Inc (NYSE:FLG) Reports Mixed Q2 2025 Results: Revenue Beat but EPS Miss

Flagstar Financial Inc (NYSE:FLG) reported mixed second-quarter 2025 results, with revenue exceeding analyst expectations but earnings per share (EPS) falling short. The bank holding company posted revenue of $496 million, surpassing the consensus estimate of $449 million. However, its adjusted net loss attributable to common stockholders came in at $0.14 per diluted share, worse than the anticipated $0.1263 loss.

Key Financial Highlights

• Revenue Beat: Reported revenue of $496 million, up 10.4% from analyst estimates of $449 million.
• EPS Miss: Adjusted net loss of $0.14 per share, slightly worse than the expected $0.1263 loss.
• Pre-Market Reaction: Shares declined by approximately 0.41% in pre-market trading, suggesting investor disappointment despite the revenue beat.
• Recent Performance: The stock has gained 5.98% over the past week and 12.72% over the last month, indicating some positive sentiment ahead of earnings.

Press Release Takeaways

The earnings report highlighted improvements in asset quality and loan performance:

• Non-accrual loans decreased by 4% compared to Q1 2025.
• Criticized loans declined by $2.2 billion (15%) since December 31, 2024.
• Strong commercial & industrial (C&I) momentum, with new loan originations up 57% and new commitments rising 80% on a linked-quarter basis.

Market Reaction & Outlook

While the revenue beat is a positive signal, the deeper-than-expected net loss appears to be weighing on investor sentiment. The pre-market dip suggests that the market was anticipating better profitability, particularly given the recent upward momentum in the stock.

Looking ahead, analysts project a full-year 2025 EPS of -$0.31 and sales of $1.849 billion. For Q3 2025, estimates stand at a loss of $0.021 per share on revenue of $479.5 million. The absence of formal guidance from Flagstar in the press release leaves investors reliant on these forecasts.

For a deeper dive into Flagstar Financial’s earnings and analyst estimates, visit the earnings page.

Disclaimer: This article is not investment advice. Investors should conduct their own research before making any financial decisions.