Live Oak Bancshares (NYSE:LOB) Q3 2025 Earnings: Revenue Beat Offsets EPS Miss

Live Oak Bancshares Inc (NYSE:LOB) announced its third-quarter 2025 financial results, delivering a performance that presented a mixed picture for investors. The company reported earnings that fell short of analyst expectations on a per-share basis while exceeding revenue forecasts, leading to a muted initial market reaction.

Earnings and Revenue Versus Estimates

The bank reported diluted earnings per share of $0.55 for the quarter, which came in below the analyst consensus estimate of $0.604. This miss on the bottom line was a key focal point following the release.

In contrast, the company's top-line performance was stronger. Live Oak posted total revenue of $146.1 million, surpassing the estimated $144.1 million. This revenue beat was driven by growth in the bank's core operations.

The market's reaction in after-hours trading appeared to balance these opposing results, with the stock price showing little immediate movement. This stability suggests investors are weighing the revenue strength against the earnings shortfall.

Quarterly Performance Highlights

The earnings release detailed several areas of operational strength that contributed to the period's results. The company demonstrated robust growth in its fundamental banking activities and strategic financial management.

• Loan and Deposit Growth: The quarter saw strong loan production of $1.65 billion, accompanied by significant deposit growth of $695.9 million.
• Net Interest Income: Net interest income increased 5.7% from the previous quarter and 19.1% year-over-year, with the net interest margin expanding to 3.33%.
• Asset Expansion: Total assets grew to $14.67 billion, a 6.0% increase from the second quarter and a 16.3% increase from the same period last year.
• Capital Raise: The company strengthened its capital position by raising $96.3 million through a preferred stock offering.
• Credit Costs: Provision expense for credit losses decreased to $22.2 million, reflecting a $12.3 million improvement compared to the third quarter of 2024.

Strategic Developments and Leadership Commentary

Beyond the quarterly numbers, Live Oak completed the sale of Apiture, Inc., subsequent to the quarter's end, resulting in an approximate pre-tax gain of $24.0 million. This divestiture represents a strategic move that provides additional capital flexibility.

Chairman and CEO James S. (Chip) Mahan III commented on the results, stating, "Live Oak’s third quarter results reflect the strength of our core banking operations and our continued commitment to serving small businesses across the country." He highlighted the company's position as the SBA's leading 7(a) lender by dollar amount and noted that the capital raise and Apiture sale "position Live Oak for continued growth and resilience as we enter the final stretch of 2025."

Looking Ahead

The press release did not provide specific quantitative forward-looking guidance that could be directly compared to analyst estimates for the fourth quarter or full year. For the next quarter, analysts are projecting revenue of $148.5 million with earnings per share of $0.81. For the full 2025 year, the consensus estimates stand at $579.6 million in revenue and $2.18 in earnings per share.

For a detailed view of historical earnings, future estimates, and analyst projections, review the LOB earnings and estimates data.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. The information presented should not be interpreted as a recommendation to buy or sell any security. Readers should conduct their own research and consult with a qualified financial advisor before making any investment decisions.