Medallion Financial Corp (MFIN)
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On paper Medallion Financial looks like a bargain: the market capitalization equals 1.7 times operating cash flow and 57 percent of book value. Except that at a lender this number measures the interest margin before the losses are paid — and the losses are the real story here: a $89.8 million credit loss provision in 2025 against $37.8 million in 2023. Add a corporate history with edges: the taxi lending business that gave the company its name accounts for less than 0.2 percent of the balance sheet, and in 2025 the U.S. securities regulator closed a case against the company and the man who is now its chief executive. Not a recommendation — just the question of what is left of an interest margin once the losses are paid.
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Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Dividend
Quality & Screener
AI Rating
NeutralMedallion Financial nennt KI im Geschäftsbericht 2025 ausschließlich in den Risikohinweisen und stellt dort ausdrücklich fest, derzeit in keinem kritischen Geschäftsbereich KI-Werkzeuge oder -Modelle einzusetzen. Im Quartalsbericht zum 31.03.2026 kommt das Thema gar nicht vor. Kein KI-Produkt, kein KI-Umsatz, kein belegter interner Einsatz.
View the full file — quotes, sources, reviewed filings
„Although we currently do not use any AI tools or models in critical areas of our business, and are not aware of any third-parties that use AI tools or models in a manner that would materially affect our business, the rapidly expanding development and use of AI present a number of risks and challenges to our business."
Obwohl wir derzeit in kritischen Bereichen unseres Geschäfts keine KI-Werkzeuge oder -Modelle einsetzen und uns keine Dritten bekannt sind, die KI-Werkzeuge oder -Modelle in einer Weise nutzen, die unser Geschäft wesentlich beeinflussen würde, bringen die rasch zunehmende Entwicklung und Nutzung von KI eine Reihe von Risiken und Herausforderungen für unser Geschäft mit sich.
„The financial services industry is continually undergoing rapid technological change with frequent introductions of new, technology-driven products and services, including with the proliferation and increasing use of artificial intelligence, or AI."
Die Finanzdienstleistungsbranche unterliegt fortwährend raschem technologischem Wandel mit häufigen Einführungen neuer, technologiegetriebener Produkte und Dienstleistungen, einschließlich der Verbreitung und zunehmenden Nutzung künstlicher Intelligenz (KI).
Filings Reviewed: 10-Q 2026-05-05 · 10-K 2026-03-10 · 10-Q 2025-11-04 · 10-Q 2025-08-05 · 10-Q 2025-05-06 · 10-K 2025-03-13
Rated on July 27, 2026 · How the Rating Is Built
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 0.44 | -29.20 | 83 | 22.00 | 12.20 | 28 | 28 |
| 2025: Q1 | 0.52 | 19.90 | 83 | 18.10 | 14.50 | 36 | 36 |
| 2025: Q2 | 0.48 | 55.90 | 82 | 21.60 | 13.50 | -11 | -11 |
| 2025: Q3 | 0.49 | 31.00 | 79 | 9.30 | 14.20 | 67 | 67 |
| 2025: Q4 | 0.53 | 20.30 | 96 | 15.10 | 12.70 | 34 | 34 |
| 2026: Q1 | 0.21 | -58.80 | 82 | -1.40 | 6.10 | 41 | 41 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
The interest margin is exceptional and stable: a 12.26 percent loan yield against 4.22 percent funding costs produced a net interest margin of 8.06 percent in 2025, after 8.05 percent the year before. Net interest income rose from $188.1 million (2023) through $202.5 million (2024) to $216.9 million, and gained a further 5.1 percent to $54.1 million in the first quarter of 2026.
The credit loss provision rose 138 percent in three years to $89.8 million — 41.4 percent of net interest income, against 20.1 percent in 2023. What remains after the deduction fell from $150.3 million to $127.1 million. Actual net charge-offs in 2025 were $72.4 million. On the other side: loans more than 90 days past due fell to 0.8 percent of the book.
Solid for a lender: $408.1 million of shareholders' equity against $2,950.5 million of total assets (13.8 percent, or 17.2 percent including the bank subsidiary's preferred stock), an allowance equal to 4.48 percent of the loan book, 281 percent allowance coverage of nonaccrual loans, and funding drawn mainly from its own deposits ($2,128.6 million).
The SEC case against the company and its President and Chief Operating Officer ended on May 30, 2025 with a final judgment, injunctions and a $3,000,000 civil penalty — without admitting or denying the allegations. The same executive, Andrew M. Murstein, runs the company today as chief executive. At the annual meeting of June 9, 2026, the third consecutive proxy contest, 4,596,312 votes were withheld from the executive chairman.
The dividend has risen every year since 2022, most recently to $10.972 million at a payout ratio of roughly a third. Against that sits a shelf registration effective July 1, 2026 for up to $100 million — 43 percent of the market capitalization, at a price equal to 57 percent of book value. In addition, the bank subsidiary's preferred stock costs 9.00 percent; the minority interest in profit rose to $8.782 million in 2025.
Roughly $0.8 million of daily turnover and only two covering analysts make the name hard to trade. On top of that: the market capitalization in our data set rests on 23.1 million shares while the quarterly report states 23,849,967 — every valuation figure in this analysis is therefore computed by us. The Altman Z-score and the Piotroski score carry no meaning on a bank balance sheet.
Medallion Financial is no longer the company its name claims. The taxi business accounts for less than 0.2 percent of the balance sheet and has been written down by a cumulative $171.1 million; the money today comes from motorhome, boat and home improvement loans made through its own bank, at a net interest margin of 8.06 percent and an equity ratio of 13.8 percent. The hook for this analysis does not hold, however: a market capitalization at 1.73 times operating cash flow measures, at a lender, the interest margin before the losses are paid — and the credit provision rose from $37.8 million (2023) to $89.8 million (2025), so that less is left after the deduction today than three years ago. What the market is pricing with a 43 percent discount to book value is exactly that mixture: a solid balance sheet, rising losses, a closed regulatory case against the man who is now chief executive, and a very thin market. Not investment advice.
- Medallion Financial reached our research list through our in-house stock scanner "Price to Free Cash Flow Ranking" (U.S. selection, as of July 27, 2026, 545 hits). The name appears there at a multiple of 1.73, in position 31 — only the 25 strongest names are displayed, so Medallion sits just outside the visible list. For context on the distribution: 18 names trade below a multiple of 1, another 19 between 1 and 2, 27 between 2 and 3, and 385 of the 545 hits above 5. The lists are recalculated daily. This analysis argues explicitly against its own hook: at a lender that number measures the interest margin before losses.
- Metric caveat: the Altman Z-score (−0.76 in our data set) is deliberately not used here — the formula was developed for manufacturers and inevitably reads the normal structure of a bank balance sheet as distress. The meaningful figures are the equity ratio (13.8 percent), the allowance ratio (4.48 percent), loans more than 90 days past due (0.8 percent), allowance coverage (281 percent) and the net interest margin (8.06 percent). For the same reason the Piotroski score (6 of 9 in our data set) is left out. Market capitalization is computed by us: 23,849,967 shares per the cover page of the quarterly report of May 4, 2026, against 23.1 million in the data set.
- Timing: the most recent periodic report is the quarterly report (10-Q) as of March 31, 2026, filed May 5, 2026. Several filings followed through July 27, 2026: the cure of an SBA event of default at the subsidiary Medallion Capital (June 3 and June 11), the annual meeting of June 9, a leadership change at Medallion Bank (June 11 and June 25) and a shelf registration for up to $100 million that became effective on July 1, 2026. Do not confuse the securities: MBNKO and MBNKP are preferred shares of the subsidiary Medallion Bank, not the company's common stock; MFIN traded under the ticker TAXI until 2016.
About the Company
Medallion Financial Corp. ist zusammen mit seinen Tochtergesellschaften ein Spezialfinanzierer in den USA.
| Employees | 179 |
|---|---|
| Headquarters | New York, NY |
| Website | medallion.com |
| IPO Date | 23. May 1996 |
| Next Earnings | 29. Jul 2026 |
Management
| Name | Title | Birth Year |
|---|---|---|
| Alvin Murstein | Executive Chairman | 1935 |
| Andrew M. Murstein | CEO, President, COO & Non-Independent Director | 1964 |
| Anthony N. Cutrone | Executive VP & CFO | 1980 |
| Donald S. Poulton | Chief Executive Officer of Medallion Bank | 1953 |
| David Justin Haley | President of Medallion Bank | 1974 |
| Marisa T. Silverman J.D. | Executive VP, General Counsel & Secretary, | 1979 |
| Samantha K. Rozovsky | Chief Compliance Officer, Associate General Counsel & Assistant Secretary | 1989 |
| Joel R. Cannon | Senior Vice President of Sales & Marketing | 1979 |
| Thomas J. Munson | Executive VP & Chief Credit Officer | 1983 |
| Steven M. Hannay | Executive VP & Chief Lending Officer of Medallion Bank. | 1967 |
Executives per the latest required filings; titles kept in their original language. Source: fundamental data.
Chart
Interactive price chart (TradingView).
Data as of: July 24, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.