The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Flagstar Financial (NYSE:FLG) and the rest of the thrifts & mortgage finance stocks fared in Q4.
Thrifts & Mortgage Finance institutions operate by accepting deposits and extending loans primarily for residential mortgages, earning revenue through interest rate spreads (difference between lending rates and borrowing costs) and origination fees. The industry benefits from demographic tailwinds as millennials enter prime homebuying age, technological advancements streamlining the loan approval process, and potential interest rate stabilization improving affordability. However, significant headwinds include net interest margin compression during rate volatility, increased competition from fintech disruptors offering digital-first experiences, mounting regulatory compliance costs, and potential housing market corrections that could impact loan portfolios and default rates.
The 13 thrifts & mortgage finance stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was 4% below.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 12.3% since the latest earnings results.
Tracing its roots back to 1859 and rebranded from New York Community Bancorp in 2024, Flagstar Financial (NYSE:FLG) is a bank holding company that offers commercial and consumer banking services, with specialties in multi-family lending, mortgage originations, and warehouse lending.
Flagstar Financial reported revenues of $548 million, down 3% year on year. This print exceeded analysts’ expectations by 3.2%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS and tangible book value per share estimates.
Commenting on the Bank’s fourth quarter and full-year ended 2025 performance, Chairman, President, and Chief Executive Officer, Joseph M. Otting stated, “We are extremely pleased with our performance in the fourth quarter of 2025. After two challenging years, I’m proud to share that during the fourth quarter, the Bank returned to profitability, as we reported net income attributable to common stockholders of $21 million or $0.05 per diluted share, and $30 million on an adjusted basis or $0.06 per diluted share.
Flagstar Financial Total Revenue
The stock is down 4.9% since reporting and currently trades at $12.88.
With roots dating back to 2003 and a focus on the stability of multifamily housing, Arbor Realty Trust (NYSE:ABR) is a specialized lender that provides financing solutions for multifamily and commercial real estate while also originating and servicing government-backed mortgage loans.
Arbor Realty Trust reported revenues of $133.4 million, down 12.1% year on year, outperforming analysts’ expectations by 10.3%. The business had a stunning quarter with a beat of analysts’ EPS and revenue estimates.
Arbor Realty Trust Total Revenue
The market seems content with the results as the stock is up 1.9% since reporting. It currently trades at $7.40.
Founded during the 2008 financial crisis when traditional lenders retreated from commercial real estate, Ladder Capital (NYSE:LADR) is a real estate investment trust that originates commercial real estate loans, owns commercial properties, and invests in real estate securities.
Ladder Capital reported revenues of $50.47 million, down 26.4% year on year, falling short of analysts’ expectations by 9.2%. It was a disappointing quarter as it posted a significant miss of analysts’ tangible book value per share and revenue estimates.
Ladder Capital delivered the slowest revenue growth in the group. As expected, the stock is down 10.7% since the results and currently trades at $9.88.
Founded in 1917 and rebranded from Washington Federal in 2023, WaFd (NASDAQ:WAFD) is a bank holding company that provides lending, deposit services, and insurance through its Washington Federal Bank subsidiary across eight western states.
WaFd Bank reported revenues of $188.3 million, up 7.6% year on year. This number lagged analysts’ expectations by 2.6%. It was a softer quarter as it also recorded a significant miss of analysts’ revenue and net interest income estimates.
The stock is down 7.9% since reporting and currently trades at $31.08.
Born in Detroit during the 1980s and evolving into a tech-driven financial powerhouse, Rocket Companies (NYSE:RKT) is a fintech company that provides digital mortgage lending, real estate services, and personal finance solutions through its technology platform.
Rocket Companies reported revenues of $2.44 billion, up 105% year on year. This print topped analysts’ expectations by 10.4%. It was a very strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
The stock is down 24.2% since reporting and currently trades at $13.47.
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