2025 Fourth Quarter Highlights
Total net income attributable to stockholders for the fourth quarter was $12.2 million, or $0.50 per share, up 20% compared to $10.1 million, or $0.43 per share in the prior year quarter.
Net interest income grew 8% to $56.4 million from $52.0 million in the prior year quarter.
Net interest margin on gross loans was 8.04%, compared to 7.84% in the prior year quarter, and net interest margin on net loans was 8.39%, compared to 8.15% in the prior year quarter.
Loan originations grew to $421.3 million, compared to $285.7 million in the prior year quarter, and included $258.3 million of strategic partnership loan originations in the current quarter, compared to $123.7 million in the prior year quarter.
Credit loss provision was $27.7 million, compared to $20.6 million in the prior year quarter.
The Company declared and paid a quarterly cash dividend of $0.12 per share.
2025 Full-Year Highlights
Total net income attributable to stockholders for 2025 was $43.0 million, or $1.78 per share, up 20% compared to $35.9 million, or $1.52 per share, in the prior year.
Net interest income grew 7% to $216.9 million from $202.5 million in the prior year.
Net interest margin on gross loans was 8.06%, compared to 8.05% in the prior year, and net interest margin on net loans was 8.40%, compared to 8.35% in the prior year.
Loan originations grew to $1.505 billion, compared to $1.043 billion in the prior year, and included $771.6 million of strategic partnership loan originations in the current year, compared to $203.6 million in the prior year.
The loan portfolio, including loans held for sale, as of December 31, 2025 was $2.567 billion, up 3% from $2.491 billion a year ago.
Credit loss provision was $89.8 million, compared to $76.5 million in the prior year.
The Company repurchased 108,351 shares of common stock at an average cost of $9.10 per share in the year, for a total of $1.0 million.
Net book value per share at the end of 2025 was $17.53 per share, up 10% from $16.00 a year ago.
Executive Commentary
Andrew Murstein, President and Chief Executive Officer of Medallion Financial Corp. commented, "2025 marked a record year for Medallion, with solid performance across our core financial metrics and operating segments. We delivered increases in net interest income, net income, originations, and portfolio size on both a quarterly and full-year basis, reflecting the strength of our platform and consistent execution across our business lines. Demand remained healthy, credit performance was solid, and our results demonstrate our ability to continue scaling the business profitably while maintaining discipline.
These results reflect a focused operating approach and our ongoing commitment to prudent growth across the platform. We continue to prioritize a disciplined origination strategy, prudent balance sheet management, and effective capital deployment while expanding our portfolio.
Ending the year with positive momentum, we believe we are well-positioned to build on this performance and continue delivering consistent, favorable risk-adjusted returns for our shareholders."
2026 Strategy
Andrew Murstein continued by stating, "As I step into the role of Chief Executive Officer, our focus for 2026 is to build upon the strong foundation established over the past 30+ years, while further refining our strategic priorities.
We aim to continue to grow our core business lines by targeting sustained growth in our recreation segment. In addition, we believe there is significant growth potential within our home improvement line. As a result, in recent months, we added experienced talent to support increased growth and originations in this line, with the goal of continuing to expand the portfolio.
Our commercial lending segment remains a strong contributor to earnings, with the average interest rates increasing to 14.22% this year.
At the same time, our strategic partnership program continues to be a rapidly growing component of our business. While per-loan origination fees and interest income associated with this business remain modest due to the short time the loans remain on our books, originations continue to expand meaningfully quarter over quarter, and we see great potential in this business over the next several years.
We remain thoughtful and disciplined in evaluating new business lines and growth opportunities. We will continue to assess adjacent markets where we believe we can expand the business in an accretive manner, consistent with our standards and return objectives.
Looking ahead, I am proud of where the Company stands today and am focused on advancing the platform by continuing to execute with discipline, consistency, and a long-term view toward value creation. With a proven business model, a diversified portfolio, and an experienced management team, I believe the Company is well-positioned to perform well in the coming years and continue to create long-term value for shareholders."
Business Highlights
Recreation Lending
Originations were $97.2 million during the quarter, compared to $72.2 million a year ago. Total originations for the year ended December 31, 2025 were $468.5 million, compared to $526.6 million for the prior year.
Recreation loans, including loans held for investment and loans held for sale, grew 5% to $1.62 billion, or 63% of total loans, as of December 31, 2025, compared to $1.54 billion a year ago, or 62%, a year ago.
Average loan size as of December 31, 2025 was $22,000 with a weighted average FICO score, measured at the time of loan origination, of 688.
Interest income grew 6% to $54.2 million for the quarter, from $51.3 million in the prior year quarter. Total interest income for the year ended December 31, 2025 was $209.3 million, compared to $194.1 million for the prior year.
The average interest rate was 15.16% at year-end, compared to 15.07% a year ago.
Recreation loans 90 days or more past due were $12.9 million, or 0.82% of gross recreation loans, as of December 31, 2025, compared to $10.0 million, or 0.67%, a year ago.
Allowance for credit loss as of December 31, 2025 was 5.32% for loans held for investment, compared to 5.00% a year ago.
Home Improvement Lending
Originations were $61.7 million during the quarter, compared to $82.5 million a year ago. Total originations for the year ended December 31, 2025 were $224.5 million, compared to $298.6 million for the prior year.
Home improvement loans were $810.2 million, or 32% of total loans, as of December 31, 2025, compared to $827.2 million, or 33%, a year ago.
Average loan size as of December 31, 2025 was $22,000 with a weighted average FICO score, measured at the time of loan origination, of 779.
Interest income grew 2% to $20.3 million for the quarter, from $19.9 million in the prior year quarter. Total interest income for the year ended December 31, 2025 was $80.6 million, compared to $74.0 million a year ago.
The average interest rate was 9.87% at year-end, compared to 9.81% a year ago.
Home improvement loans 90 days or more past due were $1.3 million, or 0.16% of gross home improvement loans, as of December 31, 2025, compared to $1.4 million, or 0.17%, a year ago.
Allowance for credit loss was 2.41% as of December 31, 2025, compared to 2.48% a year ago.
Commercial Lending
Originations were $4.1 million during the quarter, compared to $7.3 million a year ago. Total originations for the year ended December 31, 2025 were $40.6 million, compared to $14.3 million for the prior year.
Commercial loans grew to $123.1 million as of December 31, 2025, compared to $111.3 million a year ago.
Average loan size was $4.2 million as of December 31, 2025, invested across 28 portfolio companies.
The average interest rate on the portfolio was 14.22% as of December 31, 2025, compared to 12.97% a year ago.
Recognized $8.8 million of net equity gains during the quarter, compared to $3.8 million a year ago.
Strategic Partnerships
Originations were $258.3 million during the quarter, compared to $123.7 million a year ago. Total originations for the year ended December 31, 2025 were $771.6 million, compared to $203.6 million for the prior year.
Total strategic partnership loans held as of December 31, 2025 were $15.1 million, compared to $7.4 million a year ago.
Fees generated from strategic partnerships were $1.2 million for the quarter, compared to $0.6 million a year ago. Total fees generated from strategic partnerships were $3.6 million for the year ended December 31, 2025, compared to $1.8 million for the prior year.
The average loan holding period of strategic partnership loans was five days.
Taxi Medallion Lending
The Company collected $2.5 million of cash on taxi medallion-related assets during the quarter, which resulted in net recoveries and gains of $1.4 million. Total cash collections on taxi medallion-related assets during the year ended December 31, 2025 were $13.6 million, resulting in net recoveries and gains of $4.6 million.
Total net taxi medallion-related assets declined to $4.3 million, a 45% reduction from a year ago, and represented less than two tenths of one percent of the Company's total assets, as of December 31, 2025.
Loan Portfolio
The following table provides information regarding the composition of our loan portfolio for the dates presented:
December 31,
2025
2024
(Dollars in thousands)
Amount
As aPercent ofTotal Loans
Amount
As aPercent ofTotal Loans
Loans held for investment:
Recreation
$
1,617,221
63
%
$
1,422,403
57
%
Home improvement
810,237
32
827,211
33
Commercial
123,068
5
111,273
4
Taxi medallion
1,179
*
1,909
*
Total loans
2,551,705
99
2,362,796
95
Loans held for sale, at lower of amortized cost or fair value:
Recreation
—
—
120,840
5
Strategic partnership
15,144
*
7,386
*
Total loans held for sale, at lower of amortized cost or fair value
15,144
—
128,226
5
Total loans and loans held for sale
$
2,566,849
100
%
$
2,491,022
100
%
(*) Less than 1%.
Balance Sheet
Cash and cash equivalents, including investment securities, as of December 31, 2025 were $261.7 million, compared to $224.4 million as of December 31, 2024.
As of December 31, 2025, total assets were $2.955 billion, up from $2.869 billion as of December 31, 2024.
As of December 31, 2025, total liabilities were $2.447 billion, up from $2.430 billion as of December 31, 2024.
Capital Allocation
Quarterly Dividend
The Board of Directors declared a quarterly dividend of $0.12 per share, payable on March 31, 2026, to stockholders of record at the close of business on March 19, 2026.
Dividends Announced
AmountPer Share
RecordDate
PaymentDate
Q1 2026
$
0.12
3/19/2026
3/31/2026
Total: Year 2026
0.12
Q4 2025
0.12
11/12/2025
11/24/2025
Q3 2025
0.12
