Esquire Financial

Q2 FY2026 EarningsQ2 FY26 results missed consensus across key profitability metrics despite revenue growth. Revenue of $41.3M slightly beat the $35.4M consensus, but Net Income of $13.0M fell short of the $13.6M expectation. The miss was primarily driven by higher-than-expected noninterest expenses, including $1.1M in one-time merger costs, and a sharp rise in the effective tax rate to 28.4% vs. the 28.0% expected. Despite the bottom-line miss, litigation-related loan growth remained robust, up 46% YoY.