First Foundation (FFWM) just posted its FY 2025 fourth quarter numbers with total revenue of US$54.9 million and a basic EPS loss of US$0.10, as the bank continues to work through a period of unprofitable results. Over the past year, the company has seen trailing twelve month revenue of US$170.5 million against a basic EPS loss of US$1.88, which sets a clear backdrop of earnings pressure even as top line activity remains meaningful. With margins still under strain, the latest release puts the focus squarely on how quickly profitability can stabilise from here.

See our full analysis for First Foundation.

With the headline figures on the table, the next step is to see how these results line up with the prevailing narratives around growth, profitability and risk that many investors have been following.

US$155 million loss over last 12 months

• Over the trailing twelve months, First Foundation recorded total revenue of US$170.5 million and a net loss of US$155.2 million, so most of what came in through the door was effectively offset by expenses.
• What stands out for a cautious, more bearish view is that losses have grown at about 53.4% per year over the past five years, and the latest trailing EPS loss of US$1.88 lines up with that pattern, even though quarterly revenue such as the US$54.9 million in Q4 FY 2025 shows the business is still generating meaningful activity.
  • Critics highlight that Q3 FY 2025 alone saw a net loss of US$146.3 million and slightly negative reported revenue, which makes the recent Q4 loss of US$8.0 million look small but still keeps the company firmly in the red.
  • That backdrop is why bears point to the current unprofitable status over the last year as a key risk, despite ongoing revenue and a US$6.12 share price that already reflects some pressure.

Loan book around US$7.3b with rising problem credits

• The loan portfolio sat at US$7.3b in Q3 FY 2025, and reported non performing loans moved from US$34.6 million in Q2 FY 2025 to US$57.4 million by Q3 FY 2025, which is a meaningful pool of loans not paying as agreed for a bank of this size.
• A more bearish reading of the story leans heavily on this, arguing that the combination of a large loan book and rising non performing loans makes the recent losses more understandable, even though Q4 FY 2025 revenue recovered to US$54.9 million and net interest margins in earlier quarters sat in a tight 1.6% to 1.7% range.
  • Bears argue that non performing loans in the US$30 million to US$50 million range across multiple quarters, topping US$57.4 million in Q3 FY 2025, keep pressure on credit costs and earnings quality.
  • They also point out that net interest margins around 1.6% leave less room to absorb credit hits, which helps explain why the trailing twelve month loss reached US$155.2 million even with US$170.5 million in revenue.

Have a closer look at how credit quality, margins and profitability fit together before you decide what these losses really mean for the bank. 📊 Read the full First Foundation Consensus Narrative.

0.6x P/B with strong growth forecasts

• Shares trade at 0.6x P/B compared with 0.9x for peers and 1.1x for the wider US banks industry, while analysts also expect revenue to grow about 24.1% per year and earnings to grow very strongly at roughly 139.3% per year, with a move back into profit projected within three years.
• The more bullish angle leans on those growth forecasts, arguing that if the company can move from the current trailing EPS loss of US$1.88 toward the projected profitability, today’s discounted 0.6x P/B and a US$6.12 share price could be pricing in the past loss trend more than the future potential.
  • Supporters often highlight that trailing revenue of US$170.5 million and quarterly revenue above US$49 million in two of the last three quarters show there is a core business to grow from, rather than a company with collapsing activity.
  • At the same time, the forecasted earnings growth has to be weighed against the recent five year loss trend of 53.4% per year, so the bullish case heavily depends on that swing from large recent losses toward the projected improvement actually arriving.

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on First Foundation's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

First Foundation is working through sizeable losses, thin margins and rising non performing loans, which together raise questions about balance sheet strength and resilience.

If you want banks or financials with sturdier footing, use our CTA_SCREENER_SOLID_BALANCE_SHEET to focus on businesses with stronger balance sheets and potentially less credit stress.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.