FB Financial Corp (FBK) shares tumbled 7.72% in after-hours trading on Monday following the release of its second-quarter 2025 financial results, which revealed a significant revenue miss and a substantial loss from a strategic securities sale.
The company reported quarterly revenue of $76.863 million, falling well short of the analyst consensus estimate of $136.320 million by 43.62%. This represents a 40.06% decrease compared to the same period last year. While adjusted earnings per share met expectations at $0.88, up from $0.84 a year earlier, the revenue shortfall overshadowed this achievement.
A key factor contributing to the stock's decline was a strategic sale of $266.5 million in securities, resulting in a $60.5 million GAAP loss. This move, aimed at enhancing liquidity and future margins, significantly impacted the company's bottom line, with net income dropping to just $2.909 million for the quarter. Despite management's assertion that this repositioning will benefit the company in the long term, investors appeared skeptical, as reflected in the sharp stock price decline.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.