Shares of Capital Bancorp Inc (NASDAQ:CBNK) are soaring 5.14% in intraday trading on Wednesday, following the release of its impressive first-quarter 2025 earnings report. The company's financial results significantly exceeded analyst expectations, demonstrating robust growth across key metrics.

Capital Bancorp reported a stellar performance for Q1 2025, with revenue surging 48% year-over-year to $56.4 million. Net income more than doubled, jumping 112% to $13.9 million, while earnings per share (EPS) reached $0.84, up from $0.47 in the same quarter last year. Both revenue and EPS surpassed analyst estimates, with revenue beating forecasts by 2% and EPS exceeding expectations by an impressive 18%. The company's profit margin also expanded to 25%, up from 17% in Q1 2024, driven by the substantial increase in revenue.

Adding to the positive sentiment, Stephens raised its target price for Capital Bancorp from $35 to $36, reflecting growing confidence in the company's future prospects. With revenue forecast to grow at an average of 17% per annum over the next two years, outpacing the 7.1% growth projected for the US Banks industry, Capital Bancorp appears well-positioned for continued success. However, investors should note that analysts have identified two warning signs for the company, suggesting some potential risks to consider alongside the strong financial performance.