BayFirst Financial reported a significantly wider net loss in Q1 2026 versus Q1 2025, driven by a sharp decline in noninterest income following the strategic exit from SBA lending — a decision that reduced certain expenses but eliminated a major revenue stream.
Key takeaways
Net income declined to -$5.7M from -$335K YoY (-1595.5%), reflecting the absence of gain-on-sale revenue from government-guaranteed loans after exiting the SBA 7(a) lending business.
Diluted EPS was -$1.48, down from -$0.17 YoY (-770.6%), consistent with the material contraction in earnings power following the discontinuation of the SBA program.
Free cash flow was -$3.2M, as operating cash outflows exceeded minimal capital expenditures of $7K — underscoring the liquidity impact of the transition away from loan sales.