Revenue instability remains a primary concern, evidenced by the recent quarterly decline to $11.5 million and a sharp 25.4% drop in EPS during 2025Q4.
| Sales/Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Revenue Growth % | - | - | - | - | - | - | - | - | - | - | - | - |
| Cost of Goods Sold | - | - | - | - | - | - | - | - | - | - | - | - |
| COGS % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Gross Profit | 13.28M | 29.47M | 28.68M | 21.53M | 17.36M | 16.65M | 16.35M | 17.73M | 17.37M | 17.03M | 15.77M | 8.63M |
| Gross Margin % | 76.45% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | -54.94% | 2.73% | 33.2% | 24.02% | 4.27% | 1.83% | -7.75% | 2.04% | 1.98% | 8.05% | 82.69% | - |
| Operating Expenses | -8.61M | 5.98M | 6.02M | 5.83M | 5.13M | 4.8M | 4.74M | 5.04M | 5.16M | 5.08M | 5.05M | 3.78M |
| OpEx % of Revenue | -49.57% | 20.3% | 21% | 27.05% | 29.53% | 28.85% | 29% | 28.45% | 29.72% | 29.84% | 32.02% | 43.82% |
| Selling, General & Admin | 0 | 5.98M | 6.02M | 5.83M | 5.13M | 4.8M | 4.74M | 5.04M | 5.16M | 5.08M | 5.05M | 3.78M |
| SG&A % of Revenue | - | 20.3% | 21% | 27.05% | 29.53% | 28.85% | 29% | 28.45% | 29.72% | 29.84% | 32.02% | 43.82% |
| Research & Development | - | - | - | - | - | - | - | - | - | - | - | - |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | - | - | - | - | - | - | - | - | - | - | - | - |
| Operating Income | 21.89M | 23.49M | 22.66M | 15.71M | 12.24M | 11.85M | 11.61M | 12.68M | 12.21M | 11.95M | 10.72M | 4.85M |
| Operating Margin % | 126.02% | 79.7% | 79% | 72.95% | 70.47% | 71.15% | 71% | 71.55% | 70.28% | 70.16% | 67.98% | 56.18% |
| Operating Income Growth % | -6.81% | 3.64% | 44.25% | 28.38% | 3.26% | 2.05% | -8.45% | 3.88% | 2.16% | 11.53% | 121.04% | - |
| EBITDA | 21.74M | 23.39M | 22.58M | 15.65M | 12.21M | 11.76M | 11.52M | 12.59M | 12.21M | 11.98M | 10.72M | 4.85M |
| EBITDA Margin % | 125.18% | 79.38% | 78.7% | 72.69% | 70.31% | 70.61% | 70.45% | 71.04% | 70.28% | 70.3% | 67.98% | 56.18% |
| EBITDA Growth % | -7.05% | 3.62% | 44.21% | 28.21% | 3.84% | 2.05% | -8.51% | 3.15% | 1.96% | 11.74% | 121.04% | - |
| D&A (Non-Cash Add-back) | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3 | 22.82K | 0 | 0 |
| EBIT | 21.74M | 23.39M | 22.58M | 15.65M | 12.21M | 11.76M | 11.52M | 12.59M | 12.12M | 11.95M | 10.72M | 4.85M |
| Net Interest Income | 22.68M | 25.22M | 24.65M | 18.2M | 13.41M | 11.54M | 10.55M | 10.93M | 11.36M | 9.12M | 6.79M | 2.14M |
| Interest Income | 26.53M | 29.22M | 28.2M | 20.53M | 14.7M | 12.3M | 11.96M | 12.84M | 13.12M | 10.9M | 8.16M | 2.63M |
| Interest Expense | 3.85M | 4M | 3.55M | 2.33M | 1.3M | 765.86K | 1.41M | 1.9M | 1.77M | 1.78M | 1.37M | 489.17K |
| Other Income/Expense | - | - | - | - | - | - | - | - | - | - | - | - |
| Pretax Income | 17.89M | 17.25M | 20.61M | 5.61M | 12.63M | 7.78M | 12.61M | 10.03M | 12.03M | 7.01M | 8.29M | 4.77M |
| Pretax Margin % | 102.99% | 58.52% | 71.85% | 26.06% | 72.76% | 46.72% | 77.07% | 56.6% | 69.25% | 41.17% | 52.56% | 55.32% |
| Income Tax | 0 | 500.09K | 360.47K | 246.96K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 240.61K |
| Effective Tax Rate % | 0% | 2.9% | 1.75% | 4.4% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 5.04% |
| Net Income | 17.89M | 16.74M | 20.25M | 5.37M | 12.63M | 7.78M | 12.61M | 10.03M | 12.03M | 7.01M | 8.29M | 4.53M |
| Net Margin % | 102.99% | 56.82% | 70.59% | 24.92% | 72.76% | 46.72% | 77.07% | 56.6% | 69.25% | 41.17% | 52.56% | 52.53% |
| Net Income Growth % | 6.83% | -17.3% | 277.34% | -57.53% | 62.38% | -38.28% | 25.63% | -16.6% | 71.51% | -15.36% | 82.78% | - |
| Net Income (Continuing) | 17.89M | 16.74M | 20.25M | 5.37M | 12.63M | 7.78M | 12.61M | 10.03M | 12.03M | 7.01M | 8.29M | 4.53M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 47.16M | 22.49M | 0 | 0 | 0 |
| EPS (Diluted) | 2.29 | 2.35 | 2.84 | 0.75 | 1.88 | 1.18 | 1.92 | 1.53 | 1.84 | 1.06 | 1.27 | 0.79 |
| EPS Growth % | -2.55% | -17.25% | 278.67% | -60.11% | 59.32% | -38.54% | 25.49% | -16.85% | 73.58% | -16.54% | 60.76% | - |
| EPS (Basic) | 2.29 | 2.35 | 2.84 | 0.75 | 1.88 | 1.18 | 1.92 | 1.53 | 1.84 | 1.06 | 1.27 | 0.79 |
| Diluted Shares Outstanding | 7.81M | 7.13M | 7.13M | 7.15M | 6.72M | 6.59M | 6.57M | 6.56M | 6.54M | 6.62M | 6.52M | 5.74M |
| Basic Shares Outstanding | 7.81M | 7.13M | 7.13M | 7.15M | 6.72M | 6.59M | 6.57M | 6.56M | 6.54M | 6.62M | 6.52M | 5.74M |
| Dividend Payout Ratio | - | 79.81% | 74.28% | 215.88% | 81.17% | 126.73% | 84.88% | 97.51% | 78.68% | 129.63% | 128.16% | 182.82% |
Regulatory Capital Valuation Sensitivity
As indicated by the most recent quarterly data, BANX experienced a significant revenue decline to $11.5 million, reflecting a broader trend of instability in interest and dividend income that suggests the fund's core earning power is currently facing material headwinds within its community banking investment portfolio.
The erratic nature of top-line performance suggests that the fund's reliance on specialized Tier 2 capital instruments leaves it vulnerable to the cyclicality of the regional banking sector. Investors should monitor whether this contraction represents a temporary adjustment in asset pricing or a more permanent erosion of the fund's yield-generating capacity.
Based on reported financial statements, the net margin reached 175.7% in 2025Q2, a figure that highlights the disconnect between recurring interest income and the non-operating valuation adjustments that frequently distort the bottom-line profitability of this closed-end fund structure compared to its operational peers.
The extreme variance in net margins suggests that investors cannot rely on traditional profitability metrics to gauge the fund's operational efficiency. The lack of consistent gross margin stability implies that the underlying asset valuations are subject to significant, non-cash volatility that complicates the assessment of true economic performance.
According to historical balance sheet data, BANX maintains a debt-to-equity ratio of approximately 0.15%, which suggests a highly defensive posture that may be insulating the fund from liquidity crises while simultaneously hindering its ability to enhance returns through prudent use of leverage in a high-rate environment.
While this low leverage profile provides a safety buffer against forced liquidations, it appears to limit the fund's capacity to scale effectively during periods of market opportunity. This structural choice warrants further investigation into whether management is prioritizing capital preservation at the expense of competitive yield generation.
Analysis of the income statement reveals that the reliance on Level 3 inputs for portfolio valuation may mask underlying credit deterioration, as evidenced by the sharp 25.4% decline in EPS reported in 2025Q4 despite the fund's historical focus on stable, yield-bearing subordinated debt instruments.
Short-term observers should be wary that the reported net income may not fully reflect the potential for credit losses within the community bank holdings. The disconnect between the fund's conservative leverage and its declining earnings suggests that the primary risk may lie in the quality of the underlying assets rather than the fund's capital structure.
Quick answers to the most common questions about buying BANX stock.
ArrowMark Financial Corp. (BANX) is profitable, generating $17.9M in net income for the fiscal year ending 2025 with a net profit margin of 103.0%.
ArrowMark Financial Corp. (BANX) reported an operating income of $21.9M, resulting in an operating profit margin of 126.0%. This margin reflects the operational efficiency of the business before interest and taxes.
ArrowMark Financial Corp. (BANX) generated $13.3M in gross profit for the year, representing a gross profit margin of 76.4%. This demonstrates the company's core pricing power and production efficiency.