The average invoice size factored by $TFIN is a great indicator of #trucking market strength. Recovery? Ha! It fell in 2Q. But CEO Aaron Graft reported in his letter to shareholders that July so far has rebounded significantly, though it's only about 2+ weeks of activity. pic.twitter.com/Cdt3LteixQ
— John Kingston (@JohnHKingston) July 17, 2024
Triumph Financial: Average Factored Invoices Fall Again In Q2
A weak freight market led to disappointing earnings for Triumph Financial, a trucking-focused bank, but CEO Aaron Graft emphasized long-term strategy over short-term performance in his quarterly letter to shareholders.
Graft described the quarterly earnings as “anemic,” attributing this to rising expenses and stagnant revenue. A key growth measure is the EBITDA at TriumphPay, the division that processes transportation invoices and generates revenue through fees.
TriumphPay's EBITDA margin was negative 10% in the second quarter, showing a slight improvement. Graft expects a positive EBITDA margin by the end of 2024.
Image: Average transportation invoice size factored by Triumph Financial.
TriumphPay has recently onboarded major clients like C.H. Robinson and ArcBest. Graft emphasized that TriumphPay is in the "density building" phase, focusing on increasing network engagement.
TriumphPay aims to engage with more than 50% of all brokered freight in the medium term, having reached 47% this past quarter. Network transactions increased by 13% sequentially, with total network volume hitting $5 billion.
Despite long-term optimism, Graft acknowledged the need to control rising expenses. Triumph Financial has transitioned from a community bank to a financial technology platform, doubling expenses over the past five years. Moving forward, expenses will be capped.