📊 BAFN Key Takeaways
Is BayFirst Financial Corp. (BAFN) a Good Investment?
BayFirst Financial is in severe financial distress with negative profitability across all metrics, declining revenues (-37.1% YoY), and persistent operating losses (-$28.0M). While the company maintains positive operating cash flow and low leverage, the core business is fundamentally broken with negative ROE (-22.8%), negative ROA (-1.5%), and deteriorating net income trends, suggesting structural challenges rather than temporary headwinds.
BayFirst Financial's fundamentals are weak: revenue fell 37.1% year over year, operating margin was -80.9%, and net margin was -59.1%, indicating severe earnings pressure rather than a temporary profitability dip. While reported operating cash flow was strong and cash balances are solid, those figures are less reliable indicators for a bank than sustained net interest income, credit quality, and capital generation. With negative ROE and ROA alongside a thin equity base relative to assets, the current financial profile points to elevated downside risk.
Why Buy BayFirst Financial Corp. Stock? BAFN Key Strengths
- Strong liquidity position with $118.5M cash equivalents relative to total assets
- Low leverage profile with 0.00x debt-to-equity ratio and no long-term debt
- Positive operating cash flow of $184.8M provides near-term survival runway
- Solid cash and equivalents balance of $118.55M provides near-term liquidity support
- Positive operating cash flow suggests funding inflows remained strong in the latest period
- Bank still maintains positive stockholders' equity of $89.73M despite losses
BAFN Stock Risks: BayFirst Financial Corp. Investment Risks
- Severe profitability crisis with -59.1% net margin and $20.5M net loss indicating core business dysfunction
- Collapsing revenue base declining 37.1% year-over-year suggesting loss of competitive position or market share erosion
- Negative returns on equity (-22.8%) and assets (-1.5%) indicate shareholder capital destruction and inefficient asset deployment
- Revenue contraction of 37.1% year over year signals significant core earnings deterioration
- Large net loss and deeply negative operating margin indicate poor profitability and weak earnings quality
- Negative ROE and ROA combined with modest equity relative to total assets increase capital pressure if losses persist
Key Metrics to Watch
- Quarterly revenue stabilization - further deterioration would signal accelerating business decline
- Return to operating profitability - current -$28.0M operating loss unsustainable
- Cash burn rate relative to $118.5M reserve - trajectory will determine runway before capital raising or restructuring necessity
- Quarterly net interest income and provision for credit losses
- Common equity-to-assets ratio and trend in tangible book capital
BayFirst Financial Corp. (BAFN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 532.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. The current ratio below 1.0x warrants monitoring of short-term liquidity.
BAFN Profit Margin, ROE & Profitability Analysis
BAFN vs Finance Sector: How BayFirst Financial Corp. Compares
How BayFirst Financial Corp. compares to Finance sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is BayFirst Financial Corp. Stock Overvalued? BAFN Valuation Analysis 2026
Based on fundamental analysis, BayFirst Financial Corp. has mixed fundamental signals relative to the Finance sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
BayFirst Financial Corp. Balance Sheet: BAFN Debt, Cash & Liquidity
BAFN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: BayFirst Financial Corp.'s revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $2.62 reflects profitable operations.
BAFN Revenue Growth, EPS Growth & YoY Performance
BayFirst Financial Corp. Dividends, Buybacks & Capital Allocation
BAFN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for BayFirst Financial Corp. (CIK: 0001649739)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BAFN
What is the AI rating for BAFN?
BayFirst Financial Corp. (BAFN) has a Combined AI Rating of STRONG SELL from Claude (STRONG SELL) and ChatGPT (STRONG SELL) with 90% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BAFN's key strengths?
Claude: Strong liquidity position with $118.5M cash equivalents relative to total assets. Low leverage profile with 0.00x debt-to-equity ratio and no long-term debt. ChatGPT: Solid cash and equivalents balance of $118.55M provides near-term liquidity support. Positive operating cash flow suggests funding inflows remained strong in the latest period.
What are the risks of investing in BAFN?
Claude: Severe profitability crisis with -59.1% net margin and $20.5M net loss indicating core business dysfunction. Collapsing revenue base declining 37.1% year-over-year suggesting loss of competitive position or market share erosion. ChatGPT: Revenue contraction of 37.1% year over year signals significant core earnings deterioration. Large net loss and deeply negative operating margin indicate poor profitability and weak earnings quality.
What is BAFN's revenue and growth?
BayFirst Financial Corp. reported revenue of $34.6M.
Does BAFN pay dividends?
BayFirst Financial Corp. pays dividends, with $0.7M distributed to shareholders in the trailing twelve months.
Where can I find BAFN SEC filings?
Official SEC filings for BayFirst Financial Corp. (CIK: 0001649739) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BAFN's EPS?
BayFirst Financial Corp. has a diluted EPS of $-5.23.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BAFN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, BayFirst Financial Corp. has a STRONG SELL rating with 90% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is BAFN stock overvalued or undervalued?
Valuation metrics for BAFN: ROE of -22.8% (sector avg: 12%), net margin of -59.1% (sector avg: 25%). Compare these metrics with sector averages to assess valuation.
Should I buy BAFN stock in 2026?
Our dual AI analysis gives BayFirst Financial Corp. a combined STRONG SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is BAFN's free cash flow?
BayFirst Financial Corp.'s operating cash flow is $184.8M, with capital expenditures of $276.0K. FCF margin is 532.8%.
How does BAFN compare to other Finance stocks?
Vs Finance sector averages: Net margin -59.1% (avg: 25%), ROE -22.8% (avg: 12%), current ratio N/A (avg: 1.2).