Live Oak Bancshares

Q2 FY2026 EarningsQ2 FY26 results delivered a significant beat on the bottom line, with Diluted EPS of $0.74 exceeding the $0.63 consensus by 17.46%. Revenue of $156.15M was largely in-line (+0.47% beat), supported by a robust Net Interest Margin of 3.33% which outperformed the 3.275% consensus. While EBIT saw a technical miss due to elevated provision for credit losses, net income was bolstered by a significantly lower effective tax rate of 19.9% (vs. 25.5% expected) driven by renewable energy tax credit benefits. Book Value Per Share (BPS) of $28.37 notably exceeded expectations by 8.53%, reflecting strong balance sheet growth.