Byline Holdings Posts Quarterly Revenue of $3 Million, Up 30%

Key Facts

Byline Holdings reported net revenue of $3.0 million in the third quarter of 2026, up 30% year over year and 15% from the second quarter, reflecting expanded lending activity and improved margins. The company said in results published via Yahoo Finance that it originated 268 loans during the quarter, an increase of 11% compared with both periods: the third quarter of 2025 and the second quarter of 2026. Gross margin rose to 3.56%, from 3.07% in the second quarter and 2.78% in the first quarter of 2026. The company nevertheless continued to post a net loss, though it narrowed to $3.8 million from $4.0 million in both the third quarter of 2025 and the second quarter of 2026. The results follow preliminary forecasts the company announced in October, which projected quarterly revenue at its highest level since 2021; the published results put actual net revenue at $3.0 million.

Management attributed the improvement in activity to revenue growth alongside expense control, and Chief Executive Nick Lioutza said the third quarter showed "meaningful progress in the core business despite challenging market conditions." He added that revenue rose 30% year over year, while operating expenses declined from the previous quarter. Operating expenses were $6.8 million, down 5% from $7.1 million in the second quarter. The expense decline, together with the wider gross margin, marked an improvement in operating performance during the quarter, but did not prevent the company from continuing to record a net loss. In October, the company had said its expected third-quarter net loss would be lower than the second-quarter loss, a forecast borne out by the published figures.

Adjusted EBITDA loss narrowed to $1.8 million, compared with a loss of $2.7 million in the third quarter of 2025 and $2.6 million in the second quarter of 2026. The company said this represented an improvement of 35% year over year and 33% quarter over quarter. Its October announcement had projected the loss would improve to its lowest level in five years, while the results later reported the actual loss for the quarter. These measures, alongside the $3.8 million net loss, form part of a picture of a company that continues to post losses despite revenue growth and lower expenses. The figures presented here do not provide a basis for comparing revenue with analyst expectations.

Management had attributed its preliminary forecast to a shift that began in April toward non-qualified mortgage lending, including debt service coverage ratio loans and bank statement loans. It said the decision to change its mortgage product mix was among the factors reflected in the preliminary results. The increase in loans to 268 and 15% quarterly revenue growth put lending activity at the center of the improvement recorded during the quarter. The company also forecast in October that cash liquidity at the end of the third quarter would be at least 50% above its level at the end of the second quarter. The published figures available here did not include an actual cash value that would allow the balance to be compared with the earlier forecast.

The company announced the planned launch of a home equity investment product as part of efforts to broaden its home-financing offerings and reduce reliance on mortgage-market cycles and interest-rate fluctuations. It also said monthly savings of $250,000 were being implemented, with $160,000 of those savings expected in November 2026. Management identified protecting margins, improving customer conversion efficiency, achieving planned savings, expanding automation and maintaining sufficient liquidity as priorities. It also said expected fourth-quarter seasonality and a challenging interest-rate environment would shape the coming operating context. Management was scheduled to hold a call to review third-quarter results and discuss the outlook on November 12, 2026, at 5:00 p.m. U.S. Eastern time. Before the call, the company's stock had closed at $0.6233 in the November 11 session, the session before the news was published; that closing price alone does not establish a link between the stock's movement and the results.