Regional banking company Enterprise Financial Services (NASDAQ: EFSC) reported Q4 CY2025 results beating Wall Street’s revenue expectations, with sales up 14.3% year on year to $193.6 million. Its non-GAAP profit of $1.36 per share was in line with analysts’ consensus estimates.
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Enterprise Financial Services (EFSC) Q4 CY2025 Highlights:
- Net Interest Income: $168.2 million vs analyst estimates of $166 million (14.9% year-on-year growth, 1.3% beat)
- Net Interest Margin: 4.3% vs analyst estimates of 4.2% (3.2 basis point beat)
- Revenue: $193.6 million vs analyst estimates of $187.1 million (14.3% year-on-year growth, 3.5% beat)
- Efficiency Ratio: 59.2% vs analyst estimates of 60.2% (103.2 basis point beat)
- Adjusted EPS: $1.36 vs analyst estimates of $1.36 (in line)
- Tangible Book Value per Share: $41.37 vs analyst estimates of $41.28 (11% year-on-year growth, in line)
- Market Capitalization: $2.06 billion
Company Overview
Starting as a single bank in Missouri in 1988 and expanding through strategic growth, Enterprise Financial Services (NASDAQ: EFSC) is a financial holding company that offers banking, lending, and wealth management services to businesses and individuals across seven states.
Sales Growth
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income. Luckily, Enterprise Financial Services’s revenue grew at an excellent 16.9% compounded annual growth rate over the last five years. Its growth beat the average banking company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within financials, a half-decade historical view may miss recent interest rate changes, market returns, and industry trends. Enterprise Financial Services’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 5.9% over the last two years was well below its five-year trend. 
Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.
This quarter, Enterprise Financial Services reported year-on-year revenue growth of 14.3%, and its $193.6 million of revenue exceeded Wall Street’s estimates by 3.5%.
Net interest income made up 87.1% of the company’s total revenue during the last five years, meaning Enterprise Financial Services barely relies on non-interest income to drive its overall growth.
While banks generate revenue from multiple sources, investors view net interest income as the cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of non-interest income.
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Tangible Book Value Per Share (TBVPS)
Banks profit by intermediating between depositors and borrowers, making them fundamentally balance sheet-driven enterprises. Market participants emphasize balance sheet quality and sustained book value growth when evaluating these institutions.
This explains why tangible book value per share (TBVPS) stands as the premier banking metric. TBVPS strips away questionable intangible assets, revealing concrete per-share net worth that investors can trust. On the other hand, EPS is often distorted by mergers and flexible loan loss accounting. TBVPS provides clearer performance insights.
Enterprise Financial Services’s TBVPS grew at an incredible 10.2% annual clip over the last five years. The last two years show a similar trajectory as TBVPS grew by 10.5% annually from $33.85 to $41.37 per share.
Over the next 12 months, Consensus estimates call for Enterprise Financial Services’s TBVPS to grow by 10.2% to $45.60, mediocre growth rate.
Key Takeaways from Enterprise Financial Services’s Q4 Results
We enjoyed seeing Enterprise Financial Services beat analysts’ revenue expectations this quarter. We were also happy its net interest income narrowly outperformed Wall Street’s estimates. On the other hand, its EPS was in line. Zooming out, we think this was a mixed quarter. The stock remained flat at $56.02 immediately after reporting.
So should you invest in Enterprise Financial Services right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).
