Live Oak Bancshares, Inc. (LOB) AI Stock Analysis

Live Oak Bancshares, Inc. serves as the bank holding company for Live Oak Banking Company, offering commercial banking products and services primarily in North Carolina, USA. Founded in 2008 and based in Wilmington, North Carolina, it serves individuals, small businesses, and professionals. The bank provides deposit products including noninterest-bearing demand accounts, interest-bearing checking, money market, savings, and time deposits. Its lending activities feature commercial and industrial loans, construction and development loans, commercial land loans, and loans collateralized by commercial real estate. Additionally, it offers settlement, accounting, and securitization services for government guaranteed loans, wealth management, and venture capital investment advisory services.

Revenue expanded from $506.4M in FY2021 to $1.04B in FY2025, representing a five-year revenue CAGR of 22.4%. Annual net income moved from $167.0M in FY2021 to $103.8M in FY2025, with net margins shifting from 33.0% down to 10.0%. Over the same period, gross margin contracted from 84.3% in FY2021 to 48.3% in FY2025, while operating margin fell from 41.6% to 15.5%. For the trailing twelve months, revenue was $526.4M with a profit margin of 26.5% and an operating margin of 38.8%. In the latest quarter ended June 30, 2026, quarterly revenue increased 12.2% year-over-year and quarterly earnings grew 45.1%.

As of June 30, 2026, Live Oak Bancshares held $927.6M in cash and short-term investments against total debt of $99.8M, resulting in net cash of $827.9M and a debt-to-equity ratio of 0.08. Total assets stood at $16.04B and shareholders' equity was $1.31B. During FY2025, the bank generated operating cash flow of $158.2M and free cash flow of $143.5M. Cash usage included $14.8M in capital expenditures and $8.5M in dividends paid, alongside $99.2M in share issuance.

Live Oak Bancshares trades at a trailing price-to-earnings ratio of 12.2x, slightly above the 12.1x median of its US-listed Financial Services peers, and a forward P/E of 10.2x compared to the peer median of 10.8x. Its price-to-sales ratio is 3.1x versus the peer median of 3.2x, with a price-to-book ratio of 1.4x and an enterprise value to revenue ratio of 3.3x. Over the past year, the stock returned 6.0% compared to a 16.8% return for the S&P 500 (SPY). Over a five-year timeframe, the stock declined 49.8% while the S&P 500 gained 83.0%.

Live Oak Bancshares offers an annual forward dividend of $0.12 per share, which yields 0.34%. The company maintains a payout ratio of 4.9% and pays distributions on a quarterly basis. It has maintained 12 consecutive years of dividend payments, though its five-year annualized dividend growth stands at 0.0%. The last ex-dividend date was September 1, 2026.

Wall Street coverage consists of 1 Strong Buy, 1 Buy, 3 Holds, 0 Sells, and 0 Strong Sells. The mean price target is $41.75, representing an upside of 19.6% from the last close of $34.91. For the current fiscal year ending December 31, 2026, analysts estimate revenue of $650.6M and EPS of $2.96, an expected EPS increase of 59.6%. Over the last four quarters, the bank posted 2 earnings beats. The company is scheduled to report earnings on October 21, 2026.

This page is an AI-written research summary of Live Oak Bancshares, Inc. (LOB). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: LOB income statement, LOB balance sheet, LOB key metrics, LOB analyst forecast, LOB chart. See the LOB stock overview for the latest quote and news.