Medallion Financial Corp. (MFIN): Business Model Canvas [Dec-2025 Updated]

You're looking past the old taxi medallion headlines to see how Medallion Financial Corp. (MFIN) actually operates today, and the story is a sharp pivot into specialty finance. Honestly, the core of their late 2025 model runs through Medallion Bank, using that FDIC charter to originate high-yield consumer loans for recreation and home improvement, supported by fintech partners. With a loan portfolio hitting $2.559 billion by Q3 2025, this canvas distills precisely how they structure their key activities and resources-from digital platforms to disciplined credit risk-to generate that $55.7 million in net interest income. Dive in below to see the nine blocks that define their current strategy.

Medallion Financial Corp. (MFIN) - Canvas Business Model: Key Partnerships

You're looking at the core relationships Medallion Financial Corp. relies on to keep the loan engine running, especially as their digital and partnership channels scale up. These aren't just vendors; they are integral to origination and funding.

Fintech strategic partners for loan origination represent a massive growth vector for Medallion Financial Corp. The volume coming through these digital channels has surged significantly in 2025.

• Strategic partnership loan originations reached $208.4 million in the third quarter of 2025, a substantial increase from $39.9 million in the third quarter of 2024.
• For the second quarter of 2025, originations from these partners were $168.6 million, up from $24.3 million year-over-year.
• In the first quarter of 2025, strategic partnership loans accounted for $136.2 million of the total originations of $281.6 million.
• Fees generated from these partnerships totaled $0.8 million for the second quarter of 2025.
• The average holding period for loans originated via strategic partners was extremely short at just 5 days as of June 30, 2025.

The underlying loan segments-Recreation and Home Improvement-rely on established networks of dealers and contractors to bring customers to the point of sale. These relationships are the bridge between the end-user and Medallion Bank's capital.

Here is a breakdown of the loan portfolio composition as of late 2025, showing the scale these dealer/contractor channels support:

For the recreation segment, the average loan size was $21,000, with a weighted average FICO score at origination of 685 as of September 30, 2025. That's a concrete example of the volume these dealer relationships move.

Capital market partners for loan sales and funding are essential for managing the balance sheet and recycling capital into new originations. Medallion Bank actively sells portions of its loan portfolio.

For instance, on April 30, 2025, Medallion Bank closed a sale of $52.8 million in recreation loans held for sale, receiving total proceeds of $55.9 million. This activity demonstrates the partnership with capital markets to offload assets.

The final, and perhaps most critical, partnership is internal yet functions as a funding source: Medallion Bank (subsidiary) for FDIC-insured funding. Medallion Bank is the FDIC-insured industrial bank subsidiary that holds and services a significant portion of the loans.

• Medallion Bank is an FDIC-insured bank.
• The Bank's total loan portfolio size was $2.3 billion as of September 30, 2025.
• Medallion Bank reported net income of $19.8 million for the third quarter ended September 30, 2025.
• The Bank also raised capital through preferred stock, declaring a Series G Preferred Stock dividend with an aggregate liquidation amount of $77.5 million.

The stability of the FDIC insurance underpins the entire funding structure, allowing Medallion Financial Corp. to originate loans across its various channels. Finance: draft 13-week cash view by Friday.

Medallion Financial Corp. (MFIN) - Canvas Business Model: Key Activities

Consumer loan origination and servicing (Rec/Home Improvement)

Medallion Financial Corp. focuses on originating and servicing loans within the recreational vehicle (Rec) and home improvement niches. As of September 30, 2025, the total loan portfolio stood at $2.559 billion. The recreational loan book represented 63% of this total, valued at $1.603 billion, while the home improvement loan book was $804 million, making up 31% of the total loans. For the third quarter of 2025, originations for recreation loans totaled $141.7 million, and home improvement loan originations were $59.7 million. The average yield on the total loan portfolio for the quarter increased to 12.39%. For loans originated in October 2025, the average rate was around 15.5% for Rec loans and about 10.5% for home improvement loans.

Servicing performance shows a clear difference in credit quality across the segments:

• Recreation loans 90-plus days past due were 4.97% of the gross balance, totaling $74.1 million as of September 30, 2025.
• Home Improvement loans 90-plus days past due were just 0.16% of the gross balance, amounting to $1.5 million.

Managing the strategic partnership loan program

This activity involves earning origination fees and short-term interest by holding loans before selling them back to a partner. Medallion Financial Corp. achieved a record quarter in this area, with originations reaching $208.4 million in the third quarter of 2025. This is a significant increase from the $39.9 million originated in the same quarter a year prior. The company earns an origination fee and about 3 to 5 days of interest on these loans before selling them. As of September 30, 2025, the total loans held under this specific program were $15.3 million. The structure of these partnerships can involve funding loans with interest rates around 20%, with Medallion Financial earning fees of 20-50 basis points.

Commercial and mezzanine lending (Medallion Capital)

Medallion Capital contributes to Medallion Financial Corp. through commercial and mezzanine debt solutions, often alongside equity components. The commercial loan portfolio grew to $135.1 million as of September 30, 2025, up from $110.1 million a year earlier. New originations for this segment during the third quarter of 2025 were $17.5 million. The average interest rate on this commercial portfolio was 13.71% at quarter-end. This segment also generates earnings through equity gains; for the third quarter of 2025, gains from equity investments were modest at $300,000, but year-to-date gains reached $15.8 million.

Here is a look at the portfolio composition as of September 30, 2025, based on the latest available segment data:

Note: Percentages are based on the total portfolio of $2.559 billion and are approximate for Commercial/Strategic Partnership segments.

Disciplined credit risk management and underwriting

The company employs a highly analytical and data-driven approach to managing credit risk. The total provision for credit loss for the third quarter of 2025 was $18.6 million, a decrease from $20.2 million in the prior year quarter. Underwriting standards are reflected in the FICO scores for new originations: the average FICO for new recreational loans was 688, and for new home improvement loans, it was 779. The allowance for credit losses for the recreational loan book was set at 5.1% as of September 30, 2025.

Overall consumer loan delinquencies over 90 days past due were $10.2 million, representing 0.43% of total consumer loans for the quarter.

Maintaining the digital lending platform

Medallion Financial Corp. supports its lending activities by maintaining a digital platform. This platform is used to help optimize underwriting, origination, servicing, and overall portfolio visibility. These capabilities are intended to allow the company to assess credit risk with greater precision.

Finance: draft 13-week cash view by Friday.

Medallion Financial Corp. (MFIN) - Canvas Business Model: Key Resources

You're looking at the core assets that power Medallion Financial Corp.'s business right now, late in 2025. These aren't just line items; they are the structural advantages that let the company operate and grow in specialty finance.

Medallion Bank's FDIC-insured industrial bank charter is foundational. Medallion Bank is a Utah-chartered industrial bank, which means it's eligible for Federal Deposit Insurance Corporation (FDIC) insurance, a critical trust signal for depositors. The Bank was established in May 2002 to secure this charter. This charter allows Medallion Bank to originate consumer and commercial loans and accept deposits, all while being examined by the FDIC and the Utah Department of Financial Institutions.

The sheer scale of the lending operation is a key resource. As of the third quarter of 2025, Medallion Financial Corp. reported a $2.559 billion total loan portfolio, which includes loans held for sale. This portfolio is diversified across key segments, giving you a clear picture of where the assets are concentrated:

The engine driving loan quality is the proprietary data-driven underwriting and platform analytics. Management explicitly pointed to these capabilities as competitive advantages, especially as they achieved record highs in net interest income and total assets in Q3 2025. This technology focus helps manage risk across the portfolio, which saw Recreation Net Charge-offs annualized at 3.36% and Home Improvement Net Charge-offs at 1.03% for the quarter.

The human capital is also a significant asset, especially given the upcoming leadership shift. The experienced management team has guided the pivot away from taxi medallion roots toward diversified consumer lending. A planned succession is set: Andrew Murstein is appointed Chief Executive Officer effective January 31, 2026, while continuing as President and COO. Alvin Murstein will transition to Executive Chairman and is expected to serve until May 2027.

Finally, the capital base provides the necessary stability for lending operations. Medallion Bank, the primary operating subsidiary, maintained a strong regulatory position. As of September 30, 2025, the Tier 1 leverage ratio was 17.5%. Total assets for the Bank were reported at $2.6 billion at that same date.

You should review the recent preferred stock activity; the Series F shares were redeemed on July 1, 2025, following the Series G offering in May 2025. Finance: draft 13-week cash view by Friday.

Medallion Financial Corp. (MFIN) - Canvas Business Model: Value Propositions

You're looking at the core value Medallion Financial Corp. delivers across its segments as of late 2025. The numbers show a clear focus on high-growth consumer finance, supported by a highly efficient digital engine, while systematically running off legacy exposure.

High-yield, diversified loan assets for investors

Medallion Financial Corp. offers investors a portfolio anchored in consumer lending, which is yielding strong returns. The total loan portfolio reached $2.559 billion as of September 30, 2025. The net interest margin on gross loans for the third quarter of 2025 stood at 8.21%, with the NIM on net loans at 8.56%. This diversification away from a single asset class provides a more stable base for income generation.

Here's the quick math on the loan portfolio composition as of the end of Q3 2025:

New originations in October 2025 averaged an attractive yield, with recreation loans at approximately 15.5% and home improvement loans around 10.5%.

Fast, efficient digital loan origination for partners

For fintech partners, Medallion Financial Corp. provides a value proposition centered on speed and scale, powered by its digital platform. The company emphasizes its approach is highly analytical and data-driven, using advanced digital tools to optimize underwriting and origination. This efficiency is evident in the growth of its strategic partnership channel.

The volume of strategic partnership loan originations hit a record in Q3 2025:

• Strategic Partnership Loan Originations (Q3 2025): $208.4 million.
• Strategic Partnership Loan Originations (Q3 2024): $39.9 million.
• Fees generated from these partnerships in Q3 2025 totaled $1.0 million.
• The average loan holding period for these partnership loans is just 5 days.

This channel is demonstrating scalable, capital-light growth.

Flexible financing for recreation and home improvement purchases

Medallion Financial Corp. offers tailored financing for major consumer purchases. The recreation lending segment remains the largest, with a portfolio size of $1.603 billion as of September 30, 2025, making up 63% of total loans. The average loan size for these recreation loans was $21,000, with a weighted average FICO score of 685 at origination.

For home improvement, the portfolio stood at $804 million at the end of Q3 2025. This segment showed strong credit quality, with 90-plus day delinquencies at just 0.16% of gross home improvement loans.

Access to capital for small-to-mid-sized commercial businesses

The commercial division, Medallion Capital, provides debt, mezzanine, and equity investment capital. Commercial loans on the books totaled $135.1 million as of September 30, 2025. The average loan size in this portfolio was $3.8 million, invested across 36 portfolio companies. The average interest rate on this commercial portfolio was 13.71% in Q3 2025. To date, since 2015, Medallion Capital has generated $67 million of earnings for Medallion Financial Corp. shareholders.

Successfully pivoted from legacy taxi assets (now under 0.2% of assets)

The deliberate move away from taxi medallion lending is a key feature of the current value proposition. As of September 30, 2025, net taxi medallion-related assets had shrunk to $5.1 million. This residual amount represents less than 0.2% of the Company's total assets. The runoff continues to provide positive cash flow; Medallion Financial Corp. collected $6.1 million in cash on these assets during the third quarter of 2025, resulting in $3.4 million in net recoveries and gains. This is down significantly from $6.8 million in net taxi medallion assets reported on March 31, 2025.

Finance: draft Q4 2025 asset allocation comparison by February 15th.

Medallion Financial Corp. (MFIN) - Canvas Business Model: Customer Relationships

You're looking at how Medallion Financial Corp. manages its diverse customer base, which spans from digital fintech platforms to individual consumers and institutional investors. It's a multi-pronged approach, balancing high-volume automation with direct, specialized management.

Automated, scalable digital interaction with fintech partners

The relationship with fintech partners is heavily reliant on scalable digital infrastructure, which is clearly driving significant volume. This segment is a major growth engine for Medallion Financial Corp. The company offers loan origination services to these strategic partners, essentially plugging their technology into Medallion Bank's lending capacity. The results show this is working well.

Here's the quick math on the growth in this digital channel:

• Strategic partnership loan originations hit $208.4 million in the third quarter of 2025.
• This is a massive increase from $39.9 million in the same quarter of 2024.
• Total loan originations for Q3 2025 reached $427.4 million.

The digital model is designed for efficiency; it helps Medallion Financial Corp. streamline borrower assessments and underwrite loans faster, which is critical for keeping pace in the specialty finance space. If onboarding takes 14+ days, churn risk rises, but this digital focus suggests they are minimizing that lag.

Direct relationship management with commercial borrowers

For commercial borrowers, the relationship is more hands-on, focusing on a smaller, higher-value portfolio. This isn't about high-volume consumer transactions; it's about managing a portfolio of mezzanine loans invested in specific companies. Management is definitely focused on direct engagement here, given the nature of these deals.

The commercial lending book as of September 30, 2025, shows this direct focus:

This portfolio requires direct relationship management to monitor the underlying assets and manage the associated risks, which is reflected in the higher average loan size compared to consumer products.

Dealer/contractor network support for consumer loan flow

For consumer loans-primarily in recreation (towable RVs and marine) and home improvement (roofs, pools, windows)-the customer relationship flows through a network of dealers and contractors. Medallion Bank works directly with thousands of dealers, contractors and financial service providers across the United States to get these loans originated at the point of sale. This network acts as the primary touchpoint for the end consumer.

The consumer loan portfolio composition as of September 30, 2025, shows where this network drives volume:

• Recreation Loans: $1.603 billion (representing 63% of total loans).
• Home Improvement Loans: $804.0 million (representing 31% of total loans).

The average consumer loan size varies by segment, reflecting the different dealer/contractor relationships involved. For instance, the average recreation loan size was $21,000, while the average home improvement loan size was $22,000.

Standardized, high-volume servicing for consumer loans

Once originated, the servicing for these high-volume consumer loans needs to be standardized and efficient, managed primarily through Medallion Bank. The goal is to maintain low delinquency rates across a large book of business. The overall loan portfolio stood at $2.559 billion as of September 30, 2025.

Servicing performance metrics for the quarter ended September 30, 2025, indicate the effectiveness of their standardized processes:

• Home Improvement Loans 90+ days past due: $1.3 million, or 0.16% of gross home improvement loans.
• Recreation Loans 90+ days past due: $8.9 million, or 0.57% of gross recreation loans.
• Total consumer loans more than 90 days past due were $10.2 million, or 0.43% of total consumer loans.

The bank also manages the allowance for credit loss for these loans; for home improvement loans, it was 2.54% at quarter-end, and for recreation loans, it was 5.10%.

Investor relations for capital raising and dividend communication

For the capital providers-the shareholders-Medallion Financial Corp. maintains a formal, scheduled communication cadence. Management dedicates time to hosting individual meetings with portfolio managers and analysts to discuss strategy and performance, which is a direct relationship effort aimed at institutional holders. Institutional investors owned about 40.56% of the company as of late 2025.

Key financial communications data points for investors include:

• Q3 2025 Net Income attributable to stockholders: $7.8 million, or $0.32 per share.
• Q2 2025 Quarterly Cash Dividend declared and paid: $0.12 per share.
• The company reports results quarterly, with the Q3 2025 earnings call held on October 30, 2025.

The company's stock trades on NASDAQ under MFIN, and they actively manage communication around capital structure events, such as the redemption of Series F preferred stock at Medallion Bank in July 2025. Finance: draft 13-week cash view by Friday.

Medallion Financial Corp. (MFIN) - Canvas Business Model: Channels

You're looking at how Medallion Financial Corp. gets its loans funded and communicates with the market as of late 2025. The channels show a clear pivot toward digital sourcing, though direct relationships remain important for commercial assets.

Medallion Bank's direct lending platform focuses on its core consumer segments, which are recreation and home improvement loans, alongside its commercial lending book. This platform is the engine for holding loans for investment on the balance sheet.

The total loan portfolio size as of September 30, 2025, stood at $2.559 billion. This portfolio is segmented across the direct and partnership-originated assets.

Here's the quick math on the portfolio composition at the end of Q3 2025:

Strategic fintech partner platforms for loan sourcing represent the fastest-growing channel, essentially acting as a Business-as-a-Service (BaaS) extension for Medallion Bank. This channel is capital-light for the loans held for sale.

• In Q3 2025, originations from strategic partnerships hit a record $208.4 million, up from $39.9 million in the prior year quarter.
• As of Q1 2025, these fintech collaborations drove a 768% YoY loan growth.
• The model involves earning an origination fee plus about 3 to 5 days of interest before selling the loan back to the partner.
• Partnership loans accounted for 48% of total originations in Q1 2025.

The National network of recreation and home improvement dealers serves as the physical point-of-sale where many of the direct consumer loans are initiated, even if the final underwriting and funding flow through Medallion Bank or its partners. The quality of these origination points is reflected in underwriting metrics.

• New recreation loan originations in Q3 2025 had an average FICO score of 688.
• New home improvement loan originations in Q3 2025 had an average FICO score of 779.
• Home improvement loans 90-plus days past due were only 0.16% of gross loans as of September 30, 2025.

The Commercial lending team for direct business development focuses on Medallion Capital, which originates mezzanine loans directly to portfolio companies. This team drives the direct business development for the commercial segment.

The commercial loan portfolio reached $135.1 million by September 30, 2025, up from $110.1 million a year prior. The team originated $17.5 million in new commercial loans during Q3 2025.

The Investor Relations website for shareholder defintely communication is a key channel for disseminating official performance data and engaging the investment community. You can find the latest presentation materials there.

• Investors could download the PDF copy of the presentation for the December 3, 2025, conferences from the Investor Relations section at https://www.medallion.com/investors.html.
• The Q3 2025 earnings conference call was accessible via a live webcast on the company's investor relations website.

Medallion Financial Corp. (MFIN) - Canvas Business Model: Customer Segments

You're looking at the core groups Medallion Financial Corp. (MFIN) serves as of late 2025. This isn't just a list; it's where the actual dollars and risk profiles sit in their business.

The consumer lending side, anchored by Medallion Bank, clearly segments based on the asset being financed. You see a distinct difference in credit quality between the two main consumer buckets.

For the recreation borrowers, the average FICO score on new originations as of the third quarter of 2025 was 688. This segment's loan book grew 3% year-over-year to reach $1.603 billion, making up 63% of their total loans at September 30, 2025.

The home improvement segment shows significantly stronger credit quality, with an average FICO of 779 on new originations in Q3 2025. This portfolio stood at $804 million, representing 31% of total loans as of September 30, 2025.

Beyond direct consumer lending, Medallion Financial Corp. serves institutional and business clients through its commercial and strategic partnership arms. These groups rely on MFIN's infrastructure and capital access.

• Fintech companies seeking loan origination and servicing infrastructure: The strategic partnership program saw originations of $168.6 million in Q2 2025, a substantial increase from $24.3 million the prior year quarter.
• Small-to-mid-sized businesses needing mezzanine debt and equity: The Commercial Loans segment (Medallion Capital) had a portfolio value of $135 million as of September 30, 2025. In Q1 2025, this division maintained 30 equity investments with a book value of $9 million.

Finally, you have the capital providers-the shareholders-who are a key segment MFIN actively manages returns for. They look for direct cash flow and capital appreciation support.

Here's the quick math on capital returns as of late 2025:

• Shareholders seeking capital returns via dividends and buybacks: The declared quarterly cash dividend was $0.12 per share for Q3 2025, equating to an annual dividend of $0.48 per share.
• In Q2 2025, Medallion Financial Corp. executed share repurchases of 48,166 shares at an average cost of $9.44 per share, totaling $0.5 million.
• Net book value per share increased to $16.77 as of June 30, 2025.

If onboarding takes 14+ days, churn risk rises, and for MFIN, that means keeping the fintech pipeline moving quickly is defintely important.

Finance: draft 13-week cash view by Friday.

Medallion Financial Corp. (MFIN) - Canvas Business Model: Cost Structure

The cost structure for Medallion Financial Corp. (MFIN) is heavily weighted toward funding costs and managing credit risk, alongside significant operating expenses related to its digital platform and specialized lending teams. You're looking at the core outflows that eat into that strong net interest income.

Interest expense on deposits and borrowings is a primary driver. While the average cost for deposits was reported at 3.82% as of the end of September 2025, the total annual interest expense for the full year 2024 was $17,663 thousand, or $17.663 million.

Managing potential losses is a significant, variable cost. The Provision for credit losses for the third quarter of 2025 was explicitly reported at $18.6 million. This compares to $20.2 million in the prior year quarter.

Operating expenses, which include technology and employee costs, were substantial in Q3 2025. Total operating costs for the quarter reached $20.7 million, an increase from $19 million in the third quarter of the prior year. This figure specifically covered technology platform investments and talent.

To give you a clearer look at the non-interest expense base, here is a breakdown from the second quarter of 2025, which shows the components contributing to the overall operating costs, including compliance and personnel:

The component for costs associated with regulatory compliance and bank operations is partially captured by the Regulatory fees line item, which was $1,109 thousand in Q2 2025.

Legal and professional fees for corporate and growth initiatives are embedded within the operating expenses. For instance, in Q1 2025, operating expenses of $20.8 million were noted as being driven by investments in a new servicing platform and higher legal and employee costs. The Q3 2025 operating expense of $20.7 million reflects these ongoing investments in talent and platform infrastructure.

You can see the key cost metrics for Q3 2025 below:

• Average deposit cost (as of September 30, 2025): 3.82%.
• Provision for credit losses (Q3 2025): $18.6 million.
• Operating expenses (Q3 2025): $20.7 million.
• Regulatory fees (Q2 2025 context): $1,109 thousand.

Finance: draft 13-week cash view by Friday.

Medallion Financial Corp. (MFIN) - Canvas Business Model: Revenue Streams

You're looking at the hard numbers that drive Medallion Financial Corp.'s top line as of late 2025. It's a mix of traditional lending income and fees from newer, capital-light programs. Honestly, the shift away from the legacy taxi medallion business is clear in these figures.

The core engine remains interest income, but the strategic partnership channel is definitely gaining traction in terms of fee generation.

Here's a breakdown of the key revenue components based on the third quarter results ending September 30, 2025:

The net interest income from the loan portfolio hit a record $55.7 million for the quarter, showing a 6% year-over-year growth. The net interest margin on gross loans improved to 8.21%.

The recreation loan segment, which is a major part of the portfolio, contributed $53.6 million in interest income for the quarter.

For the strategic partnership program, which involves earning an origination fee and a few days of interest before selling the loan back, originations reached a record $208.4 million in the third quarter. Fees generated specifically from these partnerships totaled $1.0 million in Q3 2025, up from $0.4 million a year ago. Overall, this program generated approximately $1.5 million in total fees and interest for the quarter.

The wind-down of the taxi medallion assets continues to provide residual income streams. During the quarter, Medallion Financial Corp. collected $6.1 million in cash from these assets, which translated into $3.4 million in net recoveries and gains. The remaining net taxi medallion assets are now quite small, sitting at just $5.1 million as of September 30, 2025, representing less than 0.2% of total assets.

Equity investments are a smaller, less predictable stream. Gains from these investments year-to-date reached $15.8 million, though the third quarter itself was modest with only $300,000 in income recognized.

You can see the composition of the loan portfolio that generates this interest income through the following:

• Consumer loans (recreation and home improvement) represented 94% of the gross loan portfolio as of September 30, 2025.
• Recreation loans were 63% of the total loan book at $1.603 billion.
• Home improvement loans were 31% of the total loan book at $804 million.
• Commercial loans represented 5% of the gross loan portfolio, totaling $135.1 million.

Finance: draft 13-week cash view by Friday.