Executive Summary
Carver Bancorp Inc (CARV) reported Q2 2025 revenue of $10.41 million, up roughly 9.9% year-over-year and 5.0% quarter-over-quarter, driven by a higher top-line versus the prior-year period. Despite the revenue gain, the quarter delivered a net loss of $2.11 million and an EPS of -$0.41, underscoring a continued profitability challenge at the operating level. The company’s gross margin was strong at approximately 58.8%, but operating leverage remained negative, with an operating loss of about $2.11 million and a negative net income result. The quarter benefited from a sizable investment portfolio and liquid balance sheet, yet liquidity risk is notable given very high current liabilities relative to current assets in the reported data, and the firm carries a sizable accumulated deficit in retained earnings.
Key Performance Indicators
Key Insights
Revenue: $10.41 million in Q2 2025, up 9.89% YoY and 5.02% QoQ. Gross profit: $6.118 million; gross margin 58.77%. Operating income: -$2.113 million; operating margin -20.30%. Net income: -$2.113 million; net margin -20.30%. EPS: -$0.41 (diluted -$0.41). Free cash flow: -$3.133 million; cash flow from operations: -$3.027 million. Balance sheet highlights include total assets of $748.8 million, large investment holdings (~$663 million), and total current liabilities of $650.8 million versus only ...
Financial Highlights
Revenue: $10.41 million in Q2 2025, up 9.89% YoY and 5.02% QoQ. Gross profit: $6.118 million; gross margin 58.77%. Operating income: -$2.113 million; operating margin -20.30%. Net income: -$2.113 million; net margin -20.30%. EPS: -$0.41 (diluted -$0.41). Free cash flow: -$3.133 million; cash flow from operations: -$3.027 million. Balance sheet highlights include total assets of $748.8 million, large investment holdings (~$663 million), and total current liabilities of $650.8 million versus only $107.5 million in current assets, implying liquidity sensitivity. Cash and cash equivalents totaled $54.545 million at period-end with net debt of approximately -$6.055 million (cash greater than debt). Price-to-book (P/B) and price-to-sales (P/S) multiples indicate a deep discount to peers (CARV P/B ~0.25, P/S ~1.50) despite a meaningful franchise footprint in New York.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
10.41M |
9.89% |
5.02% |
| Gross Profit |
6.12M |
-8.60% |
2.84% |
| Operating Income |
-2.11M |
-33.23% |
4.48% |
| Net Income |
-2.11M |
-33.23% |
4.48% |
| EPS |
-0.41 |
-24.24% |
4.65% |
Key Financial Ratios
operatingCashFlowPerShare
$-0.59
freeCashFlowPerShare
$-0.61
Management Commentary
No earnings call transcript data provided in the dataset. As such, there are no management quotes or theme-based highlights available from the QQ2 2025 call. If transcript data becomes available, a themes-based synthesis (strategy, operations, market conditions, guidance) with direct quotes will be added here.
Forward Guidance
There is no explicit management guidance included in the provided data for CARV. Given the earnings trajectory, investors should monitor factors such as: (1) revenue mix stabilization and net interest income sensitivity to rate moves, (2) cost control and non-interest expense discipline to support positive operating earnings, (3) balance sheet liquidity and debt maturities, and (4) deposit trends and funding costs. In a scenario where operating leverage improves and the bank grows its core deposits while maintaining risk controls, CARV could move toward positive operating income if expenses tighten and revenue growth persists. A conservative baseline would assume continued pressure on profitability until the loan book stabilizes and the investment portfolio yields convert to a more favorable mix. Key monitorables: deposit growth/aging, non-interest income, credit quality signals, and regulatory capital adequacy.