{"id":1963,"date":"2024-10-21T10:16:26","date_gmt":"2024-10-21T10:16:26","guid":{"rendered":"https:\/\/ladingcargo.com\/blog\/?p=1963"},"modified":"2025-01-09T05:00:46","modified_gmt":"2025-01-09T05:00:46","slug":"triumphpay-achieves-positive-ebitda-milestone-again","status":"publish","type":"post","link":"https:\/\/ladingcargo.com\/blog\/triumphpay-achieves-positive-ebitda-milestone-again\/","title":{"rendered":"TriumphPay Achieves Positive EBITDA Milestone Again"},"content":{"rendered":"

For the second time in its history, TriumphPay, the payments and processing division of Triumph Financial, reported a positive EBITDA for the third quarter.<\/p>\n

Achieving positive EBITDA has been a key objective for Triumph Financial (NASDAQ: TFIN) over the past several quarters. While TriumphPay recorded a slightly positive EBITDA margin in the fourth quarter of 2023, the figure was so minimal\u2014$36,000\u2014that it appears in the earnings history with a dash instead of an actual number. However, in the third quarter, TriumphPay posted a positive EBITDA of $70,000, with a 5% margin.<\/p>\n

In a letter to shareholders, Triumph Financial CEO Aaron Graft highlighted the return to positive EBITDA but warned that future performance may not improve steadily.<\/p>\n

\u201cThe freight recession is closer to ending than when it began, but that does not necessarily mean it will end soon,\u201d he noted. \u201cWe are 33 months into a freight recession. That makes it the longest since deregulation in 1980.\u201d<\/p>\n

Graft\u2019s letter also provided insights into the growth of the TriumphPay Network, which processes invoices through an open-loop system.<\/p>\n

Increased Activity With C.H. Robinson<\/h2>\n

In June, TriumphPay partnered with the largest broker, C.H. Robinson (NASDAQ: CHRW), to utilize the TriumphPay Network. Graft indicated that the network’s financial performance partially reflects C.H. Robinson’s activity, although the 3PL only started utilizing the network toward the end of the quarter.<\/p>\n

\u201cThat volume will begin to scale in Q4,\u201d Graft said.<\/p>\n

The letter included a graphic showing the \u201cestimated payment volume\u201d for the top 25 brokers as ranked by Transport Topics. However, these rankings have already changed due to the acquisition of Coyote Logistics by RXO (NYSE: RXO), which closed in September.<\/p>\n

While RXO may now rank third, Total Quality Logistics (TQL) remains the second-largest broker, though TQL is not a TriumphPay client. If TQL joins, TriumphPay could achieve its goal of processing over 50% of broker invoices across its services. Currently, Triumph estimates the brokered truckload market at $110 billion, with TriumphPay handling an annualized $52.5 billion in the third quarter\u201448% of the market, including auditing services.<\/p>\n

\u201cTo add density quickly, it makes sense to focus on the largest brokers,\u201d Graft said. C.H. Robinson is expected to contribute additional revenue in the fourth quarter.<\/p>\n

Additional highlights from Graft’s letter included:<\/p>\n