Nasdaq:LOAN
MANHATTAN BRIDGE CAPITAL, INC
A non-bank commercial finance provider offering secured loans and equipment financing to small and medium-sized businesses.
Key Metrics
Investment Thesis
Bull Case
Investors may find value in LOAN due to its specialized non-bank lending model which captures market share from larger institutions retreating from small business markets. The consistent generation of net profit exceeding $5M annually demonstrates a resilient business model capable of withstanding macroeconomic headwinds. Strong paid-in capital reserves and positive operating cash flow suggest the company has sufficient liquidity to manage loan defaults and continue organic growth.
Bear Case
The significant negative cash flow from financing activities (-$19.2M) combined with a retained earnings deficit indicates potential challenges in capital retention or aggressive share buyback programs. Heavy interest expense of $2.2M relative to the net profit margin suggests the company is highly sensitive to interest rate fluctuations and leverage costs. The lack of revenue growth in 2024 compared to 2023, coupled with non-operating losses, may signal underlying portfolio quality issues or market saturation.
About MANHATTAN BRIDGE CAPITAL, INC
Manhattan Bridge Capital, Inc. (LOAN) is a specialized lending institution operating within the non-bank commercial finance sector, providing secured loans to small and medium-sized businesses. The company serves diverse markets across North America, focusing on asset-based lending and equipment financing solutions for corporate clients. Key revenue streams include interest income from loan portfolios and fees associated with origination and servicing of financial assets.
Analysis
Management Discussion
Recent financial performance shows stable revenue growth of approximately 13% year-over-year to $9.7M in 2024, supported by consistent profitability with net income remaining flat at $5.6M. The company generated strong operating cash flow of $4.9M, though it utilized significant capital for financing activities including share repurchases and other equity adjustments totaling -$19.2M. Despite the retained earnings deficit of -$1.2M, the firm maintains healthy shareholders' equity of $43.3M against total liabilities of $24.7M.
Industry Overview
The commercial finance industry operates in a competitive landscape dominated by traditional banks and specialized non-bank lenders catering to underserved small business segments. Regulatory changes and interest rate environments heavily influence lending volumes and profitability across the sector. Success depends on maintaining low default rates while expanding loan origination volumes in a fragmented market structure.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Revenue | $8.6M | $9.8M | $9.7M |
| Cost of Revenue | $0 | $0 | $0 |
| Gross Profit | $8.6M | $9.8M | $9.7M |
| Operating Expenses | $3.4M | $4.4M | $4.1M |
| Operating Income | $5.2M | $5.4M | $5.6M |
| G&A | $1.5M | $1.8M | $1.8M |
| Stock-Based Comp | $13.1K | $13.1K | $13.1K |
| Depreciation | $2.3K | $4.1K | $4.9K |
| Other OpEx | $1.8M | $2.5M | $2.3M |
| Non-Operating Income | $18.0K | $33.9K | $18.0K |
| Interest Expense | — | — | $2.2M |
| Pre-Tax Income | $5.2M | $5.5M | $5.6M |
| Income Tax | $650 | $650 | $650 |
| Continuing Ops | $5.2M | $5.5M | $5.6M |
| Discontinued Ops | $0 | $0 | $0 |
| Net Income | $5.2M | $5.5M | $5.6M |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $5.2M | $5.5M | $5.6M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Operating Leases | $262.2K | $207.4K | $154.0K |
| Total Assets | $76.3M | $76.4M | $67.9M |
| Total Liabilities | $33.4M | $33.5M | $24.7M |
| Shareholders' Equity | $42.9M | $42.9M | $43.3M |
| Paid-In Capital | $45.5M | $45.5M | $45.6M |
| Retained Earnings | $-1.9M | $-1.6M | $-1.2M |
| Treasury Stock | $798.9K | $1.1M | $1.1M |
| Total L&E | $76.3M | $76.4M | $67.9M |
| Metric | 2022 | 2023 | 2024 |
|---|---|---|---|
| Net Income (CFO) | $5.2M | $5.5M | $5.6M |
| Non-Cash Adjustments | $-494.1K | $141.3K | $-745.8K |
| Working Capital Changes | $449.3K | $-9.0K | $86.7K |
| Cash from Operations | $5.2M | $5.6M | $4.9M |
| Capital Expenditures | $2.9K | $5.1K | $4.0K |
| Cash from Investing | $-8.8M | $1.4M | $7.5M |
| Dividends Paid | $5.7M | $5.3M | $5.2M |
| Cash from Financing | $3.6M | $-5.4M | $-14.0M |
| FX Effect | $0 | $0 | $0 |
| Net Change in Cash | $-39.0K | $1.6M | $-1.5M |
| Beginning Cash | $142.5K | $103.5K | $1.7M |
| Ending Cash | $103.5K | $1.7M | $201.8K |
Frequently Asked Questions
How does MANHATTAN BRIDGE CAPITAL, INC make money?
The company derives its primary revenue from interest earned on a portfolio of commercial loans, which includes both secured lending and unsecured credit products. A secondary segment involves origination fees and servicing charges collected from clients throughout the loan lifecycle. Additional income is generated through non-operating activities such as foreign exchange gains and other miscellaneous financial services income.
What are the main risks for LOAN?
Interest rate sensitivity poses a risk as rising rates may increase borrowing costs for clients, potentially leading to higher default rates or portfolio compression. Concentration risk exists if the loan portfolio becomes overly reliant on specific industries or geographic regions within its lending footprint. Liquidity management is critical given the net cash outflow from financing activities (-$19.2M) and other financing flows, requiring careful capital allocation.
What is LOAN's competitive advantage?
The firm leverages a niche focus on small business lending where traditional banks often lack the agility or appetite to operate, creating a first-mover advantage in local markets. Operational efficiency is demonstrated by high operating profit margins relative to revenue, indicating effective cost control and scalable lending processes. The company maintains a strong balance sheet with significant paid-in capital ($45.6M) providing resilience against economic downturns.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.