Manhattan Bridge Capital, Inc. Reports Third Quarter Results for 2026

Nine-month net income fell 8.1% despite a stable third quarter for Manhattan Bridge Capital.

What the company is saying

Manhattan Bridge Capital, Inc. (NASDAQ:LOAN) reports a slight year-over-year increase in third quarter revenues to $2,054,000, up 0.9%, and net income of $1,238,000, up 3.0%. The company attributes the quarterly improvement mainly to higher origination fees and lower interest expense, while acknowledging that lower interest income and increased general and administrative expenses were partial offsets. Over the nine-month period, however, total revenues declined 7.5% to $6,166,000 and net income dropped 8.1% to $3,665,000, with management citing increased competition leading to lower rates and origination fees as the primary cause. The company highlights its conservative, low-leverage approach as a strength in a competitive and pressured real estate lending environment. Assaf Ran, Chairman and CEO, frames the company’s position as prudent given market headwinds, noting that hard money rates have not risen much due to competition. The board extended and expanded the share repurchase program, now authorizing up to 250,000 shares through October 2027.

What the data suggests

The third quarter saw revenues rise marginally by $18,000 to $2,054,000, with net income increasing $36,000 to $1,238,000, both representing low single-digit percentage gains. Interest income for the quarter declined from $1,770,000 to $1,662,000, but origination fees rose from $265,000 to $392,000, partially offsetting the drop. For the nine months ended September 30, 2026, revenues fell by $499,000 to $6,166,000, and net income decreased by $323,000 to $3,665,000. Both interest income and origination fees declined over the nine-month period, reflecting increased competitive pressure and lower rates. Shareholders' equity stood at $42,789,000 as of September 30, 2026. The company repurchased 61,185 shares for $248,000 under its buyback program, with 54,985 shares repurchased in the first nine months of 2026. Loans receivable, net of deferred fees, totaled $59,478,735, and lines of credit were $17,034,621. The data supports management’s claim that competition is compressing margins, and while the company has maintained profitability, the year-to-date trend is negative.

Analysis

The announcement is a straightforward financial results release, providing realised and directly comparable figures for revenues, net income, interest income, origination fees, and share repurchase activity. The language is factual and does not exaggerate performance; both positive and negative trends are disclosed, including a year-over-year decline in nine-month revenues and net income. The only forward-looking element is the extension and expansion of the share repurchase program, which is a board-authorized action with a clear timeline and no promotional language. There are no aspirational claims about future growth, profitability, or market share, and no attempt to frame deteriorating results as positive. The company does not announce any large capital outlay or long-dated, uncertain returns. The tone is measured, and all key claims are supported by disclosed data.

Risk flags

• ●Margin compression from increased competition is evident, as both interest income and origination fees declined over the nine-month period. This trend threatens future profitability if competitive pressures persist or intensify.
• ●The company’s reliance on origination fees to offset declining interest income introduces volatility, as fee income can fluctuate with loan origination volumes and market demand. Sustained declines in either component could further erode earnings.
• ●While the company emphasizes low leverage, its business model remains exposed to broader real estate market risks, including rising rates, tighter rent-to-mortgage ratios, and slower property sales. These factors could impact loan performance or origination opportunities.

Bottom line

Manhattan Bridge Capital’s third quarter results show stable profitability, but the nine-month figures reveal a clear decline in both revenues and net income due to competitive pressures lowering both interest rates and origination fees. The company has responded by increasing its share repurchase authorization to 250,000 shares and extending the program through October 2027, signaling confidence in its valuation and capital position. However, the core lending business is under pressure, and the ability to maintain or grow earnings will depend on whether the company can stabilize margins or grow loan volumes without further rate concessions. Investors should focus on future disclosures regarding loan origination trends, fee structures, and any further shifts in competitive dynamics. The most important takeaway is that while the company remains profitable and conservatively managed, its core earnings power is being squeezed by market competition.

Announcement summary

(NASDAQ:LOAN) Manhattan Bridge Capital, Inc. reported total revenues of approximately $2,054,000 for the three months ended September 30, 2026, compared to approximately $2,036,000 for the same period in 2025, an increase of approximately $18,000 or 0.9%. The increase was primarily due to higher origination fees, partially offset by lower interest income resulting from lower interest rates charged to borrowers due to increased competition. For the three months ended September 30, 2026 and 2025, interest income on secured commercial loans offered to real estate investors was approximately $1,662,000 and $1,770,000, respectively, and origination fees were approximately $392,000 and $265,000, respectively. Net income for the three months ended September 30, 2026 was approximately $1,238,000, or $0.11 per basic and diluted share (based on approximately 11.41 million weighted-average outstanding common shares), compared to approximately $1,202,000, or $0.11 per basic and diluted share (based on approximately 11.44 million weighted-average outstanding common shares) for the same period in 2025, representing an increase of approximately $36,000 or 3.0%. The increase in net income was primarily due to lower interest expense and higher origination fee income, partially offset by lower interest income and higher general and administrative expenses. Total revenues for the nine months ended September 30, 2026 were approximately $6,166,000, compared to approximately $6,665,000 for the same period in 2025, a decrease of approximately $499,000 or 7.5%. The decrease occurred despite increases in both the number of loans originated and the amount of capital deployed, and was primarily due to lower interest rates and origination fees charged to borrowers as a result of increased competition. For the nine months ended September 30, 2026 and 2025, interest income on secured commercial loans was approximately $5,099,000 and $5,504,000, respectively, and origination fees were approximately $1,067,000 and $1,161,000, respectively. Net income for the nine months ended September 30, 2026 was approximately $3,665,000, or $0.32 per basic and diluted share (based on approximately 11.42 million weighted-average outstanding common shares), compared to approximately $3,988,000, or $0.35 per basic and diluted share (based on approximately 11.44 million weighted-average outstanding common shares) for the same period in 2025, a decrease of approximately $323,000 or 8.1%. The decrease in net income was primarily due to lower revenues and higher general and administrative expenses, partially offset by lower interest expense. As of September 30, 2026, total shareholders' equity was approximately $42,789,000. On November 20, 2025, the board of directors authorized a share repurchase program for up to 100,000 shares of common stock in the next twelve months. As of September 30, 2026, the company had repurchased an aggregate of 61,185 shares under the program at a total cost of approximately $248,000, with 54,985 shares repurchased during the nine months ended September 30, 2026 at an aggregate cost of approximately $219,000. On October 8, 2026, the board approved an amendment to the share repurchase program, increasing the aggregate number of shares authorized for repurchase from 100,000 to 250,000 shares and extending the program for an additional 12 months through October 8, 2027. As of September 30, 2026, loans receivable, net of deferred origination and other fees, were $59,478,735, and total assets were $61,479,540. Lines of credit as of September 30, 2026 were $17,034,621. Assaf Ran is Chairman of the Board and Chief Executive Officer. The company noted that the increasing interest rate environment is raising pressure on real estate markets, but hard money rates have not increased much due to intense competition. The company emphasized its low leverage and conservative approach as beneficial in the current environment.

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