Triumph Financial Settles USPS Dispute, Doubles Down on Freight Intelligence

Triumph Financial’s Q2 earnings report packed more strategic signals than financial results alone might suggest. Net income jumped to $12.4 million, thanks largely to the resolution of a long-standing dispute with the U.S. Postal Service.

“We started training investors to look at average invoice size back when all we did was factoring,” CEO Aaron Graft said. “Today, our footprint is much broader.”

The USPS settlement, stemming from Triumph’s 2020 acquisition of Covenant Logistics’ factoring business, helped recover all $19.4 million in disputed receivables, delivering a one-time income boost.

Expanding Beyond Factoring and Payments

Beyond the numbers, Triumph made major moves to deepen its freight ecosystem. It folded two recent acquisitions—Greenscreens.ai and Isometric Technologies (ISO)—into a new “Intelligence” division. Though it generated just $1.7 million in Q2, the unit is central to Triumph’s long-term plan.

“When you offer a data product,” Graft wrote, “brokers will also realize you have objective carrier performance data they’ll want for routing guides.”

Triumph envisions a value chain where audit tools build trust, payments are made via LoadPay’s digital wallet, and insights help brokers price and route freight more effectively.

Factoring Growth vs. Freight Softness

Despite headwinds in freight, Triumph’s factoring business processed 1.7 million invoices worth $2.87 billion—up 13.3% from Q1. But invoice size told a different story:

• Average factoring invoice: $1,663, down from $1,769 in Q1
• Average payment invoice: $1,186, also down slightly

“As you go upmarket, shorter regional loads can reduce invoice size,” said Kimberly Fisk, president of the factoring unit.

Meanwhile, Triumph’s Factoring-as-a-Service platform added RXO as a major partner after Q2’s close. The deal includes both LoadPay and the FaaS platform, bolstering the company’s ecosystem of freight finance tools.

LoadPay Momentum

LoadPay, Triumph’s digital wallet solution, continues to gain traction. The platform hit 2,000 accounts in June and reached 2,729 by mid-July. Graft expects faster scaling going forward.

Despite a soft freight market, Triumph Financial is pushing forward with an integrated freight finance and intelligence strategy, one that could reshape how brokers and carriers manage payments, data, and operations.

Source: FreightWaves