BYFC flags $25.9M goodwill impairment for Q3 FY2025

Rhea-AI Filing Summary

Broadway Financial (BYFC) announced that its Audit Committee concluded goodwill is impaired under U.S. GAAP. The Company expects to record a non-cash $25.9 million goodwill impairment for the quarter ended September 30, 2025.

The write-down will reduce GAAP earnings for that period but does not reflect operating cash usage. Management stated it does not expect future cash expenditures related to this charge. Goodwill impairments occur when the carrying value of acquired businesses exceeds their estimated fair value.

Positive

• None.

Negative

• $25.9 million goodwill impairment to be recorded for quarter ended September 30, 2025, reducing GAAP earnings for that period (non-cash).

Insights

Bank accounting analyst

$25.9M non-cash goodwill impairment will hit GAAP earnings.

Broadway Financial plans to record a $25.9 million goodwill impairment in Q3 FY2025 after its Audit Committee determined goodwill was impaired under U.S. GAAP. Goodwill reflects past acquisitions; an impairment signals the accounting value of acquired assets now exceeds estimated fair value.

The charge is non-cash, so liquidity and regulatory capital effects depend on specific capital rules and components, which are not detailed here. The filing states the Company does not expect future cash outflows from this charge.

Investors can expect a GAAP net loss impact for the quarter ended September 30, 2025. Actual capital and covenant implications, if any, would be clarified in subsequent periodic reports.

8-K Event Classification

Item 2.06 — Material Impairments

1 item

Item 2.06 Material Impairments Financial

The company concluded that a material charge for impairment of assets (goodwill, intangibles, etc.) is required.

Understanding 8-K Material Events →

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 15, 2025

BROADWAY FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Delaware		001-39043		95-4547287
(State or other jurisdiction		(Commission		(IRS Employer
of incorporation)		File Number)		Identification No.)

4601 Wilshire Boulevard, Suite 150, Los Angeles, CA	90010
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (323) 634-1700

NOT APPLICABLE

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading symbol(s)		Name of each exchange on which registered
Class A Common Stock, par value $0.01 per share (including attached preferred stock purchase rights)		BYFC		Nasdaq Capital Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company   ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.06 Material Impairments.

On October 15, 2025, the Audit Committee of the Board of Directors of Broadway Financial Corporation (the “Company”) (NASDAQ: BYFC), the holding company of City First Bank, National Association, concluded that, based on its annual impairment analysis, the Company’s goodwill is impaired in accordance with U.S. GAAP. Consequently, the Company expects to record a non-cash $25.9 million goodwill impairment charge for the quarter ended September 30, 2025. The Company does not expect that this charge will result in future cash expenditures.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	BROADWAY FINANCIAL CORPORATION
Date: October 17, 2025	By:	/s/ Zack Ibrahim
		Zack Ibrahim
		Executive Vice President and
		Chief Financial Officer

FAQ

What did Broadway Financial (BYFC) announce?

The Audit Committee determined goodwill is impaired under U.S. GAAP, and the Company expects to record a non-cash $25.9 million goodwill impairment.

How large is the impairment charge for BYFC?

The expected goodwill impairment is $25.9 million.

When will BYFC recognize the impairment?

It is expected to be recorded for the quarter ended September 30, 2025.

Is the impairment a cash expense for BYFC?

No. The Company stated it does not expect future cash expenditures related to this non-cash charge.

Who made the impairment determination at BYFC?

The Audit Committee of the Board of Directors concluded the goodwill is impaired based on its annual analysis.

How might the impairment affect BYFC’s reported results?

It will reduce GAAP earnings for the quarter in which it is recorded.