Capital One Acquires Brex For $5.15B But Misses Earnings, Shares Dive More Than 5% After Hours

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Brex is a privately held firm that specializes in technology used by companies to administer corporate credit cards, expenses and rewards.

  • Franceschi, who serves as CEO of Brex, will continue to lead Brex as part of Capital One, upon completion of the deal. 
  • Capital One expects the deal to close in the middle of calendar year 2026. 
  • Capital One’s adjusted net income for the fourth quarter of 2025 was $3.86 per diluted common share, which was well below analysts’ estimates of $4.18 per share. 

Capital One Financial has agreed to buy the fintech Brex for $5.15 billion in cash and stock deal, sending shares down more than 5% in extended hours of trading on Thursday. 

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Brex is a privately held firm that specializes in technology used by companies to administer corporate credit cards, expenses and rewards. It oversees nearly $13 billion in deposits held at partner banks and money-market funds. 

Deal Details

Brazilian entrepreneurs Pedro Franceschi and Henrique Dubugras founded Brex after dropping out of Stanford University. Franceschi, who serves as CEO of the company, will continue to lead Brex as part of Capital One, upon completion of the deal. 

Capital one expects the deal to close in the middle of calendar year 2026. 

Capital One last year closed its $35 billion deal to acquire Discover Financial in an effort to compete with heavyweights in the sector like Visa and Mastercard. 

”Since our founding, we set out to build a payments company at the frontier of the technology revolution,” said Richard D. Fairbank, Founder, Chairman, and Chief Executive Officer of Capital One. “Acquiring Brex accelerates this journey, especially in the business payments marketplace.”

Q4 Earnings

The company said its total Q4 net revenue increased 1% to $15.6 billion. Analysts on average had expected revenue of $15.46 billion, according to data from fiscal.ai.

Adjusted net income for the fourth quarter of 2025 was $3.86 per diluted common share, which was well below analysts’ estimates of $4.18 per share. 

Capital One’s provision for credit losses increased $1.4 billion to $4.1 billion and weighed its profit down during the quarter. 

How Did Stocktwits Users React?

Retail sentiment around COF trended in ‘bearish’ territory amid ‘normal’ message volume. 

Shares in the company have risen 19.5% over the past 12 months. 

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