The stock decline followed the company’s second-quarter 2026 earnings report, which revealed a quarterly net loss of $42.1 million. This sharp reversal from the previous year’s $12 million net income was attributed to a $68.8 million credit expense linked to a specific CCBX partner relationship. Shares plummeted from $70.66 to $39.91 in a single trading session as the market reacted to the unexpected financial strain.

Bleichmar Fonti & Auld LLP is now reviewing whether Coastal Financial provided accurate disclosures concerning the stability of its partner relationships and overall segment health. The firm, which handles securities litigation on a contingency fee basis, is encouraging affected shareholders to come forward as it evaluates potential legal claims. Coastal Financial provides banking services to various digital financial providers through its CCBX platform, a core component of its business model that is now under intense regulatory and legal scrutiny.