Pathward Financial (NASDAQ:CASH) Releases Quarterly Earnings Results, Misses Estimates By $0.58 EPS

Pathward Financial (NASDAQ:CASH) announced its quarterly earnings results on Wednesday. The savings and loans company reported $1.37 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.95 by ($0.58), FiscalAI reports. Pathward Financial had a return on equity of 22.35% and a net margin of 22.42%.The firm had revenue of $189.64 million for the quarter, compared to analyst estimates of $191.18 million. Pathward Financial updated its FY 2027 guidance to 9.500-10.000 EPS and its FY 2026 guidance to 7.800-8.200 EPS.

Here are the key takeaways from Pathward Financial’s conference call:

• Pathward reported a higher provision for credit losses in the quarter, driven by specific reserves on two loans and a CECL reserve build. Management said one loan moved toward liquidation and another involved a suspected sophisticated fraud.
• Non-performing loans increased, mainly due to renewable energy construction projects tied to a common developer that were moved to non-accrual status. Management said the issue appears idiosyncratic and not indicative of a broader systemic problem in the portfolio.
• Despite the credit issues, the company delivered $29 million of net income and $1.37 in diluted EPS, with year-to-date returns remaining strong. Management highlighted continued growth in Commercial Finance interest income, non-interest income, and disciplined expense control.
• The company raised its fiscal 2026 EPS guidance to $7.80-$8.20 and introduced fiscal 2027 EPS guidance of $9.50-$10.00. Management said the outlook assumes normalized credit performance, continued partner ramping, and share repurchases.
• Management remained upbeat about the pipeline in Partner Solutions and banking-as-a-service, saying demand is strong and the company is being selective with new relationships. They also said secondary market revenues are catching up after prior delays and should run around $5 million-$7 million per quarter, with fourth-quarter demand trending toward the high end.

Pathward Financial Stock Down 10.5%

Shares of Pathward Financial stock opened at $79.34 on Thursday. The company has a quick ratio of 0.80, a current ratio of 0.81 and a debt-to-equity ratio of 0.04. The business has a 50-day moving average price of $84.86 and a 200 day moving average price of $87.06. Pathward Financial has a fifty-two week low of $65.87 and a fifty-two week high of $101.26. The firm has a market cap of $1.67 billion, a P/E ratio of 9.44 and a beta of 0.60.

Pathward Financial Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, July 1st. Stockholders of record on Thursday, June 11th were given a dividend of $0.05 per share. The ex-dividend date of this dividend was Thursday, June 11th. This represents a $0.20 annualized dividend and a dividend yield of 0.3%. Pathward Financial’s dividend payout ratio (DPR) is presently 2.38%.

Insider Buying and Selling

In other Pathward Financial news, Director Elizabeth G. Hoople sold 4,500 shares of the firm’s stock in a transaction dated Friday, May 29th. The shares were sold at an average price of $82.29, for a total transaction of $370,305.00. Following the transaction, the director owned 28,050 shares of the company’s stock, valued at approximately $2,308,234.50. This trade represents a 13.82% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Douglas J. Hajek sold 5,000 shares of the business’s stock in a transaction on Wednesday, April 29th. The stock was sold at an average price of $86.37, for a total value of $431,850.00. Following the completion of the sale, the director directly owned 12,281 shares in the company, valued at $1,060,709.97. This represents a 28.93% decrease in their position. The disclosure for this sale is available in the SEC filing. 1.43% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of CASH. Seros Financial LLC bought a new position in shares of Pathward Financial during the 3rd quarter valued at $481,003,000. Revolve Wealth Partners LLC bought a new stake in Pathward Financial in the fourth quarter valued at $267,437,000. Millennium Management LLC boosted its position in Pathward Financial by 181.6% in the fourth quarter. Millennium Management LLC now owns 204,437 shares of the savings and loans company’s stock valued at $14,515,000 after buying an additional 131,847 shares in the last quarter. Nantahala Capital Management LLC raised its position in Pathward Financial by 1,477.8% in the 4th quarter. Nantahala Capital Management LLC now owns 131,608 shares of the savings and loans company’s stock valued at $9,344,000 after purchasing an additional 123,267 shares during the last quarter. Finally, Cerity Partners LLC acquired a new position in Pathward Financial during the 4th quarter worth about $8,484,000. 92.66% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research analysts recently commented on the company. Keefe, Bruyette & Woods lowered their target price on Pathward Financial from $108.00 to $97.00 and set an “outperform” rating for the company in a research note on Thursday. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Pathward Financial in a report on Friday, May 8th. Three equities research analysts have rated the stock with a Buy rating, According to data from MarketBeat.com, the company currently has an average rating of “Buy” and a consensus price target of $102.00.

More Pathward Financial News

Here are the key news stories impacting Pathward Financial this week:

• Positive Sentiment: Keefe, Bruyette & Woods kept an outperform rating on Pathward Financial while lowering its price target to $97 from $108, implying upside from the current share price. Article link
• Positive Sentiment: Management raised its long-term outlook, guiding FY2027 EPS to $9.50-$10.00, which suggests earnings can recover after the near-term setback. Article link
• Neutral Sentiment: Earnings-call coverage highlighted strong income growth in parts of the business, but the market focus remained on the miss and lower near-term guidance. Article link
• Negative Sentiment: Q3 results missed analyst expectations on both earnings and revenue, with EPS down from $1.81 a year ago to $1.37, signaling weaker quarterly performance. Article link
• Negative Sentiment: The company trimmed FY2026 EPS guidance to $7.80-$8.20, below the Street’s expectations, which adds pressure to the stock. Article link

Pathward Financial Company Profile

Pathward Financial (NASDAQ:CASH) is a U.S.-based financial services company that operates through its wholly owned subsidiary, Pathward Bank. The company provides a range of banking and payment solutions designed for consumers, small businesses, community banks and fintech partners. Core offerings include deposit accounts, consumer and commercial lending, debit and prepaid card programs, digital banking platforms and treasury management services.

Through its banking charter, Pathward Financial delivers customizable payment solutions, including prepaid cards, payroll cards and benefit disbursement programs.