Pathward Financial (NASDAQ:CASH) Posts Earnings Results, Beats Estimates By $0.19 EPS

Pathward Financial (NASDAQ:CASH) announced its quarterly earnings data on Thursday. The savings and loans company reported $1.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.38 by $0.19, FiscalAI reports. The company had revenue of $173.10 million during the quarter, compared to the consensus estimate of $185.80 million. Pathward Financial had a return on equity of 22.97% and a net margin of 22.45%.The firm’s revenue was down .2% on a year-over-year basis. During the same period in the previous year, the company posted $1.29 EPS. Pathward Financial updated its FY 2026 guidance to 8.550-9.050 EPS.

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

• Pathward reported net income of $35.2 million and diluted EPS of $1.57, up 17% and 28% YoY respectively, with annualized ROA of 1.87% and ROTCE of 26.7%.
• Management raised fiscal 2026 EPS guidance to $8.55–$9.05, assuming no additional rate cuts, an 18%–22% effective tax rate, and continued share repurchases.
• Growth initiatives include multiple new partner contracts (merchant acquiring, issuing, credit) expected to add a mid?to?high single?digit contribution to card fee run?rate, plus balance?sheet optimization (rotating securities into higher?yield loans) and loan “velocity” to grow fee income without materially expanding assets.
• Asset quality showed a slight uptick in non?performing loans; management emphasizes net charge?offs remain low (0.4% annualized excluding tax services) and expects to resolve specific commercial problem loans over several quarters, but the NPL increase is a potential risk.
• Balance sheet trends included deposits on?balance sheet of $6.4 billion (down $170 million YoY), loans of $5.0 billion, liquidity of $3.7 billion, and ~652,000 shares repurchased this quarter with ~4.3 million shares remaining on the buyback authorization.

Pathward Financial Stock Up 3.4%

Shares of CASH opened at $79.90 on Friday. The business’s 50 day moving average is $73.05 and its 200 day moving average is $74.62. The company has a current ratio of 0.79, a quick ratio of 0.76 and a debt-to-equity ratio of 0.04. Pathward Financial has a 12-month low of $64.45 and a 12-month high of $86.00. The company has a market capitalization of $1.77 billion, a PE ratio of 10.11 and a beta of 0.74.

Pathward Financial Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, January 2nd. Investors of record on Wednesday, December 10th were paid a dividend of $0.05 per share. This represents a $0.20 annualized dividend and a yield of 0.3%. The ex-dividend date of this dividend was Wednesday, December 10th. Pathward Financial’s dividend payout ratio (DPR) is 2.53%.

Pathward Financial News Roundup

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

• Positive Sentiment: Q1 EPS beat and YoY profit growth — Pathward reported GAAP net income of $35.2M, or $1.57 per share, topping consensus and improving from last year; strong margins and ROE underpin the beat. Pathward Financial (CASH) Surpasses Q1 Earnings Estimates
• Positive Sentiment: FY2026 guidance raised slightly above consensus — Management set FY2026 EPS guidance of $8.55–$9.05, a touch higher than Street expectations, which supports a more bullish forward earnings outlook. Pathward Financial (CASH) on MarketBeat
• Positive Sentiment: Profitability metrics look solid — The company reported a net margin ~22.5% and ROE ~23%, signaling efficient earnings conversion even with revenue pressure. Pathward Financial, Inc. Announces Results for 2026 Fiscal First Quarter
• Neutral Sentiment: Earnings call transcript available — Investors can review management commentary and Q&A for color on loan trends, margins, capital deployment and assumptions behind guidance. Pathward Financial, Inc. (CASH) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Press release and slide deck posted — Full release and slides provide detailed line-item results and the company’s narrative on drivers of performance. Pathward Financial, Inc. Announces Results for 2026 Fiscal First Quarter
• Neutral Sentiment: Analyst/pre-earnings coverage noted a strong surprise history — Previews suggested Pathward could beat again; those expectations likely amplified the move after results. Why Pathward (CASH) Could Beat Earnings Estimates Again
• Negative Sentiment: Revenue missed expectations — Q1 revenue of $173.1M fell short of the $185.8M consensus and was slightly down year-over-year, which could limit multiple expansion unless top-line trends turn positive. Pathward Financial, Inc. Announces Results for 2026 Fiscal First Quarter

Wall Street Analyst Weigh In

Separately, Weiss Ratings downgraded shares of Pathward Financial from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, January 12th. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. According to MarketBeat, Pathward Financial currently has an average rating of “Hold” and a consensus target price of $91.00.

Insider Transactions at Pathward Financial

In other news, Director Douglas J. Hajek sold 3,000 shares of Pathward Financial stock in a transaction that occurred on Friday, October 31st. The shares were sold at an average price of $68.11, for a total transaction of $204,330.00. Following the sale, the director owned 16,631 shares in the company, valued at $1,132,737.41. This trade represents a 15.28% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 1.43% of the stock is currently owned by company insiders.

Institutional Trading of Pathward Financial

A number of institutional investors and hedge funds have recently bought and sold shares of CASH. Revolve Wealth Partners LLC bought a new stake in Pathward Financial in the 4th quarter worth approximately $267,437,000. Nantahala Capital Management LLC purchased a new position in shares of Pathward Financial in the second quarter valued at $660,000. California State Teachers Retirement System increased its position in Pathward Financial by 1.0% in the second quarter. California State Teachers Retirement System now owns 22,993 shares of the savings and loans company’s stock worth $1,819,000 after purchasing an additional 221 shares during the last quarter. Raymond James Financial Inc. purchased a new stake in Pathward Financial during the second quarter valued at $496,000. Finally, The Manufacturers Life Insurance Company raised its stake in Pathward Financial by 6.3% during the second quarter. The Manufacturers Life Insurance Company now owns 11,882 shares of the savings and loans company’s stock valued at $940,000 after purchasing an additional 706 shares in the last quarter. 92.66% of the stock is currently owned by institutional investors.

About Pathward Financial

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.