Pathward Financial (NASDAQ:CASH) Announces Earnings Results, Beats Expectations By $0.19 EPS

Pathward Financial (NASDAQ:CASH) posted its quarterly earnings results on Thursday. The savings and loans company reported $1.57 EPS for the quarter, beating the consensus estimate of $1.38 by $0.19, FiscalAI reports. Pathward Financial had a net margin of 22.45% and a return on equity of 22.97%. The firm had revenue of $173.10 million for the quarter, compared to analyst estimates of $185.80 million. During the same quarter last year, the firm posted $1.29 earnings per share. Pathward Financial’s revenue for the quarter was down .2% compared to the same quarter last year. 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 Price Performance

CASH traded up $2.65 during midday trading on Thursday, reaching $79.90. 427,724 shares of the company’s stock were exchanged, compared to its average volume of 227,452. The company has a quick ratio of 0.76, a current ratio of 0.79 and a debt-to-equity ratio of 0.04. The business has a 50-day simple moving average of $73.05 and a two-hundred day simple moving average of $74.62. The firm has a market capitalization of $1.77 billion, a price-to-earnings ratio of 10.11 and a beta of 0.74. Pathward Financial has a one year low of $64.45 and a one year high of $86.00.

Pathward Financial Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, January 2nd. Investors of record on Wednesday, December 10th were given a $0.05 dividend. 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 is 2.53%.

Analyst Ratings Changes

Separately, Weiss Ratings lowered shares of Pathward Financial from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Monday, January 12th. One equities research analyst has rated the stock with a Buy rating and two have given a Hold rating to the company’s stock. According to data from MarketBeat, Pathward Financial has a consensus rating of “Hold” and a consensus target price of $91.00.

Insider Buying and Selling

In related news, President Anthony M. Sharett sold 11,500 shares of Pathward Financial stock in a transaction dated Friday, October 24th. The shares were sold at an average price of $71.55, for a total transaction of $822,825.00. Following the completion of the transaction, the president directly owned 25,155 shares of the company’s stock, valued at $1,799,840.25. This trade represents a 31.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, insider Nadia Dombrowski sold 5,000 shares of the company’s stock in a transaction dated Friday, October 24th. The stock was sold at an average price of $71.46, for a total transaction of $357,300.00. Following the sale, the insider directly owned 6,528 shares in the company, valued at $466,490.88. This represents a 43.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 19,500 shares of company stock worth $1,384,455 in the last 90 days. 1.43% of the stock is owned by company insiders.

Institutional Trading of Pathward Financial

Hedge funds have recently added to or reduced their stakes in the business. EverSource Wealth Advisors LLC boosted its position in Pathward Financial by 43,200.0% during the second quarter. EverSource Wealth Advisors LLC now owns 433 shares of the savings and loans company’s stock worth $34,000 after purchasing an additional 432 shares during the period. State of Wyoming acquired a new stake in shares of Pathward Financial during the 2nd quarter worth about $46,000. Brevan Howard Capital Management LP bought a new stake in shares of Pathward Financial during the 3rd quarter worth about $220,000. Tower Research Capital LLC TRC grew its position in shares of Pathward Financial by 344.6% in the second quarter. Tower Research Capital LLC TRC now owns 3,868 shares of the savings and loans company’s stock valued at $306,000 after purchasing an additional 2,998 shares during the last quarter. Finally, Freestone Grove Partners LP acquired a new position in shares of Pathward Financial in the third quarter valued at approximately $320,000. Institutional investors and hedge funds own 92.66% of the company’s stock.

Key Stories Impacting Pathward Financial

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

• Positive Sentiment: Q1 EPS beat — Pathward reported $1.57 GAAP EPS, ahead of consensus (Zacks/Street estimates ~ $1.28–$1.38), showing better-than-expected profitability and driving bullish investor sentiment. Pathward Financial (CASH) Surpasses Q1 Earnings Estimates
• Positive Sentiment: Management raised FY‑2026 EPS guidance to a range of 8.550–9.050, above the prior consensus (~8.450), signaling confidence in upcoming earnings power and supporting multiple expansion. Pathward Financial, Inc. Announces Results for 2026 Fiscal First Quarter
• Positive Sentiment: Underlying profitability strengthened — net income rose to $35.2M (vs. $30.0M year‑ago), with a robust net margin (~22.5%) and a high return on equity (~23%), indicating efficient earnings conversion even as revenues moved. Pathward Financial, Inc. Announces Results for 2026 Fiscal First Quarter
• Neutral Sentiment: Pre‑announcement analyst commentary suggested Pathward had the setup to beat prior to the print — that narrative likely amplified the market move when results landed. Why Pathward (CASH) Could Beat Earnings Estimates Again
• Negative Sentiment: Revenue missed expectations — Q1 revenue was $173.1M vs. analyst estimates of ~$185.8M. The EPS beat was driven by margin performance rather than top‑line growth, which could concern investors focused on durable revenue expansion. Pathward Q1 Report / Slide Deck

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.