Pathward Financial, Inc. (NASDAQ: CASH) Q3 2025 Earnings | 07/28/2025

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Pathward Financial, Inc. delivered mixed third-quarter 2025 results, as revenue and earnings per share both surpassed expectations on the strength of a continued capital return program, even as net income moderated. Total revenue for the quarter grew to $195.8 million, up $7.1 million from the prior year. Net income attributable to the parent company was $42.1 million, down 6% from $44.9 million the year before, yet earnings per diluted share increased 2% to $1.81—reflecting the positive impact from aggressive share repurchases. The company’s ongoing buyback initiative saw 603,780 shares repurchased in Q3 and nearly 1.9 million shares bought back year-to-date, marking a capital return strategy that underpins management’s confidence despite a challenging macro backdrop. Noninterest income rose 11% year-over-year, to $73.4 million, aided by fee income growth, strong performance in secondary market revenue, and higher card and deposit fees. However, expenses also increased 11%, reaching $139.3 million, driven by continued investments in technology, compliance, and related legal and consulting costs—elevated expenses which are expected to persist into the fourth quarter before tapering in fiscal 2026. On the balance sheet, deposits declined 7% compared to a year ago, settling at $6.01 billion amid runoff in noninterest bearing and wholesale deposits. Loans and leases expanded 3% to $4.74 billion, supported by growth in term lending, warehouse finance, and asset-based lending—partially offset by the previous sale of insurance premium finance loans earlier this year. A key area to watch going forward is asset quality: nonperforming loans and leases rose to 1.49% from 0.96% last year, due largely to a few idiosyncratic commercial credits and a well-collateralized fraud event, but management emphasized there was no systematic deterioration across portfolios. Pathward’s liquidity position remains robust, with $2.65 billion in diversified funding capacity including off-balance sheet custodial deposits and unpledged securities. The company maintained its commitment to shareholder returns, driven by 32 consecutive years of dividend payments and a goal to return 80–90% of capital via buybacks and dividends. Looking ahead, management guided for fiscal 2025 EPS between $7.50 and $7.80, up slightly from the prior quarter’s outlook, and introduced a fiscal 2026 EPS range of $8.25 to $8.75, anchored by expected steady-state loan portfolios and ongoing share repurchases. Leadership continues to focus on platform optimization, technology upgrades, and disciplined underwriting to support long-term, sustainable growth—while investors will monitor the uptick in nonperforming loans as a potential sign of emerging economic headwinds. About Inside Ticker: For more expert analysis and real-time updates on Pathward Financial, Inc. (NASDAQ: CASH) and other market movers, follow Inside Ticker and visit http://www.insideticker.com/ for in-depth reports, financial insights, and the latest news on leading companies. #PathwardFinancial #CASH #Q32025 #Earnings #FinancialResults #NetIncome #EPS #RevenueGrowth #NonInterestIncome #ShareRepurchase #CapitalReturn #Guidance #AssetQuality #NonPerformingLoans #Dividend #Liquidity #Banking #OperationalExcellence #InsideTicker #TechnologyInvestment #Compliance #2025Outlook #2026Guide #LoanPortfolio #BalanceSheet #CreditProvision #ShareholderReturns