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

Posted by Francis Steltz on Jul 24th, 2026

Pathward Financial (NASDAQ:CASH – Get Free Report) posted its earnings results on Wednesday. The savings and loans company reported $1.37 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.95 by ($0.58), FiscalAI reports. Pathward Financial had a return on equity of 20.59% and a net margin of 21.03%.The business had revenue of $189.64 million during the quarter, compared to the consensus estimate 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 Up 3.3%

Pathward Financial stock traded up $2.72 during trading hours on Friday, hitting $85.84. 27,007 shares of the stock traded hands, compared to its average volume of 242,995. The firm’s 50-day moving average price is $84.90 and its two-hundred day moving average price is $87.14. The company has a current ratio of 0.81, a quick ratio of 0.80 and a debt-to-equity ratio of 0.04. The company has a market cap of $1.81 billion, a PE ratio of 10.76 and a beta of 0.60. Pathward Financial has a one year low of $65.87 and a one year high of $101.26.

Pathward Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, July 1st. Shareholders of record on Thursday, June 11th were issued a $0.05 dividend. The ex-dividend date was Thursday, June 11th. This represents a $0.20 annualized dividend and a yield of 0.2%. Pathward Financial’s dividend payout ratio (DPR) is 2.51%.

Insider Activity at Pathward Financial

In other news, Director Douglas J. Hajek sold 5,000 shares of the stock in a transaction that occurred 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 transaction, the director owned 12,281 shares of the company’s stock, valued at approximately $1,060,709.97. This represents a 28.93% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Elizabeth G. Hoople sold 4,500 shares of the business’s stock in a transaction on Friday, May 29th. The shares were sold at an average price of $82.29, for a total transaction of $370,305.00. Following the sale, the director owned 28,050 shares in the company, valued at approximately $2,308,234.50. This trade represents a 13.82% 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.

Hedge Funds Weigh In On Pathward Financial

A number of hedge funds have recently bought and sold shares of the company. EverSource Wealth Advisors LLC lifted its stake in shares of Pathward Financial by 43,200.0% in the second quarter. EverSource Wealth Advisors LLC now owns 433 shares of the savings and loans company’s stock worth $34,000 after buying an additional 432 shares in the last quarter. State of Wyoming bought a new stake in shares of Pathward Financial in the second quarter worth $46,000. Smartleaf Asset Management LLC increased its position in shares of Pathward Financial by 23.0% during the 4th quarter. Smartleaf Asset Management LLC now owns 630 shares of the savings and loans company’s stock valued at $45,000 after purchasing an additional 118 shares during the last quarter. Kestra Advisory Services LLC purchased a new stake in Pathward Financial during the fourth quarter valued at approximately $88,000. Finally, Brevan Howard Capital Management LP bought a new position in Pathward Financial in the 3rd quarter worth $220,000. Institutional investors own 92.66% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Keefe, Bruyette & Woods dropped their price objective on Pathward Financial from $108.00 to $97.00 and set an “outperform” rating for the company in a report on Thursday. Weiss Ratings restated a “buy (b)” rating on shares of Pathward Financial in a report on Friday, May 8th. Finally, Piper Sandler reaffirmed an “overweight” rating and issued a $105.00 price target (down from $107.00) on shares of Pathward Financial in a research note on Thursday. Three equities research analysts have rated the stock with a Buy rating, According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and an average price target of $101.00.

Check Out Our Latest Stock Report on Pathward Financial

Pathward Financial Company Profile

(Get Free Report)

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.