Pathward Financial (CASH) investor relations material

Executive summary

• Net income for Q2 FY2026 was $72.9 million ($3.35 per share), down 3% year-over-year, with strong performance in tax-related products and core card and deposit fees.

• Non-interest income grew 9% year-over-year, representing up to 55% of total revenue, driven by tax services and fee-based products.

• Return on average assets for the first six months was 2.75%, and return on average tangible equity reached 40.69%.

• Maintained guidance for full-year EPS of $8.55–$9.05.

• Total revenue for Q2 FY2026 reached $276.3 million.

Financial highlights

• Total tax product revenue increased 13% year-over-year to $96 million for the six months ending March 31, 2026.

• Refund Advance originations rose by over $200 million, with favorable loss rates compared to last year.

• Loans and leases grew 9% year-over-year, led by a $588 million increase in Commercial Finance.

• Net interest margin was 6.63%; adjusted net interest margin improved to 5.32% year-over-year.

• Noninterest expense for Q2 FY2026 was $143.5 million, down 3% from the prior year.

Outlook and guidance

• Guidance for full-year EPS remains at $8.55–$9.05.

• Expect continued measurable increases in card fee income as new programs ramp up into next year.

• Adjusted net interest margin expected to remain stable or trend slightly up, with modest tailwinds from securities repricing.

• Anticipate modest loan growth in coming quarters, with strong origination pipelines across verticals.

• Management remains optimistic about continued growth in tax-related products and the Partner Solutions pipeline.