Pathward Financial (CASH) investor relations material

Executive summary

• Fiscal year 2025 net income was $185.9 million, up 1% year-over-year, with diluted EPS of $7.87, up 9% from FY 2024 and above guidance.

• Completed key divestitures, including the sale of insurance premium finance and transportation portfolios, and hired new leadership.

• Notable new partnerships include Trustly, Stripe, Greenlight, and a live partnership with Upstart for personal loans.

• Recognized as a top workplace and achieved Great Place to Work certification for the third consecutive year.

• Maintained a diversified business model with strong fee and interest income streams across consumer and commercial segments.

Financial highlights

• Total revenue for FY 2025 reached $840 million, up from $797 million in FY 2024.

• Non-interest income increased 10% year-over-year, comprising 39% of FY 2025 revenue, with card and deposit fees as the largest component.

• Net interest margin for the year was 7.34%, with adjusted NIM at 5.92%.

• Q4 2025 net income was $38.8 million ($1.69/share), up 16% year-over-year; Q4 revenue was $186.7 million, up 4%.

• Loans and leases grew 14% year-over-year to $4.7 billion, mainly in commercial finance.

Outlook and guidance

• Fiscal year 2026 EPS guidance is $8.25–$8.75, assuming no rate cuts, an 18%-22% effective tax rate, and continued share repurchases.

• The company expects lower pre-tax income and net interest margin in 2026 due to the sale of the consumer portfolio but remains confident in guidance.

• Tax business growth is expected to be solid, with mid-single-digit growth rates anticipated.

• Guidance includes expected share repurchases.

• Management expressed confidence in continued execution of strategic initiatives and growth in net income and EPS.