Pathward Financial (CASH) Q4 2026 earnings summary

Executive summary

• FY26 net income attributable to parent fell 5% YoY to $175.7M, while diluted EPS rose 3% to $8.14; expense reductions and higher noninterest income partly offset lower net interest income.

• Q4 FY26 net income was $38.6M versus $38.8M YoY; diluted EPS rose 9% to $1.85 from $1.69.

• FY27 diluted EPS guidance is $9.50-$10.00, assuming no additional rate changes during the year.

• Diversified partners, products, and capabilities support multiple growth avenues; no partner accounts for more than 5% of revenue.

Financial highlights

• FY26 net interest income was $474.9M, down 7% YoY; noninterest income was $347.2M, up 6%; total revenue was $822.2M versus $839.9M.

• FY26 noninterest expense declined 5% YoY to $529.5M; net income attributable to parent was $175.7M versus $185.9M.

• Q4 net interest income fell 8% YoY to $117.6M; noninterest income rose 12% to $65.6M, while noninterest expense declined 10% to $129.7M.

• Q4 provision for credit losses was $10.3M versus a $6.4M reversal YoY; net charge-offs were $52.0M versus $46.2M.

• FY26 revenue mix was 58% net interest income and 42% noninterest income; card and deposit fees were 40% of noninterest income.

Outlook and guidance

• FY27 diluted EPS guidance is $9.50-$10.00; assumptions include no additional rate changes, an 18%-22% effective tax rate, and $5M-$7M in secondary-market revenue per quarter.

• Guidance includes expected share repurchases and reflects the outlook and assumptions as of October 21, 2026.

• Investment hiring begins in Q1, raising compensation costs earlier in the year; consulting spend is expected to be modestly elevated in H1.

• Credit provisioning is expected to normalize toward historic levels in FY27; the commercial finance ACL ratio reference was 120-130 bps, with provision also influenced by new-loan mix.

• FY27 growth is expected to rely mainly on existing partners; new-partner pipelines are a tailwind for late FY27 and FY28-FY29.