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Pathward Financial, Inc.
NASDAQ: CASH Financials Bank 🔎 Screen
$1.8B
Market Cap
9.4
P/E
0.42
PEG
ROCE
22.2%
ROE
0.04
D/E
OPM
-21.1%
% from 52W High
47
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for CASH including FX impact
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📈 Price History
Ratio Health
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By Category
📊 Sector Averages
About

Pathward Financial, Inc. operates as the bank holding company for Pathward, National Association that provides various banking products and services in the United States. It operates through three segments: Consumer, Commercial, and Corporate Services/Other. The company offers demand deposit accounts, savings accounts, and money market savings accounts. It also provides commercial finance product comprising term lending, asset-based lending, factoring, lease financing, insurance premium finance, government guaranteed lending, and other commercial finance products; installment and revolving consumer lending products; tax services, which includes short-term refund advance loans and short-term electronic return originator advance loans; and warehouse financing services. In addition, the company offers payment solutions, such as acceptance, processing, and settlement of credit card and debit card payments, financial processing services for freestanding ATMs; digital payments; and merchant services, as well as issues debit and prepaid cards. The company was formerly known as Meta Financial Group, Inc. and changed its name to Pathward Financial, Inc. in July 2022. Pathward Financial, Inc. was founded in 1954 and is based in Sioux Falls, South Dakota.

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📈 Growth Pattern
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⭐ Superinvestors Holding CASH
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 46.1K $4.1M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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📊 MIXED Pathward Financial Q2 net income $72.9M, EPS $3.35, tax services up 30%.
Revenue & Profitability
Net income for Q2 2026 was $72.9 million, with diluted EPS of $3.35. For the first six months, return on average assets was 2.75% and return on average tangible equity was 40.69%. Total Tax Services revenue for the six months was $96 million, with pretax income of $62 million (up 30%). Loans and leases grew 9% year-over-year, led by a $588 million increase in Commercial Finance.
Outlook
Management views the credit environment as stable and benign, with trailing 12-month net charge-offs at the low end of historical range. They noted that the government shutdown caused timing delays in some loan originations, but this is expected to normalize. The pipeline for Partner Solutions remains robust, and tax season continues to go well. Management did not express any significant macro headwinds beyond typical seasonality.
Growth Drivers
Key growth drivers include Tax Services, where total product revenue increased 13% for the six months, led by a 13% rise in non-interest income from Refund Transfer and Refund Advance products, with Refund Advance originations up over $200 million. Core card and deposit fee income grew 22% year-over-year, partly from new contracts signed last year. Commercial Finance originations were strong at $367 million in the quarter, with yields above the portfolio average. The partner pipeline is very strong, supported by both new partners and multi-product expansions with existing ones.
Balance Sheet & CapEx
The company regularly invests in technology and its run rate to support platform evolution and scalability. Non-interest expense improved overall, driven by lower card processing expenses, partially offset by increased compensation and benefits. AI is being used in engineering to speed up development of internal capabilities. No specific CapEx guidance or dollar amounts were provided in the call.
Margins
Adjusted net interest margin was 5.32%, a 23 basis point improvement over the same quarter last year, driven by lower rate-related card expenses. Management expects the adjusted NIM to be stable to slightly trending up due to loan repricing and continued balance sheet rotation. Non-interest expense improved in the quarter, with lower card processing expense partially offset by higher compensation. The company maintained its earnings guidance of $8.55-$9.05 per diluted share for fiscal 2026.
Key Risks
Key risks include credit performance: non-performing loans ticked up to 2.39%, but management considers this a normal part of collateral management and not a systemic issue. Timing delays from the government shutdown affected secondary market revenues and USDA loans, though this is seen as temporary. Regulatory changes, such as a proposed executive order on citizenship information for bank accounts, could impose additional requirements, but the company already collects similar data. Competition from new bank charters in the BaaS space is a longer-term risk, but not yet material.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q3 2026 Q3 2026 2026-07-22
Quarterly net income reached $29M with EPS of $1.37, despite elevated credit provisions from two commercial loans and a CECL reserve build. Guidance for FY26 EPS is $7.80-$8.20 and FY27 is $9.50-$10, reflecting normalized credit and strong partner pipelines.
Q2 2026 Q2 2026 2026-04-22
Reported strong quarterly results with $72.9M net income and 9% non-interest income growth, driven by tax products and fee-based revenue. Guidance for full-year EPS remains $8.55-$9.05, with robust loan pipelines and stable credit metrics.
Q1 2026 Q1 2026 2026-01-22
Strong Q1 FY2026 results with 17% net income and 28% EPS growth year-over-year, driven by commercial finance, new partner programs, and balance sheet optimization. Raised FY2026 EPS guidance to $8.55–9.05, with robust loan originations and a record partner pipeline.
Q4 2025 Q4 2025 2025-10-21
EPS grew 9% to $7.87 for the year, with strong non-interest income and commercial finance growth. 2026 EPS guidance is $8.25-$8.75, despite expected margin pressure from portfolio sales. Share repurchases and technology investments remain key priorities.
Q3 2025 Q3 2025 2025-07-28
Strong commercial finance originations, robust partner pipeline, and technology-driven growth led to higher net interest margins and non-interest income. Preliminary EPS guidance for 2025 is $7.50–$7.80, with continued share repurchases and a positive outlook despite restatement impacts.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
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Information Sources:
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