Pathward Financial (CASH) investor relations material

Executive summary

• Net income for Q2 FY2026 was $72.9 million ($3.35 per share), down from $75.0 million ($3.14 per share) in Q2 FY2025, with strong performance in tax-related products and card/deposit fees.

• Total revenue for Q2 2026 was $276.3 million, with noninterest income comprising up to 55% of the total, 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%; annualized Q2 return on average assets was 3.56% and return on average tangible equity was 54.41%.

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

Financial highlights

• Noninterest income grew 9% year-over-year, led by 22% growth in card/deposit fees and 18% in refund advance/tax fee income.

• Tax product revenue increased 13% year-over-year to $95.7 million for the six months ended March 31, 2026.

• Net interest income for Q2 2026 was $125.1 million, down 8% year-over-year, mainly due to the sale of a consumer finance portfolio.

• Noninterest expense decreased 3% to $143.5 million, primarily due to lower card processing and other expenses.

• Commercial finance loans and leases grew up to 17% year-over-year, totaling $4.11 billion and comprising 84% of the loan/lease portfolio.

Outlook and guidance

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

• Management expects continued growth in tax-related products, card fee income, and Partner Solutions pipeline.

• The company expects ongoing balance sheet optimization and focus on higher-returning assets.

• 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.