Pathward Financial (CASH) Q2 2025 earnings summary

Executive summary

• Q2 FY2025 net income was $74.3 million ($3.11 per share), up 14% year-over-year, with EPS up 21% and revenue growth driven by both net interest and noninterest income.

• Total revenue for Q2 2025 rose 7% year-over-year to $274.8 million, with noninterest income now 45% of total revenue.

• Tax Services set new records in independent tax offices and product originations, contributing to a 17% increase in segment revenue and a 29% increase in tax services product income for the first six months.

• The company completed the sale of its commercial insurance premium finance business, recognizing a $15.0 million pre-tax gain.

• Repurchased 575,804 shares in Q2 2025 at an average price of $78.11; 5.7 million shares remain available under the buyback program.

Financial highlights

• Net interest margin expanded to 7.12% from 6.77% year-over-year; adjusted NIM was 5.09%.

• Net interest income for Q2 2025 was $136.3 million, up 6% year-over-year; noninterest income increased 7% to $138.5 million.

• Provision for credit losses was $35.3 million in Q2 2025, up from $29.7 million in Q2 2024.

• Return on average assets was 2.69% for the first six months and 3.59% for Q2 FY2025; return on average tangible equity was 43.79%.

• Efficiency ratio improved to 66.53% for the LTM ended March 31, 2025.

Outlook and guidance

• Fiscal 2025 EPS guidance raised to $7.40–$7.80 per diluted share, assuming no rate cuts and an effective tax rate of 17–21%.

• Guidance includes continued share repurchases and well-managed expenses, with ongoing investment in technology and compliance.