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what it is
Pathward is a federally chartered bank that helps fintechs, lenders, and tax companies move money, issue cards, and make loans.
how it gets paid
Last year Pathward Financial made $840M in revenue. Net interest income was the main engine at $579.6M, or 69% of sales.
why it's growing
Revenue grew 5.3% last year. EPS rising 28% on a 5% revenue decline tells you management improved mix and profitability faster than sales moved.
what just happened
Pathward posted $1.57 in EPS on $173.1 million of quarterly revenue, with earnings up even as sales slipped.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
80/100 earnings predictability — you can trust these numbers
11.0x trailing p/e — the market's not buying it — or you found a deal
0.2% dividend yield — cash in your pocket every quarter
$7.87 fy2025 eps est
xvary composite: 61/100 — average
What they do
Pathward is a federally chartered bank that helps fintechs, lenders, and tax companies move money, issue cards, and make loans.
Pathward wins by being the licensed bank and back-end plumbing behind other companies’ money products. A national bank charter (federal permission to hold deposits and move money, so your app can actually work) is hard to swap out, and Pathward backs that setup with just $34 million of long-term debt, or 2% of capital. If a partner wants to leave, your replacement job is not finding a new vendor. It is rebuilding lending, compliance, payments, and settlement rails.
How they make money
$840M
annual revenue · their business grew +5.3% last year
Net interest income
$579.6M
+5.3%
Prepaid card & payment fees
$100.8M
5.0%
Tax services
$67.2M
flat
Commercial finance fees
$50.4M
+5.3%
Consumer finance & other fees
$42.0M
5.0%
The products that matter
regulated partner banking
Banking-as-a-Service
31% of revenue
this fee stream accounts for 31% of revenue. that matters because it gives you earnings power that does not rise and fall only with lending spreads.
fee income
originates partner loans
Consumer & Commercial Lending
$580M net interest income
this is still the center of gravity. $580M of the $840M revenue base comes from interest income, so margin pressure hits the core business first.
69% of revenue
balance sheet flexibility
Liquidity Position
$3.7B available liquidity
$3.7B of available liquidity gives management room to fund operations and absorb bumps. it does not erase credit or partner risk, but it keeps this from being a balance-sheet panic story.
liquidity buffer
Key numbers
11.0x
earnings multiple
You are paying 11 times trailing profit for a bank that grew full-year EPS from $5.26 in FY2022 to $6.62 in FY2024.
$34M
long-term debt
That is only 2% of capital, which gives Pathward more room than most lenders if credit conditions get ugly.
$7.87
fy2025 eps est
Against $6.62 in FY2024, that implies about 18.9% vs. prior year EPS growth if the estimate holds.
80
earnings predictability
That score says Pathward's profits have been steadier than many small financial stocks, which helps when you underwrite future earnings.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 55 / 100
- long-term debt $34M (2% of capital)
B++ — functional but not a standout on the balance sheet.
Total return vs. market
Return history isn't available for CASH right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Pathward posted $1.57 in EPS on $173.1 million of quarterly revenue, with earnings up even as sales slipped.
Revenue fell 5% vs. prior year to $173.1 million, but EPS rose 28% and net income rose 17% to $35.2 million. The quarter showed the weird Pathward setup clearly: lower top line, higher profit, after portfolio mix changes pressured margin.
$173.1M
revenue
$1.57
eps
$35.2M
net income
the number that mattered
EPS rising 28% on a 5% revenue decline tells you management improved mix and profitability faster than sales moved.
source: company earnings report, 2026
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What could go wrong
the #1 risk is net interest margin compression. this is still a $580M net interest income business first, so spread pressure hits the main engine.
med
Net interest margin compression
Management said margin narrowed after selling half of a consumer finance portfolio. That is not fatal, but it means one source of earnings quality improved while one source of earnings power weakened.
$580M of revenue comes from net interest income, so this is the number that can overpower the rest of the story.
med
Partner concentration
The Oportun agreement running through 2029 is reassuring. It is also a reminder that third-party relationships matter a lot here. If a large partner stumbles or leaves, originations do not smoothly replace themselves.
The fee-income mix is 31% of revenue. If a meaningful share of that is tied to a few partners, concentration risk travels straight into earnings.
med
Deposit base slippage
Deposits were down modestly at the end of 2025. Banks can grow loans only as long as funding stays cooperative, and a shrinking deposit base makes that harder.
The company has $3.7B of available liquidity, which buys time. It does not make funding costs irrelevant.
Your cushion is a 24.3% profit margin and $3.7B of liquidity. Your exposure is that 69% of revenue still depends on lending spreads staying healthy enough to support the raised EPS guide.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
net interest margin
This is the number that decides whether 11x earnings is cheap or deserved. If spreads keep tightening, the raised $8.55–$9.05 guide gets harder to defend.
calendar
Q2 FY2026 earnings report
Expected late April 2026. You want to see whether the quarter confirms the new guide or turns it into a one-quarter high-water mark.
trend
fee income staying near 31% of revenue
The diversification case is only real if the mix holds up. If fee income fades while spreads compress, the whole business starts looking more ordinary.
risk
partner concentration after the 2029 extension
The Oportun extension removed one immediate worry. It did not remove the model risk that comes with depending on a handful of relationships.
Analyst rankings
earnings predictability
80 / 100
in human-speak, management usually lands close to its own script.
price stability
55 / 100
the stock is steadier than a lottery ticket, but it is still a small-cap bank tied to rates and credit.
risk rank
3
a mid-pack safety profile. you are not buying a bunker stock, and you are not buying a balance-sheet mess either.
source: institutional data
Institutional activity
institutional ownership data for CASH is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$90
current price
n/a
target midpoint · n/a from current
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