AI-extracted from the 10-Q filed 2026-08-06 — Q3 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Pathward's fiscal Q3 2026 revenue fell to $189.6M from $195.8M as net interest income dropped 8% after the October 2025 consumer finance portfolio sale, while provisions for credit losses more than tripled to $28.3M.
Biggest Revenue Drivers
Net interest income$112.9M-8% YoY
Driven by an $11.6M reduction in interest income on the consumer finance portfolio following the October 2025 sale, partially offset by commercial finance growth.
Card and deposit fees$34.6M-7% YoY
Filing cites decreases in card and deposit fees as partially offsetting noninterest income growth.
Biggest Revenue Drivers
Total revenue: $189.6M-3% YoY
Net interest income$112.9M-8% YoY
Driven by an $11.6M reduction in interest income on the consumer finance portfolio following the October 2025 sale, partially offset by commercial finance growth.
Card and deposit fees$34.6M-7% YoY
Filing cites decreases in card and deposit fees as partially offsetting noninterest income growth.
Refund transfer product fees$11.2M+14% YoY
Filing cites higher refund transfer product fees as a driver of noninterest income growth.
Secondary market revenue$14.0M+96% YoY
Company was able to catch up on sales as government agencies cleared earlier-year backlogs.
Rental income$9.6M-26% YoY
Filing cites decreases in rental income.
Largest Expense Items
Card processing$30.7M-15% YoY
Decrease primarily driven by rate-related agreements with Partner Solutions relationships tied to deposit levels and rate index.
Compensation and benefits$52.4M+8% YoY
Increase tied to strategic investments in people, processes, and technology.
Building and software$13.1M+23% YoY
Increase tied to strategic investments in processes and technology.
Legal and consulting$6.1M-45% YoY
Lower legal and consulting expense cited as a driver of the overall noninterest expense decrease.
Margins: Net interest margin fell to 6.59% from 7.43%, primarily due to the October 2025 sale of the consumer finance portfolio, which had been accounted for using a gross methodology at higher yields. Noninterest expense fell 7% on lower card processing and legal costs.
Watch Items from the Filing
Nonperforming loans and leases rose to $275.1M (5.28% of gross loans) from $99.1M at September 30, 2025, primarily from renewable energy construction projects with a common developer.
Provision for credit loss was $28.3M versus $9.3M a year earlier, driven by commercial finance specific reserves on two loans and a higher CECL reserve.
Allowance for credit losses reached $109.8M, or 2.15% of total loans and leases, up from 1.14% at September 30, 2025.
The filing reports remediation of a previously disclosed material weakness in internal control over financial reporting, with disclosure controls concluded effective as of June 30, 2026.
Common equity Tier 1 ratio of 11.51% and Tier 1 leverage ratio of 9.66% at the Company level remain above well-capitalized minimums.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
About PATHWARD FINANCIAL, INC. (CASH): stock profile, AI score and financials
PATHWARD FINANCIAL, INC. (CASH) stock profile, AI quality score, and SEC EDGAR financial data, a Financials sector company. 13F Pro's AI-powered ranking engine scores CASH at 50.7/100 on a composite quality score built from its SEC filings, placing it at rank #1,592 of 2,925 stocks — the bottom half of the AI-ranked universe. CASH scores in the top quartile across free cash flow (98.8), earnings quality (91.7), profitability (80.1). Areas of concern include revenue growth (32.3), which score below median versus the broader universe. Based on the latest XBRL financial filings (Q3 2026), PATHWARD FINANCIAL, INC. reports quarterly revenue of $189.6M, net income of $29.0M, an operating margin of 17.0%. Top institutional holders of CASH by reported 13-F value include BlackRock, FMR, STATE STREET, based on the most recent SEC filings. CASH trades on the Nasdaq exchange and files with the SEC under CIK 907471. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CASH daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for PATHWARD FINANCIAL, INC. directly from SEC EDGAR.