CASH · Pathward Financial, Inc.

Pathward Financial reported second quarter fiscal 2026 results with net income of $72.9 million, a slight decrease from $75.0 million in the prior year quarter, while diluted EPS increased to $3.35 from $3.14. Total revenue of $276.3 million was driven by a 9% increase in noninterest income to $151.2 million, primarily from growth in card and deposit fees (22%), refund advance and other tax fee income (18%), and refund transfer product fees (7%). Net interest income decreased 8% to $125.1 million, primarily due to decreases in interest income on the consumer finance portfolio ($12.8 million) and cash and fed funds sold ($4.2 million), partially offset by an $8.4 million increase in commercial finance interest income. The company attributed the net interest income decline to the sale of a consumer finance portfolio in October 2025 that was previously accounted for using a gross accounting methodology. Noninterest expense decreased 3% to $143.5 million, with reductions in card processing and other expense partially offset by increases in compensation and benefits and building and software expense. The tax season performed well, with total tax services product revenue for the six months ended March 31, 2026, increasing 13% to $95.7 million, driven by higher refund advance volumes and increased refund transfers. CEO Brett Pharr noted that tax-related products led revenue growth for the quarter, new and existing partnerships are developing nicely, and the Partner Solutions pipeline remains robust. The company also highlighted strong loan origination growth, with new loan originations (excluding tax services) increasing from $902 million to $1.31 billion, primarily driven by a new consumer finance contract announced during fiscal 2025.