PATHWARD FINANCIAL, INC. Annual Report - How They Did This Year

PATHWARD FINANCIAL, INC. had a busy and productive year, marked by a significant strategic move and continued growth in key areas.

Major Business Changes

One of the biggest headlines this year was the sale of their Commercial Insurance Premium Finance Business. This strategic move was completed on October 31, 2024, and the company has been working through the final adjustments related to this sale throughout the year.

How They Made Money (Revenue Performance)

Looking at how PATHWARD FINANCIAL generated income, it was a pretty good year with consistent growth across several key revenue streams:

• Overall Revenue Growth: The company's revenue grew to approximately $355 million this year (FY2025), up from about $337.5 million last year (FY2024). That's an increase of about 5.2% year-over-year.
• Refund Transfer Fees: These fees grew, hitting $100 million this year, up from $95 million last year (a 5.3% increase) and $90 million the year before.
• Refund Advance Fee Income: Income from offering advances on tax refunds reached $50 million, compared to $48 million last year (a 4.2% increase) and $45 million in FY2023.
• Payment Card and Deposit Fees: Fees from their card and deposit services climbed to $200 million from $190 million last year (a 5.3% increase) and $180 million in FY2023.
• Rental Income saw an increase, going from $4.5 million to $5 million this year.

Lending Activities

Their lending business, especially in the "National Lending" segment, showed solid growth across the board:

• Commercial Loans increased to $1.5 billion from $1.4 billion last year (a 7.1% jump).
• Consumer Loans grew, reaching $800 million compared to $750 million previously (a 6.7% increase).
• Their Tax Services lending grew to $300 million from $280 million (a 7.1% increase).
• Other areas like Warehouse Agreement Borrowings (up to $600 million from $550 million), Term Lending (up to $400 million from $380 million), Asset-Based Lending (up to $350 million from $320 million), Factoring (up to $250 million from $230 million), Lease Financing (up to $150 million from $140 million), and SBA/USDA loans (up to $100 million from $90 million) all saw increases.

Financial Health

The company's total equity attributable to shareholders (the value owned by investors) continued its upward trend. It reached $1.2 billion this year (as of September 30, 2025), up from $1.15 billion last year, $1.1 billion in FY2023, and $1.05 billion in FY2022.

Their "Other Assets" also saw an increase, from $110 million to $120 million, and assets pledged as collateral increased from $650 million to $700 million.

Key Takeaways

• PATHWARD FINANCIAL, INC. completed the strategic sale of its Commercial Insurance Premium Finance Business on October 31, 2024.
• Overall revenue grew by 5.2% to $355 million, driven by increases in Refund Transfer Fees, Refund Advance Fee Income, Payment Card and Deposit Fees, and Rental Income.
• The company's lending activities showed broad growth across various segments, including Commercial Loans ($1.5 billion), Consumer Loans ($800 million), and Tax Services lending ($300 million), among others.
• Total equity attributable to shareholders continued its upward trend, reaching $1.2 billion as of September 30, 2025.