Cass Info Sys | 10-Q: FY2025 Q3 Revenue: USD 50.06 M

Revenue: As of FY2025 Q3, the actual value is USD 50.06 M.

EPS: As of FY2025 Q3, the actual value is USD 0.68, beating the estimate of USD 0.63.

EBIT: As of FY2025 Q3, the actual value is USD -9.405 M.

Information Services Segment

• Fee Revenue and Other Income: $81,845 for the nine months ended September 30, 2025, compared to $82,998 for the same period in 2024, reflecting a slight decrease.
• Pre-tax Income: $16,376 for the nine months ended September 30, 2025, compared to $8,124 for the same period in 2024, indicating a significant increase.

Banking Services Segment

• Fee Revenue and Other Income: $1,972 for the nine months ended September 30, 2025, compared to $1,919 for the same period in 2024, showing a slight increase.
• Pre-tax Income: $13,783 for the nine months ended September 30, 2025, compared to $6,710 for the same period in 2024, indicating a substantial increase.

Corporate, Eliminations, and Other

• Loss on Sale of Investment Securities: - $3,572 for the nine months ended September 30, 2025, compared to - $13 for the same period in 2024, reflecting a significant increase in losses.

Cash Flow

• Net Cash Provided by Operating Activities: $32,589 for the nine months ended September 30, 2025, compared to $20,319 for the same period in 2024, indicating an increase in cash flow from operations.
• Net Cash Used in Investing Activities: - $146,097 for the nine months ended September 30, 2025, compared to $4,123 for the same period in 2024, reflecting a significant increase in cash used for investing activities.
• Net Cash Provided by Financing Activities: $22,414 for the nine months ended September 30, 2025, compared to - $166,354 for the same period in 2024, indicating a shift to positive cash flow from financing activities.

Future Outlook and Strategy

• Core Business Focus: The company plans to continue leveraging its strong net interest margin, which improved to 3.87% in the third quarter of 2025, to drive profitability. The focus will be on maintaining a high level of non-interest-bearing funding sources to benefit from a higher interest rate environment.
• Non-Core Business: The company completed the sale of its telecom expense management and managed mobility solutions business unit, representing a strategic shift to focus on core operations. The sale resulted in a gain of $3.6 million in the second quarter of 2025.