Cass Info Sys | 10-Q: FY2026 Q1 Revenue: USD 49.1 M

Revenue: As of FY2026 Q1, the actual value is USD 49.1 M.

EPS: As of FY2026 Q1, the actual value is USD 0.67, beating the estimate of USD 0.63.

EBIT: As of FY2026 Q1, the actual value is USD -10.33 M.

Segment Revenue

Information Services

• Fee revenue and other income: $26,740 thousand for Q1 2026, compared to $27,006 thousand for Q1 2025.
• Interest income: $12,731 thousand for Q1 2026, compared to $10,565 thousand for Q1 2025.
• Interest expense: $234 thousand for Q1 2026, compared to $267 thousand for Q1 2025.
• Total net revenue: $39,237 thousand for Q1 2026, compared to $37,304 thousand for Q1 2025.

Banking Services

• Fee revenue and other income: $724 thousand for Q1 2026, compared to $608 thousand for Q1 2025.
• Interest income: $16,014 thousand for Q1 2026, compared to $16,204 thousand for Q1 2025.
• Interest expense: $6,133 thousand for Q1 2026, compared to $7,710 thousand for Q1 2025.
• Total net revenue: $10,544 thousand for Q1 2026, compared to $8,197 thousand for Q1 2025.

Corporate, Eliminations and Other

• Fee revenue and other income: $477 thousand for Q1 2026, compared to $442 thousand for Q1 2025.
• Interest income: - $3,641 thousand for Q1 2026, compared to - $3,379 thousand for Q1 2025.
• Interest expense: - $2,479 thousand for Q1 2026, compared to - $3,861 thousand for Q1 2025.
• Total net revenue: - $680 thousand for Q1 2026, compared to $906 thousand for Q1 2025.

Operational Metrics

Company-Wide (Continuing Operations)

• Processing fees: $15,728 thousand for Q1 2026, a decrease of 4.5% from $16,469 thousand in Q1 2025.
• Financial fees: $10,431 thousand for Q1 2026, an increase of 4.7% from $9,961 thousand in Q1 2025.
• Net interest income: $21,216 thousand for Q1 2026, an increase of 10.1% from $19,274 thousand in Q1 2025.
• Provision for credit losses: $61 thousand for Q1 2026, a decrease of 93.3% from $905 thousand in Q1 2025.
• Total net revenue: $49,101 thousand for Q1 2026, an increase of 5.8% from $46,407 thousand in Q1 2025.
• Operating expense: $38,218 thousand for Q1 2026, an increase of 7.6% from $35,530 thousand in Q1 2025.
• Income before income tax expense: $10,883 thousand for Q1 2026, a 0.1% increase from $10,877 thousand in Q1 2025.
• Net income from continuing operations: $8,739 thousand for Q1 2026, an increase of 2.2% from $8,551 thousand in Q1 2025.
• Net income: $8,832 thousand for Q1 2026, a decrease of 1.5% from $8,966 thousand in Q1 2025.
• Return on average assets: 1.42% for Q1 2026, compared to 1.51% in Q1 2025.
• Return on average equity: 14.63% for Q1 2026, compared to 15.91% in Q1 2025.
• Personnel expenses: $27,279 thousand for both Q1 2026 and 2025.
• Occupancy expense: $681 thousand for Q1 2026, compared to $721 thousand in Q1 2025.
• Equipment expense: $2,432 thousand for Q1 2026, compared to $2,294 thousand in Q1 2025.
• Bad debt recovery: $0 for Q1 2026, compared to - $2,000 thousand in Q1 2025.
• Amortization of intangible assets: $293 thousand for both Q1 2026 and 2025.
• Other operating expense: $7,533 thousand for Q1 2026, compared to $6,943 thousand in Q1 2025.

Information Services (Operational Expenses)

• Personnel expenses: $24,099 thousand for Q1 2026, compared to $24,121 thousand for Q1 2025.
• Occupancy: $519 thousand for Q1 2026, compared to $527 thousand for Q1 2025.
• Equipment: $2,155 thousand for Q1 2026, compared to $2,227 thousand for Q1 2025.
• Other operating expense: $5,766 thousand for Q1 2026, compared to $5,066 thousand for Q1 2025.
• Pre-tax income from continuing operations: $5,828 thousand for Q1 2026, compared to $6,490 thousand for Q1 2025.

Banking Services (Operational Expenses)

• Personnel expenses: $3,180 thousand for Q1 2026, compared to $3,158 thousand for Q1 2025.
• Occupancy: $162 thousand for Q1 2026, compared to $194 thousand for Q1 2025.
• Equipment: $277 thousand for Q1 2026, compared to $67 thousand for Q1 2025.
• Other operating expense: $2,060 thousand for Q1 2026, compared to $2,170 thousand for Q1 2025.
• Pre-tax income from continuing operations: $5,735 thousand for Q1 2026, compared to $3,481 thousand for Q1 2025.

Cash Flow

• Net cash provided by operating activities (continuing operations): $14,456 thousand for Q1 2026, compared to $20,858 thousand for Q1 2025.
• Net cash provided by operating activities (discontinued operations): $93 thousand for Q1 2026, compared to $707 thousand for Q1 2025.
• Net cash provided by operating activities: $14,549 thousand for Q1 2026, compared to $21,565 thousand for Q1 2025.
• Net cash used in investing activities (continuing operations): - $144,866 thousand for Q1 2026, compared to - $70,963 thousand for Q1 2025.
• Net cash used in investing activities (discontinued operations): $0 for Q1 2026, compared to - $62 thousand for Q1 2025.
• Net cash used in investing activities: - $144,866 thousand for Q1 2026, compared to - $71,025 thousand for Q1 2025.
• Net cash used in financing activities (continuing operations): - $17,608 thousand for Q1 2026, compared to - $76,394 thousand for Q1 2025.
• Net cash used in financing activities (discontinued operations): $0 for Q1 2026, compared to - $3,200 thousand for Q1 2025.
• Net cash used in financing activities: - $17,608 thousand for Q1 2026, compared to - $79,594 thousand for Q1 2025.

Unique Metrics

• Transportation invoice volume: 8,098 thousand for Q1 2026, a decrease of 3.1% from 8,355 thousand in Q1 2025.
• Transportation invoice dollar volume: $9,032,515 thousand for Q1 2026, an increase of 4.5% from $8,643,138 thousand in Q1 2025.
• Facility-related transaction volume: 4,038 thousand for Q1 2026, a decrease of 4.4% from 4,225 thousand in Q1 2025.
• Facility-related dollar volume: $6,253,208 thousand for Q1 2026, an increase of 7.4% from $5,822,935 thousand in Q1 2025.
• Average payments in advance of funding: $176,987 thousand for Q1 2026, an increase of 2.0% from $173,590 thousand in Q1 2025.
• Average loans: $1,066,371 thousand for Q1 2026, a decrease of 3.9% from $1,109,526 thousand in Q1 2025.
• Average investment securities: $808,800 thousand for Q1 2026, an increase of 32.3% from $611,241 thousand in Q1 2025.
• Average funding sources (Information Services): $1,429,208 thousand for Q1 2026, compared to $1,338,134 thousand for Q1 2025.
• Average funding sources (Banking Services): $797,496 thousand for Q1 2026, compared to $767,276 thousand for Q1 2025.
• Loans outstanding at March 31: $1,088,730 thousand in 2026, compared to $1,141,874 thousand in 2025.
• Ratio of allowance for credit losses to loans outstanding at March 31: 1.27% in 2026, compared to 1.25% in 2025.

Future Outlook and Strategy

Cass Information Systems, Inc. expects cash and cash equivalents, maturing investments, and cash from operations to sufficiently fund its operations and capital expenditures in 2026. Capital expenditures are estimated to be between $4.0 million and $6.0 million, primarily for equipment and software related to payment and information processing services. The company is focused on increasing financial fees through demand for quick pay solutions and the rollout of its Amplify working capital solution.