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Pomerantz LLP is investigating claims on behalf of investors of Pathward Financial, Inc. regarding potential securities fraud or unlawful business practices. The investigation follows Pathward's July 22, 2026 fiscal third-quarter 2026 results, which missed expectations and disclosed that nonperforming loans surged to $275.1 million, nearly triple analyst estimates, tied to specific problem loans including to renewable-energy construction projects. The company also cut its fiscal 2026 earnings guidance. On this news, Pathward’s stock price fell $5.55 per share, or 6.26%, to close at $83.12 per share on July 23, 2026.

Bragar Eagel & Squire, P.C. has launched an investigation into Pathward Financial, Inc. on behalf of its stockholders. The investigation concerns whether Pathward violated federal securities laws or engaged in other unlawful business practices. The inquiry follows Pathward's July 22, 2026 fiscal third-quarter results, which missed expectations and disclosed that nonperforming loans surged to $275.1 million, nearly triple analyst estimates, tied to specific problem loans including renewable-energy construction projects. The company also cut its fiscal 2026 earnings guidance, causing its stock price to fall $5.55 per share, or 6.26%, to close at $83.12 per share on July 23, 2026. The law firm encourages investors who purchased or acquired Pathward shares and suffered losses to contact partners Brandon Walker or Melissa Fortunato to discuss their legal rights.

Kirby McInerney LLP announced an investigation into Pathward Financial over potential securities fraud. The investigation follows Pathward's July 22, 2026, fiscal third-quarter report, which included a provision for credit losses of $28.3 million, up from $9.3 million a year earlier, and a disclosure that nonperforming loans rose to $277.5 million from $119.8 million the prior quarter. CEO Brett Pharr attributed the increased provision partly to a working capital loan involving a sophisticated fraud, and the company lowered its fiscal 2026 earnings per share guidance to a range of $7.80 to $8.20 from the previous $8.55 to $9.05. On this news, Pathward's stock fell $5.55 per share, or about 6.26%, to close at $83.12 on July 23, 2026. No lawsuit has been filed, and the investigation is ongoing.

Pathward Financial fell short of market revenue expectations in its second quarter of fiscal 2026, with sales declining 3.1% year on year to $189.7 million and adjusted earnings per share of $1.37 missing analyst estimates by 29.6%. Management attributed the underperformance primarily to heightened credit provisions, including specific reserves tied to two commercial loans—one related to a failed workout and another involving sophisticated fraud. Despite these setbacks, the company saw growth in commercial finance interest income and noninterest income, supported by disciplined expense management and a stable core business. Looking ahead, management expects continued expansion in commercial finance, a robust pipeline in partner solutions, and stable net interest margins, though future performance will depend on the pace of new partner ramp-ups and sustained credit solutions growth.

Pathward Financial updated its fiscal 2026 earnings per share guidance to a range of $7.80 to $8.20 and introduced a fiscal 2027 EPS target of $9.50 to $10.00. The revision follows a $34 million commercial finance provision in the fiscal third quarter, which Chief Financial Officer Gregory Sigrist said was elevated by roughly $28 million to $30 million, or about $1 per share. The provision was driven by specific reserves on two loans, a CECL reserve build, and a loan tied to what Chief Executive Officer Brett Pharr described as a sophisticated fraud. The company also moved certain renewable energy construction loans tied to a common developer to nonaccrual status, though management said it does not see these events as indicative of a broader systemic issue. The fiscal 2027 outlook assumes no rate changes, an effective tax rate of 18% to 22%, secondary market revenues of $5 million to $7 million per quarter, and share repurchases of 70% to 80% of net income.