CFSB Bancorp (CFSB) reported QQ3 2025 results with a modest top-line performance and an extremely thin margin profile, reflecting the company’s small-scale, niche regional bank model. Revenue for the quarter was $3.431 million, up ~9.6% year-over-year, while gross profit reached $1.848 million and gross margin stood at approximately 53.9%. Operating income was effectively flat at $1 thousand, and net income was $4 thousand, delivering an EPS of $0.0006. The quarterly cadence shows stable but modest progress on the revenue line (QoQ in the -0.35% range) with profitability remaining peripherals-focused given fixed cost structure and limited lending activity. The company continues to post a negative cash conversion year-to-date? Not exactly: operating cash flow equals $0.194 million, with free cash flow of the same amount, underscoring a cash-generative stance at a very small scale. Management commentary in the release (and related disclosures) points to liquidity discipline and continued emphasis on securities investments as a source of both liquidity and potential capital gains, while highlighting sensitivity to interest-rate movements and ongoing cost controls.
From a balance sheet perspective, CFSB presents a robust cash position and an outsized securities footprint: total assets of $366.2 million, cash and equivalents of $28.25 million, and long-term investments of $319.03 million. Liabilities run at $290.49 million, with stockholders’ equity around $75.7 million, yielding a net debt position of roughly -$17.1 million. This structure provides ample liquidity but also implies that earnings are largely influenced by securities-related activity and balance sheet management rather than core lending profitability. Overall, the QQ3 2025 print signals a defensively positioned balance sheet with limited near-term growth, and a valuation --- with price-to-book around 0.63 --- that suggests potential upside if profitability improves or if multiple sentiment expands as the franchise scales.