Executive Summary
CFSB Bancorp reported QQ1 2025 revenue of $3.389 million, up 17.2% year over year, but the quarter ended with a net loss of $6 thousand and an annualized profitability profile that remains extremely modest. Gross profit rose to $1.884 million on a 55.6% gross margin, yet operating income was only $13 thousand (about 0.38% operating margin) and the bottom line was pressured by interest expense of $1.576 million and other costs, eroding net income despite positive operating cash flow.
The balance sheet shows significant liquidity, with cash and cash equivalents of $30.667 million and a sizable investment portfolio (long-term investments of $314.876 million) that dominates assets. Total assets stood at $364.486 million against total liabilities of $288.451 million and stockholders’ equity of $76.035 million. The company carries minimal leverage (long-term debt of $11.205 million; net debt of about a negative $19.462 million, i.e., net cash) and a price-to-book ratio around 0.57, implying potential undervaluation relative to book value.
Overall, the QQ1 2025 results reflect a narrow margin business with meaningful liquidity, but profitability remains a challenge absent a material shift in the earnings mix (notably a reduction in financing costs and/or a more pronounced operating income contribution). Investors should monitor efficiency, the performance/revaluation of the investment portfolio, and any shifts in the chase for organic loan growth versus asset-based income.
Key Performance Indicators
QoQ: -75.93% | YoY:-93.98%
QoQ: -103.75% | YoY:-104.88%
QoQ: -103.33% | YoY:-105.00%
Key Insights
Revenue: $3.389 million (YoY +17.19%, QoQ -0.94%).
Gross profit: $1.884 million; gross margin 55.59% (YoY margin change: -11.63%; QoQ: +3.57%).
Operating income: $0.013 million; operating margin 0.38% (YoY: -93.98%; QoQ: -75.93%).
Net income: -$0.006 million; net margin -0.18% (YoY: -104.88%; QoQ: -103.75%).
EPS: -$0.001 basic/diluted (YoY: -105.00%; QoQ: -103.33%).
EBITDA: $0.075 million; EBITDA margin ~2.21% of revenue.
Interest expense: $1.576 million; depreciation & amortization: $0.062 ...
Financial Highlights
Revenue: $3.389 million (YoY +17.19%, QoQ -0.94%).
Gross profit: $1.884 million; gross margin 55.59% (YoY margin change: -11.63%; QoQ: +3.57%).
Operating income: $0.013 million; operating margin 0.38% (YoY: -93.98%; QoQ: -75.93%).
Net income: -$0.006 million; net margin -0.18% (YoY: -104.88%; QoQ: -103.75%).
EPS: -$0.001 basic/diluted (YoY: -105.00%; QoQ: -103.33%).
EBITDA: $0.075 million; EBITDA margin ~2.21% of revenue.
Interest expense: $1.576 million; depreciation & amortization: $0.062 million.
Cash flow: operating cash flow $0.366 million; free cash flow $0.364 million; investing activities $(2.565) million; financing activities $0.777 million; net change in cash +$3.708 million; cash at end of period $30.667 million.
Balance sheet: total assets $364.486 million; total liabilities $288.451 million; stockholders’ equity $76.035 million; cash and cash equivalents $30.667 million; long-term investments $314.876 million; long-term debt $11.205 million; net debt $(19.462) million (net cash).
Liquidity/ratios: current ratio and quick ratio reported as 8.03 (note: data appears inconsistent with current assets $32.021 million and current liabilities $273.260 million in the provided inputs; guidance on exact working capital position should be taken from primary filings). Price-to-book ~0.57; price-to-sales ~23.96; earnings multiple negative (P/E not meaningful due to net loss). Free cash flow per share $0.0578; operating cash flow per share $0.0581. Shares outstanding (weighted) ~6.294 million.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.39M |
17.19% |
-0.94% |
| Gross Profit |
1.88M |
-11.63% |
3.57% |
| Operating Income |
13.00K |
-93.98% |
-75.93% |
| Net Income |
-6.00K |
-104.88% |
-103.75% |
| EPS |
0.00 |
-105.00% |
-103.33% |
Key Financial Ratios
operatingProfitMargin
0.72%
operatingCashFlowPerShare
$0.06
freeCashFlowPerShare
$0.06
priceEarningsRatio
-1809.7
Management Commentary
Earnings call transcript data not provided in the supplied dataset. As a result, there are no management quotes or theme-based highlights to cite. The analysis below draws exclusively on reported financials and the available ratio/metrics; where guidance or commentary from management is expected, it is noted as unavailable in this dataset.
Forward Guidance
No explicit QQ1 2025 forward guidance was provided in the dataset. Given the current results, management commentary (if available in the official release or subsequent calls) would likely focus on: (1) sustaining liquidity and capital adequacy given the large investment holdings; (2) improving operating leverage through cost controls and efficiency measures; (3) pursuing sustainable loan growth to diversify income beyond investment-related revenue; (4) managing interest rate sensitivity and the yield on the investment portfolio. Investors should monitor: changes in net interest income as the balance between investments and funding evolves, any shift in the composition/valuation of long-term investments, potential monetization opportunities for non-core assets, and regulatory/compliance developments affecting small regional banks.