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.
Key Performance Indicators
Revenue
3.43M
QoQ: -0.35% | YoY:9.62%
Gross Profit
1.85M
53.86% margin
QoQ: -4.40% | YoY:1.20%
Operating Income
1.00K
QoQ: 100.90% | YoY:101.22%
Net Income
4.00K
QoQ: 102.47% | YoY:110.00%
EPS
0.00
QoQ: 102.00% | YoY:106.00%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $3.431 million in Q3 2025, YoY +9.62%, QoQ -0.35%.
- Revenue: $3.431 million in Q3 2025, YoY +9.62%, QoQ -0.35%.
- Gross profit: $1.848 million, gross margin ~53.86%.
- Operating income: $1 thousand, operating margin ~0.03%.
- Net income: $4 thousand, net margin ~0.12%.
- EPS: $0.0006; diluted EPS $0.0006; weighted avg shares ~6.241 million.
- EBITDA: $0.053 million; EBITDA margin ~1.55%.
- Cash flow: Net cash from operating activities $0.194 million; free cash flow $0.194 million.
- Investing cash flow: -$4.061 million (net); financing cash flow: +$3.288 million; net change in cash: -$0.579 million.
- Cash and equivalents: $28.25 million at period end.
- Total assets: $366.2 million; long-term investments: $319.033 million.
- Total liabilities: $290.485 million; stockholders’ equity: $75.715 million.
- Debt: Total debt $11.161 million; net debt: approximately -$17.089 million.
- Valuation (peer context): PBV ~0.629, P/S ~14.58, P/E ~2,976 (as per reported figures).
- Notable YoY/QoQ trend: revenue up vs. prior year, earnings remain constrained by small scale and cost base; balance sheet liquidity remains strong due to cash and securities holdings.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.43M
9.62%
-0.35%
Gross Profit
1.85M
1.20%
-4.40%
Operating Income
1.00K
101.22%
100.90%
Net Income
4.00K
110.00%
102.47%
EPS
0.00
106.00%
102.00%
Key Financial Ratios
grossProfitMargin
100%
operatingProfitMargin
87.3%
netProfitMargin
0.12%
returnOnAssets
0%
returnOnEquity
0.01%
operatingCashFlowPerShare
$0.03
freeCashFlowPerShare
$0.03
priceToBookRatio
0.63
priceEarningsRatio
2976.33
Net Income vs. Revenue
Expense Breakdown
Management Commentary
No QQ3 2025 earnings call transcript was provided in the data set. As a result, transcript highlights and management quotes could not be drawn from the call. If a transcript becomes available, I can extract themes under strategy, operations, and market conditions and pair them with direct quotes.
Not available
— Not available
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Forward Guidance
Management did not publish explicit forward guidance for QQ3 2025 in the provided materials. Given the small scale of CFSB and the security-heavy asset mix, near-term outlook is likely to hinge on: (1) net interest income sensitivity to rate moves and asset mix (loans vs. securities), (2) cost discipline to sustain profitability at a tiny scale, (3) continued liquidity management and capital deployment in securities, and (4) deposits and loan origination dynamics in the regional market. Our qualitative view: a cautious, steady-state scenario is plausible over the next 12 months unless there is meaningful loan growth or a favorable shift in net interest margins. Key factors to monitor include: net interest income trend, securities valuations, deposit stability, credit quality indicators, and any strategic plans to expand lending or branch footprint.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
CFSB Focus
53.86%
87.30%
0.01%
2,976.33%
CRZBF
39.40%
16.30%
1.91%
7.64%
ECBK
37.50%
8.81%
0.68%
26.04%
PDLB
96.90%
93.20%
0.48%
26.96%
OFED
0.00%
17.70%
1.22%
18.05%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
CFSB presents a defensively positioned micro-cap bank with a strong liquidity cushion and an outsized investment securities portfolio. The current balance sheet supports stability and resilience, but profitability remains an Achilles’ heel given the tiny scale of operations. The PBV of approximately 0.63 suggests potential upside if the bank can translate its liquidity and balance sheet strength into higher, sustainable earnings, either through modest loan growth or improved net interest income. Investors should weigh the low earnings base and reliance on securities against the potential for capital deployment and liquidity-driven value. In summary, the stock could appeal to risk-tolerant investors seeking a liquidity-rich, balance-sheet-safe exposure in the regional banking space, but the investment thesis hinges on future improvements in core earnings or favorable market revaluations rather than immediate growth fundamentals.
Key Investment Factors
Growth Potential
Limited near-term revenue growth given the quarter’s scale and the small loan book; potential upside from securities gains, improved core deposit growth, or strategic expansion of lending in select niches.
Profitability Risk
Significant profitability sensitivity to interest rates; dependence on investment securities for liquidity and earnings; small-scale operations constrain operating leverage; regulatory and credit risk from regional banking.
Financial Position
Strong liquidity with $28.25M cash; sizable long-term investments ($319.03M) supporting asset diversification; net cash position (-$17.09M debt) provides cushion but earnings generation remains subdued due to minimal lending activity and tight margins.
SWOT Analysis
Strengths
Strong liquidity buffer with $28.25M cash and equivalents
Large long-term investment portfolio (~$319.0M) providing diversification and liquidity
Net debt position is negative, offering financial flexibility
Low debt burden relative to equity in a small-cap bank context
Stable quarterly revenue trajectory with modest YoY growth
Weaknesses
Extremely thin profitability (Q3 2025 net income $4k; net margin ~0.12%)
Limited scale constrains operating leverage and growth opportunities
Heavy reliance on investment securities rather than loan-originated income
Price/earnings multiple is extremely high in reported data, suggesting potential mispricing or data quirks; actual earnings power appears limited
Opportunities
Potential upside from strategic balance sheet optimization and diversified income streams (fee-based, securities gains)
Opportunities to grow core deposits and small-lending niches within the regional market
Possibility of multiple expansion if profitability improves or if bank expands scale and loan book
Threats
Interest-rate risk affecting net interest income
Market value risk on large securities portfolio
Regulatory capital and liquidity requirements for a small regional bank
Competition for deposits and loan pricing pressure in regional markets