Executive Summary
Kentucky First Federal Bancorp reported QQ2 2025 revenue of 4.955 million, up 25.35% year over year, with a gross profit of 2.209 million and a gross margin of 44.6%. Despite top-line growth, the quarter produced a de minimis operating profit (operating income of 6 thousand) and a net income of 13 thousand, yielding an EPS of 0.0016. The notable driver of profitability weakness is the material interest expense of 2.746 million, which more than dwarfs operating income and compresses net margins (net income margin of 0.26%). The company’s balance sheet shows total assets of 374.208 million, a substantial investment portfolio (long-term investments of 330.54 million), and total liabilities of 326.153 million, resulting in a thin equity base (48.055 million) and a leveraged structure (debt to capitalization around 0.563). Liquidity metrics are very tight (current ratio and quick ratio both around 0.0555), underscoring sensitivity to funding disruptions even as cash and cash equivalents sit at approximately 14.0 million and cash at end of period near 21.0 million. The trailing four-quarter data indicate improving top-line performance but persistently low profitability relative to peers, with a price-to-book around 0.50. Absent an earnings call transcript in the dataset, management commentary is limited to the quarterly numbers; nonetheless, the quarter hints at a business with modest scale in a challenging rate environment, where any improvement in net interest income, deposit stability, or expense control could meaningfully alter the earnings trajectory.
Key Performance Indicators
QoQ: 146.89% | YoY:25.35%
QoQ: 10.06% | YoY:-43.75%
QoQ: -99.67% | YoY:101.32%
QoQ: 186.67% | YoY:103.60%
QoQ: 184.21% | YoY:103.59%
Key Insights
Revenue performance: 4.955 million in Q2 2025, up 25.35% YoY and 146.89% QoQ; Gross Profit: 2.209 million, gross margin 44.58%, YoY margin change -43.78% with QoQ improvement of 10.06%; Operating Income: 6 thousand, operating margin 0.12%, YoY +101.32% but QoQ -99.67%; Net Income: 13 thousand, net margin 0.26%, YoY +103.60%, QoQ +186.67%; EPS: 0.0016, diluted 0.0016, YoY +103.59%, QoQ +184.21%; Cash flow: operating cash flow 1.447 million; net cash from operating activities 1.447 million; free c...
Financial Highlights
Revenue performance: 4.955 million in Q2 2025, up 25.35% YoY and 146.89% QoQ; Gross Profit: 2.209 million, gross margin 44.58%, YoY margin change -43.78% with QoQ improvement of 10.06%; Operating Income: 6 thousand, operating margin 0.12%, YoY +101.32% but QoQ -99.67%; Net Income: 13 thousand, net margin 0.26%, YoY +103.60%, QoQ +186.67%; EPS: 0.0016, diluted 0.0016, YoY +103.59%, QoQ +184.21%; Cash flow: operating cash flow 1.447 million; net cash from operating activities 1.447 million; free cash flow 1.366 million; investing activities -3.419 million; financing activities -1.159 million; net change in cash +3.707 million; ending cash 20.976 million; Balance sheet: total assets 374.208 million; cash and equivalents 14.048 million; long-term investments 330.54 million; total liabilities 326.153 million; stockholders’ equity 48.055 million; Debt 61.792 million; ROA 0.00347%, ROE 0.271%, Net debt 47.744 million; Valuation signals: price-to-book 0.502, price-to-earnings 464.12, enterprise value multiple 1,283.54 (contextual for small-cap banks).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.96M |
25.35% |
146.89% |
| Gross Profit |
2.21M |
-43.75% |
10.06% |
| Operating Income |
6.00K |
101.32% |
-99.67% |
| Net Income |
13.00K |
103.60% |
186.67% |
| EPS |
0.00 |
103.59% |
184.21% |
Key Financial Ratios
operatingProfitMargin
0.12%
operatingCashFlowPerShare
$0.18
freeCashFlowPerShare
$0.17
priceEarningsRatio
464.12
Management Commentary
No earnings call transcript data provided in the dataset. Consequently, management quotes and thematic highlights from the QQ2 2025 call are unavailable within this report. Investors should reference the company’s official press release and 10-Q for any state-specific guidance or commentary the company may have issued beyond the financial statements.
Forward Guidance
No explicit forward guidance is provided within the QQ2 2025 10-Q dataset. Given the sense of minimal profitability and substantial financing costs, the near-term path likely hinges on: 1) stabilizing or growing net interest income through deposit and loan mix changes, 2) controlling non-interest expenses in a low-margin environment, and 3) managing the securities portfolio to balance yield against duration risk. Potential scenarios include: a) gradual NIM uplift if funding costs ease and rate environment supports lending margins; b) continued pressure on profitability if interest costs remain a dominant driver and loan growth remains muted. Key indicators to monitor include net interest income trends, loan origination volumes in Kentucky, deposit growth, non-interest expense discipline, and the performance of long-term investments in a changing rate curve.