Executive Summary
Marathon Bancorp Inc (MBBC) reported Q3 2024 revenue of $2.468 million, up 29.3% year over year, but the quarter delivered a net loss of $0.631 million and an EPS of -$0.31. Operating income was negative at -$0.834 million and EBITDA was -$0.752 million, with an EBITDAR of -0.305x. The profit dynamics were dominated by elevated interest costs ($0.916 million), other non-operating expenses ($1.689 million), and depreciation/amortization ($0.082 million). Gross margin remained strong at 67.8%, yet the company could not translate topline strength into profitability due to the cost structure and non-operating headwinds. Liquidity and capital metrics present a mixed picture: cash and short-term investments total roughly $9.98 million, total assets stand at $225.8 million, and equity is $31.28 million, yielding a debt-to-capitalization of about 0.43 and a debt/equity ratio of roughly 0.75. Net debt is reported as approximately $19.9 million in the dataset, though cash balances imply a lighter liquidity stance on a cash-adjusted basis.
Given the lack of a disclosed forward guidance for QQ4 2024, investors should focus on the trajectory of loan growth, expense discipline, and credit quality, as well as the potential conversion of the long-term investment portfolio into recurring yields. The key question is whether MBBC can achieve a sustainable path to breakeven or modest profitability while maintaining an adequate capital base and liquidity cushion in a tightening interest-rate environment.
Key Performance Indicators
QoQ: -6.86% | YoY:-99.93%
QoQ: -443.38% | YoY:-100.08%
QoQ: -331.95% | YoY:-272.58%
QoQ: -338.46% | YoY:-282.35%
Key Insights
Revenue: $2.468 million (YoY +29.3%, QoQ -4.3%)
Gross Profit: $1.674 million (Gross Margin 67.8%)
Operating Income: -$0.834 million (Operating Margin -33.8%)
EBITDA: -$0.752 million (EBITDA Margin -30.5%)
Net Income: -$0.631 million (Net Margin -25.6%)
EPS: -$0.31 (Diluted -$0.31)
Cash Flow: Net cash used by operating activities -$0.802 million; Free cash flow -$1.054 million; Net change in cash -$0.039 million; Cash at end of period $8.082 million
Balance Sheet: Total assets $225.8 million; Tot...
Financial Highlights
Revenue: $2.468 million (YoY +29.3%, QoQ -4.3%)
Gross Profit: $1.674 million (Gross Margin 67.8%)
Operating Income: -$0.834 million (Operating Margin -33.8%)
EBITDA: -$0.752 million (EBITDA Margin -30.5%)
Net Income: -$0.631 million (Net Margin -25.6%)
EPS: -$0.31 (Diluted -$0.31)
Cash Flow: Net cash used by operating activities -$0.802 million; Free cash flow -$1.054 million; Net change in cash -$0.039 million; Cash at end of period $8.082 million
Balance Sheet: Total assets $225.8 million; Total liabilities $194.54 million; Total stockholders’ equity $31.28 million; Long-term debt $23.0 million; Cash & equivalents $3.056 million; Short-term investments $6.919 million; Cash & short-term investments $9.975 million
Liquidity/Leverage: Current ratio reported as 0.164 (per data field) with quick ratio 9.61; data inconsistencies noted given total current assets $10.493 million and total current liabilities $169.681 million
Valuation (Peers): Price-to-book 0.445x; Price-to-sales 5.64x; P/E negative; Dividend yield 0%
Market Position: Regional bank with substantial long-term investments (~$192.44 million) and a modest cash buffer; equity base supports capital adequacy but profitability remains constrained.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.47M |
29.27% |
-4.28% |
| Gross Profit |
1.67M |
-99.93% |
-6.86% |
| Operating Income |
-834.08K |
-100.08% |
-443.38% |
| Net Income |
-631.13K |
-272.58% |
-331.95% |
| EPS |
-0.31 |
-282.35% |
-338.46% |
Key Financial Ratios
operatingProfitMargin
-33.8%
operatingCashFlowPerShare
$-0.4
freeCashFlowPerShare
$-0.53
Management Commentary
No earnings call transcript was provided in the dataset. As a result, there are no management quotes or color commentary to extract verbatim. If a transcript becomes available, the highlights would typically cover: (1) strategy updates (growth in core deposits, balance sheet optimization), (2) operating efficiency initiatives and cost containment plans, (3) credit quality/loan portfolio outlook and provisioning, (4) updates on regulatory/compliance posture and risk management, and (5) near-term liquidity expectations. In the absence of an official transcript, the analysis relies on reported financials and peer context.
Forward Guidance
No forward guidance was disclosed in the QQ3 2024 results. Investors should monitor: (1) loan growth trajectory and credit metrics in Wisconsin’s regional banking market, (2) cost-control initiatives to convert revenue growth into earnings, (3) the utilization and potential monetization of the large long-term investment portfolio, (4) liquidity management given the apparent discrepancy between reported liquidity ratios and the balance-sheet-derived liquidity picture, and (5) capital adequacy in light of ongoing profitability pressures. If MBBC signals any intermediate targets (spreads, efficiency ratio, or reserve builds), those targets will be key to reassessing the investment thesis; absent explicit targets, the stock will hinge on progress in expense discipline, balance sheet optimization, and credit quality improvements.