Executive Summary
IF Bancorp Inc. delivered a profitable QQ3 2025 with revenue of $11.821 million and net income of $1.011 million, translating to an EPS of $0.31. The quarter posted a gross margin of 59.9% and an operating margin of 11.77%, supported by a disciplined cost structure and an investment-heavy balance sheet. Operating cash flow totaled $1.831 million and free cash flow was $1.807 million, underscoring cash-generative fundamentals despite a small‑cap profile. The balance sheet shows a substantial investment portfolio (short-term investments of $167.8 million and long-term investments of $655.0 million against total assets of $879.1 million), which provides liquidity but also introduces sensitivity to fair value changes and rate moves. Leverage remains modest on a net-debt basis, with total debt of $104.9 million and net debt of $95.8 million, while equity stands at $78.9 million, yielding a near‑1.0x price-to-book ratio and a P/E multiple in the high-teen range.
Key takeaway for investors: the quarter confirms attractive profitability on a small revenue base and strong investment liquidity, but the earnings trajectory hinges on loan growth, net interest income dynamics, and the ability to manage securities fair value risk amid ongoing rate volatility. The stock trades with a valuation premium relative to many regional peers, suggesting investors are pricing in modest growth and stable liquidity, but upside will require clearer loan deployment and improved return on equity over time.
Key Performance Indicators
QoQ: -87.27% | YoY:46.27%
QoQ: -17.06% | YoY:42.80%
QoQ: -18.42% | YoY:40.91%
Key Insights
Revenue: $11.821 million (YoY +118.95%, QoQ +7.37%); Gross Profit: $7.085 million (YoY +31.23%, QoQ +12.93%); Operating Income: $1.391 million (YoY +46.27%, QoQ -87.27%); Net Income: $1.011 million (YoY +42.80%, QoQ -17.06%); EPS: $0.31 (YoY +40.91%, QoQ -18.42%).
Margins: Gross margin 59.94%; Operating margin 11.77%; Net margin 8.55%.
Cash flow: Net cash provided by operating activities $1.831 million; Free cash flow $1.807 million; Capital expenditures $0.024 million; Net change in cash $2.9...
Financial Highlights
Revenue: $11.821 million (YoY +118.95%, QoQ +7.37%); Gross Profit: $7.085 million (YoY +31.23%, QoQ +12.93%); Operating Income: $1.391 million (YoY +46.27%, QoQ -87.27%); Net Income: $1.011 million (YoY +42.80%, QoQ -17.06%); EPS: $0.31 (YoY +40.91%, QoQ -18.42%).
Margins: Gross margin 59.94%; Operating margin 11.77%; Net margin 8.55%.
Cash flow: Net cash provided by operating activities $1.831 million; Free cash flow $1.807 million; Capital expenditures $0.024 million; Net change in cash $2.967 million; Cash at end of period $8.872 million; Operating cash flow margin and free cash flow margins are supportive given the small revenue base.
Balance sheet: Total assets $879.141 million; Total liabilities $800.201 million; Total stockholders’ equity $78.940 million; Cash and cash equivalents $9.122 million; Short-term investments $167.759 million; Long-term investments $655.019 million; Debt outstanding $104.909 million (short-term $18.910 million; long-term $85.999 million); Net debt $95.787 million.
Valuation and efficiency: P/E ~19.23x; P/B ~0.99x; P/S ~6.58x; Dividend yield ~0.83%. Asset turnover and some leverage ratios in the data appear anomalous; a grounded interpretation uses Revenue/TotalAssets ≈ 1.34% and ROA ≈ 0.12% (net income of $1.011m on $879.1m assets).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
11.82M |
118.95% |
7.37% |
| Gross Profit |
7.09M |
31.23% |
12.93% |
| Operating Income |
1.39M |
46.27% |
-87.27% |
| Net Income |
1.01M |
42.80% |
-17.06% |
| EPS |
0.31 |
40.91% |
-18.42% |
Key Financial Ratios
operatingProfitMargin
11.8%
dividendPayoutRatio
63.9%
Management Commentary
No earnings call transcript provided for QQ3 2025 in the data set. As a result, there are no management quotes or theme summaries to extract at this time. If a transcript becomes available, this section should highlight strategy (growth vs. defensiveness), operations (cost discipline, process improvements), and market conditions (deposit trends, rate environment).
Forward Guidance
No formal forward guidance was disclosed in the provided data for QQ3 2025. Given the quarter’s profitability and liquidity, the company appears positioned to weather moderate rate volatility and to pursue selective loan growth alongside investment‑book management. Our qualitative outlook hinges on several factors to monitor: (1) loan originations and net interest income dynamics as rates normalize or rise; (2) deposit stability and core funding mix; (3) credit quality and charge-offs in the loan portfolio; (4) valuation risk on the large securities portfolio (short- and long-term investments); and (5) efficiency initiatives and expense discipline. If management communicates explicit targets or cadence for loan growth, NIM stabilization, or capital actions, we would revise the outlook accordingly.