Cass Information Systems Q3 EPS Rises 19% on Higher Freight Rates, Fuel Surcharges

Cass Information Systems reported third-quarter net income of $10.6 million, or $0.81 per share, with earnings per share up 19% year over year, driven by higher freight rates, fuel surcharges and elevated interest rates. Transportation dollar volumes climbed 14.5% from the same quarter a year earlier, marking a recovery for the freight payment and analytics company after a prolonged freight recession and an extended period of near-zero interest rates. Average freight invoice value rose about $150 year over year, roughly $40 of which — about 25% — came from fuel surcharges, CFO Mike Normile said. With 70% of funding non-interest-bearing and the 10-year Treasury above 5%, Cass's net interest margin topped 4%. Normile said he expects rates to stay "higher for longer." The company is investing in AI-enabled data extraction and raised its dividend above the usual increment.