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Cass Information Systems Posts 19% EPS Growth as Freight Rates Surge

Cass Information Systems reported third-quarter earnings per share of $10.81, up 19% year-over-year, marking a meaningful recovery after an extended freight recession and period of near-zero interest rates. Elevated freight rates and fuel surcharges drove the growth across the payment and analytics platform. The average traditional freight invoice increased roughly $150 compared to the prior-year quarter, with approximately $40 per invoice—or 25% of the gain—attributable to fuel surcharges. Remaining increases reflected contract rate repricing in the higher-rate environment. "Coming out of that, you can see the earnings power that Cass has," said Mike Normile, Executive Vice President and CFO. Momentum is building into the fourth quarter, with September invoice averages exceeding the full third-quarter average. The company's interest income benefited from higher rates, with the 10-year Treasury above 5%. Cass generates 70% of its funding from non-interest-bearing payment float, enabling significant investment spreads in current market conditions.