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•	Including unusual incremental launch expenses of $7.2M, the Company reports GAAP results of $8.0M and $0.16 for net income and EPS, respectively

•	Including unusual incremental launch expenses of $7.2M, the Company reports non-GAAP results of $32.4M and $0.27 for adjusted EBITDA and non-GAAP EPS, respectively

•	Total operating revenues on a generally accepted accounting principles (GAAP) basis were $173.5 million for the second quarter of 2016 from $170.2 million for the second quarter of 2015

•	GAAP net income was $8.0 million for the second quarter of 2016 from GAAP net income of $3.5 million for the second quarter of 2015

•	GAAP basic and diluted earnings per common share were both $0.16 for the second quarter of 2016 from $0.07 and $0.06, respectively, for the second quarter of 2015

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•	Non-GAAP total operating revenues1 were $173.6 million for the second quarter of 2016 from $170.8 million for the second quarter of 2015

•	Including unusual incremental launch expenses of $7.2 million:

▪	Adjusted EBITDA1 was $32.4 million, or 18.7% of non-GAAP total operating revenues1 for the second quarter of 2016 from $34.2 million, or 20.1% of non-GAAP total operating revenues1 for the second quarter of 2015

▪	Non-GAAP net income1 was $14.1 million for the second quarter of 2016 from $14.8 million for the second quarter of 2015

▪	Non-GAAP diluted earnings per share1 was $0.27 for the second quarter of 2016 from $0.28 for the second quarter of 2015

•	In July, the Walmart MoneyCard gained additional placements in the Customer Service area of 4,600 Walmart stores.

•	Green Dot has entered into a multi-year extension with Walgreens for the retailer to sell all of Green Dot’s new prepaid products and conduct reload transactions.

•	Earlier this year, Green Dot and Uber entered into an agreement to extend an "Instant Pay" functionality to debit cards issued by GoBank. This feature allows driver partners to get their earnings instantly deposited to their Uber Debit Card from GoBank account. Since the program began in March, Uber Debit by GoBank has registered over 80,000 drivers.

•	In addition, Green Dot and Uber have been piloting "Instant Pay" to any debit card, which enables instant payments to most bank accounts with MasterCard, Visa or Discover debit cards. The “Instant Pay” to any debit card pilot program is currently running in 45 cities, and since the program launched, Green Dot has completed over 60,000 “Instant Pay” transactions to drivers enrolled in the program.

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•	The new MoneyPak product launched in April beginning with Rite Aid and Walgreens stores, followed by Kroger, Gerlands, Weis, Stater Bros, Hannaford and Food Lion.  The product is expected to be rolled out in CVS stores nationwide beginning in September. The rollout to additional retailers is expected to continue throughout the year.

•	The new Green Dot Everyday Visa and MasterCard product and the new Green Dot 5% Cash-Back Visa Debit Card product launched at Walgreens, CVS, Rite Aid, 7-11, Dollar General, Family Dollar, Dollar Tree, Kmart, Kroger, Meijer, Gerlands, Weis, Stater Bros, Hannaford and Food Lion in the second quarter.

•	During the second quarter, Green Dot has added another 1,550 new retail locations to its retail footprint with a distribution agreement with Office Depot and Office Max.

•	Green Dot is pleased to welcome the fifth largest convenience store chain, Corner Store, and its 1,251 locations as a new Green Dot retail distributor.

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In April of 2016, Green Dot implemented the repurchase of a total of $50 million of its Class A common stock under an accelerated stock repurchase transaction. Under the agreement, Green Dot received an initial delivery of approximately 1.9 million shares. The final number of shares to be repurchased and the aggregate cost per share to Green Dot will be based on Green Dot’s volume-weighted average stock price during the term of the transaction, which is expected to be completed by November 2016. Green Dot has now repurchased $100 million of its Class A common stock since September of 2015 when Green Dot’s regulators first approved the program.

•	Leading financial site and search engine, CardHub.com, released its annual ranking of the top prepaid cards. Green Dot’s Reloadable Prepaid Card and Green Dot's Walmart MoneyCard were recognized in the “Alternative Checking Account” category.  This win supplements other awards received by Green Dot earlier this year, including the PayBefore 2016 Pay Awards and PYMNTS Project Innovation Awards.

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•	Green Dot now expects full year non-GAAP total operating revenues2 to be between $708 million and $713 million.

•	For Q3, Green Dot expects non-GAAP total operating revenues2 to be approximately $152 million

•	The Company expects full year adjusted EBITDA2 between $156 million and $160 million, including unusual incremental launch expenses.

•	For Q3, Green Dot expects adjusted EBITDA2 to be approximately $22 million including an estimated $1 million (of the total full year $11 million) in unusual incremental launch expenses.

•	The Company expects non-GAAP EPS2 for the full year between $1.39 and $1.44, including $11 million in unusual incremental launch expenses.

•	For Q3, Green Dot expects non-GAAP EPS2 of approximately $0.16 including an estimated $1 million (of the total full year $11 million) in unusual incremental launch expenses.

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(1)

To supplement the Company’s consolidated financial statements presented in accordance with GAAP, the Company uses measures of operating results that are adjusted to exclude various, primarily non-cash, expenses and charges. These financial measures are not calculated or presented in accordance with GAAP and should not be considered as alternatives to or substitutes for operating revenues, operating income, net income or any other measure of financial performance calculated and presented in accordance with GAAP. These financial measures may not be comparable to similarly-titled measures of other organizations because other organizations may not calculate their measures in the same manner as we do. These financial measures are adjusted to eliminate the impact of items that the Company does not consider indicative of its core operating performance. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate.

▪

stock-based retailer incentive compensation is a non-cash GAAP accounting charge that is an offset to the Company’s actual revenues from operations as the Company has historically calculated them. This charge resulted from the monthly lapsing of the Company’s right to repurchase a portion of the 2,208,552 shares it issued to its largest distributor, Walmart, in May 2010. By adding back this charge to the Company’s GAAP total operating revenues, investors can make direct comparisons of the Company’s revenues from operations prior to May 2015, when the repurchase right fully lapsed, and thus more easily perceive trends in the Company’s core operations. Further, because the monthly charge is based on the then-current fair market value of the shares as to which the Company’s repurchase right lapses, adding back this charge eliminates fluctuations in the Company’s operating revenues caused by variations in its stock price and thus provides insight on the operating revenues directly associated with those core operations;

▪

the Company records employee stock-based compensation from period to period, and recorded employee stock-based compensation expenses of approximately $7.4 million and $6.4 million for the three months ended June 30, 2016 and 2015, respectively. By comparing the Company’s adjusted EBITDA, non-GAAP net income and non-GAAP diluted earnings per share in different historical periods, investors can evaluate the Company’s operating results without the additional variations caused by employee stock-based compensation expense, which may not be comparable from period to period due to changes in the fair market value of the Company’s Class A common stock (which is influenced by external factors like the volatility of public markets and the financial performance of the Company’s peers) and is not a key measure of the Company’s operations;

▪

adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to items, such as net interest income and expense, income tax benefit and expense, depreciation and amortization, employee stock-based compensation expense, stock-based retailer incentive compensation expense, contingent consideration, other charges and income, transaction costs, and impairment charges that can vary substantially from company to company depending upon their respective financing structures and accounting policies, the book values of their assets, their capital structures and the methods by which their assets were acquired; and

▪	securities analysts use adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies.

▪	as measures of operating performance, because they exclude the impact of items not directly resulting from the Company’s core operations;

▪	for planning purposes, including the preparation of the Company’s annual operating budget;

▪	to allocate resources to enhance the financial performance of the Company’s business;

▪	to evaluate the effectiveness of the Company’s business strategies; and

▪	in communications with the Company’s board of directors concerning the Company’s financial performance.

▪	that these measures do not reflect the Company’s capital expenditures or future requirements for capital expenditures or other contractual commitments;

▪	that these measures do not reflect changes in, or cash requirements for, the Company’s working capital needs;

▪	that these measures do not reflect interest expense or interest income;

▪	that these measures do not reflect cash requirements for income taxes;

▪	that, although depreciation and amortization are non-cash charges, the assets being depreciated or amortized will often have to be replaced in the future, and these measures do not reflect any cash requirements for these replacements; and

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▪	that other companies in the Company’s industry may calculate these measures differently than the Company does, limiting their usefulness as comparative measures.

(2)

This expense consists of the recorded fair value of the shares of Class A common stock for which the Company’s right to repurchase has lapsed pursuant to the terms of the May 2010 agreement under which they were issued to Wal-Mart Stores, Inc., a contra-revenue component of the Company’s total operating revenues. The Company does not believe these non-cash expenses are reflective of ongoing operating results. Our right to repurchase any shares issued to Walmart fully lapsed during the three months ended June 30, 2015. As a result, we no longer recognize stock-based retailer incentive compensation in future periods.

(3)

This expense consists of certain co-op advertising costs recognized as contra-revenue under GAAP. The Company believes the substance of the costs incurred are a result of advertising and is not reflective of ongoing total operating revenues. The Company believes that excluding co-op advertising costs from total operating revenues facilitates the comparison of our financial results to the Company's historical operating results.

(4)	The Company does not include any income tax impact of the associated non-GAAP adjustment to non-GAAP total operating revenues or adjusted EBITDA, as the case may be, because each of these non-GAAP financial measures is provided before income tax expense.

(5)

This expense consists primarily of expenses for employee stock options and restricted stock units. Employee stock-based compensation expense is not comparable from period to period due to changes in the fair market value of the Company’s Class A common stock (which is influenced by external factors like the volatility of public markets and the financial performance of the Company’s peers) and is not a key measure of the Company’s operations. The Company excludes employee stock-based compensation expense from its non-GAAP financial measures primarily because it consists of non-cash expenses that the Company does not believe are reflective of ongoing operating results. Further, the Company believes that it is useful to investors to understand the impact of employee stock-based compensation to its results of operations.

(6)

The Company excludes certain income and expenses that are the result of acquisitions. These acquisition related adjustments include the amortization of acquired intangible assets, changes in the fair value of contingent consideration, settlements of contingencies established at time of acquisition and other acquisition related charges, such as integration charges and professional and legal fees, which result in the Company recording expenses or fair value adjustments in its GAAP financial statements. The Company analyzes the performance of its operations without regard to these adjustments. In determining whether any acquisition related adjustment is appropriate, the Company takes into consideration, among other things, how such adjustments would or would not aid in the understanding of the performance of its operations.

(7)

The Company excludes certain income and expenses that are not reflective of ongoing operating results. It is difficult to estimate the amount or timing of these items in advance. Although these events are reflected in the Company's GAAP financial statements, the Company excludes them in it's non-GAAP financial measures because the Company believes these items may limit the comparability of ongoing operations with prior and future periods. These adjustments include amortization attributable to deferred financing costs, impairment charges related to internal-use software, expenses incurred with our proxy contest and other charges related to gain or loss contingencies. In determining whether any such adjustments is appropriate, the Company takes into consideration, among other things, how such adjustments would or would not aid in the understanding of the performance of its operations.

(8)	Represents the tax effect for the related non-GAAP measure adjustments using the Company's year to date effective tax rate.

(9)

These amounts represent estimated adjustments for net interest expense, income taxes, depreciation and amortization, employee stock-based compensation expense, stock-based retailer incentive compensation expense, contingent consideration, other income and expenses and transaction costs. Employee stock-based compensation expense and stock-based retailer incentive compensation expense include assumptions about the future fair value of the Company’s Class A common stock (which is influenced by external factors like the volatility of public markets and the financial performance of the Company’s peers).