Green Dot Reports Fourth Quarter 2025 Results
Green Dot Reports Fourth Quarter 2025 Results
Mar 16, 2026
Company Sees Continued Momentum in
“Green Dot delivered a strong fourth quarter and its first year of adjusted EBITDA growth since 2022, a testament to the hard work, focus and ingenuity of our teams,” said
Consolidated Results Summary
|
|
Three Months Ended |
|
|
|
Year Ended |
|
|
||||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
|
|
2025 |
|
|
|
2024 |
|
|
% Change |
||
|
|
(In thousands, except per share data and percentages) |
|
|
||||||||||||||||||
|
GAAP financial results |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Total operating revenues |
$ |
522,615 |
|
|
$ |
455,024 |
|
|
15 |
% |
|
$ |
2,080,491 |
|
|
$ |
1,723,876 |
|
|
21 |
% |
|
Net (loss) income |
$ |
(46,823 |
) |
|
$ |
5,103 |
|
|
* |
|
$ |
(98,866 |
) |
|
$ |
(26,702 |
) |
|
270 |
% |
|
|
Diluted (loss) income per common share |
$ |
(0.84 |
) |
|
$ |
0.09 |
|
|
* |
|
$ |
(1.79 |
) |
|
$ |
(0.50 |
) |
|
258 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Non-GAAP financial results1 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
Non-GAAP total operating revenues1 |
$ |
519,723 |
|
|
$ |
451,717 |
|
|
15 |
% |
|
$ |
2,068,704 |
|
|
$ |
1,707,715 |
|
|
21 |
% |
|
Adjusted EBITDA1 |
$ |
14,010 |
|
|
$ |
43,841 |
|
|
(68 |
)% |
|
$ |
173,565 |
|
|
$ |
165,386 |
|
|
5 |
% |
|
Adjusted EBITDA/Non-GAAP total operating revenues (adjusted EBITDA margin) |
|
2.7 |
% |
|
|
9.7 |
% |
|
(7.0 |
)% |
|
|
8.4 |
% |
|
|
9.7 |
% |
|
(1.3 |
)% |
|
Non-GAAP net (loss) income1 |
$ |
(4,394 |
) |
|
$ |
22,191 |
|
|
(120 |
)% |
|
$ |
79,766 |
|
|
$ |
74,005 |
|
|
8 |
% |
|
Non-GAAP diluted (loss) earnings per share1 |
$ |
(0.08 |
) |
|
$ |
0.40 |
|
|
(120 |
)% |
|
$ |
1.41 |
|
|
$ |
1.37 |
|
|
3 |
% |
|
* Change not meaningful |
|||||||||||||||||||||
| 1 |
Reconciliations of total operating revenues to non-GAAP total operating revenues, net income to adjusted EBITDA, net income to non-GAAP net income, and diluted earnings per share to non-GAAP diluted earnings per share, respectively, are provided in the tables immediately following the unaudited consolidated financial statements. Additional information about the Company's non-GAAP financial measures can be found under the caption “About Non-GAAP Financial Measures” below. |
Cash at the holding company was approximately
Key Metrics
The following table shows Green Dot's quarterly key business metrics for each of the last eight calendar quarters on a consolidated basis and by each of its reportable segments. Please refer to Green Dot’s latest Annual Report on Form 10-K for a description of the key business metrics, as well as additional information regarding how Green Dot organizes its business by segment.
|
|
2025 |
|
2024 |
||||||||||||||
|
|
Q4 |
Q3 |
Q2 |
Q1 |
|
Q4 |
Q3 |
Q2 |
Q1 |
||||||||
|
|
(In millions) |
||||||||||||||||
|
Consolidated * |
|
|
|
|
|
|
|
|
|
||||||||
|
Gross dollar volume |
$ |
40,526 |
$ |
39,505 |
$ |
38,545 |
$ |
37,252 |
|
$ |
35,282 |
$ |
33,473 |
$ |
32,130 |
$ |
30,755 |
|
Number of active accounts |
|
3.42 |
|
3.51 |
|
3.48 |
|
3.58 |
|
|
3.67 |
|
3.46 |
|
3.41 |
|
3.51 |
|
Purchase volume |
$ |
4,705 |
$ |
4,736 |
$ |
4,991 |
$ |
5,113 |
|
$ |
5,152 |
$ |
4,887 |
$ |
5,012 |
$ |
5,274 |
|
B2B Services |
|
|
|
|
|
|
|
|
|
||||||||
|
Gross dollar volume |
$ |
36,923 |
$ |
35,868 |
$ |
34,620 |
$ |
33,014 |
|
$ |
31,222 |
$ |
29,490 |
$ |
28,116 |
$ |
26,255 |
|
Number of active accounts |
|
1.93 |
|
1.89 |
|
1.81 |
|
1.78 |
|
|
1.79 |
|
1.68 |
|
1.65 |
|
1.58 |
|
Purchase volume |
$ |
2,035 |
$ |
2,006 |
$ |
2,000 |
$ |
1,986 |
|
$ |
2,070 |
$ |
1,983 |
$ |
1,976 |
$ |
1,935 |
|
Consumer Services |
|
|
|
|
|
|
|
|
|
||||||||
|
Gross dollar volume |
$ |
3,603 |
$ |
3,637 |
$ |
3,925 |
$ |
4,238 |
|
$ |
4,060 |
$ |
3,983 |
$ |
4,014 |
$ |
4,500 |
|
Number of active accounts |
|
1.49 |
|
1.62 |
|
1.67 |
|
1.80 |
|
|
1.88 |
|
1.78 |
|
1.76 |
|
1.93 |
|
Direct deposit active accounts |
|
0.39 |
|
0.40 |
|
0.41 |
|
0.41 |
|
|
0.43 |
|
0.44 |
|
0.45 |
|
0.46 |
|
Purchase volume |
$ |
2,670 |
$ |
2,730 |
$ |
2,991 |
$ |
3,127 |
|
$ |
3,082 |
$ |
2,904 |
$ |
3,036 |
$ |
3,339 |
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Number of cash transfers |
|
7.39 |
|
7.43 |
|
7.52 |
|
7.51 |
|
|
8.14 |
|
8.22 |
|
8.15 |
|
7.77 |
|
Number of tax refunds processed |
|
0.11 |
|
0.20 |
|
3.73 |
|
7.98 |
|
|
0.15 |
|
0.19 |
|
4.20 |
|
9.28 |
|
* Represents the sum of Green Dot's Consumer Services and B2B (as defined herein) Services segments. |
|||||||||||||||||
"It was a strong finish to 2025, with continued growth in our embedded finance platform as we continued taking action and making investments to position the company for future growth," said
Proposed Transactions with
On
The closing of the transactions remains subject to the receipt of required shareholder and regulatory approvals and the satisfaction of other customary closing conditions. The parties received early termination of the waiting period under the Hart-Scott-Rodino Act and have filed regulatory applications to all applicable
As a result of Green Dot’s proposed transactions with
Discussion of Segment Results
In 2025, Green Dot continued to invest in its technology platform, operating processes, and regulatory infrastructure, while also focusing on improving operating efficiency and balance sheet profitability. These investments over the last several years have supported its revenue growth and contributed to improved earnings generation within the FinTech business and
Green Dot believes its ongoing multi-year initiatives to enhance its operating and regulatory infrastructure, streamline its technology platform, and expand its partnerships and pipeline have resulted in greater efficiency and supported earnings stability throughout the organization, while also making Green Dot a more innovative, nimble platform and partner. These efforts have positively impacted both the FinTech business, which is pending acquisition and privatization by
B2B Services Segment
The B2B Services segment, which primarily consists of the Banking‑as‑a‑Service (“BaaS”) channel powered by ARC and the rapid! employer solutions channel, generated revenue growth during 2025. Growth was driven primarily by a significant BaaS partner, along with increased activity from other partners within the BaaS portfolio. Key operating metrics within the BaaS channel, including active accounts and purchase volume, increased as new and existing partners launched products and expanded customer engagement. BaaS‑related revenue and deposit growth contributed to earnings improvement within the FinTech business and supported deposit growth at
Within employer services (rapid!) channel, Green Dot continued to reposition the business during 2025, focusing on salesforce alignment, operating efficiencies, and Earned Wage Access (“EWA”) offerings. Purchase volumes increased for two consecutive quarters, contributing to higher profitability per active account during the fourth quarter and full year. A portion of cost savings was reinvested in
Segment profit increased year over year, driven by higher demand and activity in the BaaS channel. BaaS margins declined slightly due to revenue mix, primarily from growth associated with a significant BaaS partner. Margins in the rapid! employer services business were flat compared to the prior year, reflecting cost‑reduction initiatives implemented during the second half of 2025.
Money Movement Services Segment
The Money Movement Services segment, which includes tax processing and money processing businesses, experienced revenue growth during 2025, primarily driven by tax processing. The fourth quarter of 2025 included the launch of a significant new franchise partner within the tax processing business. Revenue growth reflected the addition of this partner and continued investment in technology and service capabilities.
During the fourth quarter, the tax processing team focused on partner onboarding and expanding the availability of products and services for the 2026 tax season, including taxpayer advance programs that experienced strong demand during 2025. Margins in the tax processing business were pressured in the fourth quarter due to launch‑related costs associated with the new partner and expenses related to a taxpayer advance product introduced during the quarter.
Money Processing channel revenue was impacted by softness in Consumer Services segment active accounts. Third-party transactions declined in the low single digits during the fourth quarter. Excluding two partners that experienced declines in low‑revenue transactions, third‑party transactions increased in the low to mid‑single digits during the fourth quarter, reflecting Green Dot’s ongoing success in signing up third-party partners that recognize the value in the breadth and convenience of its network. With Money Processing operations more closely integrated with the BaaS channel, Green Dot expects to maintain and continue building a healthy and active pipeline of potential partners. Combining this with recent launches of new cash transfer and digital disbursement partnerships, including Stripe, a solid schedule of launches in the coming months, and continued moderation in the rate of decline in the Consumer segment, Green Dot believes it is well positioned to re-accelerate momentum from previous quarters. Money Processing margins increased slightly year over year due to a favorable transaction mix.
Consumer Services Segment
The Consumer Services segment continued to face revenue pressure during 2025 from reduced marketing spend supporting the direct-to-consumer channel and ongoing headwinds in traditional retail distribution. The fourth quarter of 2025 was also impacted by the absence of breakage revenue recognized in the fourth quarter of 2024. Excluding the impact of that prior year revenue, Consumer Services revenue declined approximately 13% year over year.
Retail channel performance reflected continued consumer migration toward digital banking applications. Green Dot partially mitigated these impacts through expansion within
Revenue declines in the direct-to-consumer channel were largely attributable to reduced marketing investment during the second half of 2024 and much of 2025, as Green Dot prioritized achieving acceptable returns on marketing investments and advancing its efforts to modernize the user experience and develop new feature functionality. As these initiatives have progressed, Green Dot increased marketing spend in the fourth quarter of 2025.
Segment margins and operating income declined year over year, reflecting lower revenue and higher expenses, primarily related to increased marketing spend in the direct channel. Despite declines in active accounts and revenue, metrics per active account improved, with continued growth in volume and revenue per active.
Corporate and Other Segment
Similar to last quarter, the Corporate and Other segment revenues, consisting primarily of interest income net of partner interest sharing, increased significantly year over year. Results benefitted from interest rate cuts during the second half of 2025, which improved the spread between yields earned on cash and investments and amounts shared with partners. Additionally, Green Dot repositioned a portion of its securities portfolio in 2025 and increased investment in high‑grade floating‑rate securities, contributing to improved yields at
Forward-Looking Statements
This earnings release contains statements that constitute “forward-looking statements” within the meaning of, and subject to the protections of, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are statements that could be deemed to be forward-looking statements. These forward-looking statements include, but are not limited to, certain plans, expectations, goals, projections, and statements about the benefits or costs of the proposed transactions, the plans, objectives, expectations and intentions of
Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties which may cause the actual results, performance or achievements of Green Dot, CommerceOne or the combined company to be materially different from the future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are based on the information known to, and current beliefs and expectations of, Green Dot or CommerceOne and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this communication. Many of these factors are beyond Green Dot’s, CommerceOne’s or the combined company’s ability to control or predict, and there is no assurance that any list of risks and uncertainties or risk factors is complete. These factors include, among others, (1) the risk that the cost savings and synergies from the proposed transaction may not be fully realized or may take longer than anticipated to be realized, (2) disruption to Green Dot’s business and to CommerceOne’s business as a result of the announcement and pendency of the proposed transaction, (3) the risk that the integration of Green Dot’s and CommerceOne’s respective businesses and operations, or the separation of Green Dot’s non-bank fintech businesses from
Important Information About the Transaction and Where to Find It
New CommerceOne filed a registration statement on Form S-4 (File No. 333-293326) with the
Investors and security holders may obtain free copies of these documents and other documents filed with the
Before making any voting or investment decision, investors and security holders of Green Dot and CommerceOne are urged to read carefully the entire registration statement and proxy statement/prospectus, including any amendments thereto, because they contain or will contain important information about the proposed transactions. Free copies of these documents may be obtained as described above.
| __________________________ |
|
1Available at https://www.sec.gov/Archives/edgar/data/2103884/000114036126004471/ny20062675x1_s4.htm |
Participants in Solicitation
Green Dot and CommerceOne and certain of their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from Green Dot’s stockholders in respect of the proposed transactions under the rules of the
|
___________________________ |
|
2Available at https://www.sec.gov/Archives/edgar/data/1386278/000138627825000020/gdot-20250411.htm |
|
3Available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0001386278/000138627825000009/gdot-20241231.htm |
No Offer or Solicitation
This communication relates to the proposed transactions and is for informational purposes only and is not intended to, and does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
About Non-GAAP Financial Measures
To supplement Green Dot's consolidated financial statements presented in accordance with accounting principles generally accepted in
About Green Dot
Green Dot delivers a broad spectrum of financial products to consumers and businesses through its portfolio of brands, including: GO2bank, a leading digital and mobile bank account offering simple, secure and useful banking for Americans living paycheck to paycheck; the Green Dot Network (“GDN”) of more than 90,000 retail distribution and cash access locations nationwide; Arc by Green Dot, the single-source embedded finance platform combining all of Green Dot’s secure banking and money processing capabilities to power businesses at all stages of growth; rapid! wage and disbursements solutions, providing pay card and earned wage access services to more than 7,000 businesses and their employees; and Santa Barbara TPG (“SBTPG”), the company’s tax division, which processes on average approximately 13 million tax refunds annually.
Founded in 1999, Green Dot has managed more than 80 million accounts to date both directly and through its partners.
|
|
|||||||
|
CONSOLIDATED BALANCE SHEETS |
|||||||
|
|
|
|
|
||||
|
|
(unaudited) |
|
|
||||
|
Assets |
(In thousands, except par value) |
||||||
|
Current assets: |
|
|
|
||||
|
Unrestricted cash and cash equivalents |
$ |
1,421,690 |
|
|
$ |
1,592,391 |
|
|
Restricted cash |
|
44 |
|
|
|
44 |
|
|
Investment securities available-for-sale, at fair value |
|
— |
|
|
|
24,152 |
|
|
Settlement assets |
|
947,497 |
|
|
|
616,172 |
|
|
Accounts receivable, net |
|
197,248 |
|
|
|
132,007 |
|
|
Prepaid expenses and other assets |
|
73,275 |
|
|
|
63,424 |
|
|
Income tax receivable |
|
589 |
|
|
|
— |
|
|
Total current assets |
|
2,640,343 |
|
|
|
2,428,190 |
|
|
Investment securities available-for-sale, at fair value |
|
2,467,843 |
|
|
|
2,008,650 |
|
|
Loans to bank customers, net of allowance for credit losses of |
|
55,700 |
|
|
|
31,961 |
|
|
Prepaid expenses and other assets |
|
154,567 |
|
|
|
242,707 |
|
|
Property, equipment, and internal-use software, net |
|
198,352 |
|
|
|
188,363 |
|
|
Operating lease right-of-use assets |
|
1,053 |
|
|
|
10,823 |
|
|
Deferred expenses |
|
789 |
|
|
|
1,242 |
|
|
Net deferred tax assets |
|
92,188 |
|
|
|
124,405 |
|
|
|
|
374,401 |
|
|
|
397,941 |
|
|
Total assets |
$ |
5,985,236 |
|
|
$ |
5,434,282 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable |
$ |
114,714 |
|
|
$ |
103,765 |
|
|
Deposits |
|
4,416,294 |
|
|
|
4,010,520 |
|
|
Obligations to customers |
|
284,978 |
|
|
|
236,616 |
|
|
Settlement obligations |
|
52,916 |
|
|
|
48,482 |
|
|
Amounts due to card issuing banks for overdrawn accounts |
|
— |
|
|
|
84 |
|
|
Other accrued liabilities |
|
153,752 |
|
|
|
87,675 |
|
|
Operating lease liabilities |
|
325 |
|
|
|
2,416 |
|
|
Deferred revenue |
|
4,224 |
|
|
|
6,279 |
|
|
Income tax payable |
|
2,366 |
|
|
|
6,648 |
|
|
Total current liabilities |
|
5,029,569 |
|
|
|
4,502,485 |
|
|
Other accrued liabilities |
|
282 |
|
|
|
1,045 |
|
|
Operating lease liabilities |
|
1,599 |
|
|
|
8,641 |
|
|
Notes payable |
|
63,541 |
|
|
|
48,526 |
|
|
Total liabilities |
|
5,094,991 |
|
|
|
4,560,697 |
|
|
|
|
|
|
||||
|
Stockholders’ equity: |
|
|
|
||||
|
Class A common stock, |
|
56 |
|
|
|
55 |
|
|
Additional paid-in capital |
|
427,477 |
|
|
|
408,010 |
|
|
Retained earnings |
|
644,736 |
|
|
|
743,602 |
|
|
Accumulated other comprehensive loss |
|
(182,024 |
) |
|
|
(278,082 |
) |
|
Total stockholders’ equity |
|
890,245 |
|
|
|
873,585 |
|
|
Total liabilities and stockholders’ equity |
$ |
5,985,236 |
|
|
$ |
5,434,282 |
|
|
|
|||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
|
(UNAUDITED) |
|||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
(In thousands, except per share data) |
||||||||||||||
|
Operating revenues: |
|
|
|
|
|
|
|
||||||||
|
Card revenues and other fees |
$ |
415,692 |
|
|
$ |
353,456 |
|
|
$ |
1,565,932 |
|
|
$ |
1,231,458 |
|
|
Cash processing revenues |
|
38,563 |
|
|
|
33,306 |
|
|
|
240,186 |
|
|
|
231,753 |
|
|
Interchange revenues |
|
44,380 |
|
|
|
49,350 |
|
|
|
184,595 |
|
|
|
198,300 |
|
|
Interest income, net |
|
23,980 |
|
|
|
18,912 |
|
|
|
89,778 |
|
|
|
62,365 |
|
|
Total operating revenues |
|
522,615 |
|
|
|
455,024 |
|
|
|
2,080,491 |
|
|
|
1,723,876 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
|
Sales and marketing expenses |
|
49,803 |
|
|
|
49,262 |
|
|
|
207,893 |
|
|
|
217,210 |
|
|
Compensation and benefits expenses |
|
60,904 |
|
|
|
61,077 |
|
|
|
254,376 |
|
|
|
251,044 |
|
|
Processing expenses |
|
342,604 |
|
|
|
255,460 |
|
|
|
1,230,445 |
|
|
|
887,249 |
|
|
Other general and administrative expenses |
|
94,735 |
|
|
|
74,848 |
|
|
|
351,993 |
|
|
|
370,041 |
|
|
Restructuring and other charges |
|
2,223 |
|
|
|
— |
|
|
|
22,125 |
|
|
|
— |
|
|
Total operating expenses |
|
550,269 |
|
|
|
440,647 |
|
|
|
2,066,832 |
|
|
|
1,725,544 |
|
|
Operating (loss) income |
|
(27,654 |
) |
|
|
14,377 |
|
|
|
13,659 |
|
|
|
(1,668 |
) |
|
Interest expense, net |
|
1,580 |
|
|
|
1,200 |
|
|
|
6,152 |
|
|
|
5,506 |
|
|
Other (expense), net |
|
(3,046 |
) |
|
|
(5,320 |
) |
|
|
(104,779 |
) |
|
|
(15,365 |
) |
|
(Loss) income before income taxes |
|
(32,280 |
) |
|
|
7,857 |
|
|
|
(97,272 |
) |
|
|
(22,539 |
) |
|
Income tax expense |
|
14,543 |
|
|
|
2,754 |
|
|
|
1,594 |
|
|
|
4,163 |
|
|
Net (loss) income |
$ |
(46,823 |
) |
|
$ |
5,103 |
|
|
$ |
(98,866 |
) |
|
$ |
(26,702 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Basic (loss) income per common share: |
$ |
(0.84 |
) |
|
$ |
0.09 |
|
|
$ |
(1.79 |
) |
|
$ |
(0.50 |
) |
|
Diluted (loss) income per common share |
$ |
(0.84 |
) |
|
$ |
0.09 |
|
|
$ |
(1.79 |
) |
|
$ |
(0.50 |
) |
|
Basic weighted-average common shares issued and outstanding: |
|
55,492 |
|
|
|
53,989 |
|
|
|
55,099 |
|
|
|
53,527 |
|
|
Diluted weighted-average common shares issued and outstanding: |
|
55,492 |
|
|
|
55,153 |
|
|
|
55,099 |
|
|
|
53,527 |
|
|
|
|||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
|
(UNAUDITED) |
|||||||
|
|
Year Ended |
||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
(In thousands) |
||||||
|
Operating activities |
|
|
|
||||
|
Net loss |
$ |
(98,866 |
) |
|
$ |
(26,702 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
||||
|
Depreciation and amortization of property, equipment and internal-use software |
|
64,722 |
|
|
|
63,422 |
|
|
Amortization of intangible assets |
|
20,798 |
|
|
|
21,277 |
|
|
Provision for uncollectible overdrawn accounts from purchase transactions |
|
12,765 |
|
|
|
19,762 |
|
|
Provision for loan losses |
|
23,450 |
|
|
|
27,562 |
|
|
Stock-based compensation |
|
18,703 |
|
|
|
29,928 |
|
|
Losses in equity method investments |
|
86,870 |
|
|
|
15,751 |
|
|
Realized loss on available-for-sale investment securities |
|
24,779 |
|
|
|
— |
|
|
Amortization of premium and discount on available-for-sale investment securities |
|
377 |
|
|
|
(1,986 |
) |
|
Impairment of long-lived assets |
|
2,023 |
|
|
|
4,944 |
|
|
Deferred income tax expense (benefit) |
|
368 |
|
|
|
(10,356 |
) |
|
Other |
|
3,621 |
|
|
|
(40 |
) |
|
Changes in operating assets and liabilities: |
|
|
|
||||
|
Accounts receivable, net |
|
(78,006 |
) |
|
|
(41,628 |
) |
|
Prepaid expenses and other assets |
|
(6,042 |
) |
|
|
182 |
|
|
Deferred expenses |
|
453 |
|
|
|
304 |
|
|
Accounts payable and other accrued liabilities |
|
69,390 |
|
|
|
(19,469 |
) |
|
Deferred revenue |
|
(2,815 |
) |
|
|
(917 |
) |
|
Income tax receivable/payable |
|
(4,525 |
) |
|
|
(22 |
) |
|
Other, net |
|
492 |
|
|
|
(629 |
) |
|
Net cash provided by operating activities |
|
138,557 |
|
|
|
81,383 |
|
|
|
|
|
|
||||
|
Investing activities |
|
|
|
||||
|
Purchases of available-for-sale investment securities |
|
(1,280,914 |
) |
|
|
(11,845 |
) |
|
Proceeds from maturities of available-for-sale securities |
|
217,579 |
|
|
|
232,689 |
|
|
Proceeds from sales and calls of available-for-sale securities |
|
730,801 |
|
|
|
273 |
|
|
Payments for property, equipment and internal-use software |
|
(72,540 |
) |
|
|
(74,287 |
) |
|
Net changes in loans |
|
(43,188 |
) |
|
|
(27,857 |
) |
|
Investment in |
|
— |
|
|
|
(35,000 |
) |
|
Other investing activities |
|
(2,271 |
) |
|
|
(2,571 |
) |
|
Net cash (used in) provided by investing activities |
|
(450,533 |
) |
|
|
81,402 |
|
|
|
|
|
|
||||
|
Financing activities |
|
|
|
||||
|
Borrowings on notes payable |
|
14,860 |
|
|
|
49,501 |
|
|
Borrowings on revolving line of credit |
|
— |
|
|
|
238,000 |
|
|
Repayments on revolving line of credit |
|
— |
|
|
|
(299,000 |
) |
|
Proceeds from exercise of options and ESPP purchases |
|
3,678 |
|
|
|
4,996 |
|
|
Taxes paid related to net share settlement of equity awards |
|
(2,913 |
) |
|
|
(2,892 |
) |
|
Net changes in deposits |
|
404,802 |
|
|
|
717,982 |
|
|
Net changes in settlement assets and obligations to customers |
|
(278,529 |
) |
|
|
35,636 |
|
|
Deferred financing costs |
|
(623 |
) |
|
|
(1,075 |
) |
|
Net cash provided by financing activities |
|
141,275 |
|
|
|
743,148 |
|
|
|
|
|
|
||||
|
Net (decrease) increase in unrestricted cash, cash equivalents and restricted cash |
|
(170,701 |
) |
|
|
905,933 |
|
|
Unrestricted cash, cash equivalents and restricted cash, beginning of period |
|
1,592,435 |
|
|
|
686,502 |
|
|
Unrestricted cash, cash equivalents and restricted cash, end of period |
$ |
1,421,734 |
|
|
$ |
1,592,435 |
|
|
|
|
|
|
||||
|
Cash paid for interest |
$ |
12,372 |
|
|
$ |
12,968 |
|
|
Cash paid for income taxes |
$ |
6,097 |
|
|
$ |
13,590 |
|
|
|
|
|
|
||||
|
Reconciliation of unrestricted cash, cash equivalents and restricted cash at end of period: |
|
|
|
||||
|
Unrestricted cash and cash equivalents |
$ |
1,421,690 |
|
|
$ |
1,592,391 |
|
|
Restricted cash |
|
44 |
|
|
|
44 |
|
|
Total unrestricted cash, cash equivalents and restricted cash, end of period |
$ |
1,421,734 |
|
|
$ |
1,592,435 |
|
|
|
|||||||||||||||
|
REPORTABLE SEGMENTS (UNAUDITED) |
|||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Segment Revenue |
(In thousands) |
||||||||||||||
|
B2B Services |
$ |
385,579 |
|
|
$ |
312,146 |
|
|
$ |
1,440,443 |
|
|
$ |
1,081,804 |
|
|
Consumer Services |
|
87,628 |
|
|
|
107,184 |
|
|
|
364,314 |
|
|
|
402,462 |
|
|
Money Movement Services |
|
34,354 |
|
|
|
29,690 |
|
|
|
225,268 |
|
|
|
217,657 |
|
|
Corporate and Other |
|
12,162 |
|
|
|
2,697 |
|
|
|
38,679 |
|
|
|
5,792 |
|
|
Total segment revenues |
|
519,723 |
|
|
|
451,717 |
|
|
|
2,068,704 |
|
|
|
1,707,715 |
|
|
Embedded finance commissions and processing expenses (9) |
|
4,499 |
|
|
|
4,425 |
|
|
|
18,043 |
|
|
|
18,917 |
|
|
Other income (10) |
|
(1,607 |
) |
|
|
(1,118 |
) |
|
|
(6,256 |
) |
|
|
(2,756 |
) |
|
Total operating revenues |
$ |
522,615 |
|
|
$ |
455,024 |
|
|
$ |
2,080,491 |
|
|
$ |
1,723,876 |
|
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
Segment Profit |
(In thousands) |
||||||||||||||
|
B2B Services |
$ |
27,852 |
|
|
$ |
27,277 |
|
|
$ |
112,524 |
|
|
$ |
92,374 |
|
|
Consumer Services |
|
32,227 |
|
|
|
54,803 |
|
|
|
130,671 |
|
|
|
161,900 |
|
|
Money Movement Services |
|
4,690 |
|
|
|
8,727 |
|
|
|
128,532 |
|
|
|
122,582 |
|
|
Corporate and Other |
|
(50,759 |
) |
|
|
(46,966 |
) |
|
|
(198,162 |
) |
|
|
(211,470 |
) |
|
Total segment profit * |
|
14,010 |
|
|
|
43,841 |
|
|
|
173,565 |
|
|
|
165,386 |
|
|
Reconciliation to (loss) income before income taxes |
|
|
|
|
|
|
|
||||||||
|
Depreciation and amortization of property, equipment and internal-use software |
|
17,192 |
|
|
|
15,690 |
|
|
|
64,722 |
|
|
|
63,422 |
|
|
Stock based compensation and related employer taxes |
|
4,694 |
|
|
|
5,924 |
|
|
|
19,170 |
|
|
|
30,353 |
|
|
Amortization of acquired intangible assets |
|
5,199 |
|
|
|
4,982 |
|
|
|
20,798 |
|
|
|
21,277 |
|
|
Impairment charges |
|
— |
|
|
|
1,097 |
|
|
|
2,023 |
|
|
|
9,625 |
|
|
Legal settlements and related expenses |
|
1,575 |
|
|
|
895 |
|
|
|
6,125 |
|
|
|
33,791 |
|
|
Restructuring and other charges |
|
2,223 |
|
|
|
— |
|
|
|
22,125 |
|
|
|
— |
|
|
Transaction and related acquisition costs |
|
7,440 |
|
|
|
— |
|
|
|
11,278 |
|
|
|
— |
|
|
Other expense, net |
|
3,341 |
|
|
|
876 |
|
|
|
13,665 |
|
|
|
8,586 |
|
|
Operating (loss) income |
|
(27,654 |
) |
|
|
14,377 |
|
|
|
13,659 |
|
|
|
(1,668 |
) |
|
Interest expense, net |
|
1,580 |
|
|
|
1,200 |
|
|
|
6,152 |
|
|
|
5,506 |
|
|
Other (expense), net |
|
(3,046 |
) |
|
|
(5,320 |
) |
|
|
(104,779 |
) |
|
|
(15,365 |
) |
|
(Loss) income before income taxes |
$ |
(32,280 |
) |
|
$ |
7,857 |
|
|
$ |
(97,272 |
) |
|
$ |
(22,539 |
) |
|
* Total segment profit is also referred to herein as adjusted EBITDA in its non-GAAP measures. Additional information about the Company's non-GAAP financial measures can be found under the caption “About Non-GAAP Financial Measures." |
|||||||||||||||
Green Dot's segment reporting is based on how its Chief Operating Decision Maker (“CODM”) manages its businesses, including resource allocation and performance assessment. Its CODM (who is the Chief Executive Officer) organizes and manages the businesses primarily on the basis of the channels in which its product and services are offered and uses net revenue and segment profit to assess profitability. Segment profit reflects each segment's net revenue less direct costs, such as sales and marketing expenses, processing expenses, transaction losses and fraud management, and customer support and related expenses. Green Dot’s operations are aggregated amongst three reportable segments: 1) Business to Business ("B2B") Services, 2) Consumer Services and 3) Money Movement Services.
The Corporate and Other segment primarily consists of net interest income, certain other investment income earned by Green Dot's bank, interest profit sharing arrangements with certain BaaS partners (a reduction of revenue), eliminations of inter-segment revenues and expenses, and unallocated corporate expenses, which include Green Dot's fixed expenses, such as salaries, wages and related benefits for its employees and certain third-party contractors, professional services fees, software licenses, telephone and communication costs, rent, utilities, and insurance that are not considered when Green Dot's CODM evaluates segment performance. Non-cash expenses such as stock-based compensation, depreciation and amortization of long-lived assets, impairment charges and other non-recurring expenses that are not considered by Green Dot's CODM when it is evaluating overall consolidated financial results are excluded from its unallocated corporate expenses.
|
|
|||||||||||||||
|
Reconciliation of Total Operating Revenues to Non-GAAP Total Operating Revenues (1) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
(In thousands) |
||||||||||||||
|
Total operating revenues |
$ |
522,615 |
|
|
$ |
455,024 |
|
|
$ |
2,080,491 |
|
|
$ |
1,723,876 |
|
|
Embedded finance commissions and processing expenses (9) |
|
(4,499 |
) |
|
|
(4,425 |
) |
|
|
(18,043 |
) |
|
|
(18,917 |
) |
|
Other income (10) |
|
1,607 |
|
|
|
1,118 |
|
|
|
6,256 |
|
|
|
2,756 |
|
|
Non-GAAP total operating revenues |
$ |
519,723 |
|
|
$ |
451,717 |
|
|
$ |
2,068,704 |
|
|
$ |
1,707,715 |
|
|
Reconciliation of Net Income and Loss to Non-GAAP Net Income and Loss (1) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
(In thousands, except per share data) |
||||||||||||||
|
Net (loss) income |
$ |
(46,823 |
) |
|
$ |
5,103 |
|
|
$ |
(98,866 |
) |
|
$ |
(26,702 |
) |
|
Stock-based compensation and related employer payroll taxes (3) |
|
4,694 |
|
|
|
5,924 |
|
|
|
19,170 |
|
|
|
30,353 |
|
|
Amortization of acquired intangible assets (4) |
|
5,199 |
|
|
|
4,982 |
|
|
|
20,798 |
|
|
|
21,277 |
|
|
Transaction and related acquisition costs (4) |
|
7,440 |
|
|
|
— |
|
|
|
11,278 |
|
|
|
— |
|
|
Amortization of deferred financing costs (5) |
|
160 |
|
|
|
117 |
|
|
|
646 |
|
|
|
243 |
|
|
Impairment charges (5) |
|
— |
|
|
|
3,597 |
|
|
|
2,023 |
|
|
|
12,125 |
|
|
Legal settlements and related expenses (5) |
|
1,575 |
|
|
|
895 |
|
|
|
6,125 |
|
|
|
33,791 |
|
|
Losses in equity method investments (5) |
|
4,969 |
|
|
|
3,820 |
|
|
|
86,870 |
|
|
|
15,751 |
|
|
Change in fair value of loans held for sale (5) |
|
— |
|
|
|
(2 |
) |
|
|
(152 |
) |
|
|
(246 |
) |
|
Realized loss on available-for-sale investment securities (5) |
|
— |
|
|
|
— |
|
|
|
24,779 |
|
|
|
— |
|
|
Extraordinary severance expenses (6) |
|
1,416 |
|
|
|
— |
|
|
|
6,880 |
|
|
|
6,072 |
|
|
Restructuring and other charges (7) |
|
2,223 |
|
|
|
— |
|
|
|
22,125 |
|
|
|
— |
|
|
Other expense (income), net (5) |
|
2 |
|
|
|
(122 |
) |
|
|
67 |
|
|
|
(126 |
) |
|
Income tax effect (8) |
|
14,751 |
|
|
|
(2,123 |
) |
|
|
(21,977 |
) |
|
|
(18,533 |
) |
|
Non-GAAP net (loss) income |
$ |
(4,394 |
) |
|
$ |
22,191 |
|
|
$ |
79,766 |
|
|
$ |
74,005 |
|
|
Diluted (loss) earnings per common share |
|
|
|
|
|
|
|
||||||||
|
GAAP |
$ |
(0.84 |
) |
|
$ |
0.09 |
|
|
$ |
(1.79 |
) |
|
$ |
(0.50 |
) |
|
Non-GAAP |
$ |
(0.08 |
) |
|
$ |
0.40 |
|
|
$ |
1.41 |
|
|
$ |
1.37 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Diluted weighted-average common shares issued and outstanding |
|
|
|
|
|
|
|
||||||||
|
GAAP |
|
55,492 |
|
|
|
55,153 |
|
|
|
55,099 |
|
|
|
53,527 |
|
|
Non-GAAP |
|
55,492 |
|
|
|
55,153 |
|
|
|
56,701 |
|
|
|
54,207 |
|
|
Reconciliation of GAAP to Non-GAAP Diluted Weighted-Average |
|||||||
|
Shares Issued and Outstanding |
|||||||
|
(Unaudited) |
|||||||
|
|
Three Months Ended |
|
Year Ended |
||||
|
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
|
(In thousands) |
||||||
|
Diluted weighted-average shares issued and outstanding |
55,492 |
|
55,153 |
|
55,099 |
|
53,527 |
|
Anti-dilutive shares due to GAAP net loss |
— |
|
— |
|
1,602 |
|
680 |
|
Non-GAAP diluted weighted-average shares issued and outstanding |
55,492 |
|
55,153 |
|
56,701 |
|
54,207 |
|
|
|||||||||||
|
Supplemental Detail on Diluted Weighted-Average Common Shares Issued and Outstanding |
|||||||||||
|
(Unaudited) |
|||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||
|
|
2025 |
|
|
2024 |
|
|
2025 |
|
|
2024 |
|
|
|
(In thousands) |
||||||||||
|
Class A common stock outstanding as of |
55,565 |
|
|
54,227 |
|
|
55,565 |
|
|
54,227 |
|
|
Weighting adjustment |
(73 |
) |
|
(238 |
) |
|
(466 |
) |
|
(700 |
) |
|
Dilutive potential shares: |
|
|
|
|
|
|
|
||||
|
Service based restricted stock units |
— |
|
|
1,128 |
|
|
1,532 |
|
|
666 |
|
|
Performance-based restricted stock units |
— |
|
|
18 |
|
|
63 |
|
|
5 |
|
|
Employee stock purchase plan |
— |
|
|
18 |
|
|
7 |
|
|
9 |
|
|
Diluted weighted-average shares issued and outstanding |
55,492 |
|
|
55,153 |
|
|
56,701 |
|
|
54,207 |
|
|
Reconciliation of Net Income and Loss to Adjusted EBITDA (1) |
|||||||||||||||
|
(Unaudited) |
|||||||||||||||
|
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
|
|
(In thousands) |
||||||||||||||
|
Net (loss) income |
$ |
(46,823 |
) |
|
$ |
5,103 |
|
|
$ |
(98,866 |
) |
|
$ |
(26,702 |
) |
|
Interest expense, net (2) |
|
1,580 |
|
|
|
1,200 |
|
|
|
6,152 |
|
|
|
5,506 |
|
|
Income tax expense |
|
14,543 |
|
|
|
2,754 |
|
|
|
1,594 |
|
|
|
4,163 |
|
|
Depreciation and amortization of property, equipment and internal-use software (2) |
|
17,192 |
|
|
|
15,690 |
|
|
|
64,722 |
|
|
|
63,422 |
|
|
Stock-based compensation and related employer payroll taxes (2)(3) |
|
4,694 |
|
|
|
5,924 |
|
|
|
19,170 |
|
|
|
30,353 |
|
|
Amortization of acquired intangible assets (2)(4) |
|
5,199 |
|
|
|
4,982 |
|
|
|
20,798 |
|
|
|
21,277 |
|
|
Transaction and related acquisition costs (2)(4) |
|
7,440 |
|
|
|
— |
|
|
|
11,278 |
|
|
|
— |
|
|
Impairment charges (2)(5) |
|
— |
|
|
|
3,597 |
|
|
|
2,023 |
|
|
|
12,125 |
|
|
Legal settlements and related expenses (2)(5) |
|
1,575 |
|
|
|
895 |
|
|
|
6,125 |
|
|
|
33,791 |
|
|
Losses in equity method investments (2)(5) |
|
4,969 |
|
|
|
3,820 |
|
|
|
86,870 |
|
|
|
15,751 |
|
|
Change in fair value of loans held for sale (2)(5) |
|
— |
|
|
|
(2 |
) |
|
|
(152 |
) |
|
|
(246 |
) |
|
Realized loss on available-for-sale investment securities (2)(5) |
|
— |
|
|
|
— |
|
|
|
24,779 |
|
|
|
— |
|
|
Extraordinary severance expenses (2)(6) |
|
1,416 |
|
|
|
— |
|
|
|
6,880 |
|
|
|
6,072 |
|
|
Restructuring and other charges (7) |
|
2,223 |
|
|
|
— |
|
|
|
22,125 |
|
|
|
— |
|
|
Other expense (income), net (2)(5) |
|
2 |
|
|
|
(122 |
) |
|
|
67 |
|
|
|
(126 |
) |
|
Adjusted EBITDA |
$ |
14,010 |
|
|
$ |
43,841 |
|
|
$ |
173,565 |
|
|
$ |
165,386 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Non-GAAP total operating revenues |
$ |
519,723 |
|
|
$ |
451,717 |
|
|
$ |
2,068,704 |
|
|
$ |
1,707,715 |
|
|
Adjusted EBITDA/Non-GAAP total operating revenues (adjusted EBITDA margin) |
|
2.7 |
% |
|
|
9.7 |
% |
|
|
8.4 |
% |
|
|
9.7 |
% |
| (1) |
To supplement Green Dot’s consolidated financial statements presented in accordance with GAAP, Green Dot 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 Green Dot does. These financial measures are adjusted to eliminate the impact of items that Green Dot does not consider indicative of its core operating performance. You are encouraged to evaluate these adjustments and the reasons Green Dot considers them appropriate. |
|
|
Green Dot believes that the non-GAAP financial measures it presents are useful to investors in evaluating Green Dot’s operating performance for the following reasons: |
||
|
||
|
||
|
||
|
Green Dot’s management uses the non-GAAP financial measures: |
||
|
||
|
||
|
||
|
||
|
||
|
||
|
Green Dot understands that, although adjusted EBITDA and other non-GAAP financial measures are frequently used by investors and securities analysts in their evaluations of companies, these measures have limitations as an analytical tool, and you should not consider them in isolation or as substitutes for an analysis of Green Dot’s results of operations as reported under GAAP. Some of these limitations are: |
||
|
||
|
||
|
||
|
||
|
||
|
||
| (2) |
Green Dot does not include any income tax impact of the associated non-GAAP adjustment to adjusted EBITDA, as the case may be, because each of these adjustments to the non-GAAP financial measure is provided before income tax expense. |
|
| (3) |
This expense consists primarily of expenses for restricted stock units (including performance-based restricted stock units) and related employer payroll taxes. Stock-based compensation expense is not comparable from period to period due to changes in the fair market value of Green Dot’s Class A common stock (which is influenced by external factors like the volatility of public markets and the financial performance of Green Dot’s peers) and is not a key measure of Green Dot’s operations. Green Dot excludes stock-based compensation expense from its non-GAAP financial measures primarily because it consists of non-cash expenses that Green Dot does not believe are reflective of ongoing operating results. Green Dot also believes that it is not useful to investors to understand the impact of stock-based compensation to its results of operations. Further, the related employer payroll taxes are dependent upon volatility in Green Dot's stock price, as well as the timing and size of option exercises and vesting of restricted stock units, over which Green Dot has limited to no control. This expense is included as a component of compensation and benefits expenses on Green Dot's consolidated statements of operations. |
|
| (4) |
Green Dot excludes certain expenses that are the result of acquisition or divestiture activities, including a sale in connection with its evaluation of strategic alternatives. These acquisition-related adjustments include items such as transaction costs, 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 Green Dot recording expenses or fair value adjustments in its GAAP financial statements. Green Dot may also from time to time incur gains or losses from divestitures of a business or other sale activities, as well as professional and legal fees and other direct expenses associated with such transactions. Green Dot analyzes the performance of its operations without regard to these adjustments. In determining whether any acquisition-related adjustment is appropriate, Green Dot takes into consideration, among other things, how such adjustments would or would not aid in the understanding of the performance of its operations. These items are included as a component of other general and administrative expenses on Green Dot's consolidated statements of operations, as applicable for the periods presented. |
|
| (5) |
Green Dot 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 Green Dot's GAAP financial statements, Green Dot excludes them in its non-GAAP financial measures because Green Dot believes these items may limit the comparability of ongoing operations with prior and future periods. These adjustments include items such as amortization attributable to deferred financing costs, impairment charges related to long-lived assets, earnings or losses from equity method investments, legal settlements and related expenses, changes in the fair value of loans held for sale, realized gains and losses on available-for-sale investment securities and other income and expenses, as applicable for the periods presented. In determining whether any such adjustment is appropriate, Green Dot takes into consideration, among other things, how such adjustments would or would not aid in the understanding of the performance of its operations. Each of these adjustments, except for amortization of deferred financing costs, earnings and losses from equity method investments, fair value changes on loans held for sale, and realized gains and losses on available-for-sale investment securities, which are all included below operating income, are included within other general and administrative expenses on Green Dot's consolidated statements of operations. |
|
| (6) |
During the three months ended |
|
| (7) |
During the three months ended |
|
| (8) |
Represents the tax effect for the related non-GAAP measure adjustments using Green Dot's year to date non-GAAP effective tax rate. It also excludes the impact of excess tax benefits related to stock-based compensation, the IRC §162(m) limitation that applies to performance-based restricted stock units expense and valuation allowances related to deferred tax assets as of |
|
| (9) |
Represents commissions and certain processing-related costs associated with embedded finance products and services where Green Dot does not control customer acquisition. This adjustment is netted against revenues when evaluating segment performance. |
|
| (10) |
Represents other non-interest investment income earned by |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260312347194/en/
Investor Relations:
IR@greendot.com
Media Relations:
SVP, Head of Corporate Communications
alubert@greendotcorp.com
Source: