Green Dot Corporation (GDOT) reported impressive first-quarter 2025 results. Earnings and revenues beat the Zacks Consensus Estimate.Quarterly earnings per share (excluding 59 cents from non-recurring items) of $1.06 outpaced the consensus estimate by 51.4% and improved 79.7% from the year-ago quarter. Revenues of $556 million beat the Zacks Consensus Estimate by 10.2% and increased 23% on a year-over-year basis.Green Dot’s Segmental RevenuesB2B Services revenues increased 41.8% in the first quarter of 2025 ...

Green Dot (GDOT) came out with quarterly earnings of $1.06 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 51.43%. A quarter ago, it was expected that this bank holding company would post earnings of $0.38 per share when it actually produced earnings of $0.40, delivering a surprise of 5.26%.Over the last four quarters, the co ...

Green Dot (GDOT) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 note this event is being recorded. I would now like to turn the conference over to Mr. Timothy Willey of Investor Relations. Please go ahead, sir. Speaker1 Thank you, and good afternoon, everyone. Today, we are discussing Green Dot's first quarter twenty twenty five financial and operating results. Following our remarks, we'll open the call for your questions. Our most recent earnings release that accompanies this call and webcast can ...

Exhibit 99.01 Green Dot Reports First Quarter 2025 Results Company increases 2025 outlook Company sees continued momentum in embedded finance with new Samsung and Crypto.com partnerships, and renewal of significant retail partnership Provo, UT - May 8, 2025 - Green Dot Corporation (NYSE: GDOT), a leading digital bank and fintech that delivers seamless banking and payment tools for consumers and businesses, today reported financial results for the quarter ended March 31, 2025. "It was a very strong start to ...

Q1 2025 Results May 8th, 2025 Green Dot Corporation Safe Harbor Statement This presentation contains forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements include, among other things, statements regarding Green Dot's business and pipeline momentum, revenue and division trends, timing and impact of partner launches and 2025 guidance and outlook, and other future events that involve risks and uncertainties. Actual ...

Investors in Green Dot Corporation (GDOT) need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 20, 2025 $10 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could als ...

Digital bank and FinTech company Green Dot said Monday (March 10) that it made a leadership transition and engaged Citi to explore strategic alternatives.Effective Friday (March 7), the company appointed its chairperson of the board, William I Jacobs, to also serve as interim CEO of Green Dot, and its chief revenue officer, Chris Ruppel, to also serve as interim president of Green Dot and interim CEO and president of Green Dot Bank, the company said in a Monday press release.They succeed George Gresham, who ...

Regulatory Capital and Compliance - As of December 31, 2024, Green Dot Corporation and Green Dot Bank's regulatory capital ratios were above the well-capitalized standards and met the capital conservation buffer of 2.5%[65] - Green Dot Corporation and Green Dot Bank expect to continue exceeding all applicable well-capitalized regulatory capital requirements on a fully phased-in basis[65] - The Federal Reserve may require bank holding companies to maintain capital substantially in excess of mandated minimum levels based on economic conditions and risk profiles[63] - Green Dot Bank reclassified most of its deposits as non-brokered following the FDIC's final rule on brokered deposits, effective from fiscal year 2022[68] - Green Dot Bank's CRA compliance is evaluated under a strategic plan covering 2024 to 2028, focusing on community development lending and investment[86] - The deposits of Green Dot Bank are insured by the DIF up to $250,000 per depositor, with potential increases in deposit insurance premiums based on risk assessments[88] - Green Dot Corporation may be required to provide financial assistance to Green Dot Bank in case of financial distress, with capital loans being subordinate to deposits[77] - Federal banking regulators can prohibit dividend payments if deemed unsafe or unsound, particularly if it depletes the bank's capital base[71] - Green Dot Corporation is required to serve as a source of financial and managerial strength to Green Dot Bank, potentially committing resources to support it[76] - The FDIC may act as a conservator or receiver for Green Dot Bank upon insolvency, with broad powers to transfer assets or liabilities without creditor approval[79] Revenue Sources and Business Operations - Approximately 55% of total operating revenues for the year ended December 31, 2024, were generated from a single BaaS partner[116] - Operating revenues derived from products and services sold at Walmart store locations accounted for approximately 10% of total operating revenues for the year ended December 31, 2024[116] - For the year ended December 31, 2024, interchange revenues represented 12% of total operating revenues, indicating a significant reliance on interchange fees[164] Employee and Diversity Metrics - The company has a voluntary turnover rate of less than 8% for the fiscal year 2024, indicating strong employee retention[106] - As of December 31, 2024, the company had approximately 1,150 full-time employees globally, with 77% located in the United States and 23% in China[105] - The company is committed to enhancing diversity, equity, inclusion, and belonging, ending 2024 with a workforce comprised of 53% male and 47% female employees[109] Compliance and Regulatory Risks - The company has adopted a comprehensive AML compliance program to prevent the use of its services for illegal activities[91] - The company is subject to increased regulatory scrutiny regarding its BSA and AML programs, with significant penalties for non-compliance[92] - The company has entered into a consent order with the Federal Reserve Board, including a $44 million civil money penalty, due to compliance risk management issues[155] - Regulatory scrutiny has led to increased investments in compliance infrastructure, which may impact financial performance[155] - The classification of deposits by Green Dot Bank is crucial; non-compliance could result in regulatory fines and increased oversight[157] - The company faces potential regulatory fines and penalties if its reclassification of deposits is deemed non-compliant, which could increase regulatory oversight and litigation risk[157] Financial Performance and Market Risks - Economic conditions, including high inflation and interest rates, could negatively affect consumer spending and transaction volumes, impacting overall financial performance[135] - The company faces intense competition from larger, more established entities that can leverage their size and brand awareness to gain market share[124] - The reliance on third-party service providers for transaction processing introduces vulnerabilities that could lead to reputational damage and financial losses due to fraudulent activities[129] - The ability to retain and attract new BaaS partners and long-term users is critical for future revenue growth, with potential fluctuations in operating revenues based on these relationships[121] - The company may need to increase incentives or reduce prices to compete effectively, which could negatively impact operating results[126] - The rapid pace of technological change in the electronic payments industry poses a risk, as the company may struggle to keep up with new developments and innovations[127] - The company faces risks related to the scalability and functionality of its technology systems, which could lead to increased costs and reduced system availability[138] - A decline in the use of prepaid cards or demand deposit accounts could negatively impact operating revenues, as consumer preferences evolve[140] - Cyber-attacks and data security breaches pose risks that could lead to liability, litigation, and regulatory penalties, impacting reputation and revenues[146] - Compliance with evolving privacy and data protection laws is critical, as failures could result in financial penalties and reputational damage[150] Debt and Financial Obligations - In September and October 2024, the company issued senior unsecured notes totaling $50 million, followed by an additional $15 million in February 2025, maturing in September 2029[171] - The company faces increased debt service obligations due to the issuance of senior unsecured notes, which may limit available funds for distribution to stockholders and additional financing[171] - The company’s ability to generate cash flow may be affected by its increased debt service obligations[172] - The company may require additional capital in the future, which may not be available on acceptable terms, potentially impacting growth and operations[170] Intellectual Property and Acquisitions - The company has 17 issued patents and 1 pending patent application, highlighting its focus on protecting intellectual property related to its products and services[168] - The integration of acquired businesses may involve significant costs and risks, including changes in risk policies and controls, and advertising campaign expenditures[179] - Future acquisitions may result in dilutive issuances of equity securities or incurrence of debt, which could negatively impact financial condition[182] - The company faces risks related to the integration of acquired businesses, which could disrupt operations and negatively impact financial condition[182] Regulatory Control and Governance - Federal Reserve Board approval is required for any person or company acquiring 25% or more of voting securities in a bank holding company[187] - Control may be presumed if a person acquires 10% or more of any class of voting securities[187] - These regulations could impact third-party willingness or ability to acquire control of the bank holding company[187] - The BHC Act and Change in Bank Control Act impose restrictions on acquisitions[187] - The company remains subject to regulatory scrutiny under these acts[187] - The implications of these regulations could affect market dynamics for potential acquirers[187] - The company must navigate these regulatory frameworks in any future strategic decisions[187] - Compliance with these regulations is critical for maintaining operational stability[187] - The company’s governance structure is influenced by these control regulations[187] - Future acquisitions may require careful consideration of these ownership thresholds[187]

Green Dot Corporation (GDOT) reported impressive fourth-quarter 2024 results. Earnings and revenues beat the Zacks Consensus Estimate.See the Zacks Earnings Calendar to stay ahead of market-making news.The stock has declined 6.4% since the earnings release on Feb. 27, as the 2025 guidance was weak.GDOT has provided its 2025 guidance for total operating revenues to range between $1.85 and $1.90 billion. The midpoint of the guided range ($1.87 billion) is below the current Zacks Consensus Estimate of $1.89 bi ...

Financial Data and Key Metrics Changes - In Q4 2024, adjusted revenue increased by 25% year-over-year, while adjusted EBITDA rose by 70%, with over 200 basis points of margin expansion [8][15] - Non-GAAP EPS for the quarter was $0.40, reflecting a 190% increase from the previous year [15] Business Line Data and Key Metrics Changes - The Consumer Services segment faced pressure due to secular headwinds in the retail channel, but active accounts and revenue declines have eased, aided by a new partnership with PLS [17][18] - The B2B segment continued to drive revenue growth, particularly from a significant BaaS partner, with key metrics such as purchase volume and active accounts increasing [20][21] - The Money Movement segment saw revenue growth in the tax processing business, while cash transfer volumes increased due to new partners [25][26] Market Data and Key Metrics Changes - The overall active accounts increased year-over-year, marking the first quarter of growth in almost four years [9] - The Consumer segment is expected to decline by mid-single digits in the first three quarters of 2025, with a further decline in the fourth quarter due to secular headwinds [29][30] Company Strategy and Development Direction - The company focuses on three strategic pillars: investing in compliance and risk management, improving cost structure, and building stable revenue growth [11][48] - The introduction of the embedded finance brand, Arc by Green Dot, is part of the strategy to enhance service offerings and capitalize on market opportunities [10][39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the B2B and Money Movement segments, despite anticipated declines in the Consumer segment [12][33] - The company plans to continue investing in platform features and functionality to reduce declines in the Consumer segment while pursuing niche opportunities [34][35] Other Important Information - The company anticipates non-GAAP revenue of $1.85 billion to $1.9 billion for 2025, with adjusted EBITDA expected to be between $145 million and $155 million [12][28] - The corporate segment plans to reposition its investment portfolio into higher-yielding floating rate assets, which is expected to generate approximately $10 million in revenue growth [31] Q&A Session Summary Question: Magnitude of macro pressure in 2025 guidance - Management indicated that the guidance considers potential macroeconomic factors, including inflation and yield curve changes affecting interest income [56] Question: Building blocks for margin recovery in Consumer Services and B2B segments - Management discussed focusing on financial service centers to improve direct deposit penetration and optimizing the cost structure to enhance margins [61][64] Question: Opportunities from partnerships and competitive landscape - Management noted a mix of competitive takeaways and greenfield opportunities in their pipeline, with a strong focus on compliance and risk management [73][76] Question: Growth in deposit base and its impact on revenue - The deposit growth is primarily driven by the B2B segment, with expectations for continued growth from new and existing partners [80] Question: Impact of blocked accounts on active growth - Blocked accounts in the Consumer business had a neutral impact on the P&L, as they do not significantly contribute to revenue [88] Question: Regulatory environment and its impact on business - Management emphasized that partners are increasingly diligent regarding compliance, and the company maintains a strong relationship with regulators [92][102] Question: Investments in GO2bank and future features - The company plans to upgrade the user experience for GO2bank and explore new capabilities akin to a marketplace in the future [107][108]