Executive Summary

Strong Q1: non-GAAP revenue up 24% YoY to $555.96M and adjusted EBITDA up 53% YoY to $90.56M; non-GAAP EPS $1.06 vs $0.59 a year ago, with all three segments showing profit growth .
Beat vs S&P Global consensus: revenue $557.49M* vs $503.20M* and EPS $1.06* vs $0.71*; prior quarter also beat; YoY, Q1 2024 EPS missed estimates but revenue beat [GetEstimates].
Guidance raised for FY25: non-GAAP revenue to $2.0–$2.1B (from $1.85–$1.90B), adjusted EBITDA to $150–$160M (from $145–$155M), and non-GAAP EPS to $1.14–$1.28 (from $1.05–$1.20) vs prior .
Strategic and commercial momentum: Walmart distribution and product programs extended to January 2033; Samsung Wallet Tap to Transfer and Crypto.com partnerships highlight Arc’s embedded finance traction; portfolio repositioning incurred a $25M realized loss but expected to lift yields; TailFin JV funds a $70M Walmart incentive (equity loss) without incremental cash outlay .
Narrative/catalysts: accelerating B2B/embedded finance growth and raised FY guidance, Walmart extension, and high-profile partnerships are likely the near-term stock drivers; watch subsequent partner launches/timing and Consumer trajectory moderation .

What Went Well and What Went Wrong

What Went Well
- Broad-based profit growth: “all three of our reporting segments posted profit growth this quarter for the first time in several years” (CFO) .
- B2B acceleration: >40% B2B revenue growth YoY, margin expansion ~40 bps; renewals improved economics; pipeline momentum with new launches .
- Strategic wins: Walmart relationship extended to 2033 and new partnerships with Samsung and Crypto.com on the Arc platform (embedded finance) .
What Went Wrong
- Consumer softness continues: Consumer Services revenue fell to $95.26M (from $100.61M Q1’24) and management still expects upper-single-digit decline for 2025; no return to active account growth in 2025 .
- GAAP noise: realized $24.50M loss on AFS securities due to portfolio repositioning; GAAP “Other (expense), net” rose to $(25.70)M; non-GAAP adjustments were material .
- Staffing headwinds: rapid!/PayCard revenue still pressured by weak staffing vertical; although losses/fraud costs improved, revenue remains under strain .

Financial Results

Metric	Q1 2024	Q3 2024	Q4 2024	Q1 2025
GAAP Total Operating Revenues ($USD Millions)	$451.99	$409.74	$455.02	$558.87
Non-GAAP Total Operating Revenues ($USD Millions)	$447.42	$406.02	$451.72	$555.96
Adjusted EBITDA ($USD Millions)	$59.23	$28.32	$43.84	$90.56
Adjusted EBITDA Margin (%)	13.2%	7.0%	9.7%	16.3%
GAAP Diluted EPS ($)	$0.09	$(0.15)	$0.09	$0.47
Non-GAAP Diluted EPS ($)	$0.59	$0.13	$0.40	$1.06
GAAP Net Income ($USD Millions)	$4.75	$(7.84)	$5.10	$25.77

Segment revenue

Segment Revenue ($USD Thousands)	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Consumer Services	$100,612	$98,046	$107,184	$95,256
B2B Services	$241,200	$276,402	$312,146	$341,991
Money Movement Services	$103,150	$31,854	$29,690	$110,247
Corporate & Other	$2,461	$(283)	$2,697	$8,470
Total Non-GAAP Segment Revenues	$447,423	$406,019	$451,717	$555,964

Segment profit (Adjusted EBITDA)

Segment Profit ($USD Thousands)	Q1 2024	Q3 2024	Q4 2024	Q1 2025
Consumer Services	$33,259	$39,389	$54,803	$33,632
B2B Services	$18,283	$27,736	$27,277	$27,152
Money Movement Services	$65,847	$12,717	$8,727	$76,826
Corporate & Other	$(58,157)	$(51,527)	$(46,966)	$(47,051)
Total Segment Profit (Adj. EBITDA)	$59,232	$28,315	$43,841	$90,559

KPIs

KPI	Q3 2024	Q4 2024	Q1 2025
Gross Dollar Volume (Consolidated, $USD Millions)	$33,473	$35,282	$37,252
Active Accounts (Millions)	3.46	3.67	3.58
Purchase Volume (Consolidated, $USD Millions)	$4,887	$5,152	$5,113
Cash Transfers (Millions)	8.22	8.14	7.51
Tax Refunds Processed (Millions)	0.19	0.15	7.98

Results vs S&P Global consensus (non-GAAP metrics where applicable)

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue Estimate ($)	419,588,250*	420,388,750*	503,195,000*
Revenue Actual ($)	450,531,000*	453,824,000*	557,488,000*
EPS Estimate ($)	0.7270*	0.3538*	0.7066*
EPS Actual ($)	0.59*	0.40*	1.06*

Values retrieved from S&P Global.
Bolded beats/misses: Q1 2025 revenue and EPS were beats; Q4 2024 both beats; Q1 2024 revenue beat but EPS miss [GetEstimates].

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Non-GAAP Total Operating Revenues	FY 2025	$1.85B–$1.90B	$2.00B–$2.10B	Raised
Adjusted EBITDA	FY 2025	$145M–$155M	$150M–$160M	Raised
Non-GAAP EPS	FY 2025	$1.05–$1.20	$1.14–$1.28	Raised

Notes: Company expects Q2–Q3 revenue growth similar to Q1, low-teens in Q4 as discrete Q4’24 items are lapped; B2B full-year growth low–mid 30% with some margin pressure from mix; Money Movement low single-digit growth with margin up; Consumer upper-single-digit decline, with moderation in recurring base .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24 and Q4’24)	Current Period (Q1’25)	Trend
Embedded finance/Arc platform	Launched Arc brand; adjusted EBITDA growth resuming; 2025 growth to be driven by embedded finance (B2B + Money Movement)	Samsung Wallet Tap to Transfer via Arc; Crypto.com banking rails/savings; robust pipeline and renewals	Strengthening
Walmart relationship	Key dependency noted; ongoing retail headwinds	Extended through Jan 2033; $70M TailFin-funded incentive (equity loss) with no new cash outlay; economics otherwise unchanged	Positive durability
Consumer Services	Retail softness; improved execution but below expectations	Declines moderating (PLS partnership, product/UX work); no 2025 return to active growth	Stabilizing/mixed
Balance sheet/yield	No prior realized loss callout	Repositioned portfolio; realized ~$25M AFS loss; expected yield improvement ahead	One-time cost for future yield
Compliance/Risk	Investment focus ongoing	New CRO Kim Olson; continued spend on regulatory compliance/infrastructure	Strengthening governance
Strategic alternatives	—	Board reviewing alternatives to maximize value; no further details	Ongoing process

Management Commentary

“It was a very strong start to 2025 as we beat our projections, added significant new BaaS and money processing partners, and extended a major retail relationship… positioned to win in the embedded finance market” – Interim CEO William Jacobs .
“All three of our reporting segments posted profit growth this quarter for the first time in several years” – CFO Jess Unruh .
On partnerships: “Samsung… Wallet features powered in part by Arc… we are thrilled… and look forward to building upon the relationship” – Chris Ruppel ; Crypto.com to leverage Arc for on/off-ramp and savings vault .
On Walmart renewal: “We… renewed… with Walmart… now extends to 2033” – Chris Ruppel; “no other changes to the economics on the MoneyCard program” – CFO .
On guidance: Raised FY25 non-GAAP revenue, adjusted EBITDA and EPS ranges versus February guide given overperformance and pipeline momentum .

Q&A Highlights

Samsung/Crypto revenue classification: Will flow through BaaS or Money Movement depending on Arc services used; expected to scale over time (no specific ramp disclosed) .
Walmart economics: Aside from the $70M TailFin-funded incentive (equity loss), “no other changes to the economics on the MoneyCard program” .
Portfolio scope/divestiture: Tech stacks for PayCard/Tax more autonomous; strategic alternatives review contemplates options including possible divestitures if value-enhancing .
Consumer outlook: Active account declines moderating (PLS, FSC channel); no return to growth in 2025; product modernization to aid appeal longer-term .
Macro in guidance: Based on current environment; deterioration would prompt reassessment .
Competitive landscape in embedded finance: Preference shifting to at-scale, vertically integrated partners with bank/regulatory capability, favoring Arc’s value proposition .

Estimates Context

Q1 2025 beat: Revenue $557.49M* vs $503.20M* and EPS $1.06* vs $0.7066*; Q4 2024 also beat; Q1 2024 revenue beat but EPS missed [GetEstimates].
Expect upward estimate revisions for FY25 non-GAAP revenue and EPS following raised company guidance; potential modest adjustments to segment mix and B2B margins given mix commentary .

Values retrieved from S&P Global.

Key Takeaways for Investors

Embedded finance momentum is translating to financials: non-GAAP revenue +24% YoY, adjusted EBITDA +53% YoY; all segments showing profit growth; B2B continues to be the engine .
Guidance raised across the board for FY25, signaling confidence in pipeline and execution; expect estimates to move up and narrative to focus on embedded finance growth durability .
Walmart extension to 2033 materially de-risks a key relationship; TailFin-funded incentive avoids new cash outlay but will show as equity losses in GAAP; economics otherwise unchanged .
One-time $25M realized loss on securities should improve future yields; GAAP P&L noise vs cleaner non-GAAP trajectory—watch yields and NII in Corporate segment .
Consumer headwinds persist but are moderating; execution (PLS, product/UX) and FSC channel expansion aim to stabilize the base; no active account growth expected in 2025 .
Near-term catalysts: additional partner wins/launches on Arc, visibility on strategic alternatives, and sequential revenue cadence in Q2–Q3 in line with Q1 as guided .
Risk checks: staffing vertical recovery timing (rapid!/PayCard), execution on multiple large partner launches, regulatory/compliance investment pace, and macro sensitivity per management .

GREEN DOT CORP (GDOT)·Q1 2025 Earnings Summary