Total Operating Revenues

Increased from 451,988 thousand USD to 558,874 thousand USD (~24% increase)

Total operating revenues grew robustly, driven by increased card revenues (+33.6%) and a sizable jump in interest income, reflecting higher cash balances and improved yields—building on prior period performance where revenue drivers were already in place. " "

Net (loss) Income

Swung from 4,750 thousand USD in Q1 2024 to 25,773 thousand USD in Q1 2025 (444% improvement)

The dramatic turnaround in net income is attributable to enhanced operating efficiency and cost management, which reversed the previous period’s losses through stronger revenue performance and improved expense control. " "

Operating Income

Increased from 10,554 thousand USD to 60,745 thousand USD (475% increase)

Operating income surged as improvements in key revenue streams—especially from card and interest income—coupled with tight cost controls, drove a significant recovery compared to the modest margins seen in Q1 2024. " "

Card Revenues

Increased from 281,503 thousand USD to 375,953 thousand USD (33.6% increase)

Card revenues rose substantially due to higher transaction volumes and increased program management fees from BaaS partners, building on last period’s strong performance in the B2B services segment. " "

Interest Income, net

Increased from 12,711 thousand USD to 21,629 thousand USD (~70% increase)

The increase in net interest income reflects higher funds from deposit programs and improved yields at the Federal Reserve, an acceleration from the lower base observed in Q1 2024. " "

Interchange Revenues

Declined from 50,968 thousand USD to 47,919 thousand USD (~6% decrease)

Interchange revenues fell due to a reduction in purchase volume and a shift in the transaction mix toward lower effective interchange rates—a trend that also impacted the previous period. " "

Basic (and Diluted) EPS

Increased from 0.09 USD to 0.47 USD

The considerable improvement in EPS is a direct outcome of the turnaround in operating and net income, supported by stronger revenue growth and enhanced profitability relative to Q1 2024. " "

Unrestricted Cash and Cash Equivalents

Increased from 1,118,804 thousand USD to 1,772,845 thousand USD (58.6% increase)

The surge in unrestricted cash is driven by robust cash inflows from operating and financing activities, following significant deposit growth and improved liquidity management compared to the previous period. " "

Net Cash Provided by Operating Activities

Increased from 89,177 thousand USD to 108,721 thousand USD (22% increase)

Net cash from operations improved as a result of enhanced operational performance, with higher non-cash adjustments and more favorable working capital management contributing to the 22% increase over Q1 2024. " "

Non-GAAP Revenue

FY 2025

Expected to be between $1.85 billion to $1.9 billion "

no guidance

no current guidance

Adjusted EBITDA

FY 2025

Expected to be between $145 million to $155 million "

no guidance

no current guidance

Non-GAAP EPS

FY 2025

Expected to be between $1.05 to $1.20 "

no guidance

no current guidance

B2B Segment Revenue Growth

FY 2025

Projected to see about 30% growth in the first half of the year, moderating to low 20% growth for 2025 "

no guidance

no current guidance

Consumer Segment Revenue Decline

FY 2025

Expected to decline by mid-single digits in the first 3 quarters, with further decline in Q4 to the mid-teens "

no guidance

no current guidance

Money Movement Segment Revenue Growth

FY 2025

Expected to grow low single digits in 2025 "

no guidance

no current guidance

Corporate Segment Revenue Growth

FY 2025

Expected to result in approximately $10 million of revenue growth "

no guidance

no current guidance

B2B Growth

In Q4 2024, Q3 2024, and Q2 2024, executives repeatedly highlighted strong revenue growth, margin expansion, and robust performance driven by significant BaaS partners along with an expanding portfolio ( " " " " in Q4; " " " in Q3; " " " " in Q2).

Q1 2025 emphasized over 40% revenue growth year‐over‐year in the B2B segment—including margin expansion and improved profitability—driven by a significant BaaS partner and efficient operations ( " " ).

Consistent growth with improving margins: The focus remains on sustainable top‐line growth, with continued emphasis on key partners and operational efficiency.

High-impact Strategic Partnerships

Not mentioned in Q4, Q3, or Q2 earnings calls.

Q1 2025 introduced high-impact strategic partnerships with names like Crypto.com and Samsung, highlighting new revenue opportunities via the Arc platform ( " " ).

Emerging topic with potential high impact: This is a new focus in Q1 2025 that could drive scale and enhance the competitive offering.

Embedded Finance Platform Scalability (Arc)

Across previous quarters, Arc was discussed in terms of its launch, scalable, modular design, and integration with Green Dot Bank ( " " in Q4; " in Q3; " in Q2), positioning it as a core element in the embedded finance strategy.

Q1 2025 reiterated the scalability of Arc, noting its role in powering high-profile partnerships and driving significant revenue growth in the B2B segment ( " " " ).

Consistent strengthening and scaling: The platform’s capabilities and strategic importance are continually reinforced, with integrations further bolstering its market position.

Consumer Services Challenges & Legacy Platform Issues (including blocked accounts)

Q4 2024 detailed issues like blocked accounts due to risk management, high costs from legacy platform inefficiencies, and a significant focus on modernization ( " " " ). Q3 2024 and Q2 2024 also highlighted revenue pressures, legacy technology constraints, and heavier deconversion impacts ( " " " and " " " " " ).

Q1 2025 did not mention blocked accounts specifically; instead, it noted that despite secular headwinds in the retail channel, declines in revenue and active accounts moderated compared to prior years, with modernization efforts underway ( " " ).

Challenges persist but showing moderation: While consumer segments continue facing structural issues, focused modernization and selective partnerships are starting to moderate declines.

Regulatory Risks and Compliance Costs

Extensive discussion appeared in Q4, Q3, and Q2 on compliance investments, regulatory relationships, consent orders, and elevated spending on risk management and infrastructure ( " " " in Q4; " " " in Q3; " " " in Q2).

Q1 2025 indicated a decrease in some compliance expenses compared to prior periods due to timing factors, with expectations for increased corporate spending later in the year ( " " ).

Continued priority with evolving expense profile: Regulatory and compliance investments remain central, though the immediate expense outlook appears lower in Q1 2025.

Increased Competition and Margin Compression

In Q2 2024, there was explicit discussion about margin compression in various segments driven by competitive pressures and cost challenges ( " " " " ). Q3 contained related commentary on margin trends while Q4 talked about sector-specific pressures albeit with less focus on competition explicitly ( " ).

Q1 2025 did not explicitly mention increased competition or margin compression; instead, remarks focused on operational differentiators and strategic growth areas that helped offset competitive pressures ( " " ).

Less emphasized in Q1 2025: While competition remains inherent in the market, recent commentary suggests that operational efficiencies are mitigating margin pressures.

Elevated Investment Requirements in Technology and Partnerships

Q2 2024 mentioned elevated costs linked to regulatory compliance and technology upgrades, with further references in Q4 regarding investments to support new partner wins and modernization initiatives ( " " in Q2; implied in Q4 " ). No dedicated discussion appeared in Q3.

Q1 2025 highlighted significant investments in modernizing the technology stack and building out strategic partnerships—with new alliances like Crypto.com and Samsung underscoring the company’s commitment ( " " ).

Sustained investments with growing strategic focus: The commitment to technology and partnerships continues, reinforced by new high-profile deals that signal long-term growth intentions.

Dependence on Key BaaS Partners

In previous reports (especially Q2 2024), reliance on a major BaaS partner was noted as pivotal to revenue and growth, with contract renewals and new partner signings also discussed ( " " in Q2; additional context in Q3 and Q4).

Q1 2025 again emphasized that the B2B segment’s strong performance was significantly driven by a key BaaS partner, with additional momentum from a broader pipeline and partner renewals ( " ).

Recurring dependency with stable outlook: The continued reliance on key partners underlines a stable model with both renewal and expansion driving growth.

Technology Upgrades & UX Enhancements (GO2bank update)

Q2 2024 discussions focused on addressing legacy technology debt and planned user experience refreshes across products (including GO2bank), while Q3 2024 noted stabilization and revenue growth in GO2bank, and Q4 2024 forecast a major UX update in H1 2025 ( " in Q2; " in Q3; " in Q4).

Q1 2025 did not include any updates related to GO2bank, with the topic notably absent from the commentary.

Omission in Q1 2025: Although recent quarters have focused on technology and UX improvements, there is no new guidance in Q1 2025—likely due to timing of scheduled updates.

Declining Retail Channel Performance & Customer Acquisition Quality

Across Q2, Q3, and Q4, the retail channel's performance was under pressure from secular headwinds with declining active accounts and revenue, though initiatives like the PLS partnership and improved risk management processes partially offset these trends ( " " in Q2; " in Q3; " " in Q4).

Q1 2025 noted that retail channel declines are moderating, with key metrics (e.g., gross dollar volume and revenue per active account) showing modest improvements thanks to renewed partnerships and enhanced retention efforts ( " ).

Improvement in performance metrics: Strategic initiatives are beginning to yield better customer acquisition quality and moderated declines compared to earlier periods.

Headwinds in Specific Verticals (Staffing Industry)

Q2, Q3, and Q4 repeatedly discussed significant headwinds in the staffing industry—one of the largest verticals—highlighting a prolonged downturn and its impact on the rapid! PayCard channel ( " " in Q2; " in Q3; " in Q4).

Q1 2025 reiterated that the staffing industry continues to struggle with nearly two years of challenges and a lack of recovery, even as other areas of the business show signs of improvement ( " ).

Consistent headwinds: The staffing vertical remains a persistent challenge with little sign of improvement, reinforcing ongoing risks in this segment.