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GREEN DOT CORP (GDOT)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 delivered double-digit top-line growth with total operating revenues up 21% YoY to $494.8M; non-GAAP EPS was $0.06 while GAAP EPS was -$0.56 as restructuring and equity-method losses weighed on GAAP results .
  • Revenue and non-GAAP EPS beat S&P Global consensus: revenue $494.8M vs $483.8M* and EPS $0.06 vs -$0.09*, driven by B2B momentum and growing interest income; adjusted EBITDA of $23.6M declined YoY/QoQ on mix and planned investments .
  • Management raised FY 2025 guidance for adjusted EBITDA ($165–$175M) and non-GAAP EPS ($1.31–$1.44), maintaining non-GAAP revenue at $2.0–$2.1B, citing embedded finance demand, partner launches (Stripe, Workday EWA, Amscot) and balance sheet optimization .
  • Key catalysts: guidance raise, embedded finance pipeline and new partner launches; strategic streamlining (Shanghai exit) aims to improve operational agility and long-term margin profile .

What Went Well and What Went Wrong

  • What Went Well

    • B2B segment revenue rose ~32% YoY to $364.2M with strong BAS partner growth; corporate interest income increased on balance sheet optimization and floating-rate securities strategy .
    • Expanding partnerships: launched Stripe cash-deposit access for SMBs, integrated Workday marketplace for EWA, and signed Amscot and Dole FinTech in FSC channel; management cited accelerating embedded finance adoption (94% plan to increase investment) .
    • Guidance raised for FY adjusted EBITDA and non-GAAP EPS; CFO noted high-margin revenue growth and continued expense management supported results .

  • What Went Wrong

    • Adjusted EBITDA fell to $23.6M (-17% YoY; -48% QoQ) with margin compressing to 4.8% (from 7.0% YoY; 9.1% QoQ), reflecting revenue mix (BAS composition), planned regulatory investments, and consumer softness .
    • Consumer segment revenue declined to $88.3M (-10% YoY) and margins fell >400 bps due to lower retail revenues and mix; retail active accounts still under pressure despite moderation .
    • Restructuring costs ($19.9M) tied to Shanghai exit and extraordinary severance ($2.1M) pressured GAAP earnings; equity-method losses remained a headwind .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Total Operating Revenues ($USD Millions)$409.7 $558.9 $504.2 $494.8
GAAP Diluted EPS ($)-$0.15 $0.47 -$0.85 -$0.56
Non-GAAP Total Operating Revenues ($USD Millions)$406.0 $556.0 $501.2 $491.9
Non-GAAP Diluted EPS ($)$0.13 $1.06 $0.40 $0.06
Adjusted EBITDA ($USD Millions)$28.3 $90.6 $45.4 $23.6
Adjusted EBITDA Margin (%)7.0% 16.3% 9.1% 4.8%
Q3 2025 vs EstimatesConsensusActualSurprise
Revenue ($USD)$483,844,330*$494,826,000 +$10,981,670 / +2.3%*
EPS ($)-$0.09*$0.06 (Non-GAAP) +$0.15*
# of Estimates (EPS/Revenue)3 / 3*——

Values with * retrieved from S&P Global.

Segment Breakdown (Revenue and Profit)

SegmentQ3 2024 Revenue ($USD ‘000)Q3 2025 Revenue ($USD ‘000)YoYQ3 2024 Profit ($USD ‘000)Q3 2025 Profit ($USD ‘000)YoY
B2B Services276,402 364,223 +32%27,736 29,540 +6%
Consumer Services98,046 88,331 -10%39,389 31,718 -19%
Money Movement Services31,854 29,819 -6%12,717 12,904 +1%
Corporate & Other(283) 9,480 n.m.(51,527) (50,591) +2%
Total (Non-GAAP)406,019 491,853 +21%28,315 23,571 -17%

Key KPIs

KPI (Consolidated)Q3 2024Q1 2025Q2 2025Q3 2025
Gross Dollar Volume ($USD Billions)$33.47 $37.25 $38.55 $39.51
Active Accounts (Millions)3.46 3.58 3.48 3.51
Purchase Volume ($USD Billions)$4.89 $5.11 $4.99 $4.74
B2B Active Accounts (Millions)1.68 1.78 1.81 1.89
Consumer Active Accounts (Millions)1.78 1.80 1.67 1.62
Direct Deposit Active Accounts (Millions)0.44 0.41 0.41 0.40

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Non-GAAP Total Operating Revenues ($USD Billions)FY 2025$2.0–$2.1 $2.0–$2.1 Maintained
Adjusted EBITDA ($USD Millions)FY 2025$160–$170 $165–$175 Raised
Non-GAAP EPS ($)FY 2025$1.28–$1.42 $1.31–$1.44 Raised
Non-GAAP EPS Components (D&A, net interest, tax rate)FY 2025D&A $(62)M; Net interest $(6)M; ~22% tax D&A $(64)M; Net interest $(6)M; ~22% tax D&A modestly higher

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
Embedded finance demand & partner momentumQ2: Samsung Tap-to-Transfer; Credit Sesame signing; pipeline strong . Q1: Outlook raised; Samsung/Crypto.com partnerships, retail renewal .Launches/expansions: Stripe SMB cash deposits; Workday EWA; Amscot/Dole FinTech; Crypto.com Cash Earn; accelerating industry adoption (94% plan to increase investment) .Accelerating engagement and breadth
Balance sheet optimization & interest incomeQ2: Repositioning securities; deploy cash to floating-rate 5–7% yields .Continued optimization; higher corporate interest income and deposit growth expected to drive results .Positive and growing contribution
Consumer segment trajectoryQ2: Moderating declines; retail active flat; direct margins up 200 bps despite lower revenue .Declines moderated but ticked up; retail active -4% YoY; margins down >400 bps YoY due to mix and prior-year non-core revenue runoff .Gradual stabilization with ongoing headwinds
EWA and Rapid Employer ServicesQ2: Rightsizing Rapid; focus on EWA with new leader; Workday integration .Workday marketplace launch; EWA positioned as larger-margin opportunity .Building channel with platform partners
Strategic review / operational streamliningQ2: Strategic alternatives ongoing; shelf registration for flexibility . Q1: Operational investments continue .Shanghai exit to reduce risk and improve agility; restructuring charges recognized .Streamlining for efficiency and risk mitigation

Management Commentary

  • CEO: “It was a strong third quarter, with results continuing to outpace our expectations… we moved to cease operations in Shanghai… position the company for sustainable long-term growth.”
  • CRO: “We will partner with Stripe to enable SMB customers… cash deposits at more than 50,000 locations… validates the opportunity in the SMB market.”
  • CFO: “Non-GAAP revenue grew 21% YoY, while adjusted EBITDA declined 17%… driven by B2B and interest income; margins impacted by revenue composition and planned investments.”
  • Embedded finance study: “94% of enterprises plan to increase investments… embedded finance is a strategic priority across industries.”

Q&A Highlights

  • Embedded finance acceleration and pipeline prioritization of marquee brands; Project 30 aims to cut technical implementation to 30 days, reducing onboarding timelines and enabling mid-market expansion .
  • Workday EWA integration opens platform access to a large employer base; Stripe partnership could scale materially even with modest adoption given Stripe’s reach .
  • Balance sheet strategy: redeploy cash into floating-rate securities targeting ~5–7% yields, enhancing net interest income while maintaining liquidity; yields tied to SOFR/IORB .
  • Strategic alternatives remain under review; updates will be provided when there is material information .

Estimates Context

  • GDOT beat Street revenue and EPS consensus: revenue $494.8M vs $483.8M*; EPS $0.06 vs -$0.09*; # of estimates: 3 each*. Given the guidance raise and embedded finance traction, consensus EPS and EBITDA for FY 2025 may drift higher, while near-term margins reflect Q4 planned spending and tough consumer comps .
    Values with * retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue momentum is intact (Q3 +21% YoY), led by B2B/BAS and rising interest income; the Street beat plus FY guidance raise are near-term positive catalysts .
  • Margin compression reflects mix (strong BAS growth with lower margins vs Rapid tax benefits) and planned regulatory/platform investments; watch FY exit-rate on adjusted EBITDA margin and Q4 spending cadence .
  • Embedded finance pipeline breadth (Stripe, Workday, Crypto.com, Credit Sesame) supports medium-term growth visibility; Project 30 could improve onboarding velocity and capital efficiency .
  • Consumer stabilization remains a work-in-progress; FSC expansion (PLS, Amscot, Dole FinTech) may moderate declines but retail remains a headwind near term .
  • Balance sheet optimization is a key earnings lever; higher deposit balances and redeployment into floating-rate assets should continue to lift net interest income .
  • Operational streamlining (Shanghai exit) and ongoing strategic review aim to enhance agility and reduce risk; one-off charges impacted GAAP this quarter but should fade .
  • Trading lens: Guidance raise and partnership newsflow favor near-term sentiment; monitor Q4 margin guide (approx. -700 bps YoY) and consumer mix to gauge durability of EPS trajectory .