Green Dot Reports Third Quarter 2025 Results; Raises 2025 Guidance

PROVO, Utah--( BUSINESS WIRE)--Green Dot Corporation (NYSE: GDOT), a financial technology and bank holding company that delivers seamless banking and payments solutions to consumers and businesses of all sizes, today reported its financial results for the quarter ended September 30, 2025.

“We delivered a strong third quarter with results exceeding expectations as we added and launched new BaaS partners and drove further improvements and efficiencies in our operations,” said William Jacobs, Interim Chief Executive Officer of Green Dot. “As we capitalized on the increasing demand for our embedded finance and BaaS solutions, we also made progress on improving trends in our Consumer segment with new financial service center partners.”

Consolidated Results Summary

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

% Change

2025

2024

% Change

(In thousands, except per share data and percentages)

GAAP financial results

Total operating revenues

494,826

409,743

21%

1,557,876

1,268,852

23%

Net loss

(30,791

)

(7,840

)

293%

(52,043

)

(31,805

)

64%

Diluted loss per common share

(0.56

)

(0.15

)

273%

(0.95

)

(0.60

)

58%

Non-GAAP financial results 1

Non-GAAP total operating revenues 1

491,853

406,019

21%

1,548,981

1,255,998

23%

Adjusted EBITDA 1

23,571

28,315

(17)%

159,555

121,545

31%

Adjusted EBITDA/Non-GAAP total operating revenues (adjusted EBITDA margin)

4.8

7.0

(2.2)%

10.3

9.7

0.6%

Non-GAAP net income 1

3,515

6,988

(50)%

84,160

51,814

62%

Non-GAAP diluted earnings per share 1

0.06

0.13

(54)%

1.49

0.96

55%

Cash at the holding company was approximately $78 million as of September 30, 2025.

Key Metrics

The following table shows Green Dot's quarterly key business metrics for each of the last seven 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

(In millions)

Consolidated *

Gross dollar volume

39,505

38,545

37,252

35,282

33,473

32,130

30,755

Number of active accounts

3.51

3.48

3.58

3.67

3.46

3.41

3.51

Purchase volume

4,736

4,991

5,113

5,152

4,887

5,012

5,274

B2B Services

Gross dollar volume

35,868

34,620

33,014

31,222

29,490

28,116

26,255

Number of active accounts

1.89

1.81

1.78

1.79

1.68

1.65

1.58

Purchase volume

2,006

2,000

1,986

2,070

1,983

1,976

1,935

Consumer Services

Gross dollar volume

3,637

3,925

4,238

4,060

3,983

4,014

4,500

Number of active accounts

1.62

1.67

1.80

1.88

1.78

1.76

1.93

Direct deposit active accounts

0.40

0.41

0.43

0.44

0.45

0.46

Purchase volume

2,730

2,991

3,127

3,082

2,904

3,036

3,339

Money Movement

Number of cash transfers

7.43

7.52

7.51

8.14

8.22

8.15

7.77

Number of tax refunds processed

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.

"We believe the results reflect the company’s continued focus on execution of its strategic priorities which includes developing deeper relationships with our partners while focusing on driving efficiency and productivity," said Jess Unruh, Chief Financial Officer of Green Dot. "With the performance we have seen year to date we are comfortable raising our outlook for the year."

2025 Financial Guidance

Green Dot has provided its updated financial outlook for 2025. Green Dot’s outlook is based on a number of assumptions that management believes are reasonable at the time of this earnings release. In particular, its outlook reflects several considerations, including but not limited to the current macro-economic environment, the effect of inflation and interest rates, negative trends within certain channels of its business, investment in strategic initiatives and compliance programs, and cost reduction initiatives. Additionally, any expenses associated with Green Dot's process to evaluate strategic alternatives are expressly excluded from its non-GAAP financial measures and outlook. Information regarding potential risks that could cause the actual results to differ from these forward-looking statements is set forth below and in Green Dot's filings with the Securities and Exchange Commission.

Total Non-GAAP Operating Revenues 2

Adjusted EBITDA 2

Non-GAAP EPS 2

The components of Green Dot's non-GAAP EPS 2 guidance range are as follows:

Range

Low

High

(In millions, except per share data)

Adjusted EBITDA

165.0

175.0

Depreciation and amortization*

(64.0

)

(64.0

)

Net interest expense

(6.0

)

(6.0

)

Non-GAAP pre-tax income

95.0

105.0

Tax impact**

(20.9

)

(23.1

)

Non-GAAP net income

74.1

81.9

Diluted weighted-average shares issued and outstanding

56.7

Non-GAAP earnings per share

1.31

1.44

Excludes the impact of amortization of acquired intangible assets

Assumes a non-GAAP effective tax rate of approximately 22% for full year.

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.

For additional information, see reconciliations of forward-looking guidance for these non-GAAP financial measures to their respective, most directly comparable projected GAAP financial measures provided in the tables immediately following the reconciliation of Net Income to Adjusted EBITDA.

Conference Call

Green Dot's management will host a conference call to discuss third quarter 2025 financial results today at 5:00 p.m. ET. The conference call can be accessed live from Green Dot's investor relations website at http://ir.greendot.com/. Green Dot uses this website as a tool to disclose important information about the company to investors and comply with its disclosure obligations under Regulation Fair Disclosure. A replay of the webcast will be available at the same website following the call. The replay will be available until Monday, November 17, 2025.

Forward-Looking Statements

This earnings release 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 in the quotes of Green Dot's executive officers and under the heading "2025 Financial Guidance," and other future events that involve risks and uncertainties. Actual results may differ materially from those contained in the forward-looking statements contained in this earnings release, and reported results should not be considered as an indication of future performance. The potential risks and uncertainties that could cause actual results to differ from those projected include, among other things, impacts from and changes in general economic conditions on Green Dot’s business, results of operations and financial condition, shifts in consumer behavior towards electronic payments, the potential impact on our business of our previously-disclosed strategic review process due to uncertainties in connection therewith, the timing and impact of revenue growth activities, Green Dot's dependence on revenues derived from Walmart or other large partners, the timing and impact of non-renewals or terminations of agreements with other large partners, impact of competition, Green Dot's reliance on retail distributors for the promotion of its products and services, demand for Green Dot's new and existing products and services, continued and improving returns from Green Dot's investments in strategic initiatives, Green Dot's ability to operate in a highly regulated environment, including with respect to any restrictions imposed on its business, changes to governmental policies or rulemaking or enforcement priorities affecting financial institutions or to existing laws or regulations affecting Green Dot's operating methods or economics, Green Dot's reliance on third-party vendors, changes in credit card association or other network rules or standards, changes in card association and debit network fees or products or interchange rates, instances of fraud developments in the financial services industry that impact debit card usage generally, business interruption or systems failure, economic, political and other conditions may adversely affect trends in consumer spending and Green Dot's involvement in litigation or investigations. These and other risks are discussed in greater detail in Green Dot's Securities and Exchange Commission filings, including its most recent annual report on Form 10-K and quarterly report on Form 10-Q available on Green Dot's investor relations website at ir.greendot.com and on the SEC website at www.sec.gov. All information provided in this release and in the attachments is as of November 10, 2025, and Green Dot assumes no obligation to update this information as a result of future events or developments, except as required by law.

About Non-GAAP Financial Measures

To supplement Green Dot's consolidated financial statements presented in accordance with accounting principles generally accepted in the United States of America (GAAP), Green Dot uses measures of operating results that are adjusted for, among other things, non-operating net interest income and expense; other non-interest investment income earned by its bank; income tax benefit and expense; depreciation and amortization, including amortization of acquired intangibles; certain legal settlement gains and charges; stock-based compensation and related employer payroll taxes; changes in the fair value of contingent consideration; transaction costs from acquisitions or divestitures; amortization attributable to deferred financing costs; impairment charges; extraordinary severance expenses; earnings or losses from equity method investments; changes in the fair value of loans held for sale; commissions and certain processing-related costs associated with embedded finance products and services where Green Dot does not control customer acquisition; realized gains and losses on available-for-sale investment securities; restructuring and other charges; other charges and income not reflective of ongoing operating results; and income tax effects. This earnings release includes non-GAAP total operating revenues, adjusted EBITDA, non-GAAP net income, and non-GAAP diluted earnings per share. These non-GAAP financial measures are not calculated or presented in accordance with, and are not alternatives or substitutes for, financial measures prepared in accordance with GAAP, and should be read only in conjunction with Green Dot's financial measures prepared in accordance with GAAP. Green Dot's non-GAAP financial measures may be different from similarly-titled non-GAAP financial measures used by other companies. Green Dot believes that the presentation of non-GAAP financial measures provides useful information to management and investors regarding underlying trends in its consolidated financial condition and results of operations. Green Dot's management regularly uses these supplemental non-GAAP financial measures internally to understand, manage and evaluate Green Dot's business and make operating decisions. For additional information regarding Green Dot's use of non-GAAP financial measures and the items excluded by Green Dot from one or more of its historic and projected non-GAAP financial measures, investors are encouraged to review the reconciliations of Green Dot's historic and projected non-GAAP financial measures to the comparable GAAP financial measures, which are attached to this earnings release, and which can be found by clicking on “Financial Information” in the Investor Relations section of Green Dot's website at http://ir.greendot.com/.

About Green Dot

Green Dot Corporation (NYSE: GDOT) is a financial technology platform and registered bank holding company that builds banking and payment solutions to create value, retain and reward customers, and accelerate growth for businesses of all sizes. For more than two decades, Green Dot has delivered financial tools and services that address the most pressing financial needs of consumers and businesses, and that transform the way people and businesses manage and move money.

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 6,000 businesses and their employees; and Santa Barbara TPG (“SBTPG”), the company’s tax division, which processes approximately 14 million tax refunds annually.

Founded in 1999, Green Dot has managed more than 80 million accounts to date both directly and through its partners. Green Dot Bank is a subsidiary of Green Dot Corporation and member of the FDIC. For more information about Green Dot’s products and services, please visit www.greendot.com.

GREEN DOT CORPORATION

CONSOLIDATED BALANCE SHEETS

September 30, 2025

December 31, 2024

(unaudited)

Assets

(In thousands, except par value)

Current assets:

Unrestricted cash and cash equivalents

1,637,321

1,592,391

Restricted cash

Investment securities available-for-sale, at fair value

—

24,152

Settlement assets

718,189

616,172

Accounts receivable, net

145,822

132,007

Prepaid expenses and other assets

55,489

63,424

Income tax receivable

12,661

—

Total current assets

2,569,526

2,428,190

Investment securities available-for-sale, at fair value

2,326,288

2,008,650

Loans to bank customers, net of allowance for credit losses of $21,988 and $17,542 as of September 30, 2025 and December 31, 2024, respectively

37,139

31,961

Prepaid expenses and other assets

158,887

242,707

Property, equipment, and internal-use software, net

200,691

188,363

Operating lease right-of-use assets

2,896

10,823

Deferred expenses

813

1,242

Net deferred tax assets

90,509

124,405

Goodwill and intangible assets

380,451

397,941

Total assets

5,767,200

5,434,282

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

107,098

103,765

Deposits

4,215,340

4,010,520

Obligations to customers

247,221

236,616

Settlement obligations

53,171

48,482

Amounts due to card issuing banks for overdrawn accounts

—

Other accrued liabilities

159,133

87,675

Operating lease liabilities

1,424

2,416

Deferred revenue

4,775

6,279

Income tax payable

222

6,648

Total current liabilities

4,788,384

4,502,485

Other accrued liabilities

402

1,045

Operating lease liabilities

1,683

8,641

Notes payable

63,442

48,526

Total liabilities

4,853,911

4,560,697

Stockholders’ equity:

Class A common stock, $0.001 par value; 100,000 shares authorized as of September 30, 2025 and December 31, 2024; 55,421 and 54,227 shares issued and outstanding as of September 30, 2025 and December 31, 2024, respectively

Additional paid-in capital

421,866

408,010

Retained earnings

691,559

743,602

Accumulated other comprehensive loss

(200,192

)

(278,082

)

Total stockholders’ equity

913,289

873,585

Total liabilities and stockholders’ equity

5,767,200

5,434,282

GREEN DOT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

(In thousands, except per share data)

Operating revenues:

Card revenues and other fees

393,063

310,372

1,150,240

878,002

Cash processing revenues

33,766

34,897

201,623

198,447

Interchange revenues

45,329

48,397

140,215

148,950

Interest income, net

22,668

16,077

65,798

43,453

Total operating revenues

494,826

409,743

1,557,876

1,268,852

Operating expenses:

Sales and marketing expenses

48,243

52,626

158,090

167,948

Compensation and benefits expenses

63,411

61,795

193,472

189,967

Processing expenses

309,311

228,227

887,841

631,789

Other general and administrative expenses

86,790

70,027

257,258

295,193

Restructuring and other charges

19,902

—

19,902

—

Total operating expenses

527,657

412,675

1,516,563

1,284,897

Operating (loss) income

(32,831

)

(2,932

)

41,313

(16,045

)

Interest expense, net

1,555

1,577

4,572

4,306

Other (expense), net

(1,338

)

(3,705

)

(101,733

)

(10,045

)

Loss before income taxes

(35,724

)

(8,214

)

(64,992

)

(30,396

)

Income tax (benefit) expense

(4,933

)

(374

)

(12,949

)

1,409

Net loss

(30,791

)

(7,840

)

(52,043

)

(31,805

)

Basic loss per common share:

(0.56

)

(0.15

)

(0.95

)

(0.60

)

Diluted loss per common share

(0.56

)

(0.15

)

(0.95

)

(0.60

)

Basic weighted-average common shares issued and outstanding:

55,400

53,722

54,966

53,373

Diluted weighted-average common shares issued and outstanding:

55,400

53,722

54,966

53,373

GREEN DOT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Nine Months Ended

September 30,

2025

2024

(In thousands)

Operating activities

Net loss

(52,043

)

(31,805

)

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation and amortization of property, equipment and internal-use software

47,530

47,732

Amortization of intangible assets

15,599

16,295

Provision for uncollectible overdrawn accounts from purchase transactions

11,247

15,509

Provision for loan losses

19,138

22,471

Stock-based compensation

14,017

24,059

Losses in equity method investments

81,901

11,931

Realized loss on available-for-sale investment securities

24,779

—

Amortization of discount on available-for-sale investment securities

(343

)

(1,614

)

Impairment of long-lived assets

2,023

4,944

Other

(4,384

)

(1,810

)

Changes in operating assets and liabilities:

Accounts receivable, net

(25,062

)

9,997

Prepaid expenses and other assets

10,847

16,024

Deferred expenses

429

320

Accounts payable and other accrued liabilities

76,311

(24,534

)

Deferred revenue

(2,144

)

157

Income tax receivable/payable

(18,650

)

(4,803

)

Other, net

(168

)

(478

)

Net cash provided by operating activities

201,027

104,395

Investing activities

Purchases of available-for-sale investment securities

(1,083,583

)

(11,845

)

Proceeds from maturities of available-for-sale securities

146,355

154,682

Proceeds from sales and calls of available-for-sale securities

730,801

273

Payments for property, equipment and internal-use software

(58,696

)

(52,168

)

Net changes in loans

(20,315

)

(24,366

)

Investment in TailFin Labs, LLC

—

(35,000

)

Proceeds from other investments

—

55,088

Other investing activities

(2,019

)

(846

)

Net cash (used in) provided by investing activities

(287,457

)

85,818

Financing activities

Borrowings on notes payable

14,860

44,551

Borrowings on revolving line of credit

—

238,000

Repayments on revolving line of credit

—

(299,000

)

Proceeds from exercise of options and ESPP purchases

2,634

2,719

Taxes paid related to net share settlement of equity awards

(2,794

)

(1,988

)

Net changes in deposits

204,006

547,477

Net changes in settlement assets and obligations to customers

(86,723

)

46,013

Deferred financing costs

(623

)

(894

)

Net cash provided by financing activities

131,360

576,878

Net increase in unrestricted cash, cash equivalents and restricted cash

44,930

767,091

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

1,637,365

1,453,593

Cash paid for interest

8,069

9,896

Cash paid for income taxes

5,516

6,003

Reconciliation of unrestricted cash, cash equivalents and restricted cash at end of period:

Unrestricted cash and cash equivalents

1,637,321

1,453,549

Restricted cash

Total unrestricted cash, cash equivalents and restricted cash, end of period

1,637,365

1,453,593

GREEN DOT CORPORATION

REPORTABLE SEGMENTS (UNAUDITED)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Segment Revenue

(In thousands)

B2B Services

364,223

276,402

1,054,864

769,658

Consumer Services

88,331

98,046

276,686

295,278

Money Movement Services

29,819

31,854

190,914

187,967

Corporate and Other

9,480

(283

)

26,517

3,095

Total segment revenues

491,853

406,019

1,548,981

1,255,998

Embedded finance commissions and processing expenses (9)

4,554

4,346

13,544

14,492

Other income (10)

(1,581

)

(622

)

(4,649

)

(1,638

)

Total operating revenues

494,826

409,743

1,557,876

1,268,852

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

Segment Profit

(In thousands)

B2B Services

29,540

27,736

84,672

65,097

Consumer Services

31,718

39,389

98,444

107,097

Money Movement Services

12,904

12,717

123,842

113,855

Corporate and Other

(50,591

)

(51,527

)

(147,403

)

(164,504

)

Total segment profit *

23,571

28,315

159,555

121,545

Reconciliation to loss before income taxes

Depreciation and amortization of property, equipment and internal-use software

16,268

15,473

47,530

47,732

Stock based compensation and related employer taxes

5,274

8,210

14,476

24,429

Amortization of acquired intangible assets

5,200

5,246

15,599

16,295

Impairment charges

1,157

2,023

8,528

Legal settlements and related expenses

2,357

869

4,550

32,896

Restructuring and other charges

19,902

—

19,902

—

Other expense, net

6,244

1,441

14,162

7,710

Operating (loss) income

(32,831

)

(2,932

)

41,313

(16,045

)

Interest expense, net

1,555

1,577

4,572

4,306

Other (expense), net

(1,338

)

(3,705

)

(101,733

)

(10,045

)

Loss before income taxes

(35,724

)

(8,214

)

(64,992

)

(30,396

)

* 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.

GREEN DOT CORPORATION

Reconciliation of Total Operating Revenues to Non-GAAP Total Operating Revenues (1)

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

(In thousands)

Total operating revenues

494,826

409,743

1,557,876

1,268,852

Embedded finance commissions and processing expenses (9)

(4,554

)

(4,346

)

(13,544

)

(14,492

)

Other income (10)

1,581

622

4,649

1,638

Non-GAAP total operating revenues

491,853

406,019

1,548,981

1,255,998

Reconciliation of Net Loss to Non-GAAP Net Income (1)

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

(In thousands, except per share data)

Net loss

(30,791

)

(7,840

)

(52,043

)

(31,805

)

Stock-based compensation and related employer payroll taxes (3)

5,274

8,210

14,476

24,429

Amortization of acquired intangible assets (4)

5,200

5,246

15,599

16,295

Transaction and related acquisition costs (4)

2,416

—

3,838

—

Amortization of deferred financing costs (5)

135

486

126

Impairment charges (5)

1,157

2,023

8,528

Legal settlements and related expenses (5)

2,357

869

4,550

32,896

Losses in equity method investments (5)

3,199

4,472

81,901

11,931

Change in fair value of loans held for sale (5)

(140

)

(152

)

(244

)

Realized loss on available-for-sale investment securities (5)

—

24,779

—

Extraordinary severance expenses (6)

2,086

635

5,464

6,072

Restructuring and other charges (7)

19,902

—

19,902

—

Other expense (income), net (5)

)

Income tax effect (8)

(7,301

)

(4,705

)

(36,728

)

(16,410

)

Non-GAAP net income

3,515

6,988

84,160

51,814

Diluted earnings (loss) per common share

GAAP

(0.56

)

(0.15

)

(0.95

)

(0.60

)

Non-GAAP

0.06

0.13

1.49

0.96

Diluted weighted-average common shares issued and outstanding

GAAP

55,400

53,722

54,966

53,373

Non-GAAP

57,414

54,690

56,316

53,931

Reconciliation of GAAP to Non-GAAP Diluted Weighted-Average

Shares Issued and Outstanding

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

(In thousands)

Diluted weighted-average shares issued and outstanding

55,400

53,722

54,966

53,373

Anti-dilutive shares due to GAAP net loss

2,014

968

1,350

558

Non-GAAP diluted weighted-average shares issued and outstanding

57,414

54,690

56,316

53,931

GREEN DOT CORPORATION

Supplemental Detail on Diluted Weighted-Average Common Shares Issued and Outstanding

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

(In thousands)

Class A common stock outstanding as of September 30:

55,421

53,751

55,421

53,751

Weighting adjustment

(21

)

(29

)

(455

)

(378

)

Dilutive potential shares:

Service based restricted stock units

1,872

913

1,277

530

Performance-based restricted stock units

Employee stock purchase plan

Diluted weighted-average shares issued and outstanding

57,414

54,690

56,316

53,931

Reconciliation of Net Loss to Adjusted EBITDA (1)

(Unaudited)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2025

2024

2025

2024

(In thousands)

Net loss

(30,791

)

(7,840

)

(52,043

)

(31,805

)

Interest expense, net (2)

1,555

1,577

4,572

4,306

Income tax (benefit) expense

(4,933

)

(374

)

(12,949

)

1,409

Depreciation and amortization of property, equipment and internal-use software (2)

16,268

15,473

47,530

47,732

Stock-based compensation and related employer payroll taxes (2)(3)

5,274

8,210

14,476

24,429

Amortization of acquired intangible assets (2)(4)

5,200

5,246

15,599

16,295

Transaction and related acquisition costs (2)(4)

2,416

—

3,838

—

Impairment charges (2)(5)

1,157

2,023

8,528

Legal settlements and related expenses (2)(5)

2,357

869

4,550

32,896

Losses in equity method investments (2)(5)

3,199

4,472

81,901

11,931

Change in fair value of loans held for sale (2)(5)

(140

)

(152

)

(244

)

Realized loss on available-for-sale investment securities (2)(5)

—

24,779

—

Extraordinary severance expenses (2)(6)

2,086

635

5,464

6,072

Restructuring and other charges (7)

19,902

—

19,902

—

Other expense (income), net (2)(5)

)

Adjusted EBITDA

23,571

28,315

159,555

121,545

Non-GAAP total operating revenues

491,853

406,019

1,548,981

1,255,998

Adjusted EBITDA/Non-GAAP total operating revenues (adjusted EBITDA margin)

4.8

7.0

10.3

9.7

GREEN DOT CORPORATION

Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to

Projected GAAP Total Operating Revenues (1)

(Unaudited)

FY 2025

Range

Low

High

(In millions)

Total operating revenues

2,012

2,112

Adjustments (9)(10)

(12

)

(12

)

Non-GAAP total operating revenues

2,000

2,100

Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to

Projected GAAP Net Loss (1)

(Unaudited)

FY 2025

Range

Low

High

(In millions)

Net loss

(72.8

)

(65.2

)

Adjustments (11)

237.8

240.2

Adjusted EBITDA

165.0

175.0

Non-GAAP total operating revenues

2,100

2,000

Adjusted EBITDA/Non-GAAP total operating revenues (adjusted EBITDA margin)

7.9

8.8

Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to

Projected GAAP Net Loss (1)

(Unaudited)

FY 2025

Range

Low

High

(In millions, except per share data)

Net loss

(72.8

)

(65.2

)

Adjustments (11)

146.8

147.1

Non-GAAP net income

74.1

81.9

Diluted earnings (loss) per share

GAAP

(1.32

)

(1.18

)

Non-GAAP

1.31

1.44

Diluted weighted-average shares issued and outstanding

GAAP

55.2

Anti-dilutive shares due to GAAP net loss

1.5

Non-GAAP

56.7

(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 September 30, 2025, Green Dot recorded $2.1 million related to extraordinary severance expenses, which were paid out in connection with reductions in force and other extraordinary involuntary terminations of employment. Although severance expenses may arise throughout the fiscal year, Green Dot believes the nature of these extraordinary costs are not indicative of its core operating performance. This expense is included as a component of compensation and benefits expenses on Green Dot's consolidated statements of operations.

(7)

During the three months ended September 30, 2025, Green Dot recorded $19.9 million for restructuring and other charges related specifically to the closure of its China operations. The expenses primarily include employee severance expenses, and to a lesser extent, lease termination and related charges and other direct costs incurred as a result of its exit plan. Green Dot excludes restructuring and other charges primarily because these costs are not reflective of ongoing operating results, nor are considered normal, recurring cash operating expenses.

(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 both the impact of excess tax benefits related to stock-based compensation and the IRC §162(m) limitation that applies to performance-based restricted stock units expense as of September 30, 2025.

(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 Green Dot Bank. This amount is included along with operating interest income in Green Dot's Corporate and Other segment since the yield earned on these investments are generated on a recurring basis and earned similarly to its investment securities available-for-sale.

(11)

These amounts represent estimated adjustments for items such as income taxes, depreciation and amortization, employee stock-based compensation and related employer taxes, transaction costs from acquisitions or divestitures, amortization attributable to deferred financing costs, impairment charges, extraordinary severance expenses, restructuring and other charges, earnings and losses from equity method investments, changes in the fair value of loans held for sale, legal settlements and related expenses, realized gains and losses on available-for-sale investment securities and other income and expenses. Employee stock-based compensation expense includes assumptions about the future fair value of the Company’s Class A common stock (which is influenced by external factors like the volatility of public markets and the financial performance of the Company’s peers).