FinTech and digital bank Green Dot and financial services firm Amscot Financial launched a banking partnership.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.The collaboration will see Florida-based Amscot use Gre ...

Core Insights - Green Dot (GDOT) reported strong third-quarter 2025 results, with both earnings and revenues exceeding the Zacks Consensus Estimate, yet the stock declined by 4% post-earnings release on November 10 [1] Financial Performance - Quarterly earnings per share (EPS) of 6 cents, excluding 62 cents from non-recurring items, surpassed the consensus estimated loss of 11 cents and improved by 53.9% year-over-year [2] - Revenues reached $491.9 million, beating the Zacks Consensus Estimate by 1% and increasing by 20% year-over-year [2] Segment Performance - B2B Services revenues surged by 32% to $364.2 million, driven by a BaaS partner and stability across the BaaS portfolio [3] - Money Movement Services revenues declined by 6% to $29.8 million, affected by a slight dip in Money Processing, although Tax Processing saw revenue growth [3] - Consumer Services segment revenues fell by 10% to $88.3 million, primarily due to secular headwinds in the Retail channel, partially offset by the recent launch of PLS [4] Key Metrics - Gross dollar volume increased by 18% to $39.5 million, while purchase volume decreased by 5.1% to $4.74 billion [5] - Active accounts rose by 0.9% year-over-year to 3.51 million [5] - Adjusted EBITDA totaled $23.57 million, down 17% year-over-year, with the adjusted EBITDA margin decreasing by 220 basis points to 4.8% [6] Balance Sheet & Cash Flow - Green Dot ended the third quarter with $1.64 billion in unrestricted cash and cash equivalents, up from $1.59 billion at the end of Q4 2024, and had no long-term debt [7] - The company generated $201.03 million in cash from operating activities [7] Guidance - Green Dot provided 2025 guidance for total operating revenues between $2 billion and $2.1 billion, with the midpoint aligning with the Zacks Consensus Estimate [8] - Adjusted EPS guidance was raised to a range of $1.31-$1.44, above the previous range of $1.28-$1.42, with the midpoint exceeding the Zacks Consensus Estimate of $1.35 [9] - Adjusted EBITDA is expected to be between $165 million and $175 million, an increase from the previous guidance of $160 million to $170 million [9]

Group 1 - The article discusses the importance of enabling Javascript and cookies in browsers to prevent access issues [1] - It highlights that users with ad-blockers may face restrictions when trying to access content [1]

Group 1 - The article does not provide any specific content related to a company or industry [1]

Core Insights - Green Dot has lifted its full-year profit guidance and is positioned for sustainable growth into 2026, driven by strong performance in its B2B and embedded finance operations [1][2][4] Financial Performance - The company reported a 21% year-over-year revenue growth in the third quarter, reaching $492 million, primarily driven by the B2B segment, which saw revenue increase by over 30% [7][9] - Adjusted EBITDA fell by 17%, but the decline was less than anticipated due to high-margin revenue and disciplined expense management [8] - Full-year revenue guidance is maintained at $2 billion to $2.1 billion, with adjusted EBITDA guidance raised to $165 million to $175 million [9] Business Segments - The B2B and embedded finance business is a key growth driver, with active accounts and purchase volume on the ARC embedded finance platform continuing to rise [7][11] - The money movement segment experienced a decline in revenue due to softened transaction volume, although average revenue per transaction increased [10] Partnerships and Initiatives - Partnerships with Stripe, Workday, and Crypto.com have strengthened Green Dot's embedded finance and money-movement capabilities [1][5] - The integration with Stripe allows small business customers to make cash deposits at over 50,000 locations, opening up new revenue streams [6] - The company's Project 30 initiative aims to cut partner implementation time to 30 days, showcasing operational discipline [4]

Financial Data and Key Metrics Changes - Adjusted revenue increased by 21% year-over-year, while adjusted EBITDA declined by 17%, which was better than internal projections [4][16] - Non-GAAP revenue is expected to be between $2 billion and $2.1 billion, with adjusted EBITDA guidance raised to $165 million to $175 million [26][27] Business Line Data and Key Metrics Changes - B2B segment revenue grew over 30%, driven by a significant BaaS partner and overall growth in the BaaS portfolio [17] - Money Movement segment revenue grew year-over-year, with margins improving due to better-than-expected loss rates on taxpayer advance programs [20][22] - Consumer Services segment revenue is projected to decline in the low double digits, but declines in active accounts have moderated compared to previous years [23][28] Market Data and Key Metrics Changes - The embedded finance market is experiencing robust growth, with 94% of surveyed companies planning to increase spending on embedded finance [15] - The partnership with Stripe is expected to open up significant opportunities in the SMB market, which is a new area of focus for the company [12][30] Company Strategy and Development Direction - The company is focused on strengthening its revenue engine by signing new partners and investing in infrastructure for sustainable long-term growth [5][6] - The strategic review is ongoing, with updates to be provided as appropriate [4] - The exit from Shanghai operations is part of a strategy to optimize platforms and reduce operational risks [5][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the B2B segment and the potential of the embedded finance market [29][36] - The company is optimistic about the upcoming launches and partnerships, which are expected to drive future growth [30][31] - Management acknowledged ongoing challenges in the Consumer segment but remains committed to enhancing customer engagement and retention [24][28] Other Important Information - The company is implementing an internal project called Project 30 to reduce onboarding times for new partners [46][47] - A new restructuring line item on the GAAP P&L reflects costs associated with exiting the Shanghai operation [25] Q&A Session Summary Question: What is driving the strong demand for embedded finance? - Management indicated that companies are increasingly viewing embedded finance as a strategic imperative to deepen customer relationships and monetize them [39][40] Question: Can you discuss the timeline to revenue from new signings and onboardings? - The timeline for implementation varies, generally taking six to eight months, with efforts underway to reduce this to 30 days [42][46] Question: How is the company focusing its efforts on embedded finance? - The focus is on targeting large brands with significant customer bases, while also exploring mid-market opportunities as onboarding times are reduced [53][54] Question: What impacts are expected from partnerships with Workday and Stripe? - The integration with Workday is expected to facilitate access to a larger number of employers, while the partnership with Stripe is anticipated to significantly enhance cash deposit services [55][57]

Financial Data and Key Metrics Changes - Adjusted revenue increased by 21% year-over-year, while adjusted EBITDA declined by 17%, which was better than internal projections [4][17][27] - Non-GAAP revenue is expected to be between $2 billion and $2.1 billion, with adjusted EBITDA guidance raised to $165 million-$175 million [27][28] Business Line Data and Key Metrics Changes - B2B segment revenue grew over 30%, driven by a significant BAS partner and overall growth in the BAS portfolio [18] - Money Movement segment revenue grew year-over-year, with margins improving due to better-than-expected loss rates in the tax processing business [21][22] - Consumer Services Segment revenue is projected to decline in the low double digits, but declines in active accounts have moderated compared to previous years [24][29] Market Data and Key Metrics Changes - The embedded finance market is experiencing robust growth, with 94% of surveyed companies planning to increase spending on embedded finance solutions [15] - The partnership with Stripe is expected to open up significant opportunities in the SMB market, which is a new area of focus for the company [12][58] Company Strategy and Development Direction - The company is focused on strengthening its revenue engine by signing new partners and investing in infrastructure for sustainable long-term growth [5][34] - The exit from Shanghai operations is part of a strategy to optimize platforms and reduce operational risks [5][26] - The company aims to improve profitability by managing costs and streamlining operations while pursuing growth opportunities in the B2B and money movement segments [30][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of the B2B segment and the embedded finance market, despite ongoing challenges in the consumer segment [36][37] - The company is optimistic about the upcoming product launches and partnerships, which are expected to drive future growth [32][34] Other Important Information - The company has launched several new products and partnerships, including with Crypto.com and Workday, which are expected to enhance its service offerings [6][11][58] - The company is actively working on reducing implementation times for new partners through an internal initiative called Project 30 [48][49] Q&A Session Summary Question: What is driving the strong demand for embedded finance? - Management indicated that companies are increasingly viewing embedded finance as a strategic imperative to deepen customer relationships and monetize them [40][42] Question: What is the timeline to revenue from new signings and onboardings? - The timeline for new partners to go live is generally six to eight months, with efforts underway to reduce this to around 30 days for technical implementation [43][45][48] Question: How is the company focusing its efforts on embedded finance? - The company is targeting large brands with significant customer bases and is also looking to expand into mid-market customers as onboarding processes improve [52][56] Question: What impacts are expected from partnerships with Workday and Stripe? - The integration with Workday is expected to provide access to a larger number of employers, while the partnership with Stripe is anticipated to significantly enhance cash deposit services for SMB customers [57][58]

Financial Data and Key Metrics Changes - Adjusted revenue increased by 21% year-over-year, while adjusted EBITDA declined by 17%, although the decline was less than anticipated due to high-margin revenue growth and expense management [4][17][29] - Non-GAAP revenue is expected to be between $2 billion and $2.1 billion, with adjusted EBITDA projected at $165 million to $175 million, an increase from previous guidance [29][30] Business Line Data and Key Metrics Changes - The B2B segment, particularly the BAS channel powered by the ARK platform, saw revenue growth of over 30%, driven by significant partners and increased active accounts [17][18] - The rapid employer services channel faced challenges with revenue declines due to fewer active accounts, but there is optimism regarding earned wage access (EWA) due to its larger potential market [19][20] - The Money Movement segment experienced revenue growth in tax processing, while cash transfer volumes declined due to lower transactions in the consumer segment [22][23] Market Data and Key Metrics Changes - The consumer segment continues to face challenges, with revenue projected to decline in the low double digits, although declines in active accounts have moderated compared to previous years [25][30] - The financial service center (FSC) channel is viewed as an attractive opportunity, with new partnerships expected to drive account growth [9][10] Company Strategy and Development Direction - The company is focused on strengthening its revenue engine by signing new partners and investing in infrastructure to support sustainable long-term growth [5][6] - The exit from Shanghai operations is part of a strategy to optimize platforms and reduce operational risks [5][28] - The company is prioritizing embedded finance as a key growth driver, with a strong pipeline of new partnerships and product launches [15][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the B2B segment and the embedded finance market, highlighting a backlog of partners to launch [32][38] - There is an expectation of continued challenges in the consumer segment, but new partnerships and product launches are anticipated to moderate declines [34][37] Other Important Information - The company has initiated an internal project called Project 30 to reduce implementation times for new partners, aiming for a 30-day timeline for technical implementation [45][48] - A new restructuring line item in the GAAP P&L reflects costs associated with exiting the Shanghai operation [28] Q&A Session Summary Question: What is driving the strong demand for embedded finance? - Management noted that companies are increasingly interested in integrating embedded finance solutions to deepen customer relationships and monetize them, which is generating demand [40][41] Question: What is the timeline to revenue from new signings and onboardings? - The timeline varies, generally ranging from six to twelve months for revenue ramp-up, with efforts to shorten onboarding times through Project 30 [42][43][45] Question: How is the company focusing its efforts in the embedded finance market? - The focus is on targeting large brands with significant customer bases and reducing onboarding times to pursue mid-market customers in the future [47][48] Question: What impacts are expected from partnerships with Workday and Stripe? - The integration with Workday is expected to facilitate access to a larger number of employers, while the partnership with Stripe aims to enhance cash deposit services for SMB customers [49][50]

Revenue Performance - Total operating revenues for Q3 2025 increased by $85.1 million, or 21%, compared to Q3 2024, driven primarily by higher revenues in the B2B Services segment [144]. - Total operating revenues for Q3 2025 reached $494.8 million, a 21% increase from $409.7 million in Q3 2024 [192]. - Total operating revenues for the nine months ended September 30, 2025, reached $1.56 billion, a 23% increase from $1.27 billion in the prior year [207]. - B2B Services segment revenues increased by 32% and 37% for Q3 and the nine months ended September 30, 2025, respectively, with gross dollar volume growth of 22% and 23% [146]. - Consumer Services segment revenues decreased by 10% and 6% for Q3 and the nine months ended September 30, 2025, respectively, with gross dollar volume declining by 9% and 6% [147]. - Money Movement Services segment revenues decreased by 6% in Q3 2025 but increased by 2% for the nine months ended September 30, 2025, primarily due to a 10% decrease in cash transfers processed [148]. - Card revenues and other fees increased by $82.7 million, or 27%, totaling $393.1 million in Q3 2025, driven by growth in gross dollar volume in B2B Services [192]. - Interchange revenues totaled $45.3 million in Q3 2025, a decrease of $3.1 million, or 6%, attributed to a 3% decline in purchase volume [194]. - Interchange revenues decreased by $8.8 million, or 6%, totaling $140.2 million for the nine months ended September 30, 2025, primarily due to a 2% decrease in purchase volume [209]. Expense Management - Total operating expenses for Q3 2025 increased by $115.0 million, or 28%, and by $231.7 million, or 18%, for the nine months ended September 30, 2025 [152]. - Total operating expenses for Q3 2025 were $527.7 million, representing a 28% increase from $412.7 million in Q3 2024 [196]. - Processing expenses rose by $81.1 million, or 36%, totaling $309.3 million in Q3 2025, driven by growth in B2B Services [198]. - Other general and administrative expenses increased by $16.8 million, or 24%, to $86.8 million in Q3 2025, primarily due to higher transaction losses and professional services fees [199]. - Total operating expenses increased to $1,516.6 million for the nine months ended September 30, 2025, up $231.7 million, or 18%, from the prior year [210]. - Processing expenses rose by $256.0 million, or 41%, totaling $887.8 million for the nine months ended September 30, 2025 [211]. - Other general and administrative expenses decreased by $37.9 million, or 13%, totaling $257.3 million for the nine months ended September 30, 2025 [211]. Profitability and Taxation - Net interest income for the Corporate and Other segment increased by 41% and 51% for Q3 and the nine months ended September 30, 2025, respectively, due to higher yields from deposit programs [151]. - The effective tax rate for the nine months ended September 30, 2025, was 19.9%, an increase from (4.6)% in the prior year [160]. - The effective tax rate for Q3 2025 was 13.8%, up from 4.6% in Q3 2024, influenced by various factors including changes in valuation allowances [203]. - Segment profit for the nine months ended September 30, 2025 increased by 30.1%, totaling $84.7 million [221]. - Segment profit for Consumer Services declined by approximately 19% for Q3 2025 and 8% for the nine months ended September 30, 2025 from the prior year [227]. Account and Volume Metrics - The number of consolidated active accounts increased by 1% for Q3 2025, despite a decline in cash transfers [145]. - The number of active accounts as of September 30, 2025, was 3.51 million, reflecting a 1.4% increase from 3.46 million in the same period last year [171]. - Gross dollar volume increased by 18% and 20% for Q3 and the nine months ended September 30, 2025, respectively, driven by certain BaaS partner programs [145]. - Gross dollar volume for Q3 2025 reached $39.505 billion, an increase of 18.0% from $33.473 billion in Q3 2024 [171]. - The number of cash transfers conducted in Q3 2025 was 7.43 million, a decline of 9.6% compared to 8.22 million in Q3 2024 [171]. - Purchase volume decreased to $4.736 billion in Q3 2025, down 3.1% from $4.887 billion in Q3 2024 [171]. - The number of active accounts in the B2B Services segment increased by 12.5%, reaching 1.89 million as of September 30, 2025 [216]. - Gross dollar volume in Consumer Services fell by $346 million (8.7%) for Q3 2025 and $697 million (5.6%) for the nine months ended September 30, 2025 year-over-year [225]. Strategic Initiatives and Future Outlook - The company expects core operating results to stabilize year-over-year in 2025 due to anticipated initiatives and cost reduction measures [163]. - Strategic investments are being made to enhance B2B Services and Money Movement segments, aiming for active account growth [165]. - The company initiated a re-alignment of teams and resources to improve operating efficiency and support strategic priorities [166]. - Increased expenses are being incurred in connection with the strategic review process and investments in the AML program, despite overall cost structure reductions [167]. - The company anticipates continued investments in growth and cost efficiency initiatives despite economic uncertainties [250]. Cash Flow and Capital Management - Net cash provided by operating activities for the nine months ended September 30, 2025, was $201.0 million, compared to $104.4 million for the same period in 2024, reflecting an increase of 92.6% [239][240]. - Total cash provided by financing activities decreased to $131.4 million in 2025 from $576.9 million in 2024, a decline of 77.2% [244][245]. - As of September 30, 2025, the company had unrestricted cash and cash equivalents totaling $1.6 billion, with an additional $2.3 billion in available-for-sale investment securities [237]. - The company expects capital expenditures in 2025 to be at similar levels compared to recent years, primarily funded through cash flows from operating activities [250]. - The company plans to monitor liquidity and capital resources to ensure they remain appropriate amid ongoing economic uncertainties [238]. Risk Management - The Federal Reserve reduced interest rates by 25 basis points to a range of 3.75% to 4.00% in October 2025, impacting future net interest income [168]. - The company actively monitors interest rate exposure and may use derivative financial instruments to manage risks associated with interest rate fluctuations [261]. - Inflation risks may impact borrowing rates, but higher interest yields on cash and investment portfolios are expected to offset these risks [262]. - Credit and liquidity risks are managed by maintaining relationships with well-capitalized institutions and investing in highly liquid, low credit risk assets [264]. - Settlement assets have an average outstanding period of two days, mitigating credit risk exposure [265]. - The management Asset Liability Committee oversees compliance with the Capital Asset Liability Management policy and reports to the risk committee of the Board of Directors [264]. - The company has begun repositioning a portion of its investment securities portfolio into variable rate debt securities to improve net yields [259]. - Interest expense on short-term borrowings will fluctuate with changes in underlying short-term interest rates [260]. - The company continuously monitors partner exposure and credit limits in light of macro-economic uncertainties [265].

Q3 2025 Financial Performance - Non-GAAP Revenue increased by 21% to $492 million[5, 19] - Adjusted EBITDA declined by 17% to $23.6 million[5, 19] - Non-GAAP EPS decreased by 54% to $0.06[5, 20] - Consumer Services revenue was down 10% to $88.3 million[21] - B2B Services revenue increased by 32% to $364.2 million[21] - Money Movement revenue decreased by 6% to $29.8 million[21] Key Metrics - Active accounts increased by 1%[6, 28] - B2B Services active accounts increased 13% offsetting a 9% decline in Consumer Services active accounts[31] - Gross Dollar Volume (GDV) increased by 18%[29] 2025 Guidance - Projected Non-GAAP Revenue is expected to be between $2 billion and $2.1 billion, representing a 20% growth at the mid-point[61, 62] - Projected Adjusted EBITDA is expected to be between $165 million and $175 million[61] - Projected Non-GAAP EPS is expected to be between $1.31 and $1.44[61]