[PART I – FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents Green Dot Corporation's unaudited consolidated financial statements for Q2 2021, covering balance sheets, income statements, and cash flows, with detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheet shows total assets increased to **$4.29 billion** as of June 30, 2021, driven by cash and investment securities, with total liabilities also growing due to higher deposits Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2021 | December 31, 2020 | | :--- | :--- | :--- | | **Total Assets** | **$4,288,564** | **$4,115,267** | | Unrestricted cash and cash equivalents | $1,891,100 | $1,491,842 | | Investment securities available-for-sale | $1,090,513 | $970,969 | | **Total Liabilities** | **$3,220,864** | **$3,105,435** | | Deposits | $2,864,782 | $2,735,116 | | **Total Stockholders' Equity** | **$1,067,700** | **$1,009,832** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Green Dot reported a significant increase in Q2 2021 profitability, with total operating revenues growing **16.8%** to **$369.4 million** and net income surging to **$24.9 million** Q2 2021 vs Q2 2020 Performance (in thousands, except per share data) | Metric | Q2 2021 (Three Months) | Q2 2020 (Three Months) | Change (%) | | :--- | :--- | :--- | :--- | | Total operating revenues | $369,373 | $316,240 | 16.8% | | Operating income | $31,803 | $5,390 | 490.0% | | Net income | $24,933 | $3,294 | 656.9% | | Diluted EPS | $0.45 | $0.06 | 650.0% | YTD 2021 vs YTD 2020 Performance (in thousands, except per share data) | Metric | YTD 2021 (Six Months) | YTD 2020 (Six Months) | Change (%) | | :--- | :--- | :--- | :--- | | Total operating revenues | $762,859 | $678,409 | 12.4% | | Operating income | $65,788 | $64,239 | 2.4% | | Net income | $50,668 | $50,139 | 1.1% | | Diluted EPS | $0.91 | $0.93 | -2.2% | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities decreased to **$119.5 million** for the six months ended June 30, 2021, while investing activities used **$265.7 million** and financing activities provided **$544.8 million** Cash Flow Summary (Six Months Ended June 30, in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | Net cash provided by operating activities | $119,456 | $161,516 | | Net cash used in investing activities | ($265,700) | ($24,732) | | Net cash provided by financing activities | $544,849 | $734,473 | | **Net increase in cash** | **$398,605** | **$871,257** | [Note 19—Segment Information](index=26&type=section&id=Note%2019%E2%80%94Segment%20Information) Effective Q1 2021, Green Dot realigned its reporting into three new segments: Consumer Services, B2B Services, and Money Movement Services, with historical data restated to conform to this structure - The company realigned its operations into three new reportable segments: Consumer Services, B2B Services, and Money Movement Services, starting in Q1 2021[121](index=121&type=chunk) Segment Revenue (Three Months Ended June 30, in thousands) | Segment | 2021 | 2020 | | :--- | :--- | :--- | | Consumer Services | $182,093 | $162,639 | | B2B Services | $112,589 | $76,619 | | Money Movement Services | $66,019 | $65,667 | Segment Profit (Three Months Ended June 30, in thousands) | Segment | 2021 | 2020 | | :--- | :--- | :--- | | Consumer Services | $55,790 | $58,412 | | B2B Services | $18,174 | $16,327 | | Money Movement Services | $38,192 | $27,842 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses consolidated financial results, key business trends, and segment performance, highlighting **17%** Q2 2021 revenue growth driven by Consumer and B2B services, and investments in GO2bank Consolidated Financial Results (Three Months Ended June 30) | Metric | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Total operating revenues | $369,373,000 | $316,240,000 | 16.8% | | Total operating expenses | $337,570,000 | $310,850,000 | 8.6% | | Net income | $24,933,000 | $3,294,000 | 656.9% | - Revenue growth was driven by the Consumer and B2B Services segments, benefiting from a shift to digital payments during the COVID-19 pandemic and economic stimulus funds[135](index=135&type=chunk)[136](index=136&type=chunk) - The company plans to continue investing in marketing for its new GO2bank product and in building a modern, scalable core banking platform to accelerate future revenue growth and expand margins[140](index=140&type=chunk)[141](index=141&type=chunk) [Consolidated Key Metrics](index=31&type=section&id=Consolidated%20Key%20Metrics) Q2 2021 key metrics showed mixed results, with Gross Dollar Volume and Purchase Volume increasing, while Active Accounts and Cash Transfers declined, partly due to stimulus timing Key Metrics (Three Months Ended June 30) | Metric | 2021 | 2020 | Change (%) | | :--- | :--- | :--- | :--- | | Gross Dollar Volume (in millions) | $17,399 | $15,107 | 15.2% | | Number of Active Accounts (in millions) | 6.03 | 6.25 | (3.5)% | | Purchase Volume (in millions) | $8,870 | $8,477 | 4.6% | | Cash Transfers (in millions) | 10.19 | 12.48 | (18.3)% | [Segment Results](index=38&type=section&id=Segment%20Results) Q2 2021 saw B2B Services revenue grow **47%** and Consumer Services revenue increase **12%**, while Money Movement Services revenue remained flat, with varied segment profit trends - Consumer Services revenue grew **12%** in Q2, but segment profit fell **4.5%** due to increased marketing for GO2bank and higher customer support costs[187](index=187&type=chunk)[191](index=191&type=chunk) - B2B Services revenue grew **46.9%** in Q2, driven by a **43%** increase in Gross Dollar Volume from BaaS programs, with segment profit growing **11.3%** despite margin compression[192](index=192&type=chunk)[196](index=196&type=chunk) - Money Movement Services revenue was nearly flat, but segment profit grew **37.2%** in Q2, boosted by tax season timing offsetting a decline in cash transfer revenue[197](index=197&type=chunk)[198](index=198&type=chunk) [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2021, Green Dot's primary liquidity source was **$1.9 billion** in unrestricted cash, with both the company and Green Dot Bank categorized as 'well capitalized' under regulatory standards - The company's primary source of liquidity was **$1.9 billion** in unrestricted cash and cash equivalents as of June 30, 2021[203](index=203&type=chunk) - Green Dot Corporation and Green Dot Bank were both categorized as 'well capitalized' under regulatory frameworks as of June 30, 2021[218](index=218&type=chunk)[219](index=219&type=chunk) - The company has a commitment to purchase Tax Refund Solutions from Republic Bank & Trust Company for approximately **$165 million** in cash, expected to close in Q3 2021[107](index=107&type=chunk)[212](index=212&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company discloses its market risk exposures, primarily interest rate and credit/liquidity risks, with limited exposure to foreign currency and equity price risks, managed through investment policies - The company has limited exposure to foreign currency exchange rates, interest rates, and equity prices, and does not use derivatives for speculative purposes[220](index=220&type=chunk) - Interest rate risk exists from the low-rate environment impacting investment income and from potential borrowings under its variable-rate credit facility[221](index=221&type=chunk)[222](index=222&type=chunk) - Credit and liquidity risk is managed by maintaining an investment policy that restricts investments to highly liquid, low-credit-risk assets and by monitoring settlement risk with retail partners[224](index=224&type=chunk)[225](index=225&type=chunk)[226](index=226&type=chunk) [Item 4. Controls and Procedures](index=46&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2021, with no material changes to internal control over financial reporting identified during the quarter - The CEO and Interim CFO concluded that disclosure controls and procedures were effective as of the end of the period[227](index=227&type=chunk) - There were no material changes in internal control over financial reporting during the quarter ended June 30, 2021[228](index=228&type=chunk) [PART II – OTHER INFORMATION](index=47&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 17 for details on ongoing legal proceedings, including class action lawsuits alleging misleading statements about business strategy and financial performance - The company is a defendant in a class action lawsuit (Koffsmon v. Green Dot Corp., et al.) alleging misleading statements regarding its business strategy and financial performance between May 2018 and November 2019[112](index=112&type=chunk) - A related shareholder derivative suit (Hellman v. Streit, et al) was also filed, asserting breach of fiduciary duty and other claims based on the same alleged wrongdoing[112](index=112&type=chunk) [Item 1A. Risk Factors](index=47&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks to the company's business, including the ongoing impact of COVID-19, reliance on major partners, intense competition, product innovation needs, and extensive regulatory scrutiny [COVID-19 Risks](index=47&type=section&id=COVID-19%20Risks) The COVID-19 pandemic continues to affect operations, partner businesses, and costs, with ongoing uncertainty regarding future impacts on consumer spending and operational expenses despite past stimulus benefits - The COVID-19 pandemic has caused operational disruptions, including a shift to a remote workforce and higher transaction losses, though government stimulus has helped mitigate some negative effects[233](index=233&type=chunk)[234](index=234&type=chunk) [Risks Related to Our Business](index=48&type=section&id=Risks%20Related%20to%20Our%20Business) The company faces significant business risks, including dependence on Walmart for **23%** of Q2 2021 revenue, intense competition, the need for successful product innovation, and potential declines in consumer spending - A significant portion of operating revenue is derived from Walmart, which accounted for **23%** of total operating revenues for the three months ended June 30, 2021[238](index=238&type=chunk) - The company faces intense competition from larger, more established financial institutions as well as new 'challenger' banks offering low-cost alternatives[246](index=246&type=chunk)[248](index=248&type=chunk) - Future success depends on the successful launch and adoption of new products like GO2bank, as significant investments in new products may not be successful[243](index=243&type=chunk) [Regulatory and Legal Risks](index=56&type=section&id=Regulatory%20and%20Legal%20Risks) As a bank holding company, Green Dot is subject to extensive and changing regulation, including requirements to support Green Dot Bank, risks related to brokered deposits, and compliance with laws like BSA, with potential impacts from payment network rule changes - As a bank holding company, Green Dot is subject to comprehensive supervision by the Federal Reserve and must comply with minimum capital and leverage requirements[272](index=272&type=chunk) - If Green Dot Bank ceases to be 'well-capitalized,' it could be prohibited from accepting brokered deposits, which constitute a vast majority of its current deposits, materially affecting operations[273](index=273&type=chunk) - Changes in payment network rules or a decline in interchange rates, which represented **27%** of total operating revenues in Q2 2021, could adversely affect financial results[279](index=279&type=chunk)[280](index=280&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=63&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[300](index=300&type=chunk) [Item 5. Other Information](index=63&type=section&id=Item%205.%20Other%20Information) The company reported no other information for this item - None[301](index=301&type=chunk) [Item 6. Exhibits](index=64&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the 10-Q report, including CEO/CFO certifications and Inline XBRL data files for the financial statements - The exhibits include certifications from the CEO and Interim CFO as required by Sections 302 and 906 of the Sarbanes-Oxley Act[304](index=304&type=chunk) - The financial statements are provided in Inline XBRL format as part of the filing[304](index=304&type=chunk)

Financial Data and Key Metrics Changes - Consolidated non-GAAP revenue grew 19% to $358 million, with EBITDA at $63 million and non-GAAP EPS of $0.68 [7][29] - Contribution margins were strong, resulting in adjusted EBITDA growth [30] - Operating cash flow generated was $119 million year-to-date, with cash at the holding company at $172 million [33] Business Line Data and Key Metrics Changes Consumer Segment - Nearly 4 million active accounts and close to 1 million direct deposit accounts, with a 3% decline in active accounts year-over-year [11] - Purchase volume increased by 5%, and direct deposit accounts grew by 2% year-over-year [11][35] - Revenue in the Consumer Services segment grew 12% due to higher purchase volume [35] B2B Segment - Gross dollar volume increased by 43%, while purchase volume grew by 3% year-over-year [38] - Revenue in the B2B segment grew 47%, with a profit increase of $2 million or 11% [39] Money Movement Segment - Revenue increased by 1% year-over-year, driven by a 118% increase in tax refunds processed [41] - Segment profit increased by $10 million or 37% [42] Market Data and Key Metrics Changes - The tax refund processing business saw a significant rebound, with volumes recovering to flat year-to-date [41] - The number of cash transfers processed decreased by 18% due to the decision not to renew a significant reload partner [42] Company Strategy and Development Direction - The company is focused on investing in its modern banking platform and customer service tools, with expectations for significant returns [46][101] - The launch of GO2bank is a strategic initiative aimed at serving working Americans, with plans for continuous feature enhancements [78] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ongoing strength and momentum of operations, despite challenges from stimulus timing and economic dynamics [7][26] - The company raised its annual guidance for revenue and earnings based on strong Q2 performance [43][44] Other Important Information - The DOJ approved the acquisition of Republic Bank's Tax Refund Business, expected to close in Q3 [22][33] - The company is committed to addressing the needs of low to moderate-income consumers through its product offerings [78] Q&A Session Summary Question: Insights on B2B services and revenue growth - Management highlighted strong gross dollar volume growth in B2B, driven by mature programs and new launches [52] Question: Impact of Walmart Money Card conversion to DDA accounts - The conversion is seen as a significant strategic shift, enhancing customer offerings and profitability [54][56] Question: GO2bank unit economics and break-even timeline - Management indicated a six-month payback period for direct deposit customers, with strong unit economics expected [65][67] Question: Direct deposit account growth expectations - Management anticipates consistent quarter-on-quarter growth in direct deposit accounts post-stimulus period [86][87] Question: Update on the modern banking platform - The bulk of the work on the modern banking platform is expected to be completed by Q2 2022 [92][93]

Non-GAAP Revenue Reconciliation - Total operating revenues for Q1 2021 were $393.5 million[2] - Non-GAAP total operating revenues for Q1 2021 were $379.8 million[2] - Net revenue adjustments for Q1 2021 were $13.7 million[2] Non-GAAP Net Income Reconciliation - Net income (loss) for Q1 2021 was $25.7 million[2] - Non-GAAP net income for Q1 2021 was $46.1 million[2] - Diluted earnings (loss) per share GAAP for Q1 2021 was $(0.45)[2] - Diluted earnings (loss) per share Non-GAAP for Q1 2021 was $0.83[2] Adjusted EBITDA Reconciliation - Adjusted EBITDA for Q1 2021 was $73.4 million[2] - Adjusted EBITDA margin for Q1 2021 was 19.3%[2] Shares Issued and Outstanding - Non-GAAP diluted weighted-average shares issued and outstanding for Q1 2021 was 55.7 million[2]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________ FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-34819 (Exact name of Registrant as specified in its charter) Delaware ...

Green Dot Corporation (NYSE:GDOT) Q1 2021 Earnings Conference Call May 5, 2021 5:00 PM ET Company Participants Ali Lubert – Vice President-Communications Dan Henry – Chief Executive Officer Jess Unruh – Interim Chief Financial Officer and Chief Accounting Officer Conference Call Participants Bob Napoli – William Blair Damian Wille – Barclays Andrew Jeffrey – Truist Andrew Schmidt – Citi Steven Kwok – KBW Mike Grondahl – Northland Securities Operator Good day, and welcome to the Green Dot Corporation First Q ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________ FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-34819 (Exact name of Registrant as specified in its charter) Delaware 95-47 ...

SUPPLEMENTAL FINANCIAL INFORMATION | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------|--------------------|-------|-------|-------|----------------------------------------------------------------------------------------------------------------------------|-------|--------------------------------------|-------|---------------|--------------|-------|------------------------|-------|-------|----------------------------------------------------------------- ...

Financial Data and Key Metrics Changes - Non-GAAP revenue grew by 15% to $275 million in Q4 2020, with adjusted EBITDA increasing by 59% [34][9] - Non-GAAP EPS reached $0.31, reflecting a growth of 121% [9][34] - Operating cash flow generated was $207 million for the year, with cash at the holding company at year-end being $146 million [43] Business Line Data and Key Metrics Changes - The BaaS (Banking as a Service) business saw revenue growth driven by partnerships with companies like Amazon and Google, with significant new platform launches [16][18] - Retail operations launched new products like Pay As You Go, contributing to 17% incremental sales growth at Walmart [24][23] - The PayCard business delivered 6% revenue growth despite COVID-19 impacts, with expectations of 20% growth in 2021 [27][9] Market Data and Key Metrics Changes - Gross dollar volume increased due to higher active accounts and a second round of stimulus funds, adding approximately $570 million in late December [35][34] - Processing and Settlement Service revenue declined by 18% year-over-year due to reduced SimplyPaid disbursement transactions [37] - Interest income is expected to rise year-over-year as cash is invested in higher-yielding securities [51] Company Strategy and Development Direction - The company is focused on enhancing customer experience and updating core banking platforms to consolidate operations and reduce costs [28][52] - Investments are being made in the GO2bank product, which targets low- to moderate-income consumers, with promising initial results [14][48] - The strategy includes targeting small and micro businesses that traditional banks overlook, leveraging partnerships with companies like QuickBooks and Uber [19][80] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for 2021, acknowledging ongoing uncertainties due to COVID-19 while expecting revenue growth across all business lines [31][45] - The company plans to continue investing in growth-oriented initiatives, anticipating that these will lead to revenue growth and margin expansion in 2022 and beyond [46][51] - Management highlighted the importance of adapting to the evolving needs of consumers and small businesses in the current economic landscape [19][80] Other Important Information - The company recorded an impairment charge of approximately $22 million related to facilities and internal use software, which was excluded from non-GAAP measures [42] - A new leader for the BaaS business, Amit Parikh, was appointed to drive growth in this segment [22] Q&A Session Summary Question: Impact of potential incremental stimulus on P&L - Management discussed the potential impact of a $1,400 stimulus per individual and extended unemployment benefits, suggesting it could lead to increased purchase volume and interchange revenue [60][64] Question: GO2bank launch and customer adoption - Management reported strong demand for GO2bank, with higher-than-expected interest in overdraft protection and secured credit card applications [71][72] Question: Opportunities in small and micro businesses - Management emphasized targeting small businesses that traditional banks overlook, focusing on unique financial solutions tailored to their needs [78][80] Question: Incremental investment breakdown - Management clarified that there would not be significant increases in SG&A for small business initiatives, while core banking platform investments are critical for long-term efficiency [87] Question: GO2bank app success compared to previous launches - Management indicated that GO2bank has been the most successful product launch to date, with downloads surpassing previous offerings [88]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________ FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-34819 (Exact name of Registrant as specified in its charter) Delaware 95-4766827 (St ...

Green Dot Corporation (NYSE:GDOT) Q3 2020 Earnings Conference Call November 4, 2020 5:00 PM ET Company Participants Alison Lubert - VP of Communications Dan Henry - President and CEO Jess Unruh - Interim CFO and CAO Conference Call Participants Bob Napoli - William Blair George Sutton - Craig-Hallum Andrew Jeffrey - Truth Securities Ramsey El-Assal - Barclays Andrew Schmidt - Citi Steven Kwok - KBW Georgios Mihalos - Cowen Ashish Sabadra - Deutsche Bank Jeff Cantwell - Guggenheim Securities Operator Good af ...