PART I [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Green Dot Corporation's Q1 2025 unaudited consolidated financial statements reflect significant growth in net income and total assets, driven by increased operating revenues [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets increased to **$5.73 billion**, primarily due to higher unrestricted cash, while liabilities and stockholders' equity also grew Consolidated Balance Sheets (unaudited) | | March 31, 2025 (In thousands) | December 31, 2024 (In thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $2,746,282 | $2,428,190 | | Total assets | $5,727,885 | $5,434,282 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | $4,708,263 | $4,502,485 | | Total liabilities | $4,780,222 | $4,560,697 | | Total stockholders' equity | $947,663 | $873,585 | | Total liabilities and stockholders' equity | $5,727,885 | $5,434,282 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) For Q1 2025, Green Dot reported a significant increase in net income to **$25.8 million** and total operating revenues grew **23.6%** to **$558.9 million**, driven by card revenues Consolidated Statements of Operations (unaudited) | | Three Months Ended March 31, 2025 (In thousands, except per share data) | Three Months Ended March 31, 2024 (In thousands, except per share data) | | :--- | :--- | :--- | | Total operating revenues | $558,874 | $451,988 | | Total operating expenses | $498,129 | $441,434 | | Operating income | $60,745 | $10,554 | | Net income | $25,773 | $4,750 | | Diluted earnings per common share | $0.47 | $0.09 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for Q1 2025 surged to **$73.5 million**, primarily driven by net income and a significant positive change in other comprehensive income Consolidated Statements of Comprehensive Income (unaudited) | | Three Months Ended March 31, 2025 (In thousands) | Three Months Ended March 31, 2024 (In thousands) | | :--- | :--- | :--- | | Net income | $25,773 | $4,750 | | Other comprehensive income (loss) | $47,713 | $(679) | | Comprehensive income | $73,486 | $4,071 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased to **$108.7 million** in Q1 2025, while investing activities used **$63.5 million**, resulting in a **$180.5 million** net increase in unrestricted cash Consolidated Statements of Cash Flows (unaudited) | | Three Months Ended March 31, 2025 (In thousands) | Three Months Ended March 31, 2024 (In thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $108,721 | $89,177 | | Net cash used in investing activities | $(63,457) | $(4,526) | | Net cash provided by financing activities | $135,189 | $347,877 | | Net increase in unrestricted cash, cash equivalents and restricted cash | $180,453 | $432,528 | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, revenue disaggregation, investment securities, debt, and segment performance, including a **$70 million** incentive payment for the Walmart agreement extension - The company's investment portfolio, primarily consisting of agency mortgage-backed securities, had gross unrealized losses of **$298.4 million** as of March 31, 2025, mainly due to increases in interest rates[34](index=34&type=chunk) - In 2024 and 2025, the company issued **$65 million** in senior unsecured notes with a fixed rate of **8.75%**, maturing in 2029[60](index=60&type=chunk) - A single BaaS partner generated approximately **56%** of total operating revenues for the three months ended March 31, 2025, up from **46%** in the prior year period[112](index=112&type=chunk) - Subsequent to the quarter end, on April 29, 2025, the company amended its agreements with Walmart, extending the term to January 31, 2033, which involved a one-time **$70 million** incentive payment made through the TailFin joint venture[128](index=128&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes **24%** YoY revenue growth to B2B Services, offsetting Consumer Services decline, while operating expenses rose **13%**, amidst a strategic review and CEO transition [Overview and Recent Developments](index=28&type=section&id=Overview%20and%20Recent%20Developments) Green Dot, a financial technology platform, initiated a strategic review and CEO transition in March 2025, operating across three key segments - The company is organized into three reportable segments: Consumer Services, B2B Services, and Money Movement Services[133](index=133&type=chunk) - In March 2025, Green Dot initiated a review of strategic alternatives and began a CEO transition, appointing an interim CEO and interim President[134](index=134&type=chunk)[135](index=135&type=chunk) [Consolidated Financial Results and Trends](index=29&type=section&id=Consolidated%20Financial%20Results%20and%20Trends) Q1 2025 saw total operating revenues increase **24%** to **$558.9 million** and net income surge **442.6%** to **$25.8 million**, driven by B2B Services growth Consolidated Financial Results Summary | | Three Months Ended March 31, 2025 (In thousands) | Three Months Ended March 31, 2024 (In thousands) | Change (In thousands) | % Change | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $558,874 | $451,988 | $106,886 | 23.6% | | Total operating expenses | $498,129 | $441,434 | $56,695 | 12.8% | | Net income | $25,773 | $4,750 | $21,023 | 442.6% | - B2B Services segment revenue grew **42%** YoY, driven by strong growth in gross dollar volume from BaaS programs[139](index=139&type=chunk) - Consumer Services segment revenue decreased **5%** YoY due to declines in active accounts, gross dollar volume, and purchase volume, attributed to macroeconomic factors and competitive trends[138](index=138&type=chunk) [Consolidated Key Metrics](index=32&type=section&id=Consolidated%20Key%20Metrics) Q1 2025 key metrics show Gross Dollar Volume increased **21.1%** to **$37.3 billion** and active accounts grew **2.0%**, while Purchase Volume and tax refunds declined Consolidated Key Metrics | | Three Months Ended March 31, 2025 (In millions, except percentages) | Three Months Ended March 31, 2024 (In millions, except percentages) | % Change | | :--- | :--- | :--- | :--- | | Gross dollar volume | $37,252 | $30,755 | 21.1% | | Number of active accounts* | 3.58 | 3.51 | 2.0% | | Purchase volume | $5,113 | $5,274 | (3.1)% | | Number of cash transfers | 7.51 | 7.77 | (3.3)% | | Number of tax refunds processed | 7.98 | 9.28 | (14.0)% | [Segment Results](index=37&type=section&id=Segment%20Results) Q1 2025 segment results show B2B Services as the primary growth driver with **42%** revenue increase, while Consumer Services declined and Money Movement Services grew **7%** Consumer Services Segment Results | | Three Months Ended March 31, 2025 (In thousands) | Three Months Ended March 31, 2024 (In thousands) | % Change | | :--- | :--- | :--- | :--- | | Segment revenues | $95,256 | $100,612 | (5.3)% | | Segment profit | $33,632 | $33,259 | 1.1% | B2B Services Segment Results | | Three Months Ended March 31, 2025 (In thousands) | Three Months Ended March 31, 2024 (In thousands) | % Change | | :--- | :--- | :--- | :--- | | Segment revenues | $341,991 | $241,200 | 41.8% | | Segment profit | $27,152 | $18,283 | 48.5% | Money Movement Services Segment Results | | Three Months Ended March 31, 2025 (In thousands) | Three Months Ended March 31, 2024 (In thousands) | % Change | | :--- | :--- | :--- | :--- | | Segment revenues | $110,247 | $103,150 | 6.9% | | Segment profit | $76,826 | $65,847 | 16.7% | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, Green Dot maintained strong liquidity with **$1.8 billion** in unrestricted cash and was categorized as 'well-capitalized' under regulatory standards - Primary liquidity source as of March 31, 2025, was **$1.8 billion** in unrestricted cash and cash equivalents[206](index=206&type=chunk) - Issued an aggregate of **$65 million** in senior unsecured notes in 2024 and 2025, bearing a fixed interest rate of **8.75%** and maturing in 2029[214](index=214&type=chunk) - Both the holding company and its subsidiary bank, Green Dot Bank, were categorized as 'well-capitalized' as of March 31, 2025, exceeding all minimum regulatory capital ratios[223](index=223&type=chunk)[224](index=224&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 faces interest rate, inflation, and credit risks, managing its investment portfolio and credit exposure through conservative policies despite rate sensitivities - The company's investment portfolio is comprised predominantly of fixed-rate securities and is price-sensitive to interest rate changes, but the company has the ability and intent to hold these instruments until recovery of their cost bases[226](index=226&type=chunk) - Increases in short-term interest rates benefit the yield earned on cash, but this is partially offset as certain BaaS partner arrangements share in a significant portion of the interest earned from accountholder deposits[226](index=226&type=chunk) - Credit and liquidity risks are managed via an investment policy that restricts investments to highly liquid, low-credit-risk assets and relationships with well-capitalized institutions[231](index=231&type=chunk)[232](index=232&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 March 31, 2025, with no material changes in internal control over financial reporting - Management concluded that as of the end of the period, the company's disclosure controls and procedures were effective[234](index=234&type=chunk) - There were no material changes in internal control over financial reporting during the three months ended March 31, 2025[235](index=235&type=chunk) PART II – OTHER INFORMATION [Item 1. Legal Proceedings](index=47&type=section&id=Item%201.%20Legal%20Proceedings) The company's legal proceedings, including class action and shareholder derivative lawsuits, are detailed in Note 17, with outcomes currently unestimable - For details on legal proceedings, the report refers to Note 17—Commitments and Contingencies[239](index=239&type=chunk) [Item 1A. Risk Factors](index=47&type=page&id=Item%201A.%20Risk%20Factors) Key risks include uncertainties from strategic alternatives, high reliance on a single BaaS partner and Walmart, intense competition, fraud, operational dependencies, and extensive regulatory oversight - The ongoing exploration of strategic alternatives creates risks and uncertainties that could adversely affect the business and stock price[240](index=240&type=chunk) - A single BaaS partner generated **56%** of total operating revenues for Q1 2025, and Walmart accounted for **7%**, highlighting significant concentration risk[241](index=241&type=chunk) - As a bank holding company, Green Dot is subject to extensive regulation and supervision by the Federal Reserve Board and must serve as a source of strength for its subsidiary, Green Dot Bank[278](index=278&type=chunk) - The business is exposed to risks from fraudulent activity, system interruptions, cybersecurity breaches, and changes in payment network rules or interchange rates[253](index=253&type=chunk)[266](index=266&type=chunk)[270](index=270&type=chunk)[288](index=288&type=chunk) [Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities](index=61&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%2C%20and%20Issuer%20Purchases%20of%20Equity%20Securities) No unregistered sales of equity securities, use of proceeds, or issuer purchases were reported during the period - There were no unregistered sales of equity securities in the reported period[311](index=311&type=chunk) [Item 5. Other Information](index=61&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter - No directors or officers adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[312](index=312&type=chunk) [Item 6. Exhibits](index=62&type=section&id=Item%206.%20Exhibits) Exhibits filed with the Form 10-Q include officer certifications (SOX 302 and 906) and financial statements in Inline XBRL format - Exhibits filed include officer certifications (SOX 302 and 906) and financial data in Inline XBRL format[313](index=313&type=chunk)

Green Dot Corporation (GDOT) reported impressive first-quarter 2025 results. Earnings and revenues beat the Zacks Consensus Estimate.Quarterly earnings per share (excluding 59 cents from non-recurring items) of $1.06 outpaced the consensus estimate by 51.4% and improved 79.7% from the year-ago quarter. Revenues of $556 million beat the Zacks Consensus Estimate by 10.2% and increased 23% on a year-over-year basis.Green Dot’s Segmental RevenuesB2B Services revenues increased 41.8% in the first quarter of 2025 ...

Green Dot (GDOT) came out with quarterly earnings of $1.06 per share, beating the Zacks Consensus Estimate of $0.70 per share. This compares to earnings of $0.59 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 51.43%. A quarter ago, it was expected that this bank holding company would post earnings of $0.38 per share when it actually produced earnings of $0.40, delivering a surprise of 5.26%.Over the last four quarters, the co ...

Financial Data and Key Metrics Changes - In Q1 2025, adjusted revenue increased by 24% year-over-year, while adjusted EBITDA rose by 53% [8][22] - Non-GAAP EPS reached $1.6, an 80% increase from the previous year [22] Business Line Data and Key Metrics Changes - The B2B segment, powered by the ARC platform, saw revenue growth of over 40%, driven by significant BaaS partners [23] - The Money Movement segment experienced a 10% increase in tax processing revenue year-over-year, despite a decrease in the number of tax refunds processed [26] - The Consumer Services segment showed moderated declines in revenue and active accounts, largely due to the partnership with PLS [29] Market Data and Key Metrics Changes - Third-party cash transfer volumes grew by 5% year-over-year, marking the fourth consecutive quarter of growth [27] - The Consumer segment is expected to see revenue declines in the upper single digits, with a more pronounced decline anticipated in Q4 [35] Company Strategy and Development Direction - The company is focused on investing in infrastructure and technology to support growth and manage risk effectively [9][42] - Recent partnerships with Samsung and Crypto.com are expected to enhance the embedded finance offerings and drive future revenue growth [12][41] - The strategic review process aims to maximize shareholder value and assess the company's inherent value in the marketplace [6][7] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return to growth, citing strong performance in new business wins and renewals [10][41] - The company raised its guidance for 2025, expecting non-GAAP revenue of $2 billion to $2.1 billion, up from previous estimates [34] - Management acknowledged the ongoing challenges in the staffing industry but remains optimistic about future growth opportunities [25][38] Other Important Information - The company renewed its long-term agreement with Walmart, extending the partnership through January 2033 [39] - A $70 million incentive payment to a Walmart affiliate will be recognized as an expense, impacting GAAP financial statements [39] Q&A Session Summary Question: Clarification on revenue segments for Crypto.com and Samsung - Revenue from these clients will run through either BaaS or Money Movement channels, with significant growth expected over time [46][48] Question: Details on the new MoneyCard deal with Walmart - The partnership allows for improvements in product capabilities and customer experience, with no significant changes to the economics of the MoneyCard program [50][53] Question: Thoughts on consumer active account growth - The decline in active accounts is moderating, with optimism for stabilization but no expected return to growth in 2025 [60][61] Question: Macro backdrop considerations in guidance - Current guidance reflects the macro environment as understood today, with potential adjustments if conditions change [64] Question: Operating environment for embedded finance today - The market has matured, with increased awareness and demand for embedded finance solutions, favoring established partners [67][70] Question: Competitive environment within Embedded Finance - The marketplace remains competitive, but the company differentiates itself through its comprehensive capabilities and established partnerships [72][73]

Financial Data and Key Metrics Changes - In Q1 2025, adjusted revenue increased by 24% year-over-year, while adjusted EBITDA rose by 53% [6][22] - Non-GAAP EPS reached $1.6, an 80% increase from the previous year [22] - Segment profit improved across all three operating segments for the first time in years [22] Business Line Data and Key Metrics Changes - The B2B segment, powered by the ARC platform, saw revenue growth of over 40%, driven by significant BaaS partners [23] - The Money Movement segment's tax processing revenue increased by 10% year-over-year, despite a decrease in the number of tax refunds processed [27] - The Consumer Services segment experienced moderated revenue and active account declines, largely due to the partnership with PLS [30] Market Data and Key Metrics Changes - The company reported a strong start to the year with robust pipelines and nearly the same amount of revenue signed year-to-date as in all of 2024 [11] - Third-party cash transfer volumes grew by 5% year-over-year, marking the fourth consecutive quarter of growth [28] Company Strategy and Development Direction - The company is focused on building a revenue engine, driving scale, and investing in infrastructure to support growth [6] - Strategic alternatives are being evaluated to maximize shareholder value, with a belief in the company's unique assets and management team [5] - The company aims to enhance its embedded finance capabilities and strengthen partnerships, particularly with Walmart and new clients like Samsung and Crypto.com [9][12][40] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the return to growth and the importance of investing in the right people and infrastructure [8] - The macroeconomic environment is being monitored, with guidance raised for 2025 based on strong Q1 performance [35][36] - The company anticipates continued growth in the B2B and Money Movement segments, while the Consumer segment is expected to see declines [37][39] Other Important Information - The company has renewed its long-standing agreement with Walmart, extending the partnership through January 2033 [40] - A $70 million incentive payment to a Walmart affiliate will be recognized as an expense, impacting GAAP financial statements [41] Q&A Session Summary Question: Clarification on revenue segments for Crypto.com and Samsung - Revenue from these clients will run through either BaaS or Money Movement channels, with significant growth expected over time [46][47] Question: Details on the economics of the new MoneyCard deal with Walmart - The partnership with Walmart allows for improvements in product capabilities and customer experience, with no significant changes to the economics of the MoneyCard program [49][52] Question: Thoughts on consumer active account growth - The decline in consumer active accounts is moderating, with optimism for future growth driven by partnerships and product innovations [59][60] Question: Macro backdrop in annual guidance - Current guidance reflects the existing macro environment, with adjustments possible if conditions change [62] Question: Operating environment for embedded finance today - The market has matured, with increased awareness and demand for embedded finance solutions, favoring established partners [66][68] Question: Competitive environment within Embedded Finance - The marketplace remains competitive, but the company differentiates itself through its comprehensive capabilities and established partnerships [70][72]

Exhibit 99.01 Green Dot Reports First Quarter 2025 Results Company increases 2025 outlook Company sees continued momentum in embedded finance with new Samsung and Crypto.com partnerships, and renewal of significant retail partnership Provo, UT - May 8, 2025 - Green Dot Corporation (NYSE: GDOT), a leading digital bank and fintech that delivers seamless banking and payment tools for consumers and businesses, today reported financial results for the quarter ended March 31, 2025. "It was a very strong start to ...

Q1 2025 Financial Performance - Non-GAAP Revenue increased by 24% to $556.0 million[6, 21] - Adjusted EBITDA increased by 53% to $90.6 million[6, 21] - Non-GAAP EPS increased by 80% to $1.06[6, 22] Segment Performance - B2B Services revenue increased by 42% to $342.0 million[23] - Money Movement revenue increased by 7% to $110.2 million[23] - Consumer Services revenue decreased by 5% to $95.3 million[23] Key Metrics - Active accounts increased by 2%[31] - B2B Services active accounts increased by 13%, offsetting a 7% decline in Consumer Services active accounts[33] - Gross Dollar Volume (GDV) increased by 21%[32] - Purchase Volume (PV) declined by 3%[32] 2025 Guidance - Projected Non-GAAP Revenue is $2.0 billion to $2.1 billion[61] - Projected Adjusted EBITDA is $150 million to $160 million[61] - Projected Non-GAAP EPS is $1.14 to $1.28[61]

Investors in Green Dot Corporation (GDOT) need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 20, 2025 $10 Put had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could als ...

Digital bank and FinTech company Green Dot said Monday (March 10) that it made a leadership transition and engaged Citi to explore strategic alternatives.Effective Friday (March 7), the company appointed its chairperson of the board, William I Jacobs, to also serve as interim CEO of Green Dot, and its chief revenue officer, Chris Ruppel, to also serve as interim president of Green Dot and interim CEO and president of Green Dot Bank, the company said in a Monday press release.They succeed George Gresham, who ...

Regulatory Capital and Compliance - As of December 31, 2024, Green Dot Corporation and Green Dot Bank's regulatory capital ratios were above the well-capitalized standards and met the capital conservation buffer of 2.5%[65] - Green Dot Corporation and Green Dot Bank expect to continue exceeding all applicable well-capitalized regulatory capital requirements on a fully phased-in basis[65] - The Federal Reserve may require bank holding companies to maintain capital substantially in excess of mandated minimum levels based on economic conditions and risk profiles[63] - Green Dot Bank reclassified most of its deposits as non-brokered following the FDIC's final rule on brokered deposits, effective from fiscal year 2022[68] - Green Dot Bank's CRA compliance is evaluated under a strategic plan covering 2024 to 2028, focusing on community development lending and investment[86] - The deposits of Green Dot Bank are insured by the DIF up to $250,000 per depositor, with potential increases in deposit insurance premiums based on risk assessments[88] - Green Dot Corporation may be required to provide financial assistance to Green Dot Bank in case of financial distress, with capital loans being subordinate to deposits[77] - Federal banking regulators can prohibit dividend payments if deemed unsafe or unsound, particularly if it depletes the bank's capital base[71] - Green Dot Corporation is required to serve as a source of financial and managerial strength to Green Dot Bank, potentially committing resources to support it[76] - The FDIC may act as a conservator or receiver for Green Dot Bank upon insolvency, with broad powers to transfer assets or liabilities without creditor approval[79] Revenue Sources and Business Operations - Approximately 55% of total operating revenues for the year ended December 31, 2024, were generated from a single BaaS partner[116] - Operating revenues derived from products and services sold at Walmart store locations accounted for approximately 10% of total operating revenues for the year ended December 31, 2024[116] - For the year ended December 31, 2024, interchange revenues represented 12% of total operating revenues, indicating a significant reliance on interchange fees[164] Employee and Diversity Metrics - The company has a voluntary turnover rate of less than 8% for the fiscal year 2024, indicating strong employee retention[106] - As of December 31, 2024, the company had approximately 1,150 full-time employees globally, with 77% located in the United States and 23% in China[105] - The company is committed to enhancing diversity, equity, inclusion, and belonging, ending 2024 with a workforce comprised of 53% male and 47% female employees[109] Compliance and Regulatory Risks - The company has adopted a comprehensive AML compliance program to prevent the use of its services for illegal activities[91] - The company is subject to increased regulatory scrutiny regarding its BSA and AML programs, with significant penalties for non-compliance[92] - The company has entered into a consent order with the Federal Reserve Board, including a $44 million civil money penalty, due to compliance risk management issues[155] - Regulatory scrutiny has led to increased investments in compliance infrastructure, which may impact financial performance[155] - The classification of deposits by Green Dot Bank is crucial; non-compliance could result in regulatory fines and increased oversight[157] - The company faces potential regulatory fines and penalties if its reclassification of deposits is deemed non-compliant, which could increase regulatory oversight and litigation risk[157] Financial Performance and Market Risks - Economic conditions, including high inflation and interest rates, could negatively affect consumer spending and transaction volumes, impacting overall financial performance[135] - The company faces intense competition from larger, more established entities that can leverage their size and brand awareness to gain market share[124] - The reliance on third-party service providers for transaction processing introduces vulnerabilities that could lead to reputational damage and financial losses due to fraudulent activities[129] - The ability to retain and attract new BaaS partners and long-term users is critical for future revenue growth, with potential fluctuations in operating revenues based on these relationships[121] - The company may need to increase incentives or reduce prices to compete effectively, which could negatively impact operating results[126] - The rapid pace of technological change in the electronic payments industry poses a risk, as the company may struggle to keep up with new developments and innovations[127] - The company faces risks related to the scalability and functionality of its technology systems, which could lead to increased costs and reduced system availability[138] - A decline in the use of prepaid cards or demand deposit accounts could negatively impact operating revenues, as consumer preferences evolve[140] - Cyber-attacks and data security breaches pose risks that could lead to liability, litigation, and regulatory penalties, impacting reputation and revenues[146] - Compliance with evolving privacy and data protection laws is critical, as failures could result in financial penalties and reputational damage[150] Debt and Financial Obligations - In September and October 2024, the company issued senior unsecured notes totaling $50 million, followed by an additional $15 million in February 2025, maturing in September 2029[171] - The company faces increased debt service obligations due to the issuance of senior unsecured notes, which may limit available funds for distribution to stockholders and additional financing[171] - The company’s ability to generate cash flow may be affected by its increased debt service obligations[172] - The company may require additional capital in the future, which may not be available on acceptable terms, potentially impacting growth and operations[170] Intellectual Property and Acquisitions - The company has 17 issued patents and 1 pending patent application, highlighting its focus on protecting intellectual property related to its products and services[168] - The integration of acquired businesses may involve significant costs and risks, including changes in risk policies and controls, and advertising campaign expenditures[179] - Future acquisitions may result in dilutive issuances of equity securities or incurrence of debt, which could negatively impact financial condition[182] - The company faces risks related to the integration of acquired businesses, which could disrupt operations and negatively impact financial condition[182] Regulatory Control and Governance - Federal Reserve Board approval is required for any person or company acquiring 25% or more of voting securities in a bank holding company[187] - Control may be presumed if a person acquires 10% or more of any class of voting securities[187] - These regulations could impact third-party willingness or ability to acquire control of the bank holding company[187] - The BHC Act and Change in Bank Control Act impose restrictions on acquisitions[187] - The company remains subject to regulatory scrutiny under these acts[187] - The implications of these regulations could affect market dynamics for potential acquirers[187] - The company must navigate these regulatory frameworks in any future strategic decisions[187] - Compliance with these regulations is critical for maintaining operational stability[187] - The company’s governance structure is influenced by these control regulations[187] - Future acquisitions may require careful consideration of these ownership thresholds[187]