Core Viewpoint - Green Dot's strong first quarter earnings indicate potential for stock price increase driven by embedded banking, especially as European competitors like Swan show rapid growth [2][3][5]. Financial Performance - Green Dot's first quarter 2025 revenue reached $558.87 million, a 24% increase year-over-year and 10% above consensus estimates [16]. - Adjusted EBITDA for Q1 2025 was $90.56 million, reflecting a 53% increase [16]. - Net income for Q1 2025 was $25.77 million, up 443% [16]. - Gross dollar volume for Q1 2025 was $37.25 billion, a 21% increase [16]. - The company raised its 2025 non-GAAP revenue forecast to $2.05 billion, 9% above previous estimates [16]. Business Segments - Green Dot operates primarily through two revenue sources: B2B Services and Consumer Services [7]. - B2B Services, particularly the banking as a service (BaaS) platform, is the main growth driver, with revenue growth exceeding 40% over the last two quarters [7]. - Consumer Services, which includes products like Go2Bank and prepaid debit cards, saw a 4% decline in revenue in the fourth quarter [8]. Market Trends - The embedded finance market is projected to grow at a compound annual growth rate of 36.41%, from $146.2 billion in 2025 to $690.4 billion by 2030 [5]. - Green Dot's recent partnerships with companies like Samsung and Crypto.com position it as a leader in the embedded finance space [10]. Competitive Landscape - European competitor Swan has experienced significant growth, with a valuation of $205.5 million and 80,000 end users [4][5]. - Solaris, another competitor, has faced challenges, including a 94% drop in valuation and significant losses, highlighting risks in the embedded finance sector [21][22]. Future Outlook - Green Dot's stock price is projected to have a 7.2% upside based on analyst targets, contingent on continued performance exceeding investor expectations [23].

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-earnings (P/E) and price-to-sales (P/S) ratios, is a strategic approach to identify potential investment opportunities [1][3] - The P/S ratio is especially useful for evaluating unprofitable companies or those in early growth stages, as it reflects the value of revenue generated [3][9] Price-to-Sales Ratio - A P/S ratio below 1 indicates that investors are paying less than a dollar for each dollar of revenue, making it a favorable investment [4] - The P/S ratio is preferred over the P/E ratio because sales figures are less susceptible to manipulation compared to earnings [5] - It is important to analyze the P/S ratio in conjunction with other financial metrics such as P/E, price-to-book, and debt-to-equity ratios before making investment decisions [6] Screening Parameters - Companies with a P/S ratio less than the median for their industry are considered better investments [7] - Additional screening parameters include a P/E ratio below the industry median, a price-to-book ratio below the industry median, and a debt-to-equity ratio below the industry median [8] Company Highlights - **JAKKS Pacific (JAKK)**: A multi-brand company benefiting from acquisitions and a strong international presence, focusing on online retailing and digital experiences. It has a Zacks Rank of 1 and a Value Score of A [10][11] - **Green Dot (GDOT)**: A leader in prepaid cards and Banking-as-a-Service, with a strong balance sheet and low debt. It has a Zacks Rank of 1 and a Value Score of A [12][13] - **Signet Jewelers (SIG)**: A leading retailer of diamond jewelry, demonstrating strength in bridal and fashion segments, with effective inventory management and cost-saving initiatives. It has a Zacks Rank of 2 and a Value Score of A [14][15] - **Gibraltar Industries (ROCK)**: Focused on operational improvements and benefiting from high demand in agricultural facilities. It has a Zacks Rank of 2 and a Value Score of A [16][17] - **Pfizer (PFE)**: A major pharmaceutical company expecting growth in non-COVID operational revenue driven by new product launches and acquisitions. It has a Zacks Rank of 2 and a Value Score of A [18][19]

Group 1 - Green Dot (GDOT) closed at $9.45, with a 10.5% gain over the past four weeks, and a mean price target of $12.25 indicating a 29.6% upside potential [1] - The mean estimate includes four short-term price targets with a standard deviation of $2.06, where the lowest estimate is $10 (5.8% increase) and the highest is $14 (48.2% increase) [2] - Analysts show strong agreement on GDOT's ability to report better earnings, with a positive trend in earnings estimate revisions correlating with potential stock upside [4][11] Group 2 - The Zacks Consensus Estimate for GDOT has increased by 21.5% due to two upward revisions in earnings estimates over the last 30 days [12] - GDOT holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential upside [13] - While price targets may not be reliable indicators of actual stock gains, they can provide guidance on price movement direction [10][13]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, is a strategic approach for evaluating companies, especially those that are unprofitable or in early growth stages [1][3][5] Group 1: Price-to-Sales Ratio - The price-to-sales ratio is a valuable metric that reflects how much investors pay for each dollar of revenue generated by a company [3] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for a dollar's worth of revenue [4] - The P/S ratio is often preferred over the price-to-earnings ratio due to the difficulty of manipulating sales figures compared to earnings [5] Group 2: Screening Parameters - Companies should have a price-to-sales ratio less than the median for their industry, along with a price-to-earnings ratio below the industry median [7] - A debt-to-equity ratio less than the industry median is also recommended, as lower debt levels contribute to a stable P/S ratio [8] - Stocks should be trading at a minimum price of $5 and have a Zacks Rank of 1 (Strong Buy) or 2 (Buy) to ensure better performance [8] Group 3: Company Profiles - Green Dot (GDOT) is a pro-consumer bank holding company with a strong position in prepaid cards and Banking-as-a-Service, boasting a Zacks Rank 1 and a Value Score of A [10][11] - JAKKS Pacific (JAKK) has diversified through acquisitions and focuses on online retailing, currently holding a Zacks Rank 2 and a Value Score of A [12][13] - PCB Bancorp (PCB) offers a range of banking products and has a strategic expansion plan, with a Value Score of A and a Zacks Rank 2 [14][15] - Gibraltar Industries (ROCK) focuses on operational improvements and has a Value Score of B with a Zacks Rank 2, benefiting from high demand in agricultural facilities [16][17] - Pfizer (PFE) is committed to developing treatments across various therapeutic areas and expects better non-COVID operational revenue growth, holding a Value Score of A and a Zacks Rank 2 [18][19]

Shares of Green Dot (GDOT) have gained 22.8% over the past four weeks to close the last trading session at $9.33, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $12.25 indicates a potential upside of 31.3%.The mean estimate comprises four short-term price targets with a standard deviation of $2.06. While the lowest estimate of $10 indicates a 7.2% increase from the current pric ...

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]