Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 __________________________________________________ FORM 10-Q 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 (State or other jurisdiction of incorporation or organization) (IRS Employer Identification No.) 114 W 7th Street, Suite 240 ...

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 June 30, 2023 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 9 ...

1 Please see appendix at end of presentation for a reconciliation of GAAP to Non-GAAP Measures in millions, reflects change versus the prior year in millions, reflects change versus the prior year Non-GAAP Revenue1increased 2% • Adjusted EBITDA Margin of ~10.8%, down 826 bps as the company works through de-conversion of BaaS partners, the impact of rising interest rates and difficult comparisons in 2Q22 when there were several one-time benefits in segment operating expenses • Money Movement segment profit d ...

Green Dot Corporation (NYSE:GDOT) Q2 2023 Earnings Conference Call August 3, 2023 5:00 PM ET Company Participants Tim Willi – Senior Vice President of Finance George Gresham – Chief Executive Officer and President Jess Unruh – Chief Financial Officer Conference Call Participants Shray Gurtata – Barclays Michael Perito – KBW Matthew Hurwit – JMP Cris Kennedy – William Blair George Sutton – Craig Hallum Joel Riechers – Truist Securities Operator Good day, and welcome to the Green Dot Corporation Second Quarte ...

[PART I – FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20%E2%80%93%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Green Dot Corporation's unaudited consolidated financial statements for Q1 2023 are presented, covering Balance Sheets, Statements of Operations, and Cash Flows, with detailed accounting notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets decreased from **$4.79 billion** to **$4.69 billion** in Q1 2023, driven by lower cash, while total liabilities decreased and stockholders' equity increased to **$860.6 million** Consolidated Balance Sheet Summary (in thousands) | Account | March 31, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$4,686,257** | **$4,789,176** | | Unrestricted cash and cash equivalents | $722,003 | $813,945 | | Investment securities available-for-sale | $2,369,332 | $2,363,687 | | **Total Liabilities** | **$3,825,657** | **$4,007,695** | | Deposits | $3,344,903 | $3,450,105 | | Line of credit | $0 | $35,000 | | **Total Stockholders' Equity** | **$860,600** | **$781,481** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Total operating revenues increased to **$416.4 million** in Q1 2023, but higher operating expenses led to a slight decrease in operating income and net income of **$36.0 million** Consolidated Statements of Operations (in thousands, except per share data) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Total operating revenues | $416,380 | $400,617 | | Total operating expenses | $365,385 | $349,025 | | Operating income | $50,995 | $51,592 | | Net income | $36,012 | $38,624 | | Diluted earnings per common share | $0.69 | $0.70 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was **$100.5 million** in Q1 2023, while investing cash use significantly decreased, and financing activities resulted in a **$161.6 million** net cash use, leading to an overall **$93.8 million** cash decrease Summary of Cash Flows (in thousands) | Activity | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :--- | :--- | :--- | | Net cash provided by operating activities | $100,532 | $115,642 | | Net cash used in investing activities | ($32,720) | ($300,614) | | Net cash (used in) provided by financing activities | ($161,648) | $185,974 | | **Net (decrease) increase in cash** | **($93,836)** | **$1,002** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies and financial data, covering revenue by segment, investment portfolio, loan quality, deposits, debt, income taxes, stock compensation, and customer concentrations - The company operates in three reportable segments: Consumer Services, B2B Services, and Money Movement Services. The CODM assesses performance based on segment revenue and profit[116](index=116&type=chunk) Revenue by Segment (in thousands) | Segment | Q1 2023 | Q1 2022 | | :--- | :--- | :--- | | Consumer Services | $139,833 | $158,757 | | B2B Services | $171,292 | $133,900 | | Money Movement Services | $98,241 | $97,316 | - Walmart remains a significant retail distributor, accounting for **17%** of total operating revenues in Q1 2023, down from **20%** in Q1 2022. A single BaaS partner generated **32%** of total operating revenues in Q1 2023, up from **23%** in the prior year[113](index=113&type=chunk)[115](index=115&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2023 financial performance, highlighting a **3.9%** revenue growth driven by B2B Services, offset by higher expenses leading to a **6.8%** net income decline, and outlines the fiscal 2023 outlook Consolidated Financial Results Summary (in thousands) | Metric | Q1 2023 | Q1 2022 | Change | % Change | | :--- | :--- | :--- | :--- | :--- | | Total operating revenues | $416,380 | $400,617 | $15,763 | 3.9% | | Total operating expenses | $365,385 | $349,025 | $16,360 | 4.7% | | Net income | $36,012 | $38,624 | ($2,612) | (6.8)% | - The company's outlook for fiscal year 2023 anticipates a decline in consolidated operating profit due to macro-economic factors, interest rate impacts, growth-oriented investments, and non-renewals in certain segments[142](index=142&type=chunk) - Key growth investments are focused on marketing for the GO2bank product and building a modern, scalable core banking platform to reduce reliance on third-party processors and improve margins long-term[140](index=140&type=chunk) [Consolidated Key Metrics](index=30&type=section&id=Consolidated%20Key%20Metrics) Key performance indicators show mixed Q1 2023 results, with **33.6%** gross dollar volume growth driven by B2B, but active accounts and purchase volume declined, while tax refunds processed increased Key Metrics Comparison (in millions) | Metric | Q1 2023 | Q1 2022 | % Change | | :--- | :--- | :--- | :--- | | Gross dollar volume | $23,289 | $17,436 | 33.6% | | Number of active accounts | 3.84 | 4.93 | (22.1)% | | Purchase volume | $6,145 | $7,192 | (14.6)% | | Number of cash transfers | 8.70 | 8.87 | (1.9)% | | Number of tax refunds processed | 9.91 | 9.61 | 3.1% | [Comparison of Operating Results](index=33&type=section&id=Comparison%20of%20Operating%20Results) Q1 2023 operating revenues increased by **$15.8 million** due to higher Card Revenues, partially offset by decreased Interchange Revenues, while operating expenses grew by **$16.4 million**, primarily from Processing Expenses - Card revenues and other fees increased **12.7%** YoY, driven by BaaS partner program management fees and adoption of optional features like overdraft protection[164](index=164&type=chunk) - Interchange revenues decreased **19%** YoY due to lower purchase volume and a lower effective interchange rate[164](index=164&type=chunk) - Processing expenses rose **29%** YoY, principally due to growth in certain BaaS account programs and overall transaction volume[169](index=169&type=chunk) [Segment Results](index=35&type=section&id=Segment%20Results) Segment performance was mixed, with B2B Services revenue growing **28%** to **$171.3 million**, Consumer Services revenue falling **12%** to **$139.8 million**, and Money Movement Services revenue up **1%** to **$98.2 million** - **Consumer Services:** Segment revenues decreased **11.9%** YoY to **$139.8 million**, and segment profit decreased **2.8%** to **$52.8 million**. The number of active accounts declined **20.7%**[174](index=174&type=chunk) - **B2B Services:** Segment revenues increased **27.9%** YoY to **$171.3 million**, while segment profit was nearly flat at **$22.2 million**. Gross dollar volume grew **62.8%**, but active accounts fell **24.3%**[180](index=180&type=chunk) - **Money Movement Services:** Segment revenues increased **1.0%** YoY to **$98.2 million**, while segment profit decreased **0.7%** to **$61.0 million**. The number of tax refunds processed increased **3.1%**[186](index=186&type=chunk) [Liquidity and Capital Resources](index=38&type=section&id=Liquidity%20and%20Capital%20Resources) Green Dot's liquidity as of March 31, 2023, was **$722.0 million** in unrestricted cash, with **$100.5 million** cash from operations, and both the corporation and bank were 'well capitalized' - Primary liquidity source as of March 31, 2023, was **$722.0 million** in unrestricted cash and cash equivalents[192](index=192&type=chunk) - The company had no borrowings outstanding on its **$100.0 million** revolving line of credit as of March 31, 2023, with the full amount available[198](index=198&type=chunk) - Both Green Dot Corporation and Green Dot Bank were categorized as '**well capitalized**' under applicable regulatory standards as of March 31, 2023[206](index=206&type=chunk)[208](index=208&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=42&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's primary market risk is interest rate fluctuations, with limited exposure to foreign currency and equity prices, while inflation, credit, and liquidity risks are managed through conservative policies - The company's primary market risk is interest rate risk. While rising rates increase interest income, the net effect is expected to be negative in 2023 compared to 2022 due to BaaS partner interest sharing and lagging yields on the investment portfolio[210](index=210&type=chunk) - Inflation risk is considered manageable, as higher borrowing costs are expected to be offset by higher yields on cash/investments and increased interchange revenue from higher consumer spending[213](index=213&type=chunk) - Credit and liquidity risks are managed via a conservative investment policy restricting investments to highly liquid, low-credit-risk assets and by monitoring the creditworthiness of retail distributors and partners[215](index=215&type=chunk)[217](index=217&type=chunk) [Item 4. Controls and Procedures](index=43&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of the end of the period[218](index=218&type=chunk) - No material changes were made to the company's internal control over financial reporting during the first quarter of 2023[219](index=219&type=chunk) [PART II – OTHER INFORMATION](index=44&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=44&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal proceedings, including a class action lawsuit and a shareholder derivative suit alleging misleading statements, with outcomes currently inestimable due to their preliminary stage - The company is a defendant in an alleged class action lawsuit, Koffsmon v. Green Dot Corp., et al., asserting claims under the Exchange Act for allegedly misleading statements about its business strategy between May 2018 and November 2019[105](index=105&type=chunk) - A related shareholder derivative and securities class action, Hellman v. Streit, et al., has been filed and is currently stayed pending resolution of motions in the Koffsmon case[107](index=107&type=chunk) [Item 1A. Risk Factors](index=44&type=section&id=Item%201A.%20Risk%20Factors) This section outlines significant risks, including macroeconomic challenges, reliance on key partners, intense competition, operational issues like system interruptions and data breaches, and extensive regulatory and legal compliance requirements - **Macroeconomic Risks:** Worsening economic conditions, rising inflation, and interest rates could adversely impact consumer spending, transaction volumes, and financial results[227](index=227&type=chunk) - **Business Risks:** The company has significant revenue concentration with Walmart (**17%** of Q1 2023 revenue) and other large partners. The loss of any major partner would materially harm the business[229](index=229&type=chunk) - **Regulatory & Legal Risks:** As a bank holding company, Green Dot is subject to extensive regulation by the Federal Reserve and others. Failure to comply with capital requirements, AML laws (like the BSA), and other regulations could result in enforcement actions, fines, and business restrictions[264](index=264&type=chunk)[267](index=267&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities or use of proceeds during the reporting period - There were no unregistered sales of equity securities during the quarter[294](index=294&type=chunk) [Item 6. Exhibits](index=60&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in Inline XBRL format - The exhibits filed with this report include CEO and CFO certifications pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[295](index=295&type=chunk)

Financial Data and Key Metrics Changes - For Q1 2023, non-GAAP revenue was $412 million, up 4% year-over-year, while adjusted EBITDA was $82.5 million, down 9% [10] - Non-GAAP EPS was $0.99 per share, down approximately 7%, and GAAP revenue also increased by about 4% with operating income of $51 million, down about 1% [10] Business Line Data and Key Metrics Changes - In the Consumer segment, revenue decreased by 12% year-over-year due to nonrenewal of a retail program and a decline in accounts [24] - The direct channel, primarily GO2bank, saw revenue decline in mid-single digits, but revenue per account grew due to improved engagement rates [25] - The B2B services segment, which includes BaaS and PayCard, experienced aggregate revenue growth driven by a 30% increase in BaaS revenue [56] Market Data and Key Metrics Changes - Active accounts in the retail channel were impacted by changes in consumer foot traffic and increased digital competition [24] - The PayCard channel saw increases in accounts, GDV, and purchase volume year-over-year, although fee revenue was affected by consumer sensitivity to surcharge-free ATMs [28] Company Strategy and Development Direction - The company is focusing on embedded finance and aligning its operating divisions around four primary opportunities to enhance growth and profitability [16][18] - A new BaaS partner is set to launch in Q2, which is expected to accelerate revenue growth in 2024 [12] - The company is committed to expense management, having reduced general and administrative costs by 12% year-over-year [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's financial position, with regulatory capital ratios well above required minimums and substantial liquidity [42] - The company anticipates some margin compression in Q2 and Q3 due to the roll-off of legacy accounts, but expects stabilization towards the end of the year [76] Other Important Information - The company expects full-year revenue guidance in the range of $1.38 billion to $1.46 billion, with adjusted EBITDA between $180 million and $190 million [58] - The effective tax rate is expected to be 23.5% for the full year, with a diluted weighted average share count of approximately 52 million shares [32] Q&A Session Summary Question: Could you comment on the magnitude of macro pressure factored into your guidance? - Management indicated that Q1 started solidly without substantial impacts from a worsening economy, but acknowledged potential pressure on interchange rates if the economy deteriorates [63] Question: What features or product enhancements could be added to GO2bank to drive monetization and engagement? - Management highlighted that they are focused on profitable customer acquisition and will continue to enhance product offerings to drive engagement [66][70] Question: Are there limitations on the types of products GO2bank can offer based on your charter? - Management stated that there are no significant limitations on product development, but regulatory considerations will be taken into account [87][88] Question: What is the outlook for GDV given the dynamics of new and departing partners? - Management explained that GDV growth is driven by existing BaaS partners, despite the impact of de-conversion activities [90] Question: Is the reorganization around the four opportunities for reporting or operational purposes? - Management clarified that the reorganization is primarily for operational purposes to improve go-to-market strategies and business development [91] Question: Are you seeing more rational pricing from competitors in the direct channel? - Management noted that competitors are focusing more on profitability, which is leading to more rational marketing spend and pricing [92]

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, 2022 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) (State or othe ...

Green Dot Corporation (NYSE:GDOT) Q4 2022 Earnings Conference Call February 23, 2023 5:00 PM ET Company Participants Tim Willi - Investor Relations George Gresham - President and Chief Executive Officer Jess Unruh - Chief Financial Officer Conference Call Participants George Sutton - Craig-Hallum Operator Good afternoon and welcome to the Green Dot Corp Fourth Quarter 2022 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note this event is being recorded ...

$20,010 $18,682 $17,436 $17,356 $16,353 +14% -16% 0% +22% 14% Q3 2022 Q4 2022 Q4 2021 Q1 2022 Q2 2022 Purchase Volume in millions, reflects change versus the prior year • Consumer Services Direct Deposit Actives1 were • down 17% but are now just below 27% of total actives1 and up "200bp. • Segment Revenue Segment Profit $161 +496 Q4 2021 $141 -12% Q4 2022 ¹ Measured as the number of accounts that have been active in the last 90 days as of quarter end ² Net Interchange Rate equals Interchange revenues divide ...

Q3 2022 Results November 9th, 2022 1 1Green Dot Corporation Green Dot Corporation – Confidential – Confidential Safe Harbor Statement As a reminder, our comments may include forward-looking statements and expectations regarding future results and performance. Please refer to the cautionary language in the earnings release and in Green Dot's filings with the Securities and Exchange Commission, including our most recent Form 10-K and 10-Q, for additional information concerning factors that could cause actual ...