Green Dot's Earnings and Revenues Surpass Estimates in Q2

Core Insights - Green Dot Corporation (GDOT) reported strong second-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1][9] - Quarterly earnings per share (excluding non-recurring items) reached 40 cents, surpassing estimates by over 100% and improving 60% year-over-year [1][9] - Revenues totaled $501.2 million, beating estimates by 1.1% and increasing 23.1% year-over-year [1][9] Segmental Revenues - B2B Services revenues rose 38.3% in Q2 2025 to $348.7 million, driven by a key BaaS partner and stability in the BaaS portfolio [2][9] - Money Movement Services revenues decreased 4% year-over-year to $50.85 million, affected by a slight decline in Money Processing, although Tax Processing saw revenue growth [2] - Consumer Services segment revenues were $93.1 million, down 3.64% year-over-year, primarily due to challenges in the Retail channel, partially offset by the launch of PLS [3] Key Metrics - GDOT's gross dollar volume increased 20% year-over-year to $38.55 billion, while purchase volume fell 0.4% to $4.99 billion [4] - The company reported 3.48 million active accounts, a 2.1% increase year-over-year [4] Operating Results - Adjusted EBITDA for the quarter was $45.43 million, reflecting a 34% year-over-year increase, although the adjusted EBITDA margin decreased by 70 basis points to 9.1% [5] Balance Sheet & Cash Flow - At the end of Q2, GDOT had $2.3 billion in unrestricted cash and cash equivalents, up from $1.59 billion at the end of Q4 2024, with no long-term debt [6] - The company generated $177.7 million in cash from operating activities, with capital expenditures amounting to $109.3 million [6] Guidance - GDOT provided 2025 guidance for total operating revenues between $2 billion and $2.1 billion, with the midpoint aligning with the Zacks Consensus Estimate [7] - Adjusted earnings per share guidance was raised to a range of $1.28-$1.42, up from $1.14-$1.28, while adjusted EBITDA is expected to be between $160 million and $170 million [8]