Green Dot Stock Declines 4% Since Reporting Q3 Earnings Beat

Core Insights - Green Dot (GDOT) reported strong third-quarter 2025 results, with both earnings and revenues exceeding the Zacks Consensus Estimate, yet the stock declined by 4% post-earnings release on November 10 [1] Financial Performance - Quarterly earnings per share (EPS) of 6 cents, excluding 62 cents from non-recurring items, surpassed the consensus estimated loss of 11 cents and improved by 53.9% year-over-year [2] - Revenues reached $491.9 million, beating the Zacks Consensus Estimate by 1% and increasing by 20% year-over-year [2] Segment Performance - B2B Services revenues surged by 32% to $364.2 million, driven by a BaaS partner and stability across the BaaS portfolio [3] - Money Movement Services revenues declined by 6% to $29.8 million, affected by a slight dip in Money Processing, although Tax Processing saw revenue growth [3] - Consumer Services segment revenues fell by 10% to $88.3 million, primarily due to secular headwinds in the Retail channel, partially offset by the recent launch of PLS [4] Key Metrics - Gross dollar volume increased by 18% to $39.5 million, while purchase volume decreased by 5.1% to $4.74 billion [5] - Active accounts rose by 0.9% year-over-year to 3.51 million [5] - Adjusted EBITDA totaled $23.57 million, down 17% year-over-year, with the adjusted EBITDA margin decreasing by 220 basis points to 4.8% [6] Balance Sheet & Cash Flow - Green Dot ended the third quarter with $1.64 billion in unrestricted cash and cash equivalents, up from $1.59 billion at the end of Q4 2024, and had no long-term debt [7] - The company generated $201.03 million in cash from operating activities [7] Guidance - Green Dot provided 2025 guidance for total operating revenues between $2 billion and $2.1 billion, with the midpoint aligning with the Zacks Consensus Estimate [8] - Adjusted EPS guidance was raised to a range of $1.31-$1.44, above the previous range of $1.28-$1.42, with the midpoint exceeding the Zacks Consensus Estimate of $1.35 [9] - Adjusted EBITDA is expected to be between $165 million and $175 million, an increase from the previous guidance of $160 million to $170 million [9]