Green Dot Corp - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.29%.
Did GDOT Beat Earnings? Q2 2025 Results
Green Dot delivered a standout second quarter, posting non-GAAP EPS of $0.40 against a consensus estimate of $0.18, a beat of 122.22%, while revenue of $504.18 million cleared the $490.57 million estimate by 2.77% and grew 23.8% year over year. The driving force behind the quarter was the company's B2B Services segment, which generated $348.65 million in revenue, up 38% from $252.06 million a year ago, fueled by growth from existing banking-as-a-service partners and newly announced relationships with Samsung and Credit Sesame on its Arc embedded finance platform. Gross dollar volume across the platform climbed to $38.55 billion from $32.13 billion, underscoring the scale of that momentum. On a GAAP basis, Green Dot recorded a net loss of $47.02 million, wider than the prior-year loss of $28.71 million, largely due to equity method investment losses and net other expenses. Management responded to the operational strength by raising full-year adjusted EBITDA guidance to $160 million to $170 million and lifting non-GAAP EPS guidance to $1.28 to $1.42, reflecting confidence in sustained B2B-driven growth.
- B2B Services segment revenue grew 38% YoY driven by growth from existing BaaS partners
- Non-GAAP revenue up 24% and adjusted EBITDA up 34% driven by balance sheet optimization, growth from existing partners, and disciplined cost management
- Net interest income nearly doubled YoY to $21.5 million from $14.7 million
- Consolidated gross dollar volume rose 20% to $38.5 billion from $32.1 billion
- Adjusted EBITDA margin expanded to 9.1% from 8.4%
“It was another solid quarter as we built on the momentum of the last several quarters, launched a new partnership with Samsung and announced an exciting new partnership with Credit Sesame.”
Green Dot CEO, on the earnings call
Forward Guidance & Outlook
Green Dot raised its full-year 2025 guidance. Non-GAAP total operating revenues are still expected between $2.0 billion and $2.1 billion. Adjusted EBITDA guidance was raised to $160 million–$170 million (from $150 million–$160 million). Non-GAAP EPS guidance was raised to $1.28–$1.42 (from $1.14–$1.28). The outlook reflects the current macro-economic environment, effect of inflation and interest rates, negative trends in certain business channels, investment in strategic initiatives and compliance programs, and cost reduction initiatives. Expenses associated with the strategic alternatives review process are excluded from non-GAAP measures.
GDOT YoY Financials
GDOT Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.