Green Dot Corp - Class A

Green Dot delivered a standout first quarter for 2026, beating Wall Street on both the top and bottom lines as its pending split-up acquisition by Smith Ventures and CommerceOne moves closer to completion. The fintech company posted non-GAAP EPS of $1.12, clearing the $0.88 consensus estimate by 26.80%, extending its streak of beating consensus EPS estimates to four consecutive quarters. Revenue climbed 17.4% year-over-year to $656.25 million, ahead of the $597.39 million consensus by 9.85%, while GAAP net income more than doubled to $53.75 million from $25.77 million a year ago. The primary engine behind the outperformance was a 22% surge in B2B Services revenue, fueled by a large strategic banking-as-a-service partner and broader BaaS portfolio expansion, with active BaaS accounts growing 17%. Tax processing revenue within the Money Movement segment also contributed meaningfully to the quarter's strength. With regulatory applications filed and the S-4 registration statement declared effective, Green Dot is not providing 2026 guidance, though management flagged an anticipated Stripe partnership launch as a catalyst for re-accelerating money processing growth.