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1. Company Snapshot

1.a. Company Description

Green Dot Corporation, a financial technology and bank holding company, provides various financial products to consumers and businesses in the United States.It operates through three segments: Consumer Services, Business to Business Services, and Money Movement Services.The company offers deposit account programs, including consumer and small business checking account products, network-branded reloadable prepaid debit cards and gift cards, and secured credit programs.


It also provides money processing services, such as cash transfer services that enable consumers to deposit or pick up cash and pay bills with cash at the point-of-sale at any participating retailer; and simply paid disbursement services, which enable wages and authorized funds disbursement to its deposit account programs and accounts issued by any third-party bank or program manager.In addition, the company offers tax processing services comprising tax refund transfers, which provide the processing technology to facilitate receipt of a taxpayers' refund proceeds; small business lending to independent tax preparation providers that seek small advances; and fast cash advance, a loan that enables tax refund recipients.Green Dot Corporation was incorporated in 1999 and is headquartered in Austin, Texas.

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1.b. Last Insights on GDOT

The recent 3-month performance of Green Dot Corporation was negatively impacted by the leadership transition and exploration of strategic alternatives. The company announced that it had engaged Citi to explore potential options, which may lead to a change in its business model or ownership structure. Additionally, the lack of recent earnings releases and the upcoming announcement of first-quarter 2025 results on May 8th may have contributed to the uncertainty surrounding the company's performance.

1.c. Company Highlights

2. Green Dot's Q3 2025 Earnings: A Mixed Bag with Growth Potential

Green Dot Corporation reported adjusted revenue growth of 21% in Q3 2025, although adjusted EBITDA declined by 17%. The decline in adjusted EBITDA was less than expected, indicating some positive momentum. The company's earnings per share (EPS) came in at $0.06, beating estimates of -$0.11. The revenue growth was driven by the B2B segment, which saw a 30% increase in revenue, and the corporate segment, which experienced sharp revenue growth driven by interest income.

Publication Date: Nov -23

📋 Highlights
  • Adjusted Revenue Growth: Adjusted revenue increased by 21%, outperforming the decline in adjusted EBITDA (-17%) which was less severe than anticipated.
  • B2B Segment Expansion: B2B revenue surged 30%, fueled by the BaaS channel’s active account growth and Rapid Employer Services despite staffing industry headwinds.
  • Strategic Partnerships: New collaborations with AmScot, Stripe (enabling 50,000+ cash deposit locations), and Dolphintech, plus Project 30 to fast-track mid-market onboarding.
  • Consumer Segment Stabilization: Consumer revenue declined but active accounts stabilized (-4% year-over-year in retail), with optimism tied to Dole Fintech and Walmart renewals.
  • 2025 Financial Guidance: Non-GAAP revenue projected at $2B–$2.1B, adjusted EBITDA at $165M–$175M, and Q4 revenue growth in the upper single digits despite margin pressures.

Segment Performance

The B2B segment's revenue growth was driven by the BaaS channel and Rapid Employer Services Division. The BaaS channel saw solid increases in active accounts and purchase volume. The money movement segment also grew revenue and profit, with a better-than-expected loss rate on the taxpayer advance program. However, the consumer services segment continues to face challenges, with declines in segment revenue and active accounts, although the rate of decline has moderated.

Operational Highlights and Guidance

The company is focused on strengthening its revenue engine, driving scale and savings in operations, and investing in infrastructure to support customers and partners. Green Dot is positioning itself for sustainable, long-term growth, with a strong pipeline of potential partners and a growing list of customers on its ARC platform. The company expects consolidated revenue growth in Q4 to be in the upper single digits, with adjusted EBITDA margin down roughly 700 basis points from last year.

Valuation and Outlook

With a P/S Ratio of 0.32 and an EV/EBITDA of -7.01, the market seems to have priced in some of the challenges the company is facing. Analysts estimate revenue growth of 11.6% for next year, indicating a positive outlook. The company's focus on high-quality partnerships and its Project 30 initiative to reduce onboarding time are expected to drive growth. With a growing list of partners and launches, and a focus on improving the profitability of the balance sheet, Green Dot is confident in its outlook.

Conclusion on Financial Health

3. NewsRoom

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GREEN DOT INVESTOR ALERT: Scott+Scott Attorneys at Law LLP Investigates Buyout by CommerceOne Financial Corporation and Smith Ventures of Green Dot Corporation – GDOT

Dec -04

Source: businesswire.com

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GREEN DOT SHAREHOLDER ALERT: Kaskela Law LLC Announces Investigation of Green Dot Corporation (GDOT) and Encourages Investors to Contact the Firm to Discuss Their Legal Rights and Options - GDOT

Dec -03

Source: newsfilecorp.com

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GDOT Alert: Monsey Firm of Wohl & Fruchter Investigating Fairness of the Proposed Sale of Green Dot Corporation

Nov -25

Source: globenewswire.com

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Green Dot Sells Bank and Embedded Finance Units to New Owners

Nov -24

Source: pymnts.com

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Green Dot Corporation (GDOT) Smith Ventures, - M&A Call Transcript

Nov -24

Source: seekingalpha.com

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Shareholder Alert: The Ademi Firm investigates whether Green Dot Corporation is obtaining a Fair Price for its Public Shareholders

Nov -24

Source: prnewswire.com

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GDOT Stock Alert: Halper Sadeh LLC is Investigating Whether the Sale of Green Dot Corporation is Fair to Shareholders

Nov -24

Source: businesswire.com

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Green Dot Corp. Announces Strategic Transactions with Smith Ventures and CommerceOne Financial Corp.

Nov -24

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.69%)

6. Segments

Business to Business Services

Expected Growth: 6.5%

Green Dot Corporation's 6.5% growth in Business to Business Services is driven by increasing demand for digital payment solutions, expansion into new industries, and strategic partnerships. Additionally, the company's focus on innovation, customer acquisition, and retention, as well as its ability to adapt to changing market trends, contribute to its growth momentum.

Consumer Services

Expected Growth: 6.8%

Green Dot Corporation's Consumer Services segment growth of 6.8% is driven by increasing adoption of digital banking and mobile payment solutions, expansion of retail partnerships, and rising demand for prepaid debit cards and reload services. Additionally, strategic investments in technology and marketing initiatives have enhanced customer acquisition and retention, contributing to the segment's growth.

Money Movement Services

Expected Growth: 7.2%

The 7.2% growth in Money Movement Services from Green Dot Corporation is driven by increasing adoption of digital payment solutions, rising demand for prepaid debit cards, and strategic partnerships with fintech companies. Additionally, the company's expansion into new markets, such as the gig economy and cross-border payments, has contributed to the growth.

Reconciling Items

Expected Growth: 6.2%

Green Dot Corporation's 6.2% growth is driven by increasing adoption of digital banking solutions, expansion of its B2B payment services, and strategic partnerships. Additionally, the company's focus on cost savings initiatives and operational efficiencies have contributed to its growth. Furthermore, the rising demand for prepaid debit cards and the growth of the gig economy have also fueled the company's revenue growth.

Corporate and Other

Expected Growth: 6.0%

Green Dot's Corporate and Other segment growth of 6.0% is driven by increasing demand for its digital banking and payment solutions, expansion of its partner network, and strategic investments in technology and innovation. Additionally, the company's focus on cost savings initiatives and operational efficiencies have contributed to the segment's growth.

7. Detailed Products

Reloadable Debit Cards

Reloadable debit cards that can be loaded with funds and used to make purchases, pay bills, and get cash at ATMs.

Prepaid Cards

Prepaid cards that can be loaded with a specific amount of funds and used to make purchases, pay bills, and get cash at ATMs.

Cash Back Rewards

A rewards program that offers cash back on certain purchases made with Green Dot debit cards.

Mobile Banking

A mobile banking app that allows users to manage their accounts, deposit checks, and transfer funds on the go.

Tax Refund Processing

A service that allows users to have their tax refund direct deposited onto a Green Dot debit card.

Money Transfer

A service that allows users to send and receive money transfers using their Green Dot debit card.

8. Green Dot Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Green Dot Corporation's prepaid debit cards and banking services have some substitutes, but they are not easily replaceable due to the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Green Dot Corporation's customers have limited bargaining power due to the company's diversified product offerings and lack of dependence on a single customer segment.

Bargaining Power Of Suppliers

Green Dot Corporation has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's scale and negotiating power also help to mitigate supplier bargaining power.

Threat Of New Entrants

The threat of new entrants in the prepaid debit card and banking services industry is low due to the high barriers to entry, including regulatory hurdles and the need for significant capital investments.

Intensity Of Rivalry

The prepaid debit card and banking services industry is highly competitive, with several established players competing for market share. Green Dot Corporation faces intense rivalry from companies such as NetSpend and PayPal.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 7.26%
Debt Cost 9.14%
Equity Weight 92.74%
Equity Cost 9.14%
WACC 9.14%
Leverage 7.83%

11. Quality Control: Green Dot Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Oportun Financial

A-Score: 5.1/10

Value: 9.4

Growth: 3.3

Quality: 6.0

Yield: 0.0

Momentum: 10.0

Volatility: 2.0

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Green Dot

A-Score: 4.5/10

Value: 9.1

Growth: 2.9

Quality: 4.9

Yield: 0.0

Momentum: 7.5

Volatility: 2.3

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PRA Group

A-Score: 4.2/10

Value: 9.3

Growth: 2.6

Quality: 7.9

Yield: 0.0

Momentum: 1.5

Volatility: 3.7

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Consumer Portfolio Services

A-Score: 3.8/10

Value: 7.3

Growth: 5.0

Quality: 4.8

Yield: 0.0

Momentum: 2.0

Volatility: 3.7

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Upstart

A-Score: 3.3/10

Value: 6.6

Growth: 2.4

Quality: 5.2

Yield: 0.0

Momentum: 4.5

Volatility: 1.0

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Open Lending

A-Score: 1.5/10

Value: 4.6

Growth: 0.7

Quality: 1.4

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

13.13$

Current Price

13.13$

Potential

-0.00%

Expected Cash-Flows