– Company Posts Active Account Growth, Expands
Embedded Finance Business with New Fintech, Retail & Other BaaS
Partnerships
– 2025 Guidance Expects Embedded Finance
Including BaaS and Money Movement to Drive 2025 Growth
Green Dot Corporation (NYSE: GDOT), a leading digital bank and
fintech that delivers seamless banking and payment tools for
consumers and businesses, today reported financial results for the
quarter ended December 31, 2024.
“It was a solid year and fourth quarter for Green Dot as we
accelerated revenue and earnings growth and saw our first positive
quarter of account growth in several years,” said George Gresham,
Chief Executive Officer of Green Dot. "We balanced the impact of
ongoing headwinds with operational improvements and growth in our
B2B and embedded finance businesses, aided by new partner wins
including Varo, Clip Money, DolFintech and others -- reflecting the
increasing demand and growth opportunity in embedded finance and
Green Dot’s unique value proposition. This reinforces our
investments in Arc, our embedded finance brand and platform, and
further bolsters my confidence in our growth strategy and path
forward.”
Consolidated Results Summary
Three Months Ended December
31,
Year Ended December
31,
2024
2023
% Change
2024
2023
% Change
(In thousands, except per
share data and percentages)
GAAP financial results
Total operating revenues
$
455,024
$
366,043
24%
$
1,723,876
$
1,501,328
15%
Net income (loss)
$
5,103
$
(23,603
)
(122)%
$
(26,702
)
$
6,722
(497)%
Diluted earnings (loss) per common
share
$
0.09
$
(0.45
)
(120)%
$
(0.50
)
$
0.13
(485)%
Non-GAAP financial results1
Non-GAAP total operating revenues1
$
451,717
$
361,717
25%
$
1,707,715
$
1,483,795
15%
Adjusted EBITDA1
$
43,841
$
25,727
70%
$
165,386
$
170,874
(3)%
Adjusted EBITDA/Non-GAAP total operating
revenues (adjusted EBITDA margin)
9.7
%
7.1
%
2.6%
9.7
%
11.5
%
(1.8)%
Non-GAAP net income1
$
22,191
$
7,325
203%
$
74,005
$
85,214
(13)%
Non-GAAP diluted earnings per share1
$
0.40
$
0.14
186%
$
1.37
$
1.62
(15)%
Unencumbered cash at the holding company was approximately $86
million as of December 31, 2024.
1
Reconciliations of total operating
revenues to non-GAAP total operating revenues, net income to
adjusted EBITDA, net income to non-GAAP net income, and diluted
earnings per share to non-GAAP diluted earnings per share,
respectively, are provided in the tables immediately following the
unaudited consolidated financial statements. Additional information
about the Company's non-GAAP financial measures can be found under
the caption “About Non-GAAP Financial Measures” below.
Key Metrics
The following table shows Green Dot's quarterly key business
metrics for each of the last eight calendar quarters on a
consolidated basis and by each of its reportable segments. Please
refer to Green Dot’s latest Annual Report on Form 10-K for a
description of the key business metrics, as well as additional
information regarding how Green Dot organizes its business by
segment.
2024
2023
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
(In millions)
Consolidated *
Gross dollar volume
$
35,282
$
33,473
$
32,130
$
30,755
$
26,355
$
24,836
$
24,724
$
23,289
Number of active accounts
3.67
3.46
3.41
3.51
3.57
3.67
3.71
3.84
Purchase volume
$
5,152
$
4,887
$
5,012
$
5,274
$
5,273
$
5,362
$
5,734
$
6,145
Consumer Services
Gross dollar volume
$
4,060
$
3,983
$
4,014
$
4,500
$
4,290
$
4,619
$
5,122
$
5,677
Number of active accounts
1.88
1.78
1.76
1.93
2.05
2.16
2.35
2.41
Direct deposit active accounts
0.43
0.44
0.45
0.46
0.49
0.52
0.59
0.60
Purchase volume
$
3,082
$
2,904
$
3,036
$
3,339
$
3,312
$
3,553
$
3,984
$
4,344
B2B Services
Gross dollar volume
$
31,222
$
29,490
$
28,116
$
26,255
$
22,065
$
20,217
$
19,602
$
17,612
Number of active accounts
1.79
1.68
1.65
1.58
1.52
1.51
1.36
1.43
Purchase volume
$
2,070
$
1,983
$
1,976
$
1,935
$
1,961
$
1,809
$
1,750
$
1,801
Money Movement
Number of cash transfers
8.14
8.22
8.15
7.77
8.19
8.31
8.66
8.70
Number of tax refunds processed
0.15
0.19
4.20
9.28
0.16
0.20
3.87
9.91
* Represents the sum of Green Dot's Consumer Services and B2B
(as defined herein) Services segments.
“We delivered fourth quarter results in line with our
expectations and observed another quarter of revenue and earnings
growth, while achieving an increase in active accounts for the
first time in over three years,” said Jess Unruh, Chief Financial
Officer of Green Dot. “Though our 2025 guidance indicates a decline
in adjusted EBITDA, this is primarily due to continued headwinds in
our Consumer Services segment. Nevertheless, I remain optimistic
about the potential for continued growth in our B2B and Money
Movement segments, which are integral to our embedded finance
strategy.”
2025 Financial Guidance
Green Dot has provided its financial outlook for 2025. Green
Dot’s outlook is based on a number of assumptions that management
believes are reasonable at the time of this earnings release. In
particular, its outlook reflects several considerations, including
but not limited to the current macro-economic environment, the
effect of inflation and interest rates, negative trends within
certain channels of its business, investment in strategic
initiatives and compliance programs, and cost reduction
initiatives. Information regarding potential risks that could cause
the actual results to differ from these forward-looking statements
is set forth below and in Green Dot's filings with the Securities
and Exchange Commission.
Total Non-GAAP Operating Revenues2
- Green Dot expects its full year non-GAAP total operating
revenues2 to be between $1.85 billion and $1.90 billion, or up
approximately 10% year over year at the mid-point.
Adjusted EBITDA2
- Green Dot expects its full year adjusted EBITDA2 to be between
$145 million and $155 million, or down approximately 9% year over
year at the mid-point.
Non-GAAP EPS2
- Green Dot expects its full year non-GAAP EPS2 to be between
$1.05 and $1.20, or down 18% year over year at the mid-point.
The components of Green Dot's non-GAAP EPS2 guidance range are
as follows:
Range
Low
High
(In millions, except per share
data)
Adjusted EBITDA
$
145.0
$
155.0
Depreciation and amortization*
(62.0
)
(62.0
)
Net interest expense
(7.9
)
(7.9
)
Non-GAAP pre-tax income
$
75.1
$
85.1
Tax impact**
(16.1
)
(18.3
)
Non-GAAP net income
$
59.0
$
66.8
Diluted weighted-average shares issued and
outstanding
55.9
55.9
Non-GAAP earnings per share
$
1.05
$
1.20
*
Excludes the impact of amortization of
acquired intangible assets
**
Assumes a non-GAAP effective tax rate of
approximately 22% for full year.
2
For additional information, see
reconciliations of forward-looking guidance for these non-GAAP
financial measures to their respective, most directly comparable
projected GAAP financial measures provided in the tables
immediately following the reconciliation of Net Income to Adjusted
EBITDA.
Conference Call
Green Dot's management will host a conference call to discuss
fourth quarter 2024 financial results today at 5:00 p.m. ET. The
conference call can be accessed live from Green Dot's investor
relations website at http://ir.greendot.com/. Green Dot uses this
website as a tool to disclose important information about the
company to investors and comply with its disclosure obligations
under Regulation Fair Disclosure. A replay of the webcast will be
available at the same website following the call. The replay will
be available until Thursday, March 6, 2025.
Forward-Looking Statements
This earnings release contains forward-looking statements, which
are subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These statements include, among
other things, statements in the quotes of Green Dot's executive
officers and under the heading "2025 Financial Guidance," and other
future events that involve risks and uncertainties. Actual results
may differ materially from those contained in the forward-looking
statements contained in this earnings release, and reported results
should not be considered as an indication of future performance.
The potential risks and uncertainties that could cause actual
results to differ from those projected include, among other things,
impacts from and changes in general economic conditions on Green
Dot’s business, results of operations and financial condition,
shifts in consumer behavior towards electronic payments, the timing
and impact of revenue growth activities, Green Dot's dependence on
revenues derived from Walmart or other large partners, the timing
and impact of non-renewals or terminations of agreements with other
large partners, impact of competition, Green Dot's reliance on
retail distributors for the promotion of its products and services,
demand for Green Dot's new and existing products and services,
continued and improving returns from Green Dot's investments in
strategic initiatives, Green Dot's ability to operate in a highly
regulated environment, including with respect to any restrictions
imposed on its business, changes to governmental policies or
rulemaking or enforcement priorities affecting financial
institutions or to existing laws or regulations affecting Green
Dot's operating methods or economics, Green Dot's reliance on
third-party vendors, changes in credit card association or other
network rules or standards, changes in card association and debit
network fees or products or interchange rates, instances of fraud
developments in the financial services industry that impact debit
card usage generally, business interruption or systems failure,
economic, political and other conditions may adversely affect
trends in consumer spending and Green Dot's involvement in
litigation or investigations. These and other risks are discussed
in greater detail in Green Dot's Securities and Exchange Commission
filings, including its most recent annual report on Form 10-K and
quarterly report on Form 10-Q available on Green Dot's investor
relations website at ir.greendot.com and on the SEC website at
www.sec.gov. All information provided in this release and in the
attachments is as of February 27, 2025, and Green Dot assumes no
obligation to update this information as a result of future events
or developments, except as required by law.
About Non-GAAP Financial Measures
To supplement Green Dot's consolidated financial statements
presented in accordance with accounting principles generally
accepted in the United States of America (GAAP), Green Dot uses
measures of operating results that are adjusted for, among other
things, non-operating net interest income and expense; other
non-interest investment income earned by its bank; income tax
benefit and expense; depreciation and amortization, including
amortization of acquired intangibles; certain legal settlement
gains and charges; stock-based compensation and related employer
payroll taxes; changes in the fair value of contingent
consideration; transaction costs from acquisitions; amortization
attributable to deferred financing costs, impairment charges;
extraordinary severance expenses; earnings or losses from equity
method investments; changes in the fair value of loans held for
sale; commissions and certain processing-related costs associated
with Banking as a Service ("BaaS") products and services where
Green Dot does not control customer acquisition; realized gains on
investment securities; other charges and income not reflective of
ongoing operating results; and income tax effects. This earnings
release includes non-GAAP total operating revenues, adjusted
EBITDA, non-GAAP net income, and non-GAAP diluted earnings per
share. These non-GAAP financial measures are not calculated or
presented in accordance with, and are not alternatives or
substitutes for, financial measures prepared in accordance with
GAAP, and should be read only in conjunction with Green Dot's
financial measures prepared in accordance with GAAP. Green Dot's
non-GAAP financial measures may be different from similarly-titled
non-GAAP financial measures used by other companies. Green Dot
believes that the presentation of non-GAAP financial measures
provides useful information to management and investors regarding
underlying trends in its consolidated financial condition and
results of operations. Green Dot's management regularly uses these
supplemental non-GAAP financial measures internally to understand,
manage and evaluate Green Dot's business and make operating
decisions. For additional information regarding Green Dot's use of
non-GAAP financial measures and the items excluded by Green Dot
from one or more of its historic and projected non-GAAP financial
measures, investors are encouraged to review the reconciliations of
Green Dot's historic and projected non-GAAP financial measures to
the comparable GAAP financial measures, which are attached to this
earnings release, and which can be found by clicking on “Financial
Information” in the Investor Relations section of Green Dot's
website at http://ir.greendot.com/.
About Green Dot
Green Dot Corporation (NYSE: GDOT) is a financial technology
platform and registered bank holding company that builds banking
and payment solutions to create value, retain and reward customers,
and accelerate growth for businesses of all sizes. For more than
two decades, Green Dot has delivered financial tools and services
that address the most pressing financial needs of consumers and
businesses, and that transform the way people and businesses manage
and move money
Green Dot delivers a broad spectrum of financial products to
consumers and businesses through its portfolio of brands,
including: GO2bank, a leading digital and mobile bank account
offering simple, secure and useful banking for Americans living
paycheck to paycheck; the Green Dot Network (“GDN”) of more than
90,000 retail distribution and cash access locations nationwide;
Arc by Green Dot, the single-source embedded finance platform
combining all of Green Dot’s secure banking and money processing
capabilities to power businesses at all stages of growth; rapid!
wage and disbursements solutions, providing pay card and earned
wage access services to more than 6,000 businesses and their
employees; and Santa Barbara TPG (“SBTPG”), the company’s tax
division, which processes more than 14 million tax refunds
annually.
Founded in 1999, Green Dot has managed more than 80 million
accounts to date both directly and through its partners. Green Dot
Bank is a subsidiary of Green Dot Corporation and member of the
FDIC. For more information about Green Dot’s products and services,
please visit www.greendot.com.
GREEN DOT CORPORATION
CONSOLIDATED BALANCE
SHEETS
December 31, 2024
December 31, 2023
(unaudited)
Assets
(In thousands, except par
value)
Current assets:
Unrestricted cash and cash equivalents
$
1,592,391
$
682,263
Restricted cash
44
4,239
Investment securities available-for-sale,
at fair value
24,152
33,859
Settlement assets
616,172
737,989
Accounts receivable, net
132,007
110,141
Prepaid expenses and other assets
63,424
69,419
Total current assets
2,428,190
1,637,910
Investment securities available-for-sale,
at fair value
2,008,650
2,203,142
Loans to bank customers, net of allowance
for credit losses of $17,542 and $11,383 as of December 31, 2024
and December 31, 2023, respectively
31,961
30,534
Prepaid expenses and other assets
242,707
221,656
Property, equipment, and internal-use
software, net
188,363
179,376
Operating lease right-of-use assets
10,823
5,342
Deferred expenses
1,242
1,546
Net deferred tax assets
124,405
117,139
Goodwill and intangible assets
397,941
420,477
Total assets
$
5,434,282
$
4,817,122
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
103,765
$
119,870
Deposits
4,010,520
3,293,603
Obligations to customers
236,616
314,278
Settlement obligations
48,482
57,001
Amounts due to card issuing banks for
overdrawn accounts
84
225
Other accrued liabilities
87,675
91,239
Operating lease liabilities
2,416
3,369
Deferred revenue
6,279
6,343
Line of credit
—
61,000
Income tax payable
6,648
6,262
Total current liabilities
4,502,485
3,953,190
Other accrued liabilities
1,045
1,895
Operating lease liabilities
8,641
2,687
Notes payable
48,526
—
Total liabilities
4,560,697
3,957,772
Stockholders’ equity:
Class A common stock, $0.001 par value;
100,000 shares authorized as of December 31, 2024 and December 31,
2023; 54,227 and 52,816 shares issued and outstanding as of
December 31, 2024 and December 31, 2023, respectively
55
53
Additional paid-in capital
408,010
375,980
Retained earnings
743,602
770,304
Accumulated other comprehensive loss
(278,082
)
(286,987
)
Total stockholders’ equity
873,585
859,350
Total liabilities and stockholders’
equity
$
5,434,282
$
4,817,122
GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF
OPERATIONS
(UNAUDITED)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
(In thousands, except per
share data)
Operating revenues:
Card revenues and other fees
$
353,456
$
272,185
$
1,231,458
$
1,007,565
Cash processing revenues
33,306
33,491
231,753
225,416
Interchange revenues
49,350
52,053
198,300
231,003
Interest income, net
18,912
8,314
62,365
37,344
Total operating revenues
455,024
366,043
1,723,876
1,501,328
Operating expenses:
Sales and marketing expenses
49,262
50,795
217,210
245,325
Compensation and benefits expenses
61,077
45,594
251,044
238,528
Processing expenses
255,460
178,673
887,249
639,228
Other general and administrative
expenses
74,848
117,253
370,041
355,577
Total operating expenses
440,647
392,315
1,725,544
1,478,658
Operating income (loss)
14,377
(26,272
)
(1,668
)
22,670
Interest expense, net
1,200
906
5,506
3,027
Other (expense) income, net
(5,320
)
1,040
(15,365
)
(5,010
)
Income (loss) before income taxes
7,857
(26,138
)
(22,539
)
14,633
Income tax expense (benefit)
2,754
(2,535
)
4,163
7,911
Net income (loss)
$
5,103
$
(23,603
)
$
(26,702
)
$
6,722
Basic earnings (loss) per common
share:
$
0.09
$
(0.45
)
$
(0.50
)
$
0.13
Diluted earnings (loss) per common
share
$
0.09
$
(0.45
)
$
(0.50
)
$
0.13
Basic weighted-average common shares
issued and outstanding:
53,989
52,622
53,527
52,251
Diluted weighted-average common shares
issued and outstanding:
55,153
52,622
53,527
52,510
GREEN DOT CORPORATION
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(UNAUDITED)
Year Ended December
31,
2024
2023
(In thousands)
Operating activities
Net (loss) income
$
(26,702
)
$
6,722
Adjustments to reconcile net (loss) income
to net cash provided by operating activities:
Depreciation and amortization of property,
equipment and internal-use software
63,422
58,714
Amortization of intangible assets
21,277
24,257
Provision for uncollectible overdrawn
accounts from purchase transactions
19,762
24,771
Provision for loan losses
27,562
26,311
Stock-based compensation
29,928
33,744
Losses in equity method investments
15,751
9,310
Amortization of discount on
available-for-sale investment securities
(1,986
)
(2,276
)
Impairment of long-lived assets
4,944
—
Deferred income tax benefit
(10,356
)
(11,867
)
Other
(40
)
(4,100
)
Changes in operating assets and
liabilities:
Accounts receivable, net
(41,628
)
(60,475
)
Prepaid expenses and other assets
182
3,354
Deferred expenses
304
13,001
Accounts payable and other accrued
liabilities
(19,469
)
690
Deferred revenue
(917
)
(19,539
)
Income tax receivable/payable
(22
)
(5,613
)
Other, net
(629
)
515
Net cash provided by operating
activities
81,383
97,519
Investing activities
Purchases of available-for-sale investment
securities
(11,845
)
—
Proceeds from maturities of
available-for-sale securities
232,689
176,665
Proceeds from sales and calls of
available-for-sale securities
273
186
Payments for property, equipment and
internal-use software
(74,287
)
(75,942
)
Net changes in loans
(27,857
)
(28,970
)
Investment in TailFin Labs, LLC
(35,000
)
(35,000
)
Other investing activities
(2,571
)
(3,782
)
Net cash provided by investing
activities
81,402
33,157
Financing activities
Borrowings on notes payable
49,501
—
Borrowings on revolving line of credit
238,000
282,000
Repayments on revolving line of credit
(299,000
)
(256,000
)
Proceeds from exercise of options and ESPP
purchases
4,996
5,565
Taxes paid related to net share settlement
of equity awards
(2,892
)
(3,903
)
Net changes in deposits
717,982
(159,436
)
Net changes in settlement assets and
obligations to customers
35,636
(132,245
)
Deferred financing costs
(1,075
)
—
Net cash provided by (used in) financing
activities
743,148
(264,019
)
Net increase (decrease) in unrestricted
cash, cash equivalents and restricted cash
905,933
(133,343
)
Unrestricted cash, cash equivalents and
restricted cash, beginning of period
686,502
819,845
Unrestricted cash, cash equivalents and
restricted cash, end of period
$
1,592,435
$
686,502
Cash paid for interest
$
12,968
$
5,923
Cash paid for income taxes
$
13,590
$
24,351
Reconciliation of unrestricted cash,
cash equivalents and restricted cash at end of period:
Unrestricted cash and cash equivalents
$
1,592,391
$
682,263
Restricted cash
44
4,239
Total unrestricted cash, cash equivalents
and restricted cash, end of period
$
1,592,435
$
686,502
GREEN DOT CORPORATION
REPORTABLE SEGMENTS
(UNAUDITED)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Segment Revenue
(In thousands)
Consumer Services
$
107,184
$
111,489
$
402,462
$
498,617
B2B Services
312,146
221,841
1,081,804
772,991
Money Movement Services
29,690
29,370
217,657
209,674
Corporate and Other
2,697
(983
)
5,792
2,513
Total segment revenues
451,717
361,717
1,707,715
1,483,795
BaaS commissions and processing expenses
(8)
4,425
5,103
18,917
20,449
Other income (9)
(1,118
)
(777
)
(2,756
)
(2,916
)
Total operating revenues
$
455,024
$
366,043
$
1,723,876
$
1,501,328
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
Segment Profit
(In thousands)
Consumer Services
$
54,803
$
37,740
$
161,900
$
177,190
B2B Services
27,277
18,495
92,374
77,303
Money Movement Services
8,727
9,526
122,582
113,176
Corporate and Other
(46,966
)
(40,034
)
(211,470
)
(196,795
)
Total segment profit *
43,841
25,727
165,386
170,874
Reconciliation to income (loss) before
income taxes
Depreciation and amortization of property,
equipment and internal-use software
15,690
16,408
63,422
58,715
Stock based compensation and related
employer taxes
5,924
6,033
30,353
34,288
Amortization of acquired intangible
assets
4,982
5,664
21,277
24,257
Impairment charges
1,097
—
9,625
—
Legal settlements and related expenses
895
21,650
33,791
23,614
Other expense
876
2,244
8,586
7,330
Operating income (loss)
14,377
(26,272
)
(1,668
)
22,670
Interest expense, net
1,200
906
5,506
3,027
Other (expense) income, net
(5,320
)
1,040
(15,365
)
(5,010
)
Income (loss) before income taxes
$
7,857
$
(26,138
)
$
(22,539
)
$
14,633
* Total segment profit is also referred to herein as adjusted
EBITDA in its non-GAAP measures. Additional information about the
Company's non-GAAP financial measures can be found under the
caption “About Non-GAAP Financial Measures."
Green Dot's segment reporting is based on how its Chief
Operating Decision Maker (“CODM”) manages its businesses, including
resource allocation and performance assessment. Its CODM (who is
the Chief Executive Officer) organizes and manages the businesses
primarily on the basis of the channels in which its product and
services are offered and uses net revenue and segment profit to
assess profitability. Segment profit reflects each segment's net
revenue less direct costs, such as sales and marketing expenses,
processing expenses, transaction losses and fraud management, and
customer support and related expenses. Green Dot’s operations are
aggregated amongst three reportable segments: 1) Consumer Services,
2) Business to Business ("B2B") Services and 3) Money Movement
Services.
The Corporate and Other segment primarily consists of net
interest income, certain other investment income earned by Green
Dot's bank, interest profit sharing arrangements with certain BaaS
partners (a reduction of revenue), eliminations of inter-segment
revenues and expenses, and unallocated corporate expenses, which
include Green Dot's fixed expenses, such as salaries, wages and
related benefits for its employees and certain third-party
contractors, professional services fees, software licenses,
telephone and communication costs, rent, utilities, and insurance
that are not considered when Green Dot's CODM evaluates segment
performance. Non-cash expenses such as stock-based compensation,
depreciation and amortization of long-lived assets, impairment
charges and other non-recurring expenses that are not considered by
Green Dot's CODM when it is evaluating overall consolidated
financial results are excluded from its unallocated corporate
expenses.
GREEN DOT CORPORATION
Reconciliation of Total
Operating Revenues to Non-GAAP Total Operating Revenues (1)
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
(In thousands)
Total operating revenues
$
455,024
$
366,043
$
1,723,876
$
1,501,328
BaaS commissions and processing expenses
(8)
(4,425
)
(5,103
)
(18,917
)
(20,449
)
Other income (9)
1,118
777
2,756
2,916
Non-GAAP total operating revenues
$
451,717
$
361,717
$
1,707,715
$
1,483,795
Reconciliation of Net (Loss)
Income to Non-GAAP Net Income (1)
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
(In thousands, except per
share data)
Net income (loss)
$
5,103
$
(23,603
)
$
(26,702
)
$
6,722
Stock-based compensation and related
employer payroll taxes (3)
5,924
6,033
30,353
34,288
Amortization of acquired intangible assets
(4)
4,982
5,664
21,277
24,257
Transaction and related acquisition costs
(4)
—
—
—
(3
)
Amortization of deferred financing costs
(5)
117
36
243
144
Impairment charges (5)
3,597
—
12,125
—
Legal settlements and related expenses
(5)
895
21,650
33,791
23,614
Losses in equity method investments
(5)
3,820
24
15,751
9,310
Change in fair value of loans held for
sale (5)
(2
)
(264
)
(246
)
(1,365
)
Extraordinary severance expenses (6)
—
1,326
6,072
4,741
Other income, net (5)
(122
)
118
(126
)
(343
)
Income tax effect (7)
(2,123
)
(3,659
)
(18,533
)
(16,151
)
Non-GAAP net income
$
22,191
$
7,325
$
74,005
$
85,214
Diluted earnings (loss) per common
share
GAAP
$
0.09
$
(0.45
)
$
(0.50
)
$
0.13
Non-GAAP
$
0.40
$
0.14
$
1.37
$
1.62
Diluted weighted-average common shares
issued and outstanding
GAAP
55,153
52,622
53,527
52,510
Non-GAAP
55,153
52,852
54,207
52,510
Reconciliation of GAAP to
Non-GAAP Diluted Weighted-Average
Shares Issued and
Outstanding
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
(In thousands)
Diluted weighted-average shares issued and
outstanding
55,153
52,622
53,527
52,510
Anti-dilutive shares due to GAAP net
loss
—
230
680
—
Non-GAAP diluted weighted-average shares
issued and outstanding
55,153
52,852
54,207
52,510
GREEN DOT CORPORATION
Supplemental Detail on Diluted
Weighted-Average Common Shares Issued and Outstanding
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
(In thousands)
Class A common stock outstanding as of
December 31:
54,227
52,816
54,227
52,816
Weighting adjustment
(238
)
(194
)
(700
)
(565
)
Dilutive potential shares:
Service based restricted stock units
1,128
165
666
138
Performance-based restricted stock
units
18
24
5
52
Employee stock purchase plan
18
41
9
69
Diluted weighted-average shares issued and
outstanding
55,153
52,852
54,207
52,510
Reconciliation of Net Income
(Loss) to Adjusted EBITDA (1)
(Unaudited)
Three Months Ended December
31,
Year Ended December
31,
2024
2023
2024
2023
(In thousands)
Net income (loss)
$
5,103
$
(23,603
)
$
(26,702
)
$
6,722
Interest expense, net (2)
1,200
906
5,506
3,027
Income tax expense
2,754
(2,535
)
4,163
7,911
Depreciation and amortization of property,
equipment and internal-use software (2)
15,690
16,408
63,422
58,715
Stock-based compensation and related
employer payroll taxes (2)(3)
5,924
6,033
30,353
34,288
Amortization of acquired intangible assets
(2)(4)
4,982
5,664
21,277
24,257
Transaction and related acquisition costs
(2)(4)
—
—
—
(3
)
Impairment charges (2)(5)
3,597
—
12,125
—
Legal settlements and related expenses
(2)(5)
895
21,650
33,791
23,614
Losses in equity method investments
(2)(5)
3,820
24
15,751
9,310
Change in fair value of loans held for
sale (2)(5)
(2
)
(264
)
(246
)
(1,365
)
Extraordinary severance expenses
(2)(6)
—
1,326
6,072
4,741
Other income, net (2)(5)
(122
)
118
(126
)
(343
)
Adjusted EBITDA
$
43,841
$
25,727
$
165,386
$
170,874
Non-GAAP total operating revenues
$
451,717
$
361,717
$
1,707,715
$
1,483,795
Adjusted EBITDA/Non-GAAP total operating
revenues (adjusted EBITDA margin)
9.7
%
7.1
%
9.7
%
11.5
%
GREEN DOT CORPORATION
Reconciliation of Forward
Looking Guidance for Non-GAAP Financial Measures to
Projected GAAP Total Operating
Revenues (1)
(Unaudited)
FY 2025
Range
Low
High
(In millions)
Total operating revenues
$
1,860
$
1,910
Adjustments (8)(9)
(10
)
(10
)
Non-GAAP total operating revenues
$
1,850
$
1,900
Reconciliation of Forward
Looking Guidance for Non-GAAP Financial Measures to
Projected GAAP Net Income and
Loss (1)
(Unaudited)
FY 2025
Range
Low
High
(In millions)
Net income (loss)
$
(7.5
)
$
0.1
Adjustments (10)
152.5
154.9
Adjusted EBITDA
$
145.0
$
155.0
Non-GAAP total operating revenues
$
1,900
$
1,850
Adjusted EBITDA/Non-GAAP total operating
revenues (adjusted EBITDA margin)
7.6
%
8.4
%
Reconciliation of Forward
Looking Guidance for Non-GAAP Financial Measures to
Projected GAAP Net Income and
Loss(1)
(Unaudited)
FY 2025
Range
Low
High
(In millions, except per share
data)
Net income (loss)
$
(7.5
)
$
0.1
Adjustments (10)
66.5
66.7
Non-GAAP net income
$
59.0
$
66.8
Diluted earnings (loss) per share
GAAP
$
(0.13
)
$
—
Non-GAAP
$
1.05
$
1.20
Diluted weighted-average shares issued and
outstanding
GAAP
55.9
55.9
(1)
To supplement Green Dot’s consolidated
financial statements presented in accordance with GAAP, Green Dot
uses measures of operating results that are adjusted to exclude
various, primarily non-cash, expenses and charges. These financial
measures are not calculated or presented in accordance with GAAP
and should not be considered as alternatives to or substitutes for
operating revenues, operating income, net income or any other
measure of financial performance calculated and presented in
accordance with GAAP. These financial measures may not be
comparable to similarly-titled measures of other organizations
because other organizations may not calculate their measures in the
same manner as Green Dot does. These financial measures are
adjusted to eliminate the impact of items that Green Dot does not
consider indicative of its core operating performance. You are
encouraged to evaluate these adjustments and the reasons Green Dot
considers them appropriate.
Green Dot believes that the non-GAAP financial measures it
presents are useful to investors in evaluating Green Dot’s
operating performance for the following reasons:
• adjusted EBITDA is widely used by investors
to measure a company’s operating performance without regard to
items, such as non-operating net interest income and expense,
income tax benefit and expense, depreciation and amortization,
stock-based compensation and related employer payroll taxes,
changes in the fair value of contingent consideration, transaction
costs, impairment charges, extraordinary severance expenses,
certain legal settlement and related expenses, earnings or losses
from equity method investments, changes in the fair value of loans
held for sale, and other charges and income that can vary
substantially from company to company depending upon their
respective financing structures and accounting policies, the book
values of their assets, their capital structures and the methods by
which their assets were acquired;
• securities analysts use adjusted EBITDA as
a supplemental measure to evaluate the overall operating
performance of companies; and
• Green Dot records stock-based compensation
from period to period, and recorded stock-based compensation
expenses and related employer payroll taxes, net of forfeitures, of
approximately $5.9 million and $6.0 million for the three months
ended December 31, 2024 and 2023, respectively. By comparing Green
Dot’s adjusted EBITDA, non-GAAP net income and non-GAAP diluted
earnings per share in different historical periods, investors can
evaluate Green Dot’s operating results without the additional
variations caused by stock-based compensation expense and related
employer payroll taxes, which may not be comparable from period to
period due to changes in the fair market value of Green Dot’s Class
A common stock (which is influenced by external factors like the
volatility of the public markets and the financial performance of
Green Dot’s peers) and is not a key measure of Green Dot’s
operations.
Green Dot’s management uses the non-GAAP financial measures:
▪ as measures of operating performance,
because they exclude the impact of items not directly resulting
from Green Dot’s core operations;
▪ for planning purposes, including the
preparation of Green Dot’s annual operating budget;
▪ to allocate resources to enhance the
financial performance of Green Dot’s business;
▪ to evaluate the effectiveness of Green
Dot’s business strategies;
▪ to establish metrics for variable
compensation; and
▪ in communications with Green Dot’s board of
directors concerning Green Dot’s financial performance.
Green Dot understands that, although adjusted EBITDA and other
non-GAAP financial measures are frequently used by investors and
securities analysts in their evaluations of companies, these
measures have limitations as an analytical tool, and you should not
consider them in isolation or as substitutes for an analysis of
Green Dot’s results of operations as reported under GAAP. Some of
these limitations are:
▪ that these measures do not reflect Green
Dot’s capital expenditures or future requirements for capital
expenditures or other contractual commitments;
▪ that these measures do not reflect changes
in, or cash requirements for, Green Dot’s working capital
needs;
▪ that these measures do not reflect
non-operating interest expense or interest income;
▪ that these measures do not reflect cash
requirements for income taxes;
▪ that, although depreciation and
amortization are non-cash charges, the assets being depreciated or
amortized will often have to be replaced in the future, and these
measures do not reflect any cash requirements for these
replacements; and
▪ that other companies in Green Dot’s
industry may calculate these measures differently than Green Dot
does, limiting their usefulness as comparative measures.
(2)
Green Dot does not include any income tax
impact of the associated non-GAAP adjustment to adjusted EBITDA, as
the case may be, because each of these adjustments to the non-GAAP
financial measure is provided before income tax expense.
(3)
This expense consists primarily of
expenses for restricted stock units (including performance-based
restricted stock units) and related employer payroll taxes.
Stock-based compensation expense is not comparable from period to
period due to changes in the fair market value of Green Dot’s Class
A common stock (which is influenced by external factors like the
volatility of public markets and the financial performance of Green
Dot’s peers) and is not a key measure of Green Dot’s operations.
Green Dot excludes stock-based compensation expense from its
non-GAAP financial measures primarily because it consists of
non-cash expenses that Green Dot does not believe are reflective of
ongoing operating results. Green Dot also believes that it is not
useful to investors to understand the impact of stock-based
compensation to its results of operations. Further, the related
employer payroll taxes are dependent upon volatility in Green Dot's
stock price, as well as the timing and size of option exercises and
vesting of restricted stock units, over which Green Dot has limited
to no control. This expense is included as a component of
compensation and benefits expenses on Green Dot's consolidated
statements of operations.
(4)
Green Dot excludes certain income and
expenses that are the result of acquisitions. These
acquisition-related adjustments include items such as transaction
costs, the amortization of acquired intangible assets, changes in
the fair value of contingent consideration, settlements of
contingencies established at time of acquisition and other
acquisition related charges, such as integration charges and
professional and legal fees, which result in Green Dot recording
expenses or fair value adjustments in its GAAP financial
statements. Green Dot analyzes the performance of its operations
without regard to these adjustments. In determining whether any
acquisition-related adjustment is appropriate, Green Dot takes into
consideration, among other things, how such adjustments would or
would not aid in the understanding of the performance of its
operations. These items are included as a component of other
general and administrative expenses on Green Dot's consolidated
statements of operations, as applicable for the periods
presented.
(5)
Green Dot excludes certain income and
expenses that are not reflective of ongoing operating results. It
is difficult to estimate the amount or timing of these items in
advance. Although these events are reflected in Green Dot's GAAP
financial statements, Green Dot excludes them in its non-GAAP
financial measures because Green Dot believes these items may limit
the comparability of ongoing operations with prior and future
periods. These adjustments include items such as amortization
attributable to deferred financing costs, impairment charges
related to long-lived assets, earnings or losses from equity method
investments, legal settlements and related expenses, changes in the
fair value of loans held for sale, realized gains on investment
securities and other income and expenses, as applicable for the
periods presented. In determining whether any such adjustment is
appropriate, Green Dot takes into consideration, among other
things, how such adjustments would or would not aid in the
understanding of the performance of its operations. Each of these
adjustments, except for amortization of deferred financing costs,
earnings and losses from equity method investments, fair value
changes on loans held for sale, and realized gains on investment
securities, which are all included below operating income, are
included within other general and administrative expenses on Green
Dot's consolidated statements of operations.
(6)
During the year ended December 31, 2024,
Green Dot recorded $6.1 million related to extraordinary severance
expenses, which were paid out in connection with reductions in
force and other extraordinary involuntary terminations of
employment. Although severance expenses may arise throughout the
fiscal year, Green Dot believes the nature of these extraordinary
costs are not indicative of its core operating performance. This
expense is included as a component of compensation and benefits
expenses on Green Dot's consolidated statements of operations.
(7)
Represents the tax effect for the related
non-GAAP measure adjustments using Green Dot's year to date
non-GAAP effective tax rate. It also excludes both the impact of
excess tax benefits related to stock-based compensation and the IRC
§162(m) limitation that applies to performance-based restricted
stock units expense as of December 31, 2024.
(8)
Represents commissions and certain
processing-related costs associated with BaaS products and services
where Green Dot does not control customer acquisition. This
adjustment is netted against Green Dot's B2B Services revenues when
evaluating segment performance.
(9)
Represents other non-interest investment
income earned by Green Dot Bank. This amount is included along with
operating interest income in Green Dot's Corporate and Other
segment since the yield earned on these investments are generated
on a recurring basis and earned similarly to its investment
securities available for sale.
(10)
These amounts represent estimated
adjustments for items such as income taxes, depreciation and
amortization, employee stock-based compensation and related
employer taxes, amortization attributable to deferred financing
costs, earnings and losses from equity method investments, and
other income and expenses. Employee stock-based compensation
expense includes assumptions about the future fair value of the
Company’s Class A common stock (which is influenced by external
factors like the volatility of public markets and the financial
performance of the Company’s peers).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250227392257/en/
Investor Relations: IR@greendot.com Media
Relations: PR@greendotcorp.com
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