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Jun 30, 2025
Green Dot Q2 2025 Earnings Report
Green Dot reported its financial results for the second quarter of 2025, showing increased momentum and demand for its Banking as a Service (BaaS) platform, leading to raised annual guidance.
Key Takeaways
Green Dot Corporation delivered a solid second quarter in 2025, building on previous momentum with significant growth in total operating revenues and adjusted EBITDA. The company's Banking as a Service (BaaS) division showed increasing demand and new partnerships, contributing to an improved financial outlook for the year. Despite a GAAP net loss, non-GAAP metrics demonstrated strong performance, driven by balance sheet optimization and disciplined cost management.
Total operating revenues increased by 24% year-over-year to $504.176 million in Q2 2025.
Adjusted EBITDA grew by 34% to $45.425 million, with the adjusted EBITDA margin improving to 9.1%.
Non-GAAP diluted earnings per share rose by 60% to $0.40.
The company raised its full-year 2025 guidance for adjusted EBITDA and non-GAAP EPS, citing increasing momentum in BaaS and improved balance sheet performance.
Revenue by Segment
Forward Guidance
Green Dot raised its full-year 2025 financial guidance, expecting non-GAAP total operating revenues between $2.0 billion and $2.1 billion, adjusted EBITDA between $160 million and $170 million, and non-GAAP EPS between $1.28 and $1.42.
Positive Outlook
- Increased momentum and demand for Banking as a Service (BaaS) with new and expanding partnerships.
- Improving balance sheet performance expected to drive better results.
- Disciplined cost management contributing to improved profitability.
- Raised full-year guidance for adjusted EBITDA and non-GAAP EPS, indicating confidence in future performance.
- Anticipated contribution from optimizing the earnings power of the balance sheet.
Challenges Ahead
- Current macro-economic environment poses potential risks.
- Effect of inflation and interest rates could impact performance.
- Negative trends within certain business channels are a consideration.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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