Green Dot (GDOT) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong results, with total operating revenues up 24% year-over-year, all three segments posting profit growth, and new partnerships with Samsung and Crypto.com, alongside a major retail partnership renewal through 2033.

• Net income rose sharply to $25.8 million, reflecting improved profitability and cost controls, and a strategic alternatives review was initiated.

• Leadership changes included a CEO transition in March 2025 and new executive appointments in risk and segment management.

Financial highlights

• Non-GAAP revenue was $556.0M–$558.9M, up 24% year-over-year; adjusted EBITDA grew 53% to $90.6M; non-GAAP EPS rose 80% to $1.06.

• Net income increased 443% to $25.8M; operating income rose to $60.7M from $10.6M; adjusted EBITDA margin improved to 16.3%.

• B2B segment revenue grew 42% to $342.0M, driven by BaaS; Money Movement revenue up 7% to $110.2M; Consumer Services revenue down 5% to $95.3M.

• Gross dollar volume rose 21% to $37.3B; active accounts up 2% to 3.58M; purchase volume declined 3%.

• Realized loss of $24.5M–$25M on investment securities due to bond sales for portfolio repositioning.

Outlook and guidance

• 2025 non-GAAP revenue guidance raised to $2.0B–$2.1B; adjusted EBITDA to $150M–$160M; non-GAAP EPS to $1.14–$1.28.

• Consumer Services revenue expected to decline high single digits; B2B to grow low-to-mid 30% range; Money Movement to grow low single digits.

• Margins for Consumer Services expected down 450–500bps; B2B margins down slightly; Money Movement margins up 150–200bps.

• Guidance reflects macroeconomic factors, inflation, interest rates, and ongoing investments.