What changed in this filing

/stocks — the workspaceLOADING

Item 8. Financial Statements and Supplementary Data

2025-03-04 compared with 2024-02-29 · 327 added, 242 removed, 1129 unchanged (34% of the section changed)

5 unchanged sentences

Consolidated Statements of Operations for the Years Ended December 31, 2024, 2023 and 2022

Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2023, 2022 and 2021

Consolidated Statements of Comprehensive Income And Loss for the Years Ended December 31, 2024, 2023 and 2022

Consolidated Statements of Changes in Stockholders' Equity for the Years Ended December 31, 2024, 2023 and 2022

7 unchanged sentences

In our opinion, Green Dot Corporation (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2024, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of Green Dot Corporation as of December 31, 2023 and 2022, the related consolidated statements of operations, comprehensive income, changes in stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the "consolidated financial statements") and our report dated February 29, 2024 expressed an unqualified opinion thereon.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of Green Dot Corporation as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income and loss, changes in stockholders' equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”) and our report dated March 3, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

16 unchanged sentences

Los Angeles, California

February 29, 2024

March 3, 2025

Report of Independent Registered Public Accounting Firm

1 unchanged sentence

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Green Dot Corporation (the Company) as of December 31, 2023 and 2022, the related consolidated statements of operations, comprehensive income, changes in stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2023, and the related notes (collectively referred to as the “consolidated financial statements”).

We have audited the accompanying consolidated balance sheets of Green Dot Corporation (the Company) as of December 31, 2024 and 2023, the related consolidated statements of operations, comprehensive income and loss, changes in stockholders’ equity, and cash flows for each of the three years in the period ended December 31, 2024, and the related notes (collectively referred to as the “consolidated financial statements”).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2024, in conformity with U.S.

generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 29, 2024 expressed an unqualified opinion thereon.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated March 3, 2025 expressed an unqualified opinion thereon.

Basis for Opinion

17 unchanged sentences

The Company records estimated cash back rewards as a reduction to card revenues and other fees.

Cash processing revenues include cash transfer revenues, tax refund processing service revenues, Simply Paid disbursement revenues, and other tax processing service revenues.

Cash processing revenues include cash transfer revenues, tax refund processing service revenues, disbursement revenues, and other tax processing service revenues.

The Company’s revenue recognition differs between each of these discrete revenue streams.

7 unchanged sentences

Los Angeles, California

February 29, 2024

March 3, 2025

GREEN DOT CORPORATION

34 unchanged sentences

Operating lease liabilities 8,641 2,687

Line of credit — 35,000

Notes payable 48,526 —

Total liabilities 4,560,697 3,957,772

27 unchanged sentences

Total operating expenses 1,725,544 1,478,658 1,355,191

Operating income 22,670 94,375 66,474

Operating (loss) income ( 1,668 ) 22,670 94,375

Interest expense, net 5,506 3,027 255

Other expense, net ( 15,365 ) ( 5,010 ) ( 10,199 )

Income before income taxes 14,633 83,921 63,700

(Loss) income before income taxes ( 22,539 ) 14,633 83,921

Income tax expense 4,163 7,911 19,709

Net income $ 6,722 $ 64,212 $ 47,480

Basic earnings per common share:

Net (loss) income $ ( 26,702 ) $ 6,722 $ 64,212

Basic (loss) earnings per common share:

$ ( 0.50 ) $ 0.13 $ 1.20

Diluted earnings per common share:

Diluted (loss) earnings per common share:

$ ( 0.50 ) $ 0.13 $ 1.19

5 unchanged sentences

GREEN DOT CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND LOSS

Year Ended December 31,

1 unchanged sentence

(In thousands)

Net income $ 6,722 $ 64,212 $ 47,480

Net (loss) income $ ( 26,702 ) $ 6,722 $ 64,212

Other comprehensive income and loss

Unrealized holding income (loss), net of tax 8,905 35,741 ( 292,921 )

Comprehensive income (loss) $ 42,463 $ ( 228,709 ) $ 14,245

Comprehensive (loss) income $ ( 17,797 ) $ 42,463 $ ( 228,709 )

See notes to consolidated financial statements

7 unchanged sentences

Stock-based compensation — — 34,812 — — 34,812

Repurchases of Class A Common Stock ( 4,064 ) ( 4 ) ( 95,521 ) — — ( 95,525 )

Net income — — — 64,212 — 64,212

3 unchanged sentences

Stock-based compensation — — 33,744 — — 33,744

Repurchases of Class A Common Stock ( 4,064 ) ( 4 ) ( 95,521 ) — — ( 95,525 )

Net income — — — 6,722 — 6,722

Other comprehensive loss — — — — ( 292,921 ) ( 292,921 )

Other comprehensive income — — — — 35,741 35,741

Balance at December 31, 2023 52,816 $ 53 $ 375,980 $ 770,304 $ ( 286,987 ) $ 859,350

1 unchanged sentence

Stock-based compensation — — 29,928 — — 29,928

Net income — — — 6,722 — 6,722

Net loss — — — ( 26,702 ) — ( 26,702 )

Other comprehensive income — — — — 8,905 8,905

7 unchanged sentences

Operating activities

Net income $ 6,722 $ 64,212 $ 47,480

Adjustments to reconcile net income to net cash provided by operating activities:

Net (loss) income $ ( 26,702 ) $ 6,722 $ 64,212

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 57,101

3 unchanged sentences

Stock-based compensation 29,928 33,744 34,812

Losses (earnings) in equity method investments 9,310 15,648 ( 1,579 )

Amortization of (discount) premium on available-for-sale investment securities ( 2,276 ) ( 1,434 ) 2,563

Losses in equity method investments 15,751 9,310 15,648

Amortization of discount on available-for-sale investment securities ( 1,986 ) ( 2,276 ) ( 1,434 )

Impairment of long-lived assets 4,944 — 4,264

Deferred income tax (benefit) expense ( 11,867 ) ( 6,674 ) 2,722

Deferred income tax benefit ( 10,356 ) ( 11,867 ) ( 6,674 )

Other ( 40 ) ( 4,100 ) ( 4,666 )

15 unchanged sentences

Investment in TailFin Labs, LLC ( 35,000 ) ( 35,000 ) ( 35,000 )

Purchases of other investments — ( 31,934 ) ( 55,000 )

Purchase of other investments, net — — ( 31,934 )

Other investing activities ( 2,571 ) ( 3,782 ) ( 2,558 )

Net cash provided by (used in) investing activities 33,157 ( 820,188 ) ( 1,368,487 )

Net cash provided by investing activities 81,402 33,157 ( 820,188 )

Financing activities

Borrowings on notes payable 49,501 — —

Borrowings on revolving line of credit 238,000 282,000 100,000

6 unchanged sentences

Repurchase of Class A common stock — — ( 95,525 )

Deferred financing costs ( 1,075 ) — —

Other financing activities — — ( 4,500 )

Net cash (used in) provided by financing activities ( 264,019 ) 36,707 1,030,393

Net decrease in unrestricted cash, cash equivalents and restricted cash ( 133,343 ) ( 505,795 ) ( 171,061 )

Net cash provided by (used in) financing activities 743,148 ( 264,019 ) 36,707

Net increase (decrease) in unrestricted cash, cash equivalents and restricted cash 905,933 ( 133,343 ) ( 505,795 )

Unrestricted cash, cash equivalents and restricted cash, beginning of period 686,502 819,845 1,325,640

10 unchanged sentences

Note 1— Organization

Green Dot Corporation (“we,” “our,” or “us” refer to Green Dot Corporation and its consolidated subsidiaries) is a financial technology and registered bank holding company committed to giving all people the power to bank seamlessly, affordably, and with confidence.

Our technology platform enables us to build products and features that address the most pressing financial challenges of consumers and businesses, transforming the way they manage and move money, and making financial empowerment more accessible for all.

We offer a broad set of financial services to consumers and businesses including debit, checking, credit, prepaid, and payroll cards, as well as robust money processing services, such as tax refunds, cash deposits and disbursements.

We were incorporated in Delaware in 1999 and became a bank holding company under the Bank Holding Company Act and a member bank of the Federal Reserve System in December 2011.

Green Dot Corporation (“we,” “our,” or “us” refer to Green Dot Corporation and its consolidated subsidiaries) 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, we have 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.

Through Green Dot Bank, our wholly-owned subsidiary, we deliver a broad spectrum of financial products to consumers and businesses through our portfolio of brands, including debit, checking, credit, prepaid, and payroll cards, as well as robust money processing services, such as tax refunds, cash deposits and disbursements.

We were incorporated in Delaware in 1999 and became a bank holding company under the Bank Holding Company Act and Green Dot Bank became a member bank of the Federal Reserve System in December 2011.

Note 2— Summary of Significant Accounting Policies

29 unchanged sentences

Settlement Assets, Obligations to Customers and Settlement Obligations

Settlement assets represent the amounts due from our retail distributors and other partners for customer funds collected at the point of sale that have not yet been received by our subsidiary bank, payroll deposits funded in advance (up to two days early) to certain cardholders who are eligible to participate in our early direct deposit programs and amounts due from third-party payment processors for customer transactions.

Settlement assets represent the amounts due from our retail distributors and other partners for customer funds collected at the point of sale that have not yet been received by our subsidiary bank, payroll deposits funded in advance (up to two days early) to certain accountholders who are eligible to participate in our early direct deposit programs and amounts due from third-party payment processors for customer transactions.

At the point of sale, our retail distributors and other partners collect customer funds for purchases of new cards and utilization of our cash transfer services and then remit these funds directly to our subsidiary bank.

Additionally, certain of our deposit account programs can be funded from external accounts and that funding is settled with third-party payment processors.

Additionally, certain of our deposit account programs can be funded from external accounts, which is settled with third-party payment processors.

Remittance of these funds with our retail distributors, third-party payment processors and other partners takes an average of two business days.

Obligations to customers generally represent customer funds related to our products and services for transactions that have not yet settled.

Settlement obligations represent the customer funds received by our subsidiary bank that are due to third-party card issuing banks.

Settlement obligations represent the customer funds received by our subsidiary bank that are due to third-party card issuing banks or other third-parties.

Accounts Receivable, net

Accounts receivable is comprised principally of trade accounts receivable, receivables due from card issuing banks, overdrawn account balances due from cardholders, fee advances and other receivables.

Accounts receivable is comprised principally of trade accounts receivable, receivables due from card issuing banks, overdrawn account balances due from accountholders, fee advances and other receivables.

We record accounts receivable net of reserves for estimated uncollectible accounts.

3 unchanged sentences

These advances are collateralized by their clients' tax preparation fees and are generally collected within a short period of time as the in-person tax preparation companies begin preparing and processing their clients' tax refunds.

Overdrawn Account Balances Due from Cardholders and Reserve for Uncollectible Overdrawn Accounts

For cardholders who are not enrolled or do not meet eligibility requirements of our overdraft protection program, we generally decline authorization attempts for amounts that exceed the available balance in a cardholder’s account, however, the application of card association rules, the timing of the settlement of transactions and the assessment of the card’s monthly maintenance fee, among other things, can still result in overdrawn accounts.

These overdrawn account balances are deemed to be receivables due from cardholders, and are included as a component of accounts receivable, net, on our consolidated balance sheets.

Overdrawn Account Balances Due from Accountholders and Reserve for Uncollectible Overdrawn Accounts

For accountholders who are not enrolled or do not meet eligibility requirements of our overdraft protection program, we generally decline authorization attempts for amounts that exceed the available balance in an accountholder’s account, however, the application of card association rules, the timing of the settlement of transactions and the assessment of the card’s monthly maintenance fee, among other things, can still result in overdrawn accounts.

These overdrawn account balances are deemed to be receivables due from accountholders, and are included as a component of accounts receivable, net, on our consolidated balance sheets.

We are exposed to losses from any unrecovered overdrawn account balances.

5 unchanged sentences

Restricted Cash

As of December 31, 2023 and 2022, restricted cash amounted to $ 4.2 million and $ 5.9 million, respectively.

Restricted cash principally relates to pre-funding obligations for cardholder accounts at third-party issuing banks.

As of December 31, 2024, restricted cash was de minimis, and as of December 31, 2023 amounted to $ 4.2 million.

Restricted cash principally relates to pre-funding obligations for accountholder accounts at third-party issuing banks.

Loans to Bank Customers

We report loans measured at historical cost at their outstanding principal balances, net of any charge-offs, and for purchased loans, net of any unaccreted discounts.

We report loans measured at historical cost at their outstanding principal balances, net of any charge-offs, and for any purchased loans, net of any unaccreted discounts.

We recognize interest income as it is earned.

We offer an optional overdraft protection program service on certain demand deposit account programs that allows accountholders who opt-in to spend up to a pre-authorized amount in excess of their available card balance.

When overdrawn, the purchase related balances due on these deposit accounts are reclassified as consumer loans.

GREEN DOT CORPORATION

1 unchanged sentence

Note 2—Summary of Significant Accounting Policies (continued)

Fees due from our accountholders for our overdraft service are included as a component of accounts receivable.

Overdrawn balances are unsecured and considered immediately due from the accountholder.

Also included in consumer loans are advances made to taxpayers under our tax advance program.

These loan balances generally fluctuate over the first half of each year due to the seasonal nature of these advances.

Nonperforming Loans

48 unchanged sentences

We measure the loss as the amount by which the carrying amount exceeds its fair value calculated using the present value of estimated net future cash flows.

No impairment charges were recognized related to long-lived assets for the years ended December 31, 2023 or 2021.

We recorded total impairment charges of $ 4.3 million for the year ended December 31, 2022 related to internal-use software that we determined would no longer be utilized.

We recorded total impairment charges of $ 4.9 million and $ 4.3 million for the years ended December 31, 2024 and 2022, respectively, related to internal-use software that we determined would no longer be utilized.

No impairment charge was recognized related to long-lived assets for the year ended December 31, 2023.

These impairment charges are included in other general and administrative expenses in our consolidated statements of operations.

17 unchanged sentences

Amounts Due to Card Issuing Banks for Overdrawn Accounts

Third-party card issuing banks fund overdrawn cardholder account balances on our behalf.

Third-party card issuing banks fund overdrawn accountholder balances on our behalf.

Amounts funded are due from us to the card issuing banks based on terms specified in the agreements with the card issuing banks.

21 unchanged sentences

Card revenues and other fees consist of monthly maintenance fees, new card fees, ATM fees, and other card revenues.

We earn these fees based upon the underlying terms and conditions with each of our cardholders that obligate us to stand ready to provide account services to each of our cardholders over the contract term.

Agreements with our cardholders are considered daily service contracts as they are not fixed in duration.

Also included in card revenues and other fees are program management service fees earned from our BaaS partners for cardholder programs we manage on their behalf.

We charge maintenance fees on a monthly basis pursuant to the terms and conditions in the applicable cardholder agreements.

We recognize monthly maintenance fees ratably over each day in the monthly bill cycle in which the fee is assessed, which represents the period our cardholders receive the benefits of our services and our performance obligation is satisfied.

To the extent a maintenance fee results in an overdrawn cardholder balance, we only reflect the net amount we expect to receive based on, among other things, the number of days that have elapsed since an account last had activity, such as a purchase or an ATM transaction.

We earn these fees based upon the underlying terms and conditions with each of our accountholders that obligate us to stand ready to provide account services to each of our accountholders over the contract term.

Agreements with our accountholders are considered daily service contracts as they are not fixed in duration.

Also included in card revenues and other fees are program management service fees earned from our BaaS partners for accountholder programs we manage on their behalf.

We charge maintenance fees on a monthly basis pursuant to the terms and conditions in the applicable accountholder agreements.

We recognize monthly maintenance fees ratably over each day in the monthly bill cycle in which the fee is assessed, which represents the period our accountholders receive the benefits of our services and our performance obligation is satisfied.

To the extent a maintenance fee results in an overdrawn accountholder balance, we only reflect the net amount we expect to receive based on, among other things, the number of days that have elapsed since an account last had activity, such as a purchase or an ATM transaction.

GREEN DOT CORPORATION

2 unchanged sentences

We charge new card fees when a consumer purchases a new card in a retail store.

The new card fee provides our cardholders a material right and accordingly, we defer and recognize new card fee revenues on a straight-line basis over our average card lifetime, which is currently less than one year for our deposit account programs acquired through our Retail channel.

The new card fee provides our accountholders a material right and accordingly, we defer and recognize new card fee revenues on a straight-line basis over our average card lifetime, which is currently less than one year for our deposit account programs acquired through our Retail channel.

The average card lifetime is determined based on recent historical data using the period from sale (or activation) of the card through the date of last positive balance.

We reassess average card lifetime for prepaid cards and checking accounts quarterly and gift cards annually.

We reassess average card lifetime for prepaid cards and checking accounts quarterly.

We report the unearned portion of new card fees as a component of deferred revenue in our consolidated balance sheets.

See Contract Balances discussed in Note 3—Revenues , for further information.

We charge ATM fees to cardholders when they withdraw money at certain ATMs in accordance with the terms and conditions in our cardholder agreements.

We recognize ATM fees when the withdrawal is made by the cardholder, which is the point in time our performance obligation is satisfied and service is performed.

Since our cardholder agreements are considered daily service contracts, our performance obligations for these types of transactional based fees are satisfied on a daily basis, or as each transaction occurs.

Other revenues consist primarily of revenue associated with our gift card program, transaction-based fees and fees associated with optional products or services, such as our overdraft protection program, which we offer our cardholders at their election.

We charge ATM fees to accountholders when they withdraw money at certain ATMs in accordance with the terms and conditions in our accountholder agreements.

We recognize ATM fees when the withdrawal is made by the accountholder, which is the point in time our performance obligation is satisfied and service is performed.

Since our accountholder agreements are considered daily service contracts, our performance obligations for these types of transactional based fees are satisfied on a daily basis, or as each transaction occurs.

Since our performance obligations are settled daily, we recognize most of these fees at the point in time the transactions occur which is when the underlying performance obligation is satisfied.

In the case of our gift card program, we record the related revenues using the redemption method.

To the extent a fee results in an overdrawn cardholder balance, we only reflect the net amount we expect to receive based on, among other things, the number of days that have elapsed since an account last had activity, such as a purchase or an ATM transaction.

We also offer cash-back rewards to cardholders on certain programs.

The amount of these cash rewards varies based on multiple factors, including the terms and conditions for cardholder eligibility, the redemption amount based on cardholder activity, and the cardholder redemption rates.

To the extent a fee results in an overdrawn accountholder balance, we only reflect the net amount we expect to receive based on, among other things, the number of days that have elapsed since an account last had activity, such as a purchase or an ATM transaction.

We also offer cash-back rewards to accountholders on certain programs.

The amount of these cash rewards varies based on multiple factors, including the terms and conditions for accountholder eligibility, the redemption amount based on accountholder activity, and the accountholder redemption rates.

We accrue our estimated cash-back rewards as a component of other accrued liabilities on our consolidated balance sheets and as a reduction to card revenues and other fees on our consolidated statements of operations.

Substantially all our fees are collected from our cardholders at the time the fees are assessed and debited from their account balance.

Substantially all our fees are collected from our accountholders at the time the fees are assessed and debited from their account balance.

Program management service fees from our BaaS partners are generally earned over time on a monthly basis, pursuant to the terms of each program management agreement.

2 unchanged sentences

Cash Processing Revenues

Our cash processing revenues consist of cash transfer revenues, Simply Paid disbursement revenues, and tax refund processing service revenues.

Our cash processing revenues consist of cash transfer revenues, disbursement revenues, and tax refund processing service revenues.

We generate cash transfer revenues when consumers purchase our cash transfer products (reload services) in a retail store.

Our reload services are subject to the same terms and conditions in each of the applicable cardholder agreements as discussed above.

Our reload services are subject to the same terms and conditions in each of the applicable accountholder agreements as discussed above.

We recognize these revenues at the point in time the reload services are completed.

Similarly, we earn Simply Paid disbursement fees from our business partners as payment disbursements are made.

Similarly, we earn disbursement fees from our business partners as payment disbursements are made.

We earn tax refund processing service revenues when a customer of a third-party tax preparation company chooses to pay their tax preparation fee through the use of our tax refund processing services.

5 unchanged sentences

Note 2—Summary of Significant Accounting Policies (continued)

We earn interchange revenues from fees remitted by the merchant’s bank, which are based on rates established by the payment networks, such as Visa and Mastercard, when account holders make purchase transactions using our card products and services.

We earn interchange revenues from fees remitted by the merchant’s bank, which are based on rates established by the payment networks, such as Visa and Mastercard, when accountholders make purchase transactions using our card products and services.

We recognize interchange revenues at the point in time the transactions occur, as our performance obligation is satisfied.

12 unchanged sentences

Included in sales and marketing expenses are advertising and marketing expenses of $ 25.3 million, $ 28.5 million and $ 31.2 million and shipping and handling costs of $ 1.6 million, $ 1.7 million and $ 2.3 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Also included in sales and marketing expenses are use taxes to various states related to purchases of materials since we do not charge sales tax to customers when new cards or cash transfer transactions are purchased.

Also included in sales and marketing expenses are use taxes for various states related to purchases of materials since we do not charge sales tax to customers when new cards or cash transfer transactions are purchased.

Stock-Based Compensation

16 unchanged sentences

We measure the fair value of equity instruments issued to non-employees based on the grant-date fair value, and recognize the related expense in the same periods that the goods or services are received.

Our income tax expense is comprised of current and deferred income tax expense.

Our income tax expense is comprised of current and deferred income tax expense and benefit.

Current income tax expense approximates taxes to be paid or refunded for the current period.

Deferred income tax expense results from the changes in deferred tax assets and liabilities during the periods.

Deferred income tax expense and benefit results from the changes in deferred tax assets and liabilities during the periods.

These gross deferred tax assets and liabilities represent decreases or increases in taxes expected to be paid in the future because of future reversals of temporary differences between the basis of assets and liabilities as measured by tax laws and their basis as reported in our consolidated financial statements.

6 unchanged sentences

Earnings Per Common Share

We apply the two-class method in calculating earnings per common share, or EPS, because we have had certain unvested restricted shares outstanding that are entitled to participate with our common stockholders in the distributions of earnings based on their dividend rights.

We apply the two-class method in calculating earnings per common share, or EPS, because we have had certain unvested restricted shares outstanding in prior periods that were entitled to participate with our common stockholders in the distributions of earnings based on their dividend rights.

The two-class method requires net income to be allocated between each class or series of common stock and other participating securities based on their respective rights to receive dividends, whether or not declared.

7 unchanged sentences

If we fail to comply with any of these requirements, we may become subject to formal or informal enforcement actions, proceedings, or investigations, which could result in regulatory orders, restrictions on our business operations or requirements to take corrective actions, which may, individually or in the aggregate, affect our results of operations and restrict our ability to grow.

If we fail to comply with the applicable capital and leverage requirements, or if our subsidiary bank, Green Dot Bank, fails to comply with its applicable capital and leverage requirements, the Federal Reserve Board may limit our or Green Dot Bank's ability to pay dividends or fund stock repurchases, or if we become less than adequately capitalized, require us to raise additional

GREEN DOT CORPORATION

1 unchanged sentence

Note 2—Summary of Significant Accounting Policies (continued)

dividends or fund stock repurchases, or require us to raise additional capital.

As a bank holding company and a financial holding company (“FHC”), we are generally prohibited from engaging, directly or indirectly, in any activities other than those permissible for bank holding companies and FHCs.

7 unchanged sentences

Recent Accounting Pronouncements

Recently adopted accounting pronouncements

In November 2023, the Financial Standards Accounting Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07 "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures," which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses.

ASU 2023-07 is effective for our annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted.

We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures.

ASU 2023-07 is effective for annual periods beginning January 1, 2024, and for interim periods beginning January 1, 2025, with early adoption permitted.

We adopted ASU 2023-07 during the year ended December 31, 2024.

See Note 24—Segment Information in the accompanying notes to the consolidated financial statements for further information.

Accounting pronouncements not yet adopted

In December 2023, the FASB issued ASU 2023-09 "Income Taxes (Topic 740):

1 unchanged sentence

ASU 2023-09 is effective for our annual periods beginning January 1, 2025, with early adoption permitted.

We are currently evaluating the potential effect that the updated standard will have on our financial statement disclosures.

We do not expect the adoption of the updated standard will have a material impact on our consolidated financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03 "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses, " which requires disclosures about specific types of expenses included in the expense captions presented on the consolidated statement of operations, as well as disclosures about selling expenses.

The new guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027.

The requirements will be applied prospectively with the option for retrospective application.

We are currently evaluating the potential effect that the updated standard will have on our consolidated financial statement disclosures.

Note 3— Revenues

2 unchanged sentences

Within our segments, we believe that the nature, amount, timing and uncertainty of our revenue and cash flows and how they are affected by economic factors can be further illustrated based on the timing in which revenue for each of our products and services is recognized.

Our products and services are offered only to customers within the United States.

Our products and services are offered only to customers within the United States and certain U.S.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 3—Revenues (continued)

The following tables disaggregate our revenues earned from external customers by each of our reportable segments:

6 unchanged sentences

$ 392,417 $ 1,037,711 $ 231,383 $ 1,661,511

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 3—Revenues (continued)

Year Ended December 31, 2023

14 unchanged sentences

Also excludes the effects of inter-segment revenues.

Revenues recognized at a point in time are comprised of interchange fees, ATM fees, overdraft protection fees, other similar cardholder transaction-based fees, and substantially all of our cash processing revenues.

Revenues recognized at a point in time are comprised of interchange fees, ATM fees, overdraft protection fees, other similar accountholder transaction-based fees, and substantially all of our cash processing revenues.

Revenues recognized over time consists of new card fees, monthly maintenance fees, revenue earned from gift cards and substantially all BaaS (as defined herein) partner program management service fees.

Significant Judgments and Estimates

Transaction prices related to our account cardholder services are based on stand-alone fees stated within the terms and conditions and may also include certain elements of variable consideration depending upon the product’s features, such as cash-back rewards and fee assessments that may overdraw an account.

Transaction prices related to our accountholder services are based on stand-alone fees stated within the terms and conditions and may also include certain elements of variable consideration depending upon the product’s features, such as cash-back rewards and fee assessments that may overdraw an account.

We estimate such amounts using historical data and customer behavior patterns to determine these estimates which are recorded as a reduction to the corresponding fee revenue.

Additionally, while the number of transactions that a cardholder may perform is unknown, any uncertainty is resolved at the end of each daily service contract.

Additionally, while the number of transactions that an accountholder may perform is unknown, any uncertainty is resolved at the end of each daily service contract.

Contract Balances

3 unchanged sentences

Changes in the deferred revenue balance are driven primarily by the amount of new card fees recognized during the period, and the degree to which these reductions to the deferred revenue balance are offset by the deferral of new card fees associated with cards sold during the period.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 3—Revenues (continued)

Costs to Obtain or Fulfill a Contract

5 unchanged sentences

Therefore, no additional disclosure is provided for these performance obligations.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 4— Investment Securities

31 unchanged sentences

Total investment securities $ — $ — $ 2,234,762 $ ( 380,265 ) $ 2,234,762 $ ( 380,265 )

Our investments generally consist of highly rated securities, substantially all of which are directly or indirectly backed by the U.S.

federal government, as our investment policy restricts our investments to highly liquid, low credit risk assets.

As such, we have not recorded any significant credit-related impairment losses during the years ended December 31, 2023, 2022 or 2021 on our available-for-sale investment securities.

Unrealized losses as of December 31, 2023 and 2022 are the result of continued increases in interest rates as our investment portfolio is comprised predominantly of fixed rate securities.

Substantially all of the underlying securities within our investment portfolio were in an unrealized loss position as of December 31, 2023 and 2022 due to the timing of our investment purchases, as a significant portion of our investments were purchased prior to recent increases in interest rates by the Federal Reserve and from general volatility in market conditions.

We do not intend to sell our investments, and we have determined that it is more likely than not that we will not be required to sell our investments before recovery of their amortized cost bases, which may be at maturity.

GREEN DOT CORPORATION

1 unchanged sentence

Note 4—Investment Securities (continued)

Our investments generally consist of highly rated securities, substantially all of which are directly or indirectly backed by the U.S.

federal government, as our investment policy restricts our investments to highly liquid, low credit risk assets.

As such, we have not recorded any significant credit-related impairment losses during the years ended December 31, 2024, 2023 or 2022 on our available-for-sale investment securities.

Unrealized losses as of December 31, 2024 and 2023 are the result of increases in interest rates relative to when they were purchased as our investment portfolio is comprised predominantly of fixed rate securities.

Substantially all of the underlying securities within our investment portfolio were in an unrealized loss position as of December 31, 2024 and 2023 due to the timing of our investment purchases, as a significant portion of our investments were purchased prior to increases in interest rates by the Federal Reserve, and general volatility in market conditions.

We do not currently intend to sell our investments, and we have determined that it is more likely than not that we will not be required to sell our investments before recovery of their amortized cost bases, which may be at maturity.

As of December 31, 2024, the contractual maturities of our available-for-sale investment securities were as follows:

15 unchanged sentences

Net trade receivables 35,426 29,677

Overdrawn cardholder balances from purchase transactions 9,565 3,821

Overdrawn accountholder balances from purchase transactions 5,827 9,565

Reserve for uncollectible overdrawn accounts from purchase transactions ( 1,741 ) ( 5,281 )

Net overdrawn cardholder balances from purchase transactions 4,284 1,591

Cardholder fees 2,564 2,480

Net overdrawn accountholder balances from purchase transactions 4,086 4,284

Accountholder fees 2,413 2,564

Receivables due from card issuing banks 1,757 1,768

2 unchanged sentences

Accounts receivable, net $ 132,007 $ 110,141

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 5—Accounts Receivable (continued)

Activity in the reserve for uncollectible overdrawn accounts from purchase transactions consisted of the following:

6 unchanged sentences

Balance, end of period $ 1,741 $ 5,281 $ 2,230

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 6— Loans to Bank Customers

18 unchanged sentences

Percentage of outstanding 6.8 % 1.9 % 6.1 % 14.8 % 85.2 % 100.0 %

We offer an optional overdraft protection program service on certain demand deposit account programs that allows cardholders who opt-in to spend up to a pre-authorized amount in excess of their available card balance.

When overdrawn, the purchase related balances due on these deposit accounts are reclassified as consumer loans.

Fees due from our cardholders for our overdraft service are included as a component of accounts receivable.

Overdrawn balances are unsecured and considered immediately due from the cardholder.

In December 2021, we made the determination to sell a portion of our secured credit card portfolio and reclassified these assets as loans held for sale.

A portion of our secured credit card portfolio is classified as loans held for sale.

These loans are included in the long-term portion of prepaid and other assets on our consolidated balance sheets.

Upon re-classification, we reversed any previous allowance for credit loss on these portfolios and recorded an estimated valuation allowance to reflect the portfolio at its estimated fair value.

Changes in valuation allowances are recorded as a component of other income and expenses on our consolidated statements of operations.

3 unchanged sentences

See Note 2—Summary of Significant Accounting Policies for further information on the criteria for classification as nonperforming.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 6—Loans to Bank Customers (continued)

December 31, 2024 December 31, 2023

4 unchanged sentences

Total loans $ 2,570 $ 2,703

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 6—Loans to Bank Customers (continued)

Credit Quality Indicators

4 unchanged sentences

Secured credit card loans are considered classified if they are greater than 90 days past due.

However, our secured credit card portfolio is collateralized by cash deposits made by each cardholder in an amount equal to the user's available credit limit, which mitigates the risk of any significant credit losses we expect to incur.

However, our secured credit card portfolio is collateralized by cash deposits made by each accountholder in an amount equal to the user's available credit limit, which mitigates the risk of any significant credit losses we expect to incur.

The table below presents the carrying value, gross of the related allowance for credit losses, of our loans within the primary credit quality indicators related to our loan portfolio:

18 unchanged sentences

Balance, end of period $ 17,542 $ 11,383 $ 9,078

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 7— Equity Method Investments

On January 2, 2020, we effectuated our agreement with Walmart to jointly establish a new fintech accelerator under the name TailFin Labs, LLC (“TailFin Labs”), with a mission to develop innovative products, services and technologies that sit at the intersection of retail shopping and consumer financial services.

The entity is majority-owned by Walmart and focuses on developing tech-enabled solutions to integrate omni-channel retail shopping and financial services.

On January 2, 2020, we effectuated our agreement with Walmart to jointly establish a new fintech accelerator under the name TailFin Labs, LLC (“TailFin”), with a mission to develop innovative products, services and technologies that sit at the intersection of retail shopping and consumer financial services.

The entity is majority-owned by Walmart and was formed with a focus on developing tech-enabled solutions to integrate omni-channel retail shopping and financial services.

We hold a 20 % ownership interest in the entity, in exchange for annual capital contributions of $ 35.0 million per year from January 2020 through January 2024.

We account for our investment in TailFin Labs under the equity method of accounting in accordance with ASC 323, Investments – Equity Method and Joint Ventures.

Our final payment under this commitment was made in January 2024.

We account for our investment in TailFin under the equity method of accounting in accordance with ASC 323, Investments – Equity Method and Joint Ventures.

Under the equity method of accounting, the initial investment is recorded at cost and the investment is subsequently adjusted for, among other things, its proportionate share of earnings or losses.

However, given the capital structure of the TailFin Labs arrangement, we apply the Hypothetical Liquidation Book Value ("HLBV") method to determine the allocation of profits and losses since our liquidation rights and priorities, as defined by the agreement, differ from our underlying ownership interest.

However, given the capital structure of the TailFin arrangement, we apply the Hypothetical Liquidation Book Value ("HLBV") method to determine the allocation of profits and losses since our liquidation rights and priorities, as defined by the agreement, differ from our underlying ownership interest.

The HLBV method calculates the proceeds that would be attributable to each partner in an investment based on the liquidation provisions of the agreement if the partnership was to be liquidated at book value as of the balance sheet date.

Each partner’s allocation of income or loss in the period is equal to the change in the amount of net equity they are legally able to claim based on a hypothetical liquidation of the entity at the end of a reporting period compared to the beginning of that period, adjusted for any capital transactions.

Based on the terms of the agreement and under the HLBV method, we are entitled to 20 % of any net profits, but assume 100 % of any net losses.

Since inception, TailFin has incurred operating expenses but has not generated any operating revenues to date.

Use of capital has been primarily allocated to marketing of Walmart's deposit account program and for employee salaries and other professional services focused on developing TailFin's project initiatives.

While TailFin's overall objectives have remained unchanged, it is uncertain whether any new products or services will be successfully introduced through the venture.

Any future economic benefits derived from products or services developed by TailFin will be negotiated on a case-by-case basis between the parties.

As of December 31, 2024 and 2023, our net investment in TailFin amounted to approximately $ 128.4 million and $ 109.5 million, respectively, and is included in the long-term portion of prepaid expenses and other assets on our consolidated balance sheets.

Based on the terms of the agreement, we recorded equity in losses attributable to TailFin of approximately $ 16.1 million, $ 8.0 million and $ 14.1 million for the years ended December 31, 2024, 2023 and 2022, respectively.

These amounts are recorded as a component of other expense, net on our consolidated statements of operations.

The following tables present summarized financial information of TailFin's statements of operations and balance sheets.

2024 2023 2022

(In thousands)

Sales and marketing expenses $ 9,898 $ 9,916 $ 14,917

Compensation and professional services $ 12,522 $ 2,434 $ —

Interest income $ 6,316 $ 4,398 $ 841

Net loss $ ( 16,104 ) $ ( 7,952 ) $ ( 14,076 )

(In thousands)

Cash and cash equivalents $ 126,757 $ 107,281

Other assets $ 1,015 $ 1,637

Total liabilities $ 151 $ 193

Net equity $ 127,621 $ 108,725

GREEN DOT CORPORATION

1 unchanged sentence

Note 7—Equity Method Investments (continued)

Any future economic benefits derived from products or services developed by TailFin Labs will be negotiated on a case-by-case basis between the parties.

As of December 31, 2023 and 2022, our net investment in TailFin Labs amounted to approximately $ 109.5 million and $ 82.4 million, respectively, and is included in the long-term portion of prepaid expenses and other assets on our consolidated balance sheets.

We recorded equity in losses from TailFin Labs of approximately $ 8.0 million, $ 14.1 million and $ 2.3 million for the years ended December 31, 2023, 2022 and 2021, respectively.

These amounts are recorded as a component of other income and expense on our consolidated statements of operations.

Other equity method investments

Our equity method investments also include an investment held by our bank, which amounted to $ 3.2 million and $ 3.5 million at December 31, 2024 and 2023, respectively.

We recorded equity in losses from this investment of approximately $ 1.4 million and $ 1.6 million for the years ended December 31, 2023 and 2022, respectively, and equity in earnings of $ 3.9 million for the year ended December 31, 2021 .

We recorded equity in (earnings) losses from this investment of approximately $( 0.4 ) million, $ 1.4 million and $ 1.6 million for the years ended December 31, 2024, 2023 and 2022, respectively.

Note 8— Property and Equipment

13 unchanged sentences

Included in those amounts are depreciation expense related to internal-use software of $ 54.7 million, $ 51.8 million and $ 49.9 million for the years ended December 31, 2024, 2023 and 2022, respectively.

No impairment charges were recognized related to long-lived assets for the years ended December 31, 2023 or 2021.

We recorded an impairment charge to property and equipment of $ 4.3 million for the year ended December 31, 2022 related to internal-use software that we determined would no longer be utilized.

We recorded total impairment charges to property and equipment of $ 4.9 million and $ 4.3 million for the years ended December 31, 2024 and 2022, respectively, related to internal-use software that we determined would no longer be utilized.

No impairment charge was recognized related to long-lived assets for the year ended December 31, 2023.

Note 9— Goodwill and Intangible Assets

4 unchanged sentences

Goodwill and intangible assets $ 397,941 $ 420,477

There were no changes in the composition of goodwill from the previous year either on a consolidated basis or within our reportable segments.

We completed our annual goodwill impairment test as of November 30, 2024.

Based on the results of the annual goodwill impairment test, we determined that each of the fair values of our reporting units exceeded their carrying values and therefore, no impairment was recorded.

GREEN DOT CORPORATION

1 unchanged sentence

Note 9—Goodwill and Intangible Assets (continued)

There were no changes in the composition of goodwill from the previous year.

We completed our annual goodwill impairment test as of September 30, 2023.

Intangible Assets

14 unchanged sentences

2025 $ 24,279

Thereafter 13,796

Total $ 96,151

Note 10— Deposits

Deposits are categorized as non-interest or interest-bearing deposits as follows:

Deposits are categorized as non-interest bearing or interest-bearing deposit accounts as follows:

(In thousands)

21 unchanged sentences

Note 11— Debt

Senior Unsecured Notes

In September and October 2024, we issued and sold senior unsecured notes (the "Notes") in an aggregate principal amount of $ 50 million.

The Notes have a five-year term, maturing September 15, 2029.

The principal amounts bear interest at a fixed rate of 8.75 % per annum, payable semi-annually in arrears.

Prior to March 15, 2029, we may redeem at our option, the Notes in whole or in part at any time at a redemption price equal to 100 % of the outstanding principal amount to be redeemed, together with accrued but unpaid interest thereon, plus a make-whole amount.

On and after March 15, 2029, we may redeem the Notes at 100 % of the principal amount, plus accrued and unpaid interest thereon.

The Notes are unsecured, senior obligations and are not guaranteed by any of our subsidiaries.

The Notes are junior in right of payment to existing and future secured indebtedness.

As of December 31, 2024, we were in compliance with all affirmative and negative non-financial covenants thereunder.

The net proceeds of the offering were used to repay outstanding indebtedness under our revolving credit facility discussed below, and for general corporate purposes.

The following table provides the outstanding long-term debt balance, at amortized cost:

December 31, 2024

(In thousands)

Senior unsecured notes $ 50,000

Unamortized discount and issuance costs ( 1,474 )

Notes payable, net of unamortized discount and issuance costs $ 48,526

In February 2025, we issued and sold additional Notes in an aggregate principal amount of $ 15 million.

2019 Revolving Facility

In October 2019, we entered into a secured credit agreement with Wells Fargo Bank, National Association, and other lenders party thereto.

The credit facility provides for a $ 100.0 million five-year revolving line of credit (the "2019 Revolving Facility"), maturing in October 2024.

We use the proceeds of any borrowings under the 2019 Revolving Facility for working capital and other general corporate purposes, subject to the terms and conditions set forth in the credit agreement.

We classify amounts outstanding on our consolidated balance sheets based on the remaining duration of the credit facility, however, we may make voluntary repayments at any time prior to maturity.

The credit agreement provided for a $ 100.0 million five-year revolving line of credit (the "2019 Revolving Facility"), which matured in October 2024.

In September 2024, the then-outstanding balance on the 2019 Revolving Facility was repaid in full, and the 2019 Revolving Facility terminated at its maturity date.

As of December 31, 2023, the outstanding balance on the 2019 Revolving Facility was $ 61 million.

In March 2023, we amended the terms of our agreement to replace LIBOR with the Secured Overnight Financing Rate ("SOFR").

At our election, loans made under the credit agreement bear interest at 1) an adjusted SOFR rate (the “SOFR Rate") or 2) a base rate determined by reference to the highest of (a) the United States federal funds rate plus 0.50 %, (b) the Wells Fargo prime rate, and (c) an adjusted SOFR rate plus 1.0 % (the “Base Rate"), plus in either case, an applicable margin.

The applicable margin for borrowings depends on our total leverage ratio and varies from 1.25 % to 2.00 % for SOFR Rate loans and 0.25 % to 1.00 %for Base Rate loans.

The interest rate on our outstanding balance as of December 31, 2023 was 7.23 %.

We also pay a commitment fee, which varies from 0.20 % to 0.35 % per annum on the actual daily unused portions of the 2019 Revolving Facility.

Letter of credit fees are payable in respect of outstanding letters of credit at a rate per annum equal to the applicable margin for LIBOR Rate loans.

The 2019 Revolving Facility contains certain affirmative and negative covenants including negative covenants that limit or restrict, among other things, liens, indebtedness, investments and acquisitions, mergers and fundamental changes, asset sales, restricted payments, changes in the nature of the business, transactions with affiliates and other matters customarily restricted in such agreements.

We must also maintain a minimum fixed charge coverage ratio and a maximum consolidated leverage ratio at the end of each fiscal quarter, as set forth in the credit agreement.

At December 31, 2023, we were in compliance with all such covenants.

If an event of default shall occur and be continuing under the facility, the commitments may be terminated and the principal amounts outstanding under the 2019 Revolving Facility, together with all accrued unpaid interest and other amounts owing in respect thereof, may be declared immediately due and payable.

We incurred interest expense during the year December 31, 2023 of approximately $ 2.9 million.

We did no t incur any meaningful interest expense related to our debt during the years ended December 31, 2022 and 2021.

We incurred total cash interest expense on our debt during the years ended December 31, 2024 and 2023 of approximately $ 5.3 million and $ 2.9 million, respectively.

We did no t incur any meaningful interest expense related to our debt during the year ended December 31, 2022.

GREEN DOT CORPORATION

87 unchanged sentences

Performance restricted stock units canceled ( 388 ) 26.63

Actual adjustment for certified performance periods 15 46.82

Outstanding at December 31, 2024

1,569 $ 12.73

The total fair value of all performance-based restricted stock vested for the years ended December 31, 2024, 2023 and 2022 was $ 0.3 million, $ 2.1 million and $ 4.2 million, respectively, based on the price of our Class A common stock on the vesting date.

6 unchanged sentences

1,010 $ 23.78

Options exercised ( 9 ) 16.34

Options canceled ( 1,010 ) 23.78

Outstanding at December 31, 2024

1,010 $ 23.78 0.78 $ —

Exercisable at December 31, 2023

1,010 23.78 0.78 $ —

We have not issued any stock option awards from our 2010 Equity Incentive Plan during the year ended December 31, 2023.

We have not issued any stock option awards from our 2010 Equity Incentive Plan during the year ended December 31, 2024 and no longer had any stock option awards outstanding at the end of the period.

As of December 31, 2024, there was $ 27.4 million of aggregate unrecognized compensation cost related to unvested restricted stock units (including performance-based awards) expected to be recognized in compensation expense in future periods, with a weighted-average period of 1.75 years.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 13—Stock-Based Compensation (continued)

The total intrinsic value of options exercised was de minimis for the year ended December 31, 2023, and $ 0.1 million and $ 2.0 million for the years ended December 31, 2022 and 2021, respectively.

As of December 31, 2023, the aggregate intrinsic value of our option awards outstanding was zero, as the fair value per Class A common share exceeded each option's exercise price.

As of December 31, 2023, there was $ 35.1 million of aggregate unrecognized compensation cost related to unvested restricted stock units (including performance-based awards) expected to be recognized in compensation expense in future periods, with a weighted-average period of 1.72 years.

As of December 31, 2023, there was no remaining unrecognized compensation cost related to stock options .

Note 14— Income Taxes

10 unchanged sentences

Foreign ( 1 ) ( 161 ) 87

Deferred income tax (benefit) expense ( 11,867 ) ( 6,674 ) 2,722

Deferred income tax benefit ( 10,356 ) ( 11,867 ) ( 6,674 )

Income tax expense $ 4,163 $ 7,911 $ 19,709

8 unchanged sentences

Stock-based compensation ( 31.4 ) 28.8 3.2

IRC 162(m) limitation 0.4 0.8 8.0

Bank owned life insurance ( 4.2 ) ( 0.7 ) ( 0.1 )

Bank owned life insurance income 2.6 ( 4.2 ) ( 0.7 )

Bank owned life insurance surrender ( 10.0 ) — —

Nondeductible penalties ( 22.4 ) 29.1 0.1

Global intangible low-taxed income tax 2.0 0.3 0.5

Global intangible low-tax income tax ( 1.4 ) 2.0 0.3

IRC 162(m) limitation 12.7 0.4 0.8

Change in valuation allowance ( 1.9 ) — —

Other ( 1.0 ) 1.5 0.1

3 unchanged sentences

Note 14—Income Taxes (continued)

The effective tax rate for the year ended December 31, 2023 and 2022 differs from the statutory federal income tax rate of 21%, primarily due to state income taxes, net of federal tax benefits, general business credits, stock-based compensation, nondeductible penalties, and the IRC 162(m) limitation on the deductibility of executive compensation.

The increase in the effective tax rate for the year ended December 31, 2023 as compared to the prior year ended December 31, 2022 is primarily due to an increase in the expense related to tax shortfalls from stock-based compensation, an increase in the expense related to nondeductible penalties, and an increase to state tax expense, net of federal benefits.

These increases were partially offset by a decrease of the IRC 162(m) limitation on the deductibility of certain executive compensation, cash value growth in bank owned life insurance policies, and the impact of general business credits.

The increase in nondeductible penalties for the year ended December 31, 2023 is related to the tax effect associated with the estimated accrual for our proposed consent order received from the Federal Reserve Board discussed in Note 21—Commitments and Contingencies.

The Inflation Reduction Act of 2022 (the "IRA") levies a 15% corporate minimum income tax and a 1% excise tax on corporate stock repurchases.

To date, these tax law changes have had no immediate effect and we do not expect that they will have a material impact on our results of operations in future periods.

The effective tax rate for the year ended December 31, 2024 and 2023 differs from the statutory federal income tax rate of 21%, primarily due to state income taxes, net of federal tax benefits, general business credits, stock-based compensation, nondeductible penalties, cash surrender value growth in bank owned life insurance policies, and the IRC 162(m) limitation on the deductibility of executive compensation.

The net decrease in the effective tax rate for the year ended December 31, 2024 as compared to the prior year ended December 31, 2023 is primarily due to a decrease of $ 2.9 million in the amount of compensation expense subject to the IRC 162(m) limitation on the deductibility of certain executive compensation, a decrease of $ 0.8 million in state income tax expense, net of federal benefits, and the impact of general business credits.

These decreases were partially offset by an increase of $ 2.9 million in the expense related to tax shortfalls from stock-based compensation, an increase of $ 0.8 million in the expense related to nondeductible penalties, an increase of $ 0.4 million in the valuation allowance on a portion of our unrealized loss on equity securities, and the surrender of our existing bank owned life insurance policies which resulted in a tax charge of $ 1.5 million and surrender penalties of $ 0.7 million.

The increase in nondeductible penalties is primarily related to the tax effect associated with the civil money penalty for the Consent Order discussed in Note 21 - Commitments and Contingencies .

We have made a policy election to account for Global Intangible Low-Taxed Income ("GILTI") in the year the GILTI tax is incurred.

8 unchanged sentences

Lease liabilities 1,895 1,110

Internal-use software costs 7,768 —

Tax credit carryforwards 13,296 12,641

1 unchanged sentence

Other 5,840 4,259

Unrealized loss on equity securities 628 —

Capital loss carryforwards 13 —

Gross deferred tax assets 149,604 138,904

Valuation allowance ( 519 ) —

Total deferred tax assets $ 149,085 $ 138,904

8 unchanged sentences

We establish a valuation allowance when we consider it more-likely-than-not that some portion or all of the deferred tax assets will not be realized.

As of December 31, 2023 and 2022, we did not have a valuation allowance on any of our deferred tax assets as we believe it is more-likely-than-not that we will realize the benefits of our deferred tax assets.

As of December 31, 2024, we provided a valuation allowance against a portion of our unrealized loss on equity securities as we believe it is more-likely-than-not that the tax benefits related to this portion of the loss will not be realized.

GREEN DOT CORPORATION

1 unchanged sentence

Note 14—Income Taxes (continued)

We are subject to examination by the Internal Revenue Service, or IRS, and various state tax authorities.

We are subject to examination by the Internal Revenue Service (the "IRS"), and various state tax authorities.

We remain subject to examination of our federal income tax returns for the years ended December 31, 2017 through 2023.

We generally remain subject to examination of our various state income tax returns for a period of four to five years from the respective dates the returns were filed.

We generally remain subject to examination of our various state income tax returns for a period of four to five years from the respective dates that the returns were filed.

The IRS initiated an examination of our 2017 U.S.

1 unchanged sentence

We do not expect that this examination will have a material impact on our consolidated financial statements.

As of December 31, 2023, we had federal net operating loss carryforwards of approximately $ 13.1 million and state net operating loss carryforwards of approximately $ 108.1 million which will be available to offset future income.

As of December 31, 2024, we had federal net operating loss carryforwards of approximately $ 11.1 million, state net operating loss carryforwards of approximately $ 120.1 million, and capital loss carryforwards of approximately $ 0.1 million which will be available to offset future income.

If not used, the federal net operating losses will expire between 2030 and 2034.

In regard to the state net operating loss carryforwards, approximately $ 62.6 million will expire between 2028 and 2044, while the remaining balance of approximately $ 57.5 million, does not expire and carries forward indefinitely.

The capital loss carryforwards will expire in 2028.

The net operating losses are subject to an annual IRC Section 382 limitation which restricts their utilization against taxable income in future periods.

9 unchanged sentences

1,339 1,431 1,260

Decreases related to positions taken during prior years ( 44 ) — —

Decreases related to positions settled with tax authorities

( 86 ) ( 90 ) —

Decreases due to a lapse of applicable statute of limitations

9 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 15— Earnings per Common Share

The calculation of basic and diluted earnings per share ("EPS") was as follows:

Note 15— Earnings and Loss per Common Share

The calculation of basic and diluted earnings and loss per share ("EPS") was as follows:

Year Ended December 31,

1 unchanged sentence

(In thousands, except per share data)

Basic earnings per Class A common share

Net income $ 6,722 $ 64,212 $ 47,480

Basic earnings and loss per Class A common share

Net (loss) income $ ( 26,702 ) $ 6,722 $ 64,212

Amount attributable to unvested Walmart restricted shares — — ( 178 )

Net income allocated to Class A common stockholders $ 6,722 $ 64,034 $ 47,068

Net (loss) income allocated to Class A common stockholders $ ( 26,702 ) $ 6,722 $ 64,034

Weighted-average Class A shares issued and outstanding 53,527 52,251 53,351

Basic earnings per Class A common share $ 0.13 $ 1.20 $ 0.87

Diluted earnings per Class A common share

Net income allocated to Class A common stockholders $ 6,722 $ 64,034 $ 47,068

Basic (loss) earnings per Class A common share $ ( 0.50 ) $ 0.13 $ 1.20

Diluted earnings and loss per Class A common share

Net (loss) income allocated to Class A common stockholders $ ( 26,702 ) $ 6,722 $ 64,034

Re-allocated earnings — — 2

Diluted net income allocated to Class A common stockholders $ 6,722 $ 64,036 $ 47,077

Diluted net (loss) income allocated to Class A common stockholders $ ( 26,702 ) $ 6,722 $ 64,036

Weighted-average Class A shares issued and outstanding 53,527 52,251 53,351

5 unchanged sentences

Diluted weighted-average Class A shares issued and outstanding 53,527 52,510 53,871

Diluted earnings per Class A common share $ 0.13 $ 1.19 $ 0.85

Diluted (loss) earnings per Class A common share $ ( 0.50 ) $ 0.13 $ 1.19

The restricted shares issued to Walmart contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing EPS pursuant to the two-class method.

19 unchanged sentences

For more information regarding the fair value hierarchy and how we measure fair value, see Note 2—Summary of Significant Accounting Policies .

As of December 31, 2023 and 2022, our assets and liabilities carried at fair value on a recurring basis were as follows:

As of December 31, 2024 and 2023, our assets carried at fair value on a recurring basis were as follows:

Level 1 Level 2 Level 3 Total Fair Value

48 unchanged sentences

Changes in fair value of contingent consideration were recorded through operating expenses.

The fair value of our revolving line of credit is based on borrowing rates currently available to a market participant for loans with similar terms or maturity.

The carrying amount of our revolving line of credit approximates fair value because the base interest rate charged varies with market conditions and the credit spread is commensurate with current market spreads for issuers of similar risk.

The fair value of our revolving line of credit is classified as a Level 2 liability in the fair value hierarchy.

The fair value of the Notes is based on borrowing rates currently available to a market participant for loans with similar terms, maturity and credit risk.

The carrying amount of our outstanding Notes approximates fair value because the interest rate charged is commensurate with current market rates for issuers of similar risk.

The fair value of the Notes are classified as a Level 2 liability in the fair value hierarchy.

Fair Value of Financial Instruments

57 unchanged sentences

Nonetheless, given the inherent unpredictability of these matters, an adverse outcome could, from time to time, have a material adverse impact on our financial condition or results of operations.

We and our subsidiary bank received a proposed consent order from the Federal Reserve Board relating principally to various aspects of compliance risk management, including consumer compliance and compliance with anti-money laundering regulations.

Included in the proposed consent order are proposals for civil money penalties related to these issues.

While we are still in discussions with the Federal Reserve Board regarding these proposals, we accrued an estimated liability of $ 20 million related to the proposed consent order during the three months ended December 31, 2023.

There may be an exposure to loss in excess of the amount accrued.

We believe the estimate of the aggregate range of reasonably possible losses (meaning the likelihood of losses is more than remote but less than likely), is up to $ 50 million as of December 31, 2023.

This estimated range of reasonably possible losses is based on currently available information for those proceedings in which we are involved and considers our best estimate of such losses for those matters for which an estimate can be made.

However, there can be no assurance that our accrual is sufficient or that losses from the proposed consent order will not exceed the estimated range.

For further discussion, see the headings "As a bank holding company, we are subject to extensive and potentially changing regulation and are required to serve as a source of strength for Green Dot Bank" and “Litigation or investigations could result in significant settlements, sanctions, fines or penalties” included as part of our risk factor disclosures in "Part I, Item 1A, Risk Factors," of this Annual Report on Form 10-K.

On July 19, 2024, we and our subsidiary bank entered into a consent order (the "Consent Order") with the Federal Reserve Board relating principally to various aspects of compliance risk management, including consumer compliance and compliance with anti-money laundering regulations.

Included in the Consent Order was a civil money penalty related to these issues in the amount of $ 44 million which was paid in July 2024.

We previously accrued an estimated liability of $ 20 million related to the Consent Order during the three months ended December 31, 2023, and the remaining portion was accrued during the three months ended June 30, 2024.

Other Litigation and Claims

On October 20, 2023, an alleged class action captioned Lyons v.

, was filed in the U.S.

District Court for the Middle District of Alabama, alleging that Walmart, Green Dot Corporation, and Green Dot Bank breached implied warranties of merchantability and fitness for a particular purpose, and were otherwise negligent in the packaging of gift cards at Walmart stores, resulting in the unauthorized tampering with, and loss of stored values, on four gift cards sold in advance of the 2022 Christmas holiday season but that were later used at another location in January 2023.

The plaintiff sought to represent a nationwide class of persons who purchased a Visa Prepaid card issued by us and subjected to unauthorized use by a third party after purchase but prior to the first authorized use, at a Walmart retail store located in a state that has adopted Article 2 of the Uniform Commercial Code (thereby excluding Louisiana).

On October 24, 2023 the court on its own initiative ordered the plaintiff to re-plead the action based on insufficient jurisdictional allegations, and an amended complaint was filed October 30, 2023.

The court dismissed the action as to the plaintiff with prejudice on February 14, 2024.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 21—Commitments and Contingencies (continued)

On October 25, 2023, a putative class action, Brockington v.

Green Dot Corporation, was filed in the Circuit Court of the 7th Judicial District for Volusia County, Florida, alleging we violated Florida debt collection law by emailing, monthly, several email communications that her “Green Dot Account statement is ready” that were received between 5:58 a.m.

and 6:02 a.m., outside the permitted communication times of 8:01 a.m.

The plaintiff alleges that these communications are debt collection communications covered by the Florida Consumer Collection Practices Act, and seeks to represent a class of persons with Florida addresses who received communications between the hours of 9 p.m.

in connection with the collection of a consumer debt.

On November 17, 2023, the plaintiff voluntarily dismissed the suit, and the court approved the dismissal of this matter without further notice or proceedings.

On October 27, 2023, an alleged class action, Hester v.

Green Dot Corporation , was filed in District Court for Travis County, Texas, alleging he was unable to access funds in his account for an extended period, and that we have similarly blocked access for other customers.

The complaint purports to allege three causes of action for breach of contract, breach of fiduciary duty, and deceptive trade practices in violation of the Texas Deceptive Trade Practices Act.

The proposed class is all Texas residents and GO2bank customers or account holders who “had their accounts or funds blocked, closed, or otherwise restricted” for more than 72 hours at any time during the four years (or the length of the longest applicable statute of limitations for any asserted claim) immediately preceding the filing of this action continuing through the date of judgment.

On November 21, 2023, we filed a motion to compel arbitration and stay all proceedings, which are currently pending before the District Court.

On December 18, 2019, an alleged class action entitled Koffsmon v.

Green Dot Corp., et al ., No.

Green Dot Corp., et al.

19-cv-10701-DDP-E, was filed in the United States District Court for the Central District of California, against us and two of our former officers.

4 unchanged sentences

Pension Fund as lead plaintiff, and on April 1, 2022, plaintiff filed its First Amended Complaint.

Defendants filed a motion to dismiss the First Amended Complaint on May 31, 2022, and the motion was heard on December 12, 2022.

On February 18, 2020, a shareholder derivative suit and securities class action entitled Hellman v.

Streit, et al ., No.

20-cv-01572-SVW-PVC was filed in United States District Court for the Central District of California, against us and certain of our officers and directors.

The suit avers purported breach of fiduciary duty and unjust enrichment claims, as well as claims under Sections 10(b), 14(a) and 20(a) of the Exchange Act, on the basis of the same wrongdoing alleged in the first lawsuit described above.

The suit does not define the purported class allegedly damaged.

These cases have been related and, pursuant to a stipulated agreement between the parties, the Hellman suit is stayed pending resolution of any motions to dismiss in the Koffsmon case reference above, after which time the parties will meet and confer on a case schedule, including the schedule for defendants to respond to the complaint.

We have not yet responded to the complaints in these matters.

Defendants filed a motion to dismiss the First Amended Complaint on May 31, 2022, and the motion was denied on March 29, 2024.

The trial on these claims is currently scheduled to begin in February 2027.

On February 18, 2020, a putative shareholder derivative action entitled Hellman v.

Streit, et al.

20-cv-01572-SVW-PVC was filed, purportedly on behalf of the company, in the United States District Court for the Central District of California, against certain of our current and former officers and directors.

The suit asserts claims for breach of fiduciary duty and unjust enrichment, as well as claims under Sections 10(b), 14(a) and 20(a) of the Exchange Act, based largely on the allegations made in the Koffsmon action.

The Hellman action seeks to recover, among other things, unspecified compensatory damages on behalf of the company.

Pursuant to a stipulated agreement between the parties, the Hellman action is stayed through the close of discovery in the Koffsmon action.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 21—Commitments and Contingencies (continued)

On July 15, 2024, a putative shareholder derivative action entitled DiBlasio v.

Streit, et al.

24-cv-05924 was filed, purportedly on behalf of the company, in the United States District Court for the Central District of California, against certain of our current and former officers and directors.

A first amended complaint was filed on September 27, 2024.

The suit asserts claims for breach of fiduciary duty, abuse of control, and unjust enrichment, as well as claims under Section 14(a) of the Exchange Act, based on the allegations made in Koffsmon action, and on the Consent Order from the Federal Reserve Board.

The DiBlasio action seeks to recover, among other things, unspecified compensatory damages on behalf of the company.

Pursuant to a stipulated agreement between the parties, the DiBlasio action is stayed through the close of discovery in the Koffsmon action.

Due to the inherent uncertainties of litigation, we cannot accurately predict the ultimate outcome of these matters.

4 unchanged sentences

If we were found to be in violation of any laws and regulations governing banking, money transmitters, electronic fund transfers, or money laundering in the United States or abroad, we could be subject to penalties or could be forced to change our business practices.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 21—Commitments and Contingencies (continued)

From time to time, we enter into contracts containing provisions that contingently require us to indemnify various parties against claims from third parties.

These contracts primarily relate to:

(i) contracts with our card issuing banks, under which we are responsible to them for any unrecovered overdrafts on cardholders’ accounts;

(i) contracts with our card issuing banks, under which we are responsible to them for any unrecovered overdrafts on accountholders’ balances;

(ii) certain real estate leases, under which we may be required to indemnify property owners for environmental and other liabilities, and other claims arising from our use of the premises;

3 unchanged sentences

Because the obligated amounts associated with these types of agreements are not explicitly stated, the overall maximum amount of the obligation cannot be reasonably estimated.

With the exception of overdrafts on cardholders’ accounts, historically, we have not been required to make payments under these and similar contingent obligations, and no liabilities have been recorded for these obligations in our consolidated balance sheets.

For additional information regarding overdrafts on cardholders’ accounts, refer to Note 5—Accounts Receivable .

Financial Commitments

As discussed in Note 7—Equity Method Investments , we are committed to making annual capital contributions in TailFin Labs, LLC of $ 35.0 million per year from January 2020 through January 2024.

Our final payment under this commitment was made in January 2024.

With the exception of overdrafts on accountholders’ balances, historically, we have not been required to make payments under these and similar contingent obligations, and no liabilities have been recorded for these obligations in our consolidated balance sheets.

For additional information regarding overdrafts on accountholders’ balances, refer to Note 5 — Accounts Receivable .

Note 22— Significant Retailer and Partner Concentration

49 unchanged sentences

Note 24— Segment Information

Our Chief Operating Decision Maker (our “CODM” who is our Chief Executive Officer) organizes and manages our businesses primarily on the basis of the channels in which our 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, third-party call center support and transaction losses.

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.

Our operations are aggregated amongst three reportable segments:

2 unchanged sentences

Our B2B Services segment consists of revenues and expenses derived from (i) our partnerships with prominent consumer and technology companies that make our banking products and services available to their consumers, partners and workforce through integration with our banking platform (the "Banking-as-a-Service", or "BaaS channel"), and (ii) a comprehensive payroll platform that we offer to corporate enterprises (the "Employer channel") to facilitate payments for today’s workforce.

Our products and services in this segment include deposit account programs, such as consumer and small business checking accounts and prepaid cards, as well as our Simply Paid Disbursements services utilized by our partners.

Our products and services in this segment include deposit account programs, such as consumer and small business checking accounts and prepaid cards, as well as our disbursement services utilized by our partners.

Our Money Movement Services segment consists of revenues and expenses generated on a per transaction basis from our services that specialize in facilitating the movement of cash on behalf of consumers and businesses, such as money processing services and tax refund processing services.

Our money processing services, such as cash deposit and disbursements, are marketed to third-party banks, program managers, and other companies seeking cash deposit and disbursement capabilities for their customers.

Those customers, including our own cardholders, can access our cash deposit and disbursement services at any of the locations within our network of retail distributors and neighborhood Financial Service Centers.

Those customers, including our own accountholders, can access our cash deposit and disbursement services at any of the locations within our network of retail distributors and neighborhood Financial Service Centers.

We market our tax-related financial services through a network of tax preparation franchises, independent tax professionals and online tax preparation providers.

Our Corporate and Other segment primarily consists of net interest income, certain other investment income earned by our 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 our fixed expenses such as salaries, wages and related benefits for our employees, professional services fees, software licenses, telephone and communication costs, rent, utilities, and insurance.

Our Corporate and Other segment primarily consists of net interest income, certain other investment income earned by our 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 our fixed expenses such as salaries, wages and related benefits for our employees and certain third-party contractors, professional services fees, software licenses, telephone and communication costs, rent, utilities, and insurance.

These costs are not considered when our CODM evaluates the performance of our three reportable segments since they are not directly attributable to any reporting segment.

4 unchanged sentences

Note 24—Segment Information (continued)

The following tables present financial information for each of our reportable segments for the periods then ended:

The following tables present key financial information for each of our reportable segments for the periods then ended:

Year Ended December 31, 2024

Consumer Services B2B Services Money Movement Services Corporate and Other Total

(In thousands)

Total segment revenues $ 402,462 $ 1,081,804 $ 217,657 $ 5,792 $ 1,707,715

Segment expenses (1)

Sales and marketing expenses (2)

123,038 16,598 72,784 — 212,420

Segment Revenue (In thousands)

Consumer Services $ 498,617 $ 586,798 $ 694,725

B2B Services 772,991 594,468 458,584

Money Movement Services 209,674 222,192 239,735

Corporate and Other 2,513 20,151 ( 5,169 )

Processing expenses (3)

35,124 814,952 1,533 — 851,609

Transaction losses and fraud management (4)

67,626 102,766 7,694 — 178,086

Customer support and related expenses (5)

14,774 55,114 2,499 — 72,387

Compensation and benefits expenses (6)

— — — 130,116 130,116

Other segment items (7)

— — 10,565 87,146 97,711

Total segment expenses 240,562 989,430 95,075 217,262 1,542,329

Segment profit $ 161,900 $ 92,374 $ 122,582 $ ( 211,470 ) $ 165,386

Year Ended December 31, 2023

Consumer Services B2B Services Money Movement Services Corporate and Other Total

(In thousands)

Total segment revenues $ 498,617 $ 772,991 $ 209,674 $ 2,513 $ 1,483,795

Segment expenses (1)

Sales and marketing expenses (2)

149,197 15,814 74,270 — 239,281

Processing expenses (3)

59,726 541,180 3,536 — 604,442

Transaction losses and fraud management (4)

93,456 99,732 2,617 — 195,805

Customer support and related expenses (5)

19,048 38,962 2,914 — 60,924

Compensation and benefits expenses (6)

— — — 125,734 125,734

Other segment items (7)

— — 13,161 73,574 86,735

Total segment expenses 321,427 695,688 96,498 199,308 1,312,921

Segment profit $ 177,190 $ 77,303 $ 113,176 $ ( 196,795 ) $ 170,874

Year Ended December 31, 2022

Consumer Services B2B Services Money Movement Services Corporate and Other Total

(In thousands)

Total segment revenues $ 586,798 $ 594,468 $ 222,192 $ 20,151 $ 1,423,609

Segment expenses (1)

Sales and marketing expenses (2)

192,979 13,312 75,980 — 282,271

Processing expenses (3)

69,706 377,433 3,672 — 450,811

Transaction losses and fraud management (4)

82,799 88,339 3,014 — 174,152

Customer support and related expenses (5)

19,166 29,012 4,665 — 52,843

Compensation and benefits expenses (6)

— — — 135,823 135,823

Other segment items (7)

— — 17,031 71,924 88,955

Total segment expenses 364,650 508,096 104,362 207,747 1,184,855

Segment profit $ 222,148 $ 86,372 $ 117,830 $ ( 187,596 ) $ 238,754

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 24—Segment Information (continued)

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

(2) Sales and marketing expenses consists primarily of the commissions we pay to our retail distributors, brokers and partners, advertising and marketing expenses, and the costs of manufacturing and distributing card packages, placards and promotional materials to our retail distributors and partners, and personalized debit cards who have activated their cards.

(3) Processing expenses consist primarily of the fees charged to us by the payment networks, which processes transactions for us, any third-party card processors that maintain the records of our customers' accounts and process transaction authorizations and postings, and any third-party banks that issue or process our accounts.

(4) Transaction losses and fraud management consist primarily of losses from customer disputed transactions, unrecovered customer purchase transaction overdraft and fraud, and other losses on portfolios in our Money Movement Services segment.

Fraud management consists of third-party contractors and support costs to manage risk operations.

(5) Customer support and related expenses consist of third-party contractors hired to conduct call center operations and handle routine customer service inquiries, and the related costs to support our call center operations.

(6) Compensation and benefits expenses represent the compensation and related benefits, including travel and entertainment, that we provide to our employees and third-party contractors who provide consulting support within our IT operations.

(7) Other segment items in Money Movement Services consists principally of inter-segment expenses for reload services on the Green Dot Network.

Other segment items in Corporate and Other primarily consists of other unallocated corporate operating expenses, such as professional services fees, hosting and software licenses, telephone and communication costs, rent, utilities, and insurance, and elimination of inter-segment expenses.

The reconciliations of total segment revenues to total operating revenues are presented below:

Year Ended December 31,

2024 2023 2022

(In thousands)

Total segment revenues $ 1,707,715 $ 1,483,795 $ 1,423,609

BaaS commissions and processing expenses 18,917 20,449 28,831

2 unchanged sentences

Segment revenue adjustments represent commissions and certain processing-related costs associated with our BaaS products and services, which are netted against our B2B Services revenues when evaluating segment performance, as well as certain other investment income earned by our bank, which is included in Corporate and Other.

The reconciliations of segment profit to income (loss) before incomes taxes are presented below:

Year Ended December 31,

2024 2023 2022

Segment Profit (In thousands)

Consumer Services $ 177,190 $ 222,148 $ 223,604

B2B Services 77,303 86,372 73,156

Money Movement Services 113,176 117,830 115,965

Corporate and Other ( 196,795 ) ( 187,596 ) ( 195,761 )

(In thousands)

Total segment profit $ 165,386 $ 170,874 $ 238,754

Reconciliation to income before income taxes

Reconciliation to (loss) income before income taxes

Depreciation and amortization of property, equipment and internal-use software 63,422 58,715 57,101

4 unchanged sentences

Other expense 8,586 7,330 8,070

Operating income 22,670 94,375 66,474

Operating (loss) income ( 1,668 ) 22,670 94,375

Interest expense, net 5,506 3,027 255

Other expense, net ( 15,365 ) ( 5,010 ) ( 10,199 )

Income before income taxes $ 14,633 $ 83,921 $ 63,700

Note 25— Subsequent Event

In February 2024, we initiated a reduction in workforce that impacted approximately 10 % of our global employees.

This strategic reduction in force is intended to improve our cost structure, streamline operations, and refocus resources on core strategic priorities.

As a result of these decisions, we recorded a severance accrual of approximately $ 4.2 million during the first quarter of 2024, under the guidance of ASC 712, Compensation - Nonretirement Postemployment Benefits.

(Loss) income before income taxes $ ( 22,539 ) $ 14,633 $ 83,921

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 25— Subsequent Events

In February 2025, we issued and sold additional senior unsecured notes in an aggregate principal amount of $ 15 million under the same terms as the initial Notes discussed under Note 11—Debt .

In February 2025, we entered into a new revolving line of credit agreement with a financial institution up to a maximum principal amount of $ 20 million, subject to borrowing base limitations defined under the terms of the agreement.

The line of credit matures in August 2026 and will bear interest at variable market rates, but subject to a minimum rate of 6.0 % per annum.

Interest payments are due monthly, and accrue based on the then-outstanding principal balance.

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 8. Financial Statements and Supplementary Data