What changed in this filing

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Item 1. Financial Statements

2025-05-12 compared with 2024-11-08 · 245 added, 239 removed, 566 unchanged (46% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Assets (In thousands, except par value)

6 unchanged sentences

Prepaid expenses and other assets 62,706 63,424

Income tax receivable 1,322 —

Total current assets 2,746,282 2,428,190

Investment securities available-for-sale, at fair value 2,002,247 2,008,650

Loans to bank customers, net of allowance for credit losses of $ 17,778 and $ 11,383 as of September 30, 2024 and December 31, 2023, respectively

Loans to bank customers, net of allowance for credit losses of $ 22,356 and $ 17,542 as of March 31, 2025 and December 31, 2024, respectively

38,710 31,961

16 unchanged sentences

Deferred revenue 4,797 6,279

Line of credit — 61,000

Income tax payable 14,337 6,648

7 unchanged sentences

Class A common stock, $ 0.001 par value;

100,000 shares authorized as of September 30, 2024 and December 31, 2023;

53,751 and 52,816 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively

100,000 shares authorized as of March 31, 2025 and December 31, 2024;

54,873 and 54,227 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively

Additional paid-in capital 408,602 408,010

6 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

(In thousands, except per share data)

11 unchanged sentences

Total operating expenses 498,129 441,434

Operating (loss) income ( 2,932 ) ( 6,839 ) ( 16,045 ) 48,942

Operating income 60,745 10,554

Interest expense, net 1,386 1,457

Other (expense), net ( 25,704 ) ( 1,810 )

(Loss) income before income taxes ( 8,214 ) ( 7,880 ) ( 30,396 ) 40,771

Income tax (benefit) expense ( 374 ) ( 1,615 ) 1,409 10,446

Net (loss) income $ ( 7,840 ) $ ( 6,265 ) $ ( 31,805 ) $ 30,325

Basic (loss) earnings per common share:

Income before income taxes 33,655 7,287

Income tax expense 7,882 2,537

Net income $ 25,773 $ 4,750

Basic earnings per common share:

$ 0.47 $ 0.09

Diluted (loss) earnings per common share $ ( 0.15 ) $ ( 0.12 ) $ ( 0.60 ) $ 0.58

Diluted earnings per common share $ 0.47 $ 0.09

Basic weighted-average common shares issued and outstanding:

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

(In thousands)

Net (loss) income $ ( 7,840 ) $ ( 6,265 ) $ ( 31,805 ) $ 30,325

Other comprehensive income and loss

Net income $ 25,773 $ 4,750

Other comprehensive income

Unrealized holding income (loss), net of tax 29,321 ( 679 )

Comprehensive income (loss) $ 54,335 $ ( 53,528 ) $ 48,105 $ ( 14,007 )

Reclassification of losses realized in net income, net of tax 18,392 —

Comprehensive income $ 73,486 $ 4,071

See notes to unaudited consolidated financial statements

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

Three Months Ended September 30, 2024

Class A Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders' Equity

Shares Amount

(In thousands)

Balance at June 30, 2024 53,707 $ 54 $ 392,810 $ 746,339 $ ( 269,252 ) $ 869,951

Common stock issued under stock plans, net of withholdings and related tax effects 44 — ( 228 ) — — ( 228 )

Stock-based compensation — — 8,187 — — 8,187

Net loss — — — ( 7,840 ) — ( 7,840 )

Other comprehensive income — — — — 62,175 62,175

Balance at September 30, 2024 53,751 $ 54 $ 400,769 $ 738,499 $ ( 207,077 ) $ 932,245

Three Months Ended September 30, 2023

Class A Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders' Equity

Shares Amount

(In thousands)

Balance at June 30, 2023 52,341 $ 52 $ 360,812 $ 800,172 $ ( 319,797 ) $ 841,239

Common stock issued under stock plans, net of withholdings and related tax effects 74 — ( 524 ) — — ( 524 )

Stock-based compensation — — 7,934 — — 7,934

Net loss — — — ( 6,265 ) — ( 6,265 )

Other comprehensive loss — — — — ( 47,263 ) ( 47,263 )

Balance at September 30, 2023 52,415 $ 52 $ 368,222 $ 793,907 $ ( 367,060 ) $ 795,121

See notes to unaudited consolidated financial statements

GREEN DOT CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (CONTINUED)

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Class A Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders' Equity

4 unchanged sentences

Stock-based compensation — — 3,021 — — 3,021

Net loss — — — ( 31,805 ) — ( 31,805 )

Net income — — — 25,773 — 25,773

Other comprehensive income — — — — 47,713 47,713

Balance at September 30, 2024 53,751 $ 54 $ 400,769 $ 738,499 $ ( 207,077 ) $ 932,245

Nine Months Ended September 30, 2023

Balance at March 31, 2025 54,873 $ 55 $ 408,602 $ 769,375 $ ( 230,369 ) $ 947,663

Three Months Ended March 31, 2024

Class A Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Loss Total Stockholders' Equity

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Other comprehensive loss — — — — ( 679 ) ( 679 )

Balance at September 30, 2023 52,415 $ 52 $ 368,222 $ 793,907 $ ( 367,060 ) $ 795,121

Balance at March 31, 2024 53,158 $ 53 $ 383,205 $ 775,054 $ ( 287,666 ) $ 870,646

See notes to unaudited consolidated financial statements

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands)

Operating activities

Net (loss) income $ ( 31,805 ) $ 30,325

Adjustments to reconcile net (loss) income to net cash provided by operating activities:

Net income $ 25,773 $ 4,750

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

Depreciation and amortization of property, equipment and internal-use software 15,184 16,432

4 unchanged sentences

Losses in equity method investments 2,846 2,656

Realized loss on available-for-sale investment securities 24,497 —

Amortization of discount on available-for-sale investment securities ( 513 ) ( 563 )

19 unchanged sentences

Other investing activities ( 474 ) ( 81 )

Net cash provided by investing activities 85,818 18,420

Net cash used in investing activities ( 63,457 ) ( 4,526 )

Financing activities

2 unchanged sentences

Repayments on revolving line of credit — ( 80,000 )

Proceeds from exercise of options and ESPP purchases 2,719 3,415

Taxes paid related to net share settlement of equity awards ( 2,429 ) ( 1,400 )

2 unchanged sentences

Deferred financing costs ( 422 ) —

Net cash provided by (used in) financing activities 576,878 ( 255,278 )

Net increase (decrease) in unrestricted cash, cash equivalents and restricted cash 767,091 ( 104,410 )

Net cash provided by financing activities 135,189 347,877

Net increase in unrestricted cash, cash equivalents and restricted cash 180,453 432,528

Unrestricted cash, cash equivalents and restricted cash, beginning of period 1,592,435 686,502

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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.

Through Green Dot Bank, our wholly-owned subsidiary, we offer a suite of financial products to consumers and businesses including debit, prepaid, checking, credit, prepaid, and payroll cards, as well as robust money processing services, such as tax refund processing, 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

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Reference is made to our Annual Report on Form 10-K for the year ended December 31, 2024 for additional disclosures, including a summary of our significant accounting policies.

There have been no material changes to our previously disclosed significant accounting policies during the nine months ended September 30, 2024.

There have been no material changes to our previously disclosed significant accounting policies during the three months ended March 31, 2025.

In our opinion, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of normal and recurring items, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods presented.

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accordingly, accounting estimates require the exercise of judgment.

These financial statements were prepared using information reasonably available as of September 30, 2024 and through the date of this report.

These financial statements were prepared using information reasonably available as of March 31, 2025 and through the date of this report.

The accounting estimates used in the preparation of our consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained, and as our operating environment changes.

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Recent 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.

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

Recently adopted accounting pronouncements

In December 2023, the Financial Standards Accounting Board ("FASB") issued Accounting Standards Update ("ASU") 2023-09 "Income Taxes (Topic 740):

Improvements to Income Tax Disclosures" to expand the disclosure requirements for income taxes, specifically related to the rate reconciliation and income taxes paid.

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.

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

We adopted this standard on January 1, 2025, which will expand our disclosures beginning with our annual consolidated financial statements for the year ended December 31, 2025, but will not have an impact on our consolidated financial results.

Accounting pronouncements not yet adopted

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.

GREEN DOT CORPORATION

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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 to customers within the United States and certain U.S.

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

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

Three Months Ended September 30, 2024

Consumer Services B2B Services Money Movement Services Total

Timing of recognition (In thousands)

Transferred point in time $ 70,325 $ 38,617 $ 33,965 $ 142,907

Transferred over time 25,251 224,647 861 250,759

Operating revenues (1)

$ 95,576 $ 263,264 $ 34,826 $ 393,666

Three Months Ended September 30, 2023

Consumer Services B2B Services Money Movement Services Total

Timing of recognition (In thousands)

Transferred point in time $ 76,722 $ 35,383 $ 31,196 $ 143,301

Transferred over time 38,363 162,074 893 201,330

Operating revenues (1)

$ 115,085 $ 197,457 $ 32,089 $ 344,631

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Consumer Services B2B Services Money Movement Services Total

4 unchanged sentences

$ 93,088 $ 330,911 $ 113,246 $ 537,245

Nine Months Ended September 30, 2023

Three Months Ended March 31, 2024

Consumer Services B2B Services Money Movement Services Total

8 unchanged sentences

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.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 3—Revenues (continued)

As presented on our consolidated balance sheets, we record deferred revenue for any upfront payments received in advance of our performance obligations being satisfied.

These contract liabilities consist principally of unearned new card fees and monthly maintenance fees.

We recognized approximately $ 0.2 million and $ 0.7 million in revenue for the three months ended September 30, 2024 and 2023, respectively, and $ 3.7 million and $ 22.6 million for the nine months ended September 30, 2024 and 2023, respectively, that were included in deferred revenue at the beginning of the periods and did not recognize any revenue during these periods from performance obligations satisfied in previous periods.

We recognized approximately $ 2.3 million and $ 2.9 million in revenue for the three months ended March 31, 2025 and 2024, respectively, that were included in deferred revenue at the beginning of the respective periods and did not recognize any revenue during these periods from performance obligations satisfied in previous periods.

Substantially all of the deferred revenue balances at the beginning of the respective periods are recognized in the first half of each year.

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 4— Investment Securities

2 unchanged sentences

(In thousands)

September 30, 2024

March 31, 2025

Corporate bonds $ 10,000 $ — $ ( 30 ) $ 9,970

9 unchanged sentences

Total investment securities $ 2,400,781 $ 3 $ ( 367,982 ) $ 2,032,802

As of September 30, 2024 and December 31, 2023, the gross unrealized losses and fair values of available-for-sale investment securities that were in unrealized loss positions were as follows:

As of March 31, 2025 and December 31, 2024, the gross unrealized losses and fair values of available-for-sale investment securities that were in unrealized loss positions were as follows:

Less than 12 months 12 months or more Total fair value Total unrealized loss

1 unchanged sentence

(In thousands)

September 30, 2024

March 31, 2025

Corporate bonds $ — $ — $ 9,970 $ ( 30 ) $ 9,970 $ ( 30 )

9 unchanged sentences

Total investment securities $ 15,311 $ ( 937 ) $ 2,016,530 $ ( 367,045 ) $ 2,031,841 $ ( 367,982 )

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 credit-related impairment loss during the three months ended March 31, 2025 or 2024 on our available-for-sale investment securities.

Unrealized losses as of March 31, 2025 and December 31, 2024 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 March 31, 2025 and December 31, 2024 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.

Except as disclosed below, we do not currently intend to sell our remaining 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

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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 meaningful credit-related impairment losses during the three and nine months ended September 30, 2024 or 2023 on our available-for-sale investment securities.

Unrealized losses as of September 30, 2024 and December 31, 2023 are the result of increases in interest rates as our investment portfolio is comprised predominantly of fixed rate securities.

Almost all of the underlying securities within our investment portfolio were in an unrealized loss position as of September 30, 2024 and December 31, 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 September 30, 2024, the contractual maturities of our available-for-sale investment securities were as follows:

In April 2025, we sold certain available-for-sales securities in order to reposition the proceeds into higher yielding assets.

As a result, we recorded a realized loss of $ 24.5 million for the three months ended March 31, 2025 because we no longer had the intent to hold the securities until recovery of their amortized cost bases.

The losses were recorded as a reduction of the amortized cost basis for each security and are reflected as a component of other expense, net on our consolidated statements of operations.

As of March 31, 2025, the contractual maturities of our available-for-sale investment securities were as follows:

Amortized cost Fair value

9 unchanged sentences

Accounts receivable, net consisted of the following:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(In thousands)

10 unchanged sentences

Accounts receivable, net $ 128,644 $ 132,007

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:

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

(In thousands)

3 unchanged sentences

Balance, end of period $ 1,835 $ 4,143

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 6— Loans to Bank Customers

2 unchanged sentences

(In thousands)

September 30, 2024

March 31, 2025

Residential $ — $ — $ — $ — $ 7,400 $ 7,400

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

As of September 30, 2024 and December 31, 2023, the fair value of the loans held for sale amounted to approximately $ 4.0 million and $ 4.7 million, respectively.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 6—Loans to Bank Customers (continued)

As of March 31, 2025 and December 31, 2024, the fair value of the loans held for sale amounted to approximately $ 3.6 million and $ 3.8 million, respectively.

Nonperforming Loans

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See Note 2 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2024 for further information on the criteria for classification as nonperforming.

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(In thousands)

Residential $ 31 $ 34

Installment — 79

Secured credit card 2,022 2,536

Total loans $ 2,053 $ 2,570

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 6—Loans to Bank Customers (continued)

Credit Quality Indicators

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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:

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

Non-Classified Classified Non-Classified Classified

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Activity in the allowance for credit losses on our loan portfolio consisted of the following:

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

(In thousands)

4 unchanged sentences

Balance, end of period $ 22,356 $ 10,376

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.

Our final payment under this commitment was made in 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 .

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.

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 September 30, 2024 and December 31, 2023, our net investment in TailFin Labs amounted to approximately $ 132.1 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.

We recorded equity in losses from TailFin Labs of $ 4.4 million and $ 0.8 million for the three months ended September 30, 2024 and 2023, respectively, and $ 12.3 million and $ 8.0 million for the nine months ended September 30, 2024 and 2023, respectively.

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

Our equity method investments also include an investment held by our bank, which amounted to $ 3.3 million and $ 3.5 million at September 30, 2024 and December 31, 2023, respectively.

Equity in earnings from this investment for the three and nine months ended September 30, 2024 and 2023 were not significant.

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.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 7—Equity Method Investments (continued)

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 March 31, 2025 and December 31, 2024, our net investment in TailFin amounted to approximately $ 125.6 million and $ 128.4 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 $ 2.8 million and $ 3.1 million for the three months ended March 31, 2025 and 2024, respectively.

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

The following table presents summarized financial information of TailFin's statements of operations.

(In thousands)

Interest income $ 1,269 $ 1,468

Sales and marketing expenses ( 2,229 ) ( 3,303 )

Compensation and professional services ( 1,798 ) ( 1,295 )

Net loss $ ( 2,758 ) $ ( 3,130 )

Refer to Note 20 - Subsequent Event for additional disclosure regarding our relationship with Walmart and our investment in Tailfin.

Other equity method investments

Our equity method investments also include an investment held by our bank, which amounted to $ 3.2 million as of March 31, 2025 and December 31, 2024.

Equity in earnings from this investment for the three months ended March 31, 2025 and 2024 were not significant.

Note 8— Deposits

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

September 30, 2024 December 31, 2023

March 31, 2025 December 31, 2024

(In thousands)

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The scheduled contractual maturities for total time deposits are presented in the table below:

September 30, 2024

March 31, 2025

(In thousands)

4 unchanged sentences

Due in 2029 686

Thereafter 73

Total time deposits $ 5,693

Senior Unsecured Notes

In September 2024, we issued and sold senior unsecured notes (the "Notes") in an aggregate principal amount of $ 45 million.

In 2024 and 2025, we issued and sold senior unsecured notes (the "Notes") in an aggregate principal amount of $ 65 million, including $ 15 million during the three months ended March 31, 2025.

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

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

As of September 30, 2024, we were in compliance with all affirmative and negative non-financial covenants thereunder.

As of March 31, 2025, 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:

September 30, 2024

March 31, 2025 December 31, 2024

(In thousands)

2 unchanged sentences

Notes payable, net of unamortized discount and issuance costs $ 63,242 $ 48,526

In October 2024, we issued and sold additional Notes in an aggregate principal amount of $ 5 million.

2025 Revolving Facility

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.

We had no outstanding balance as of March 31, 2025.

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

As of September 30, 2024, the then-outstanding balance on the 2019 Revolving Facility was repaid in full, and the 2019 Revolving Facility terminated at its maturity date.

We incurred total cash interest expense on our debt during the three months ended September 30, 2024 and 2023 of approximately $ 1.5 million and $ 0.2 million, respectively and during the nine months ended September 30, 2024 and 2023 of $ 4.2 million and $ 2.0 million, respectively.

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.

We incurred total cash interest expense on our debt during the three months ended March 31, 2025 and 2024 of approximately $ 1.2 million and $ 1.4 million, respectively.

GREEN DOT CORPORATION

1 unchanged sentence

Note 10— Income Taxes

Income tax expense for the nine months ended September 30, 2024 and 2023 differs from the amount computed by applying the statutory federal income tax rate to income before income taxes.

For the three months ended March 31, 2025, we utilized the discrete effective tax rate method, treating the year-to-date period as if it was the annual period to calculate our interim income tax provision, as allowed by ASC 740-270-30-18, " Income Taxes – Interim Reporting ." We determined we could not use the estimated annual effective tax rate method as we could not calculate a reliable estimate of the annual effective tax rate due to it being highly sensitive to minor changes in our forecasted amounts, thus generating significant variability in the estimated annual effective tax rate and distorting the customary relationship between income tax expense and pre-tax income in interim periods.

Income tax expense for the three months ended March 31, 2025 and 2024 differs from the amount computed by applying the statutory federal income tax rate to income before income taxes.

The sources and tax effects of the differences are as follows:

Nine Months Ended September 30,

Three Months Ended March 31,

federal statutory tax rate 21.0 % 21.0 %

6 unchanged sentences

Bank owned life insurance surrender — 9.3

Nondeductible expenses and penalties ( 32.3 ) 0.3

Global intangible low-tax income tax ( 1.5 ) 0.8

Nondeductible expenses 0.3 2.6

Other 0.1 0.1

Effective tax rate 23.4 % 34.8 %

The effective tax rate for the nine months ended September 30, 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 expenses and penalties, cash surrender value growth in bank owned life insurance policies, and the Internal Revenue Code (the "IRC") 162(m) limitation on the deductibility of executive compensation.

The net decrease in the effective tax rate for the nine months ended September 30, 2024 as compared to the nine months ended September 30, 2023 is primarily due to the impact of a decrease of $ 1.6 million in the amount of compensation expense that was subject to the IRC 162(m) limitation on the deductibility of certain executive compensation, a decrease of $ 2.5 million in state income taxes, net of federal benefits, and the impact of general business credits.

These decreases were partially offset by a $ 0.2 million increase in tax expense associated with shortfalls from stock-based compensation, an increase in tax expense due to nondeductible expenses and penalties, 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 during the nine months ended September 30, 2024.

We recognized a discrete tax expense related to tax shortfalls from stock-based compensation of $ 3.0 million for the nine months ended September 30, 2024, compared to a $ 2.8 million discrete tax expense for the prior year comparable period.

The increase in nondeductible expenses and penalties for the nine months ended September 30, 2024 is primarily related to the tax effect associated with the civil money penalty for the Consent Order (defined below) discussed in Note 17 - Commitments and Contingencies.

The effective tax rate for the three months ended March 31, 2025 and 2024 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 expenses, cash surrender value growth in bank owned life insurance policies, and the Internal Revenue Code (the "IRC") 162(m) limitation on the deductibility of executive compensation.

The net decrease in the effective tax rate for the three months ended March 31, 2025 from the prior year comparable period was due to several factors, including a decrease of $ 0.7 million in the amount of compensation expense that was subject to the IRC 162(m) limitation on the deductibility of certain executive compensation, a $ 0.3 million decrease in tax expense associated with shortfalls from stock-based compensation, a $ 0.1 million decrease in tax expense due to nondeductible expenses, a decrease of $ 0.7 million related to our bank owned life insurance surrender penalties we incurred in connection with the surrender and restructuring of our existing bank owned life insurance policies completed in 2024, and the impact of general business credits.

These decreases were partially offset by an increase of $ 1.3 million in state income taxes, net of federal benefits.

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

For the nine months ended September 30, 2024 and 2023, the provision for GILTI tax expense was not material to our financial statements.

For the three months ended March 31, 2025 and 2024, the provision for GILTI tax expense was not material to our financial statements.

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 September 30, 2024 and 2023, we did no t 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 March 31, 2025, we have a valuation allowance recorded 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.

As of March 31, 2024, we did no t have a valuation allowance on any of our deferred tax assets as we believed it was more-likely-than-not that we would realize the benefits of our deferred tax assets.

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

2 unchanged sentences

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

federal tax return during the second quarter ended June 30, 2020, and the examination remains ongoing as of September 30, 2024.

federal tax return during the second quarter ended June 30, 2020, and the examination remains ongoing as of March 31, 2025.

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

2 unchanged sentences

Note 10—Income Taxes (continued)

As of September 30, 2024, 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 March 31, 2025, 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.

Of our total 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.

In addition, we have state business tax credits of approximately $ 21.2 million that can be carried forward indefinitely and other state business tax credits of approximately $ 0.6 million that will start to expire on December 31, 2024 and continue to expire through December 31, 2027.

As of September 30, 2024 and December 31, 2023, we had a liability of $ 13.4 million and $ 12.1 million, respectively, for unrecognized tax benefits related to various federal and state income tax matters excluding interest, penalties and related tax benefits.

In addition, we have state business tax credits of approximately $ 22.7 million that can be carried forward indefinitely and other state business tax credits of approximately $ 0.3 million that will begin expiring on December 31, 2025 and continue to expire through December 31, 2027.

As of March 31, 2025 and December 31, 2024, we had a liability of $ 13.9 million and $ 12.5 million, respectively, for unrecognized tax benefits related to various federal and state income tax matters excluding interest, penalties and related tax benefits.

The reconciliation of the beginning unrecognized tax benefits balance to the ending balance is as follows:

Nine Months Ended September 30,

Three Months Ended March 31,

(In thousands)

1 unchanged sentence

Increases related to positions taken during prior years 1,314 1,380

Decreases related to positions settled with tax authorities ( 86 ) ( 90 )

Ending balance $ 13,855 $ 13,489

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate $ 13,301 $ 12,980

As of September 30, 2024 and 2023, we recognized accrued interest and penalties related to unrecognized tax benefits of approximately $ 1.8 million and $ 1.3 million, respectively.

As of March 31, 2025 and 2024, we recognized accrued interest and penalties related to unrecognized tax benefits of approximately $ 1.8 million and $ 1.4 million, respectively.

Note 11— Stockholders' Equity

1 unchanged sentence

In February 2022, our Board of Directors authorized a $ 100 million increase to our stock repurchase program.

As of September 30, 2024, we had an authorized $ 4.5 million remaining under our stock repurchase program for additional repurchases.

There were no repurchases during the nine months ended September 30, 2024.

As of March 31, 2025, we had an authorized $ 4.5 million remaining under our stock repurchase program for additional repurchases.

There were no repurchases during the three months ended March 31, 2025.

Note 12— Stock-Based Compensation

2 unchanged sentences

We have reserved shares of our Class A common stock for issuance under these plans.

The total stock-based compensation expense recognized was $ 8.2 million and $ 7.9 million for the three months ended September 30, 2024 and 2023, respectively, and $ 24.1 million and $ 27.7 million for the nine months ended September 30, 2024 and 2023, respectively.

The total stock-based compensation expense recognized was $ 3.0 million and $ 8.6 million for the three months ended March 31, 2025 and 2024, respectively.

Restricted Stock Units

Restricted stock unit activity for awards subject to only service conditions was as follows for the nine months ended September 30, 2024:

Restricted stock unit activity for awards subject to only service conditions was as follows for the three months ended March 31, 2025:

Shares Weighted-Average Grant-Date Fair Value

5 unchanged sentences

Restricted stock units canceled ( 277 ) 11.58

Outstanding at September 30, 2024

3,331 $ 12.28

Outstanding at March 31, 2025

GREEN DOT CORPORATION

2 unchanged sentences

Performance-Based Restricted Stock Units

Performance-based restricted stock unit activity for the nine months ended September 30, 2024 was as follows:

Performance-based restricted stock unit activity for the three months ended March 31, 2025 was as follows:

Shares Weighted-Average Grant-Date Fair Value

1 unchanged sentence

Outstanding at December 31, 2024

1,569 $ 12.73

Performance restricted stock units granted 111 7.83

Performance restricted stock units vested ( 2 ) 50.23

Performance restricted stock units canceled ( 864 ) 12.49

Outstanding at September 30, 2024

1,894 $ 15.47

Outstanding at March 31, 2025

We grant performance-based restricted stock units to certain employees that are subject to the attainment of pre-established internal performance conditions, market conditions, or a combination thereof (collectively referred to herein as "performance-based restricted stock units").

1 unchanged sentence

Compensation expense related to these awards is recognized using the accelerated attribution method over the vesting period based on the grant date fair value of the award.

Stock Options

Total stock option activity for the nine months ended September 30, 2024 was as follows:

Options Weighted-Average Exercise Price

(In thousands, except per share data)

Outstanding at December 31, 2023

1,010 $ 23.78

Options canceled ( 10 ) 18.80

Outstanding at September 30, 2024

1,000 $ 23.83

Exercisable at September 30, 2024

1,000 $ 23.83

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 13— Earnings (Loss) per Common Share

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

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Note 13— Earnings per Common Share

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

Three Months Ended March 31,

(In thousands, except per share data)

Basic earnings (loss) per Class A common share

Net (loss) income $ ( 7,840 ) $ ( 6,265 ) $ ( 31,805 ) $ 30,325

Basic earnings per Class A common share

Net income $ 25,773 $ 4,750

Weighted-average Class A shares issued and outstanding 54,361 52,942

Basic (loss) earnings per Class A common share $ ( 0.15 ) $ ( 0.12 ) $ ( 0.60 ) $ 0.58

Diluted earnings (loss) per Class A common share

Net (loss) income allocated to Class A common stockholders $ ( 7,840 ) $ ( 6,265 ) $ ( 31,805 ) $ 30,325

Basic earnings per Class A common share $ 0.47 $ 0.09

Diluted earnings per Class A common share

Net income allocated to Class A common stockholders $ 25,773 $ 4,750

Weighted-average Class A shares issued and outstanding 54,361 52,942

4 unchanged sentences

Diluted weighted-average Class A shares issued and outstanding 55,282 53,270

Diluted (loss) earnings per Class A common share $ ( 0.15 ) $ ( 0.12 ) $ ( 0.60 ) $ 0.58

Diluted earnings per Class A common share $ 0.47 $ 0.09

For the periods presented, we excluded certain restricted stock units and stock options outstanding, which could potentially dilute basic EPS in the future, from the computation of diluted EPS as their effect was anti-dilutive.

Additionally, we have excluded any performance-based restricted stock units where the performance contingency has not been met as of the end of the period, or whereby the result of including such awards was anti-dilutive.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 13—Earnings per Common Share (continued)

The following table shows the weighted-average number of anti-dilutive shares excluded from the diluted EPS calculation:

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

(In thousands)

4 unchanged sentences

Total 1,319 2,428

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 14— Fair Value Measurements

3 unchanged sentences

For more information regarding the fair value hierarchy and how we measure fair value, see Note 2–Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2024.

As of September 30, 2024 and December 31, 2023, our assets carried at fair value on a recurring basis were as follows:

As of March 31, 2025 and December 31, 2024, our assets carried at fair value on a recurring basis were as follows:

Level 1 Level 2 Level 3 Total Fair Value

September 30, 2024 (In thousands)

March 31, 2025 (In thousands)

Investment securities:

13 unchanged sentences

Total assets $ — $ 2,032,802 $ 3,849 $ 2,036,651

We based the fair value of our fixed income securities held as of September 30, 2024 and December 31, 2023 on quoted prices in active markets for similar assets.

We had no transfers between Level 1, Level 2 or Level 3 assets or liabilities during the three and nine months ended September 30, 2024 or 2023.

We based the fair value of our fixed income securities held as of March 31, 2025 and December 31, 2024 on quoted prices in active markets for similar assets.

We had no transfers between Level 1, Level 2 or Level 3 assets or liabilities during the three months ended March 31, 2025 or 2024.

A reconciliation of changes in fair value for Level 3 assets or liabilities are not considered material to these consolidated financial statements and therefore are not presented for any of the periods presented.

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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 at September 30, 2024 approximates fair value because the interest rate charged is commensurate with current market rates for issuers of similar risk.

The carrying amount of our outstanding Notes at March 31, 2025 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

The carrying values and fair values of certain financial instruments that were not carried at fair value, excluding short-term financial instruments for which the carrying value approximates fair value, at September 30, 2024 and December 31, 2023 are presented in the table below.

September 30, 2024 December 31, 2023

The carrying values and fair values of certain financial instruments that were not carried at fair value, excluding short-term financial instruments for which the carrying value approximates fair value, at March 31, 2025 and December 31, 2024 are presented in the table below.

March 31, 2025 December 31, 2024

Carrying Value Fair Value Carrying Value Fair Value

7 unchanged sentences

Note 16— Leases

Our leases consist of operating lease agreements principally related to our corporate and subsidiary office locations.

Our leases consist of operating lease agreements principally related to our subsidiary office locations.

Currently, we do not enter into any financing lease agreements.

Our leases have remaining lease terms of less than 1 year to approximately 8 years, most of which generally include renewal options of varying terms.

Our total lease expense amounted to approximately $ 1.0 million and $ 0.8 million for the three months ended September 30, 2024 and 2023, respectively, and $ 2.8 million for each of the nine months ended September 30, 2024 and 2023.

Our leases have remaining lease terms of approximately 2 years to 8 years, most of which generally include renewal options of varying terms.

Our total lease expense amounted to approximately $ 0.9 million for each of the three months ended March 31, 2025 and 2024.

Our lease expense is generally based on fixed payments stated within the agreements.

2 unchanged sentences

Additional information related to our right of use assets and related lease liabilities is as follows:

September 30, 2024

March 31, 2025

Cash paid for operating lease liabilities (in thousands) $ 1,034

1 unchanged sentence

Weighted average discount rate 4.0 %

Maturities of our operating lease liabilities as of September 30, 2024 are as follows:

Maturities of our operating lease liabilities as of March 31, 2025 are as follows:

Operating Leases

9 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.

As previously disclosed, on July 19, 2024, we and our subsidiary bank received a consent order (the "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 Consent Order was a civil money penalty related to these issues in the amount of $ 44 million which was subsequently 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

3 unchanged sentences

The suit asserts purported claims under Sections 10(b) and 20(a) of the Exchange Act for allegedly misleading statements regarding our business strategy.

Plaintiff alleges that defendants made statements that were

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 17—Commitments and Contingencies (continued)

misleading because they allegedly failed to disclose details regarding our customer acquisition strategy and its impact on our financial performance.

Plaintiff alleges that defendants made statements that were misleading because they allegedly failed to disclose details regarding our customer acquisition strategy and its impact on our financial performance.

The suit is purportedly brought on behalf of purchasers of our securities between May 9, 2018 and November 7, 2019, and seeks compensatory damages, fees and costs.

2 unchanged sentences

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.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 17—Commitments and Contingencies (continued)

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

34 unchanged sentences

Revenues derived from our products sold at retail distributors constituting at least 10% of our total operating revenues were as follows:

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Three Months Ended March 31,

Walmart 7 % 10 %

In addition, approximately 59 % and 47 % of our total operating revenues for the three months ended September 30, 2024 and 2023, respectively, and 53 % and 39 % for the nine months ended September 30, 2024 and 2023, respectively, were generated from a single BaaS partner, but without a corresponding concentration to our gross profit for the respective periods.

In addition, approximately 56 % and 46 % of our total operating revenues for the three months ended March 31, 2025 and 2024, respectively, were generated from a single BaaS partner, but without a corresponding concentration to our gross profit for the respective periods.

Note 19— 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.

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 performance and allocate resources.

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:

1 unchanged sentence

Our Consumer Services segment consists of revenues and expenses derived from deposit account programs, such as consumer checking accounts, prepaid cards, secured credit cards, and gift cards that we offer to consumers (i) through distribution arrangements with more than 90,000 retail locations and thousands of neighborhood Financial Service Center locations (the "Retail channel"), and (ii) directly through various marketing channels, such as online search engine optimization, online displays, direct mail campaigns, mobile advertising, and affiliate referral programs (the "Direct channel").

Our B2B Services segment consists of revenues and expenses derived from (i) our partnerships with some of the United States' most 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 disbursements services utilized by our partners.

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 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.

2 unchanged sentences

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.

Non-cash expenses such as stock-based compensation, depreciation and amortization of long-lived assets, impairment charges, and other non-recurring expenses that are not considered by our CODM when evaluating our overall consolidated financial results are excluded from our unallocated corporate expenses

GREEN DOT CORPORATION

1 unchanged sentence

Note 19—Segment Information (continued)

unallocated corporate expenses above.

We do not evaluate performance or allocate resources based on segment asset data, and therefore such information is not presented.

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

Three Months Ended September 30, Nine Months Ended September 30,

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

Three Months Ended March 31, 2025

Consumer Services B2B Services Money Movement Services Corporate and Other Total

(In thousands)

Total segment revenues $ 95,256 $ 341,991 $ 110,247 $ 8,470 $ 555,964

Segment expenses (1)

Sales and marketing expenses (2)

33,298 4,016 21,403 — 58,717

Segment Revenue (In thousands)

Consumer Services $ 98,046 $ 118,204 $ 295,278 $ 387,128

B2B Services 276,402 199,206 769,658 551,150

Money Movement Services 31,854 32,089 187,967 180,304

Corporate and Other ( 283 ) ( 928 ) 3,095 3,496

Processing expenses (3)

9,182 265,516 722 — 275,420

Transaction losses and fraud management (4)

14,350 25,813 7,625 — 47,788

Customer support and related expenses (5)

4,794 19,494 1,397 — 25,685

Compensation and benefits expenses (6)

— — — 32,500 32,500

Other segment items (7)

— — 2,274 23,021 25,295

Total segment expenses 61,624 314,839 33,421 55,521 465,405

Segment profit $ 33,632 $ 27,152 $ 76,826 $ ( 47,051 ) $ 90,559

Three Months Ended March 31, 2024

Consumer Services B2B Services Money Movement Services Corporate and Other Total

(In thousands)

Total segment revenues $ 100,612 $ 241,200 $ 103,150 $ 2,461 $ 447,423

BaaS commissions and processing expenses 4,346 5,168 14,492 15,346

Segment expenses (1)

Sales and marketing expenses (2)

32,757 3,326 24,871 — 60,954

Processing expenses (3)

9,214 177,242 467 — 186,923

Transaction losses and fraud management (4)

21,581 32,423 7,868 — 61,872

Customer support and related expenses (5)

3,801 9,926 1,355 — 15,082

Compensation and benefits expenses (6)

— — — 34,416 34,416

Other segment items (7)

— — 2,742 26,202 28,944

Total segment expenses 67,353 222,917 37,303 60,618 388,191

Segment profit $ 33,259 $ 18,283 $ 65,847 $ ( 58,157 ) $ 59,232

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 19—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:

Three Months Ended March 31,

(In thousands)

Total segment revenues $ 555,964 $ 447,423

Embedded finance commissions and processing expenses 4,427 5,100

Other income ( 1,517 ) ( 535 )

Total operating revenues $ 558,874 $ 451,988

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.

Three Months Ended September 30, Nine Months Ended September 30,

2024 2023 2024 2023

Segment Profit (In thousands)

Consumer Services $ 39,389 $ 42,426 $ 107,097 $ 139,450

B2B Services 27,736 18,883 65,097 58,808

Money Movement Services 12,717 12,850 113,855 103,650

Corporate and Other ( 51,527 ) ( 50,424 ) ( 164,504 ) ( 156,761 )

Segment revenue adjustments represent commissions and certain processing-related costs associated with our embedded finance products and services, which are netted against 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 before incomes taxes are presented below:

Three Months Ended March 31,

(In thousands)

Total segment profit $ 90,559 $ 59,232

Reconciliation to (loss) income before income taxes

Reconciliation to income before income taxes

Depreciation and amortization of property, equipment and internal-use software 15,184 16,432

2 unchanged sentences

Impairment charges 61 6,405

Legal settlements and related expenses 869 545 32,896 1,964

Legal settlement expenses 937 5,880

Other expense 4,989 5,591

Operating (loss) income ( 2,932 ) ( 6,839 ) ( 16,045 ) 48,942

Operating income 60,745 10,554

Interest expense, net 1,386 1,457

Other (expense), net ( 25,704 ) ( 1,810 )

(Loss) income before income taxes $ ( 8,214 ) $ ( 7,880 ) $ ( 30,396 ) $ 40,771

Income before income taxes $ 33,655 $ 7,287

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 20— Subsequent Event

On April 29, 2025, we entered into an amendment which provides for us to continue serving as the issuing bank and program manager for the Walmart MoneyCard suite of reloadable debit card products, and entered into additional amendments pursuant to which we distribute our various products and services, including certain Green Dot-branded products and reload services through the Green Dot Network, at Walmart stores (collectively, the “Agreements”).

The amended term of the Agreements expires on January 31, 2033, subject to an automatic one-year renewal provision under the terms of the arrangements.

In consideration of the amended Agreements, we and the assignee of Walmart Inc.

and its subsidiary parties, RNBW Ventures Inc., (“RNBW”), agreed to cause TailFin to pay RNBW a one-time, non-refundable incentive payment in the amount of $ 70 million, which we anticipate will be reflected as a component of equity in losses attributable to TailFin during the second quarter of 2025.

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-Q

Item 1. Financial Statements