What changed in this filing

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Item 1. Financial Statements

2025-08-11 compared with 2025-05-12 · 272 added, 162 removed, 649 unchanged (40% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Assets (In thousands, except par value)

6 unchanged sentences

Prepaid expenses and other assets 52,377 63,424

Income tax receivable 7,447 —

Total current assets 3,154,997 2,428,190

Investment securities available-for-sale, at fair value 1,537,658 2,008,650

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

Loans to bank customers, net of allowance for credit losses of $ 22,406 and $ 17,542 as of June 30, 2025 and December 31, 2024, respectively

34,616 31,961

25 unchanged sentences

Class A common stock, $ 0.001 par value;

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

100,000 shares authorized as of June 30, 2025 and December 31, 2024;

55,388 and 54,227 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively

Additional paid-in capital 416,767 408,010

6 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(In thousands, except per share data)

11 unchanged sentences

Total operating expenses 490,777 430,788 988,906 872,222

Operating income 60,745 10,554

Operating income (loss) 13,399 ( 23,667 ) 74,144 ( 13,113 )

Interest expense, net 1,631 1,272 3,017 2,729

Other (expense), net ( 74,691 ) ( 4,530 ) ( 100,395 ) ( 6,340 )

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:

Loss before income taxes ( 62,923 ) ( 29,469 ) ( 29,268 ) ( 22,182 )

Income tax (benefit) expense ( 15,898 ) ( 754 ) ( 8,016 ) 1,783

Net loss $ ( 47,025 ) $ ( 28,715 ) $ ( 21,252 ) $ ( 23,965 )

Basic loss per common share:

$ ( 0.85 ) $ ( 0.54 ) $ ( 0.39 ) $ ( 0.45 )

Diluted earnings per common share $ 0.47 $ 0.09

Diluted loss per common share $ ( 0.85 ) $ ( 0.54 ) $ ( 0.39 ) $ ( 0.45 )

Basic weighted-average common shares issued and outstanding:

4 unchanged sentences

GREEN DOT CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended March 31,

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND LOSS

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(In thousands)

Net income $ 25,773 $ 4,750

Other comprehensive income

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

Net loss $ ( 47,025 ) $ ( 28,715 ) $ ( 21,252 ) $ ( 23,965 )

Other comprehensive (loss) income

Unrealized holding income, net of tax 11,867 18,414 41,188 17,735

Reclassification of losses realized in net income, net of tax 212 — 18,604 —

Comprehensive income $ 73,486 $ 4,071

Comprehensive (loss) income $ ( 34,946 ) $ ( 10,301 ) $ 38,540 $ ( 6,230 )

See notes to unaudited consolidated financial statements

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

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

1 unchanged sentence

(In thousands)

Balance at December 31, 2024 54,227 $ 55 $ 408,010 $ 743,602 $ ( 278,082 ) $ 873,585

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

Common stock issued under stock plans, net of withholdings and related tax effects 515 — 2,429 — — 2,429

Stock-based compensation — — 5,736 — — 5,736

Net income — — — 25,773 — 25,773

Net loss — — — ( 47,025 ) — ( 47,025 )

Other comprehensive income — — — — 12,079 12,079

Balance at June 30, 2025 55,388 $ 55 $ 416,767 $ 722,350 $ ( 218,290 ) $ 920,882

Three Months Ended June 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 March 31, 2024 53,158 $ 53 $ 383,205 $ 775,054 $ ( 287,666 ) $ 870,646

Three Months Ended March 31, 2024

Common stock issued under stock plans, net of withholdings and related tax effects 549 1 2,358 — — 2,359

Stock-based compensation — — 7,247 — — 7,247

Net loss — — — ( 28,715 ) — ( 28,715 )

Other comprehensive income — — — — 18,414 18,414

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

See notes to unaudited consolidated financial statements

GREEN DOT CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (CONTINUED)

Six Months Ended June 30, 2025

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

4 unchanged sentences

Stock-based compensation — — 8,757 — — 8,757

Net income — — — 4,750 — 4,750

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

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

Net loss — — — ( 21,252 ) — ( 21,252 )

Other comprehensive income — — — — 59,792 59,792

Balance at June 30, 2025 55,388 $ 55 $ 416,767 $ 722,350 $ ( 218,290 ) $ 920,882

Six Months Ended June 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 December 31, 2023 52,816 $ 53 $ 375,980 $ 770,304 $ ( 286,987 ) $ 859,350

Common stock issued under stock plans, net of withholdings and related tax effects 891 1 958 — — 959

Stock-based compensation — — 15,872 — — 15,872

Net loss — — — ( 23,965 ) — ( 23,965 )

Other comprehensive income — — — — 17,735 17,735

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

See notes to unaudited consolidated financial statements

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(In thousands)

Operating activities

Net income $ 25,773 $ 4,750

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

Net loss $ ( 21,252 ) $ ( 23,965 )

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

Depreciation and amortization of property, equipment and internal-use software 31,262 32,259

24 unchanged sentences

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

Proceeds from other investments — 39,118

Other investing activities ( 921 ) ( 330 )

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

Net cash provided by investing activities 501,664 7,783

Financing activities

2 unchanged sentences

Repayments on revolving line of credit — ( 166,000 )

Proceeds from exercise of options and ESPP purchases 2,633 2,719

Taxes paid related to net share settlement of equity awards ( 2,633 ) ( 1,760 )

26 unchanged sentences

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 three months ended March 31, 2025.

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

2 unchanged sentences

accordingly, accounting estimates require the exercise of judgment.

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

These financial statements were prepared using information reasonably available as of June 30, 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.

20 unchanged sentences

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

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Consumer Services B2B Services Money Movement Services Total

4 unchanged sentences

$ 91,200 $ 337,474 $ 54,001 $ 482,675

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Consumer Services B2B Services Money Movement Services Total

4 unchanged sentences

$ 94,051 $ 241,731 $ 56,674 $ 392,456

Six Months Ended June 30, 2025

Consumer Services B2B Services Money Movement Services Total

Timing of recognition (In thousands)

Transferred point in time $ 137,428 $ 76,125 $ 165,630 $ 379,183

Transferred over time 46,860 592,260 1,617 640,737

Operating revenues (1)

$ 184,288 $ 668,385 $ 167,247 $ 1,019,920

Six Months Ended June 30, 2024

Consumer Services B2B Services Money Movement Services Total

Timing of recognition (In thousands)

Transferred point in time $ 140,472 $ 69,752 $ 161,949 $ 372,173

Transferred over time 51,586 406,420 1,554 459,560

Operating revenues (1)

$ 192,058 $ 476,172 $ 163,503 $ 831,733

(1) Excludes net interest income, a component of total operating revenues, as it is outside the scope of ASC 606, Revenues.

2 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 $ 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.

We recognized approximately $ 0.5 million and $ 0.7 million in revenue for the three months ended June 30, 2025 and 2024, respectively, and $ 2.7 million and $ 3.6 million for the six months ended June 30, 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)

March 31, 2025

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

June 30, 2025

Agency bond securities $ 179,226 $ — $ ( 25,684 ) $ 153,542

1 unchanged sentence

Municipal bonds 28,819 — ( 6,454 ) 22,365

Asset-backed securities 102,000 — ( 204 ) 101,796

Total investment securities $ 1,817,681 $ 161 $ ( 280,184 ) $ 1,537,658

5 unchanged sentences

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

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:

As of June 30, 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)

March 31, 2025

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

June 30, 2025

Agency bond securities $ — $ — $ 153,542 $ ( 25,684 ) $ 153,542 $ ( 25,684 )

1 unchanged sentence

Municipal bonds — — 22,365 ( 6,454 ) 22,365 ( 6,454 )

Asset-backed securities 50,583 ( 204 ) — — 50,583 ( 204 )

Total investment securities $ 167,692 $ ( 673 ) $ 1,252,892 $ ( 279,511 ) $ 1,420,584 $ ( 280,184 )

5 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

1 unchanged sentence

Note 4—Investment Securities (continued)

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:

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 and six months ended June 30, 2025 or 2024 on our available-for-sale investment securities.

Unrealized losses as of June 30, 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 June 30, 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.

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

As a result, we recorded an estimated realized loss of $ 24.5 million during 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 as of the then balance sheet date.

Total losses recognized upon final settlement of the securities sold amounted to $ 24.8 million, and are reflected as a component of other expense, net on our consolidated statement of operations for the six months ended June 30, 2025.

As of June 30, 2025, the contractual maturities of our available-for-sale investment securities were as follows:

Amortized cost Fair value

(In thousands)

Due in one year or less $ 102,067 $ 102,037

Due after one year through five years $ 65,500 $ 58,559

6 unchanged sentences

Accounts receivable, net consisted of the following:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(In thousands)

10 unchanged sentences

Accounts receivable, net $ 103,069 $ 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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(In thousands)

3 unchanged sentences

Balance, end of period $ 1,957 $ 2,737 $ 1,957 $ 2,737

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 6— Loans to Bank Customers

2 unchanged sentences

(In thousands)

March 31, 2025

June 30, 2025

Residential $ — $ — $ — $ — $ 7,451 $ 7,451

21 unchanged sentences

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

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

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.

Changes in valuation allowances are recorded as a component of other expense, net on our consolidated statement of operations.

As of June 30, 2025 and December 31, 2024, the fair value of the loans held for sale amounted to approximately $ 3.5 million and $ 3.8 million, respectively.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 6—Loans to Bank Customers (continued)

Nonperforming Loans

1 unchanged sentence

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.

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(In thousands)

2 unchanged sentences

Total loans $ 1,734 $ 2,570

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 6—Loans to Bank Customers (continued)

Credit Quality Indicators

6 unchanged sentences

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:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Non-Classified Classified Non-Classified Classified

8 unchanged sentences

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(In thousands)

4 unchanged sentences

Balance, end of period $ 22,406 $ 17,360 $ 22,406 $ 17,360

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 7— Equity Method Investments

1 unchanged sentence

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

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

5 unchanged sentences

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.

2 unchanged sentences

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.

As of June 30, 2025 and December 31, 2024, our net investment in TailFin amounted to approximately $ 49.9 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.

Under the HLBV method and based on the terms of the agreement, we recorded equity in losses attributable to TailFin of approximately $ 75.8 million and $ 4.8 million for the three months ended June 30, 2025 and 2024, respectively, and $ 78.5 million and $ 7.9 million for the six months ended June 30, 2025 and 2024, respectively.

Our equity in losses for the three and six months ended June 30, 2025 reflect the $ 70 million incentive payment described below.

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

In April 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 recorded as a component of equity in losses attributable to TailFin during the three months ended June 30, 2025 under our HLBV method of accounting.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 7—Equity Method Investments (continued)

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

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(In thousands)

3 unchanged sentences

Net loss ( 7,255 ) ( 4,784 ) ( 10,013 ) ( 7,914 )

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

Investor HLBV basis adjustment (1)

( 68,495 ) — ( 68,495 ) —

Equity in losses attributable to TailFin $ ( 75,750 ) $ ( 4,784 ) $ ( 78,508 ) $ ( 7,914 )

(1) The incentive payment of $ 70 million has been recorded as a deferred asset on TailFin’s balance sheet and will be amortized over the revised term of the Agreements through 2033.

Under the HLBV method and based on the terms of the agreement, we expensed the amount upon payment.

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.

Our equity method investments also include an investment held by our bank, which amounted to $ 3.1 million and $ 3.2 million, respectively, as of June 30, 2025 and December 31, 2024.

Equity in earnings from this investment for the three and six months ended June 30, 2025 and 2024 were not significant.

Note 8— Deposits

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

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(In thousands)

8 unchanged sentences

Total deposits $ 4,096,701 $ 4,010,520

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 8—Deposits (continued)

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

March 31, 2025

June 30, 2025

(In thousands)

4 unchanged sentences

Due in 2029 688

Thereafter 112

Total time deposits $ 5,701

Senior Unsecured Notes

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.

In 2024 and 2025, we issued and sold senior unsecured notes (the "Notes") in an aggregate principal amount of $ 65 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.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 9—Debt (continued)

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.

2 unchanged sentences

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

As of March 31, 2025, we were in compliance with all affirmative and negative non-financial covenants thereunder.

As of June 30, 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:

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

(In thousands)

6 unchanged sentences

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

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

We had no outstanding balance as of June 30, 2025.

2019 Revolving Facility

2 unchanged sentences

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

We incurred total cash interest expense on our debt of approximately $ 1.4 million and $ 1.2 million during the three months ended June 30, 2025 and 2024, respectively, and $ 2.7 million during each of the six months ended June 30, 2025 and 2024 .

Note 10— 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.

Our income tax benefit for the six months ended June 30, 2025 and income tax expense for the six months ended June 30, 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:

Three Months Ended March 31,

Six Months Ended June 30,

federal statutory tax rate 21.0 % 21.0 %

6 unchanged sentences

Bank-owned life insurance surrender — ( 3.1 )

Nondeductible expenses 0.3 2.6

Nondeductible expenses and penalties ( 0.3 ) ( 65.5 )

Global intangible low-tax income tax ( 0.2 ) ( 3.2 )

Other ( 0.1 ) ( 0.1 )

Effective tax rate 27.4 % ( 8.0 ) %

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.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 10—Income Taxes (continued)

The effective tax rate for the six months ended June 30, 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, and the Internal Revenue Code (the "IRC") 162(m) limitation on the deductibility of executive compensation.

The net increase in the effective tax rate for the six months ended June 30, 2025 from the prior year comparable period was due to several factors, including an increase of $ 1.0 million in the amount of compensation expense that was subject to the IRC 162(m) limitation on the deductibility of certain executive compensation, a lower tax rate benefit due to a decrease of $ 0.6 million in general business credits, an increase of $ 0.9 million in state income taxes expense, net of federal benefits, and a lower tax rate benefit from the cash surrender value in bank-owned life insurance policies.

These increases were partially offset by a $ 0.8 million decrease in tax expense associated with shortfalls from stock-based compensation, a decrease of $ 14.5 million in tax expense from nondeductible expenses and penalties primarily related to the tax effect associated with the civil money penalty we incurred in 2024 for our Consent Order received from the Federal Reserve Board and a decrease of $ 0.7 million related to bank-owned life insurance surrender penalties we incurred in connection with the surrender and restructuring of our existing bank-owned life insurance policies we completed in 2024.

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

For the six months ended June 30, 2025 and 2024, the provision for GILTI tax expense was not material to our financial statements.

On July 4, 2025, H.R.

1, commonly referred to as the “One Big Beautiful Bill Act" (“OBBBA”) was signed into law, enacting significant changes to the U.S.

federal tax code with various effective dates from 2025 to 2027.

The OBBBA introduced several provisions that may affect our future financial results, including an elective deduction for domestic research expenditures, reinstatement of elective 100% first-year bonus depreciation, and modifications to GILTI, among other provisions.

A quantitative estimate of the specific financial effects cannot be reasonably determined at this time due to the complexity of the changes in the tax reform.

The impact of the tax provisions contained in the OBBBA will depend on our facts in each year and anticipated guidance from the U.S.

Department of the Treasury.

We are currently assessing the impact of these tax law changes on our effective tax rate and deferred tax assets in 2025 and future periods.

However, since the OBBBA was enacted subsequent to our balance sheet date, our tax provision for the three and six months ended June 30, 2025, does not incorporate the effects of these tax law changes.

We will continue to monitor additional guidance as it becomes available and reflect the impact in future periods as appropriate.

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 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.

As of June 30, 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 June 30, 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.

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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 March 31, 2025.

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

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

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 10—Income Taxes (continued)

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.

As of June 30, 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.

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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.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 10—Income Taxes (continued)

As of June 30, 2025 and December 31, 2024, we had a liability of $ 13.7 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:

Three Months Ended March 31,

Six Months Ended June 30,

(In thousands)

Beginning balance $ 12,541 $ 12,109

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

Increases related to positions taken during the current year 1,164 1,380

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

Ending balance $ 13,705 $ 13,403

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate $ 13,135 $ 12,897

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.

As of June 30, 2025 and 2024, we recognized accrued interest and penalties related to unrecognized tax benefits of approximately $ 2.0 million and $ 1.6 million, respectively.

Note 11— Stockholders' Equity

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

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.

As of June 30, 2025, we had an authorized $ 4.5 million remaining under our stock repurchase program for additional repurchases.

There were no repurchases during the six months ended June 30, 2025.

Note 12— Stock-Based Compensation

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

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.

The total stock-based compensation expense recognized was $ 5.7 million and $ 7.2 million for the three months ended June 30, 2025 and 2024, respectively, and $ 8.8 million and $ 15.9 million for the six months ended June 30, 2025 and 2024, respectively.

Restricted Stock Units

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

Restricted stock unit activity for awards subject to only service conditions was as follows for the six months ended June 30, 2025:

Shares Weighted-Average Grant-Date Fair Value

5 unchanged sentences

Restricted stock units canceled ( 434 ) 11.05

Outstanding at March 31, 2025

Outstanding at June 30, 2025

GREEN DOT CORPORATION

2 unchanged sentences

Performance-Based Restricted Stock Units

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

Performance-based restricted stock unit activity for the six months ended June 30, 2025 was as follows:

Shares Weighted-Average Grant-Date Fair Value

4 unchanged sentences

Performance restricted stock units canceled ( 905 ) 12.57

Outstanding at March 31, 2025

Outstanding at June 30, 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").

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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.

Note 13— Earnings per Common Share

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

Three Months Ended March 31,

Note 13— Loss per Common Share

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

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(In thousands, except per share data)

Basic earnings per Class A common share

Net income $ 25,773 $ 4,750

Basic loss per Class A common share

Net loss $ ( 47,025 ) $ ( 28,715 ) $ ( 21,252 ) $ ( 23,965 )

Weighted-average Class A shares issued and outstanding 55,127 53,452 54,746 53,197

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

Basic loss per Class A common share $ ( 0.85 ) $ ( 0.54 ) $ ( 0.39 ) $ ( 0.45 )

Diluted loss per Class A common share

Net loss allocated to Class A common stockholders $ ( 47,025 ) $ ( 28,715 ) $ ( 21,252 ) $ ( 23,965 )

Weighted-average Class A shares issued and outstanding 55,127 53,452 54,746 53,197

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Diluted weighted-average Class A shares issued and outstanding 55,127 53,452 54,746 53,197

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.

Diluted loss per Class A common share $ ( 0.85 ) $ ( 0.54 ) $ ( 0.39 ) $ ( 0.45 )

As a result of our net losses for the three and six months ended June 30, 2025 and 2024, the dilutive impacts of certain potential common shares were excluded from our dilutive weighted-average shares since their inclusion would have been anti-dilutive.

For the periods presented, we also 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 under the treasury stock method.

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 13—Earnings per Common Share (continued)

Note 13—Loss 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 March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(In thousands)

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

As of June 30, 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

March 31, 2025 (In thousands)

June 30, 2025 (In thousands)

Investment securities:

Corporate bonds $ — $ 9,970 $ — $ 9,970

Agency bond securities $ — $ 153,542 $ — $ 153,542

1 unchanged sentence

Municipal bonds — 22,365 — 22,365

Asset-backed securities — 101,796 — 101,796

Loans held for sale — — 3,532 3,532

8 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 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.

We based the fair value of our fixed income securities held as of June 30, 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 and six months ended June 30, 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 March 31, 2025 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 June 30, 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 March 31, 2025 and December 31, 2024 are presented in the table below.

March 31, 2025 December 31, 2024

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 June 30, 2025 and December 31, 2024 are presented in the table below.

June 30, 2025 December 31, 2024

Carrying Value Fair Value Carrying Value Fair Value

10 unchanged sentences

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 total lease expense amounted to approximately $ 0.9 million for each of the three months ended June 30, 2025 and 2024, and $ 1.8 million for each of the six months ended June 30, 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:

March 31, 2025

June 30, 2025

Cash paid for operating lease liabilities (in thousands) $ 1,254

1 unchanged sentence

Weighted average discount rate 4.0 %

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

Maturities of our operating lease liabilities as of June 30, 2025 are as follows:

Operating Leases

19 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.

The trial on these claims is currently scheduled to begin in August 2026.

GREEN DOT CORPORATION

6 unchanged sentences

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.

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

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

4 unchanged sentences

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.

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

On June 25, 2025, the Court entered an order consolidating the Hellman action and the DiBlasio action, with the Hellman action designated the lead case and the DiBlasio action closed administratively.

The consolidated case remains stayed through the close of fact discovery in the Koffsmon action.

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

3 unchanged sentences

We have obtained money transmitter licenses (or similar such licenses) where applicable, based on advice of counsel or when we have been requested to do so.

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.

If we were found to be in violation of any laws and regulations governing our business, which includes without limitation 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.

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

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Our retail distributors operate in similar economic sectors, but diverse domestic geographic regions.

The loss of a significant retail distributor could have a material adverse effect upon our card sales, profitability, and revenue growth.

The loss of a significant retail distrib utor could have a material adverse effect upon our card sales, profitability, and revenue growth.

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Walmart 8 % 10 % 7 % 10 %

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.

In addition, approximately 63 % and 54 % of our total operating revenues for the three months ended June 30, 2025 and 2024, respectively, and 59 % and 50 % for the six months ended June 30, 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

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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 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

GREEN DOT CORPORATION

1 unchanged sentence

Note 19—Segment Information (continued)

unallocated corporate expenses above.

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.

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

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

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Consumer Services B2B Services Money Movement Services Corporate and Other Total

16 unchanged sentences

Segment profit $ 33,094 $ 27,980 $ 34,112 $ ( 49,761 ) $ 45,425

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Consumer Services B2B Services Money Movement Services Corporate and Other Total

19 unchanged sentences

Note 19—Segment Information (continued)

Six Months Ended June 30, 2025

Consumer Services B2B Services Money Movement Services Corporate and Other Total

(In thousands)

Total segment revenues $ 188,355 $ 690,641 $ 161,095 $ 17,037 $ 1,057,128

Segment expenses (1)

Sales and marketing expenses (2)

64,874 6,872 36,258 — 108,004

Processing expenses (3)

18,300 538,950 1,255 — 558,505

Transaction losses and fraud management (4)

30,174 51,949 6,405 — 88,528

Customer support and related expenses (5)

8,281 37,738 1,967 — 47,986

Compensation and benefits expenses (6)

— — — 66,405 66,405

Other segment items (7)

— — 4,272 47,444 51,716

Total segment expenses 121,629 635,509 50,157 113,849 921,144

Segment profit $ 66,726 $ 55,132 $ 110,938 $ ( 96,812 ) $ 135,984

Six Months Ended June 30, 2024

Consumer Services B2B Services Money Movement Services Corporate and Other Total

(In thousands)

Total segment revenues $ 197,232 $ 493,256 $ 156,113 $ 3,378 $ 849,979

Segment expenses (1)

Sales and marketing expenses (2)

64,518 7,932 40,149 — 112,599

Processing expenses (3)

18,429 366,422 871 — 385,722

Transaction losses and fraud management (4)

38,897 58,656 6,641 — 104,194

Customer support and related expenses (5)

7,680 22,885 1,855 — 32,420

Compensation and benefits expenses (6)

— — — 67,364 67,364

Other segment items (7)

— — 5,459 48,991 54,450

Total segment expenses 129,524 455,895 54,975 116,355 756,749

Segment profit $ 67,708 $ 37,361 $ 101,138 $ ( 112,977 ) $ 93,230

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

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(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.

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

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

3 unchanged sentences

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.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 19—Segment Information (continued)

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

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(In thousands)

4 unchanged sentences

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,

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

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

(In thousands)

Total segment profit $ 45,425 $ 33,998 $ 135,984 $ 93,230

Reconciliation to income before income taxes

Reconciliation to loss before income taxes

Depreciation and amortization of property, equipment and internal-use software 16,078 15,827 31,262 32,259

4 unchanged sentences

Other expense 2,929 678 7,918 6,269

Operating income 60,745 10,554

Operating income (loss) 13,399 ( 23,667 ) 74,144 ( 13,113 )

Interest expense, net 1,631 1,272 3,017 2,729

Other (expense), net ( 74,691 ) ( 4,530 ) ( 100,395 ) ( 6,340 )

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.

Loss before income taxes $ ( 62,923 ) $ ( 29,469 ) $ ( 29,268 ) $ ( 22,182 )

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