GREEN DOT CORP 10-Q

ITEM 1. Financial Statements GREEN DOT CORPORATION CONSOLIDATED BALANCE SHEETS June 30, 2025 December 31, 2024 (unaudited) Assets (In thousands, except par value) Current assets: Unrestricted cash and cash equivalents $ 2,312,518 $ 1,592,391 Restricted cash 44 44 Investment securities available-for-sale, at fair value — 24,152 Settlement assets 679,542 616,172 Accounts receivable, net 103,069 132,007 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 $ 22,406 and $ 17,542 as of June 30, 2025 and December 31, 2024, respectively 34,616 31,961 Prepaid expenses and other assets 165,673 242,707 Property, equipment, and internal-use software, net 198,134 188,363 Operating lease right-of-use assets 9,426 10,823 Deferred expenses 868 1,242 Net deferred tax assets 96,155 124,405 Goodwill and intangible assets 385,937 397,941 Total assets $ 5,583,464 $ 5,434,282 Liabilities and Stockholders’ Equity Current liabilities: Accounts payable $ 111,557 $ 103,765 Deposits 4,096,701 4,010,520 Obligations to customers 231,229 236,616 Settlement obligations 57,261 48,482 Amounts due to card issuing banks for overdrawn accounts — 84 Other accrued liabilities 86,749 87,675 Operating lease liabilities 2,875 2,416 Deferred revenue 4,722 6,279 Income tax payable 359 6,648 Total current liabilities 4,591,453 4,502,485 Other accrued liabilities 616 1,045 Operating lease liabilities 7,172 8,641 Notes payable 63,341 48,526 Total liabilities 4,662,582 4,560,697 Commitments and contingencies (Note 17) Stockholders’ equity: Class A common stock, $ 0.001 par value; 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 55 55 Additional paid-in capital 416,767 408,010 Retained earnings 722,350 743,602 Accumulated other comprehensive loss ( 218,290 ) ( 278,082 ) Total stockholders’ equity 920,882 873,585 Total liabilities and stockholders’ equity $ 5,583,464 $ 5,434,282 See notes to unaudited consolidated financial statements 1 Table of Contents GREEN DOT CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In thousands, except per share data) Operating revenues: Card revenues and other fees $ 381,224 $ 286,127 $ 757,177 $ 567,630 Cash processing revenues 54,484 56,744 167,857 163,550 Interchange revenues 46,967 49,585 94,886 100,553 Interest income, net 21,501 14,665 43,130 27,376 Total operating revenues 504,176 407,121 1,063,050 859,109 Operating expenses: Sales and marketing expenses 50,159 52,947 109,847 115,322 Compensation and benefits expenses 63,847 61,348 130,061 128,172 Processing expenses 293,213 207,896 578,530 403,562 Other general and administrative expenses 83,558 108,597 170,468 225,166 Total operating expenses 490,777 430,788 988,906 872,222 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 ) 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 loss per common share $ ( 0.85 ) $ ( 0.54 ) $ ( 0.39 ) $ ( 0.45 ) Basic weighted-average common shares issued and outstanding: 55,127 53,452 54,746 53,197 Diluted weighted-average common shares issued and outstanding: 55,127 53,452 54,746 53,197 See notes to unaudited consolidated financial statements 2 Table of Contents GREEN DOT CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND LOSS (UNAUDITED) Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In thousands) 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 (loss) income $ ( 34,946 ) $ ( 10,301 ) $ 38,540 $ ( 6,230 ) See notes to unaudited consolidated financial statements 3 Table of Contents GREEN DOT CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) Three Months Ended June 30, 2025 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, 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 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 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 4 Table of Contents GREEN DOT CORPORATION CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (CONTINUED) (UNAUDITED) Six Months Ended June 30, 2025 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, 2024 54,227 $ 55 $ 408,010 $ 743,602 $ ( 278,082 ) $ 873,585 Common stock issued under stock plans, net of withholdings and related tax effects 1,161 — — — — — Stock-based compensation — — 8,757 — — 8,757 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 5 Table of Contents GREEN DOT CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) Six Months Ended June 30, 2025 2024 (In thousands) 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 Amortization of intangible assets 10,399 11,049 Provision for uncollectible overdrawn accounts from purchase transactions 6,610 11,261 Provision for loan losses 15,087 16,747 Stock-based compensation 8,757 15,872 Losses in equity method investments 78,702 7,459 Realized loss on available-for-sale investment securities 24,779 — Amortization of discount on available-for-sale investment securities ( 589 ) ( 1,133 ) Impairment of long-lived assets 866 4,936 Other ( 2,735 ) ( 1,040 ) Changes in operating assets and liabilities: Accounts receivable, net 22,328 22,999 Prepaid expenses and other assets 12,157 12,936 Deferred expenses 374 335 Accounts payable and other accrued liabilities 6,342 12,021 Deferred revenue ( 1,983 ) ( 789 ) Income tax receivable/payable ( 13,644 ) 124 Other, net 241 ( 397 ) Net cash provided by operating activities 177,701 120,674 Investing activities Purchases of available-for-sale investment securities ( 274,820 ) — Proceeds from maturities of available-for-sale securities 103,283 94,716 Proceeds from sales and calls of available-for-sale securities 730,447 95 Payments for property, equipment and internal-use software ( 38,912 ) ( 31,494 ) Net changes in loans ( 17,413 ) ( 20,204 ) Investment in TailFin Labs, LLC — ( 35,000 ) Other investing activities ( 921 ) ( 330 ) Net cash provided by investing activities 501,664 7,783 Financing activities Borrowings on notes payable 14,860 — Borrowings on revolving line of credit — 167,000 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 ) Net changes in deposits 86,303 613,273 Net changes in settlement assets and obligations to customers ( 59,978 ) ( 112,974 ) Deferred financing costs ( 423 ) — Net cash provided by financing activities 40,762 502,258 Net increase in unrestricted cash, cash equivalents and restricted cash 720,127 630,715 Unrestricted cash, cash equivalents and restricted cash, beginning of period 1,592,435 686,502 Unrestricted cash, cash equivalents and restricted cash, end of period $ 2,312,562 $ 1,317,217 Cash paid for interest $ 6,549 $ 6,360 Cash paid for income taxes $ 5,374 $ 1,219 Reconciliation of unrestricted cash, cash equivalents and restricted cash at end of period: Unrestricted cash and cash equivalents $ 2,312,518 $ 1,316,999 Restricted cash 44 218 Total unrestricted cash, cash equivalents and restricted cash, end of period $ 2,312,562 $ 1,317,217 See notes to unaudited consolidated financial statements 6 Table of Contents GREEN DOT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) Note 1— Organization 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 Basis of Presentation The accompanying unaudited consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States of America, or GAAP. We consolidated our wholly-owned subsidiaries and eliminated all significant intercompany balances and transactions. We have also prepared the accompanying unaudited consolidated financial statements in conformity with the instructions to Form 10-Q and Article 10 of Regulation S-X and, consequently, they do not include all of the annual disclosures required by GAAP. 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 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. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. 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. Actual results may differ from these estimates due to a variety of factors, including those identified under Part II, Item 1A. "Risk Factors" in this report. Recent Accounting Pronouncements 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 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. 7 Table of Contents GREEN DOT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED) Note 3— Revenues As discussed in Note 19 — Segment Informatio n, we determine our operating segments based on how our chief operating decision maker manages our operations, makes operating decisions and evaluates operating performance. 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 only offered to customers within the United States and certain U.S. territories. The following tables disaggregate our revenues earned from external customers by each of our reportable segments: Three Months Ended June 30, 2025 Consumer Services B2B Services Money Movement Services Total Timing of recognition (In thousands) Transferred point in time $ 68,170 $ 38,581 $ 53,190 $ 159,941 Transferred over time 23,030 298,893 811 322,734 Operating revenues (1) $ 91,200 $ 337,474 $ 54,001 $ 482,675 Three Months Ended June 30, 2024 Consumer Services B2B Services Money Movement Services Total Timing of recognition (In thousands) Transferred point in time $ 69,608 $ 35,952 $ 55,906 $ 161,466 Transferred over time 24,443 205,779 768 230,990 Operating revenues (1) $ 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. Also excludes the effects of inter-segment revenues. Revenues recognized at a point in time are comprised of interchange fees, ATM fees, overdraft protection fees, other similar accountholder transaction-based fees, and substantially all of our cash processing revenues. Revenues recognized over time consists of new card fees, monthly maintenance fees, revenue earned from gift cards and substantially all BaaS (as defined herein) partner program management service fees. 8 Table of Contents 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 $ 0.5 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. Note 4— Investment Securities Our available-for-sale investment securities were as follows: Amortized cost Gross unrealized gains Gross unrealized losses Fair value (In thousands) June 30, 2025 Agency bond securities $ 179,226 $ — $ ( 25,684 ) $ 153,542 Agency mortgage-backed securities 1,507,636 161 ( 247,842 ) 1,259,955 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 December 31, 2024 Corporate bonds $ 10,000 $ — $ ( 110 ) $ 9,890 Agency bond securities 240,628 — ( 38,132 ) 202,496 Agency mortgage-backed securities 2,121,037 3 ( 323,467 ) 1,797,573 Municipal bonds 29,116 — ( 6,273 ) 22,843 Total investment securities $ 2,400,781 $ 3 $ ( 367,982 ) $ 2,032,802 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 Fair value Unrealized loss Fair value Unrealized loss (In thousands) June 30, 2025 Agency bond securities $ — $ — $ 153,542 $ ( 25,684 ) $ 153,542 $ ( 25,684 ) Agency mortgage-backed securities 117,109 ( 469 ) 1,076,985 ( 247,373 ) 1,194,094 ( 247,842 ) 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 ) December 31, 2024 Corporate bonds $ — $ — $ 9,890 $ ( 110 ) $ 9,890 $ ( 110 ) Agency bond securities — — 202,496 ( 38,132 ) 202,496 ( 38,132 ) Agency mortgage-backed securities 15,311 ( 937 ) 1,781,301 ( 322,530 ) 1,796,612 ( 323,467 ) Municipal bonds — — 22,843 ( 6,273 ) 22,843 ( 6,273 ) Total investment securities $ 15,311 $ ( 937 ) $ 2,016,530 $ ( 367,045 ) $ 2,031,841 $ ( 367,982 ) 9 Table of Contents GREEN DOT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED) 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 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. 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. 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 after one year through five years $ 65,500 $ 58,559 Due after five years through ten years 88,726 76,208 Due after ten years 53,819 41,140 Mortgage and asset-backed securities 1,609,636 1,361,751 Total investment securities $ 1,817,681 $ 1,537,658 The expected payments on mortgage-backed and asset-backed securities may not coincide with their contractual maturities because the issuers have the right to call or prepay certain obligations. Note 5— Accounts Receivable Accounts receivable, net consisted of the following: June 30, 2025 December 31, 2024 (In thousands) Trade receivables $ 50,880 $ 35,426 Reserve for uncollectible trade receivables ( 44 ) — Net trade receivables 50,836 35,426 Overdrawn accountholder balances from purchase transactions 6,058 5,827 Reserve for uncollectible overdrawn accounts from purchase transactions ( 1,957 ) ( 1,741 ) Net overdrawn accountholder balances from purchase transactions 4,101 4,086 Accountholder fees 2,570 2,413 Receivables due from card issuing banks 1,848 1,757 Fee advances, net 3,232 46,588 Other receivables 40,482 41,737 Accounts receivable, net $ 103,069 $ 132,007 10 Table of Contents 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 June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In thousands) Balance, beginning of period $ 1,835 $ 4,143 $ 1,741 $ 5,281 Provision for uncollectible overdrawn accounts from purchase transactions 3,746 3,638 6,610 11,261 Charge-offs ( 3,624 ) ( 5,044 ) ( 6,394 ) ( 13,805 ) Balance, end of period $ 1,957 $ 2,737 $ 1,957 $ 2,737 Note 6— Loans to Bank Customers The following table presents total outstanding loans, gross of the related allowance for credit losses, and a summary of the related payment status: 30-59 Days Past Due 60-89 Days Past Due 90 Days or More Past Due Total Past Due Total Current or Less Than 30 Days Past Due Total Outstanding (In thousands) June 30, 2025 Residential $ — $ — $ — $ — $ 7,451 $ 7,451 Commercial — — — — 2,570 2,570 Installment — — — — 6,600 6,600 Consumer 1,785 — — 1,785 30,876 32,661 Secured credit card 735 552 1,709 2,996 4,744 7,740 Total loans $ 2,520 $ 552 $ 1,709 $ 4,781 $ 52,241 $ 57,022 Percentage of outstanding 4.4 % 1.0 % 3.0 % 8.4 % 91.6 % 100.0 % December 31, 2024 Residential $ 1 $ — $ — $ 1 $ 6,874 $ 6,875 Commercial — — — — 2,585 2,585 Installment — 933 — 933 4,506 5,439 Consumer 1,668 — — 1,668 23,868 25,536 Secured credit card 700 700 2,536 3,936 5,132 9,068 Total loans $ 2,369 $ 1,633 $ 2,536 $ 6,538 $ 42,965 $ 49,503 Percentage of outstanding 4.8 % 3.3 % 5.1 % 13.2 % 86.8 % 100.0 % We offer an optional overdraft protection program service on certain demand deposit account programs that allows customers who opt-in and meet certain criteria to spend up to a pre-authorized amount in excess of their available account balance. When overdrawn, the purchase related balances due on these deposit accounts are reclassified as consumer loans. Fees due from our accountholders for our overdraft service are included as a component of accounts receivable. Overdrawn balances are unsecured and considered immediately due from the customer. Also included in consumer loans are advances made to taxpayers under our tax advance program. These loan balances generally fluctuate over the first half of each year due to the seasonal nature of these advances. A portion of our secured credit card portfolio is classified as loans held for sale. These loans are included in the long-term portion of prepaid and other assets on our consolidated balance sheets. 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. 11 Table of Contents GREEN DOT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED) Note 6—Loans to Bank Customers (continued) Nonperforming Loans The following table presents the carrying value, gross of the related allowance for credit losses, of our nonperforming loans. 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. June 30, 2025 December 31, 2024 (In thousands) Residential $ 25 $ 34 Secured credit card 1,709 2,536 Total loans $ 1,734 $ 2,570 Credit Quality Indicators We closely monitor and assess the credit quality and credit risk of our loan portfolio on an ongoing basis. We continuously review and update loan risk classifications. We evaluate our loans using non-classified or classified as the primary credit quality indicator. Classified loans include those designated as substandard, doubtful, or loss, consistent with regulatory guidelines. Secured credit card loans are considered classified if they are greater than 90 days past due. However, our secured credit card portfolio is collateralized by cash deposits made by each accountholder in an amount equal to the user's available credit limit, which mitigates the risk of any significant credit losses we expect to incur. The table below presents the carrying value, gross of the related allowance for credit losses, of our loans within the primary credit quality indicators related to our loan portfolio: June 30, 2025 December 31, 2024 Non-Classified Classified Non-Classified Classified (In thousands) Residential $ 7,426 $ 25 $ 6,841 $ 34 Commercial 2,570 — 2,585 — Installment 6,600 — 5,439 — Consumer 32,661 — 25,536 — Secured credit card 6,031 1,709 6,532 2,536 Total loans $ 55,288 $ 1,734 $ 46,933 $ 2,570 Allowance for Credit Losses Activity in the allowance for credit losses on our loan portfolio consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In thousands) Balance, beginning of period $ 22,356 $ 10,376 $ 17,542 $ 11,383 Provision for loans 3,960 11,959 15,087 16,747 Loans charged off ( 3,940 ) ( 5,041 ) ( 10,287 ) ( 10,900 ) Recoveries of loans previously charged off 30 66 64 130 Balance, end of period $ 22,406 $ 17,360 $ 22,406 $ 17,360 12 Table of Contents 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”), 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 that were made from January 2020 through January 2024. Our final payment under this commitment was made in January 2024. We account for our investment in TailFin under the equity method of accounting in accordance with ASC 323, Investments – Equity Method and Joint Ventures. Under the equity method of accounting, the initial investment is recorded at cost and the investment is subsequently adjusted for, among other things, its proportionate share of earnings or losses. However, given the capital structure of the TailFin arrangement, we apply the Hypothetical Liquidation Book Value ("HLBV") method to determine the allocation of profits and losses since our liquidation rights and priorities, as defined by the agreement, differ from our underlying ownership interest. The HLBV method calculates the proceeds that would be attributable to each partner in an investment based on the liquidation provisions of the agreement if the partnership was to be liquidated at book value as of the balance sheet date. Each partner’s allocation of income or loss in the period is equal to the change in the amount of net equity they are legally able to claim based on a hypothetical liquidation of the entity at the end of a reporting period compared to the beginning of that period, adjusted for any capital transactions. Based on the terms of the agreement and under the HLBV method, we are entitled to 20 % of any net profits, but assume 100 % of any net losses. Since inception, TailFin has incurred operating expenses, but has not generated any operating revenues to date. Use of capital has been primarily allocated to marketing of Walmart's deposit account program and for employee salaries and other professional services focused on developing TailFin's project initiatives. While TailFin's overall objectives have remained unchanged, it is uncertain whether any new products or services will be successfully introduced through the venture. Any future economic benefits derived from products or services developed by TailFin will be negotiated on a case-by-case basis between the parties. As of 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. 13 Table of Contents 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) Interest income $ 779 $ 1,679 $ 2,049 $ 3,147 Sales and marketing expenses ( 3,969 ) ( 2,681 ) ( 6,198 ) ( 5,984 ) Compensation and professional services ( 4,065 ) ( 3,782 ) ( 5,864 ) ( 5,077 ) Net loss ( 7,255 ) ( 4,784 ) ( 10,013 ) ( 7,914 ) 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 $ 3.1 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: June 30, 2025 December 31, 2024 (In thousands) Non-interest bearing deposit accounts $ 3,962,778 $ 3,905,603 Interest-bearing deposit accounts Checking accounts 118,706 89,256 Savings 6,118 6,270 Secured card deposits 3,398 3,659 Time deposits, denominations greater than or equal to $250 3,327 2,132 Time deposits, denominations less than $250 2,374 3,600 Total interest-bearing deposit accounts 133,923 104,917 Total deposits $ 4,096,701 $ 4,010,520 The scheduled contractual maturities for total time deposits are presented in the table below: June 30, 2025 (In thousands) Due in 2025 $ 1,489 Due in 2026 1,018 Due in 2027 1,683 Due in 2028 711 Due in 2029 688 Thereafter 112 Total time deposits $ 5,701 Note 9— Debt Senior Unsecured Notes 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. 14 Table of Contents 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. On and after March 15, 2029, we may redeem the Notes at 100 % of the principal amount, plus accrued and unpaid interest thereon. The Notes are unsecured, senior obligations and are not guaranteed by any of our subsidiaries. The Notes are junior in right of payment to existing and future secured indebtedness. As of 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: June 30, 2025 December 31, 2024 (In thousands) Senior unsecured notes $ 65,000 $ 50,000 Less: Unamortized discount and issuance costs ( 1,659 ) ( 1,474 ) Notes payable, net of unamortized discount and issuance costs $ 63,341 $ 48,526 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 June 30, 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. 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 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 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: Six Months Ended June 30, 2025 2024 U.S. federal statutory tax rate 21.0 % 21.0 % State income taxes, net of federal tax benefit 5.7 11.5 Foreign tax rate differential 0.3 2.9 General business credits 1.6 24.9 IRC 162(m) limitation 2.3 7.5 Stock-based compensation ( 4.9 ) ( 12.6 ) Bank-owned life insurance income 2.0 8.7 Bank-owned life insurance surrender — ( 3.1 ) 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 ) % 15 Table of Contents 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 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 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. We remain subject to examination of our federal income tax returns for the years ended December 31, 2017 through 2024. We generally remain subject to examination of our various state income tax returns for a period of four to five years from the respective dates that the returns were filed. The IRS initiated an examination of our 2017 U.S. 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. 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. 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 $ 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. 16 Table of Contents 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: Six Months Ended June 30, 2025 2024 (In thousands) Beginning balance $ 12,541 $ 12,109 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 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 Stock Repurchase Program In February 2022, our Board of Directors authorized a $ 100 million increase to our stock repurchase program. 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 We currently grant restricted stock unit awards to employees, directors and non-employee consultants under our 2010 Equity Incentive Plan and from time to time may also grant stock option awards. Through our 2010 Employee Stock Purchase Plan, employees are also able to purchase shares of our Class A common stock at a discount through payroll deductions. We have reserved shares of our Class A common stock for issuance under these plans. 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 six months ended June 30, 2025: Shares Weighted-Average Grant-Date Fair Value (In thousands, except per share data) Outstanding at December 31, 2024 3,077 $ 12.23 Restricted stock units granted 2,538 7.97 Restricted stock units vested ( 1,184 ) 14.03 Restricted stock units canceled ( 434 ) 11.05 Outstanding at June 30, 2025 3,997 $ 9.12 17 Table of Contents GREEN DOT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED) Note 12—Stock-Based Compensation (continued) Performance-Based Restricted Stock Units Performance-based restricted stock unit activity for the six months ended June 30, 2025 was as follows: Shares Weighted-Average Grant-Date Fair Value (In thousands, except per share data) Outstanding at December 31, 2024 1,569 $ 12.73 Performance restricted stock units granted 111 7.83 Performance restricted stock units canceled ( 905 ) 12.57 Outstanding at June 30, 2025 775 $ 12.21 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"). The actual number of shares subject to the award is determined at the end of the performance period and may range from 0 % to 200 % of the target shares granted depending upon the terms of the award. 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— 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 loss per Class A common share Numerator: Net loss $ ( 47,025 ) $ ( 28,715 ) $ ( 21,252 ) $ ( 23,965 ) Denominator: Weighted-average Class A shares issued and outstanding 55,127 53,452 54,746 53,197 Basic loss per Class A common share $ ( 0.85 ) $ ( 0.54 ) $ ( 0.39 ) $ ( 0.45 ) Diluted loss per Class A common share Numerator: Net loss allocated to Class A common stockholders $ ( 47,025 ) $ ( 28,715 ) $ ( 21,252 ) $ ( 23,965 ) Denominator: Weighted-average Class A shares issued and outstanding 55,127 53,452 54,746 53,197 Dilutive potential common shares: Service-based restricted stock units — — — — Performance-based restricted stock units — — — — Employee stock purchase plan — — — — Diluted weighted-average Class A shares issued and outstanding 55,127 53,452 54,746 53,197 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. 18 Table of Contents GREEN DOT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (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 June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In thousands) Class A common stock Options to purchase Class A common stock — 1,005 — 1,007 Service-based restricted stock units 320 1,028 470 1,139 Performance-based restricted stock units 658 41 658 45 Total 978 2,074 1,128 2,191 Note 14— Fair Value Measurements Under applicable accounting guidance, fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We determine the fair values of our financial instruments based on the fair value hierarchy established under applicable accounting guidance, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs used to measure fair value. 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 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 June 30, 2025 (In thousands) Assets Investment securities: Agency bond securities $ — $ 153,542 $ — $ 153,542 Agency mortgage-backed securities — 1,259,955 — 1,259,955 Municipal bonds — 22,365 — 22,365 Asset-backed securities — 101,796 — 101,796 Loans held for sale — — 3,532 3,532 Total assets $ — $ 1,537,658 $ 3,532 $ 1,541,190 December 31, 2024 Assets Investment securities: Corporate bonds $ — $ 9,890 $ — $ 9,890 Agency bond securities — 202,496 — 202,496 Agency mortgage-backed securities — 1,797,573 — 1,797,573 Municipal bonds — 22,843 — 22,843 Loans held for sale — — 3,849 3,849 Total assets $ — $ 2,032,802 $ 3,849 $ 2,036,651 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. 19 Table of Contents GREEN DOT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED) Note 15— Fair Value of Financial Instruments The following describes the valuation technique for determining the fair value of financial instruments, whether or not such instruments are carried at fair value on our consolidated balance sheets. Short-term Financial Instruments Our short-term financial instruments consist principally of unrestricted and restricted cash and cash equivalents, settlement assets and obligations, and obligations to customers . These financial instruments are short-term in nature, and, accordingly, we believe their carrying amounts approximate their fair values. Under the fair value hierarchy, these instruments are classified as Level 1. Investment Securities The fair values of investment securities have been derived using methodologies referenced in 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 . Under the fair value hierarchy, our investment securities are classified as Level 2. Loans We determined the fair values of loans by discounting both principal and interest cash flows expected to be collected using a discount rate commensurate with the risk that we believe a market participant would consider in determining fair value. Under the fair value hierarchy, our loans are classified as Level 3. Deposits The fair value of demand and interest checking deposits and savings deposits is the amount payable on demand at the reporting date. We determined the fair value of time deposits by discounting expected future cash flows using market-derived rates based on our market yields on certificates of deposit, by maturity, at the measurement date. Under the fair value hierarchy, our deposits are classified as Level 2. Debt 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 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 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 (In thousands) Financial Assets Loans to bank customers, net of allowance $ 34,616 $ 34,343 $ 31,961 $ 31,705 Financial Liabilities Deposits $ 4,096,701 $ 4,096,379 $ 4,010,520 $ 4,010,185 20 Table of Contents GREEN DOT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED) Note 16— Leases 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 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 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. Any variable payments for non-lease components and other short term lease expenses are not considered material. Additional Information Additional information related to our right of use assets and related lease liabilities is as follows: June 30, 2025 Cash paid for operating lease liabilities (in thousands) $ 1,254 Weighted average remaining lease term (years) 3.83 Weighted average discount rate 4.0 % Maturities of our operating lease liabilities as of June 30, 2025 are as follows: Operating Leases (In thousands) Remainder of 2025 $ 2,872 2026 3,242 2027 3,212 2028 1,676 2029 271 Thereafter 904 Total 12,177 Less: imputed interest ( 2,130 ) Total lease liabilities $ 10,047 Note 17— Commitments and Contingencies In the ordinary course of business, we are a party to various legal proceedings, including, from time to time, regulatory, supervisory, and governmental matters as well as actions which are asserted to be maintainable as class action suits, employment claims, and or enforcement actions. We review these actions on an ongoing basis to determine whether it is probable and estimable that a loss has occurred and use that information when making accrual and disclosure decisions. We have provided reserves where necessary for all claims and, based on current knowledge and in part upon the advice of legal counsel, all matters are believed to be adequately covered by insurance, or, if not covered, would not be likely to have a material adverse impact on our financial condition or results of operations. 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. Other Litigation and Claims On December 18, 2019, an alleged class action entitled Koffsmon v. Green Dot Corp., et al. , No. 19-cv-10701-DDP-E, was filed in the United States District Court for the Central District of California, against us and two of our former officers. 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 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. On October 6, 2021, the Court appointed the New York Hotel Trades Council & Hotel Association of New York City, Inc. Pension Fund as lead plaintiff, and on April 1, 2022, plaintiff filed its First Amended Complaint. Defendants filed a motion to dismiss the First Amended Complaint on May 31, 2022, and the motion was denied on March 29, 2024. The trial on these claims is currently scheduled to begin in August 2026. 21 Table of Contents 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. Streit, et al. , No. 20-cv-01572-SVW-PVC was filed, purportedly on behalf of the company, in the United States District Court for the Central District of California, against certain of our current and former officers and directors. The suit asserts claims for breach of fiduciary duty and unjust enrichment, as well as claims under Sections 10(b), 14(a) and 20(a) of the Exchange Act, based largely on the allegations made in the Koffsmon action. The Hellman action seeks to recover, among other things, unspecified compensatory damages on behalf of the company. Pursuant to a stipulated agreement between the parties, the Hellman action is stayed through the close of fact discovery in the Koffsmon action. On July 15, 2024, a putative shareholder derivative action entitled DiBlasio v. Streit, et al. , No. 24-cv-05924 was filed, purportedly on behalf of the company, in the United States District Court for the Central District of California, against certain of our current and former officers and directors. A first amended complaint was filed on September 27, 2024. The suit asserts claims for breach of fiduciary duty, abuse of control, and unjust enrichment, as well as claims under Section 14(a) of the Exchange Act, based on the allegations made in Koffsmon action, and on the Consent Order from the Federal Reserve Board. The DiBlasio action seeks to recover, among other things, unspecified compensatory damages on behalf of the company. Pursuant to a stipulated agreement between the parties, the DiBlasio action is stayed through the close of 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. Given the uncertainty of litigation and the preliminary stage of these claims, we are currently unable to estimate the probability of the outcome of these actions or the range of reasonably possible losses, if any, or the impact on our results of operations, financial condition or cash flows, except as disclosed. Other Legal Matters We monitor the laws of all 50 states to identify state laws or regulations that apply (or may apply) to our products and services. 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 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. These contracts primarily relate to: (i) contracts with our card issuing banks, under which we are responsible to them for any unrecovered overdrafts on accountholders’ balances; (ii) certain real estate leases, under which we may be required to indemnify property owners for environmental and other liabilities, and other claims arising from our use of the premises; (iii) certain agreements with our officers, directors, and employees, under which we may be required to indemnify these persons for liabilities arising out of their relationship with us; and (iv) contracts under which we may be required to indemnify our retail distributors, suppliers, vendors and other parties with whom we have contracts against claims arising from certain of our actions, omissions, violations of law and/or infringement of patents, trademarks, copyrights and/or other intellectual property rights. Generally, a maximum obligation under these contracts is not explicitly stated. Because the obligated amounts associated with these types of agreements are not explicitly stated, the overall maximum amount of the obligation cannot be reasonably estimated. With the exception of overdrafts on accountholders’ balances, historically, we have not been required to make payments under these and similar contingent obligations, and no liabilities have been recorded for these obligations in our consolidated balance sheets. For additional information regarding overdrafts on accountholders’ balances, refer to Note 5 — Accounts Receivable. 22 Table of Contents GREEN DOT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED) Note 18— Significant Retailer and Partner Concentration A credit concentration may exist if customers are involved in similar industries, economic sectors, and geographic regions. Our retail distributors operate in similar economic sectors, but diverse domestic geographic regions. 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 June 30, Six Months Ended June 30, 2025 2024 2025 2024 Walmart 8 % 10 % 7 % 10 % 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 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) Consumer Services, 2) Business to Business ("B2B") Services, and 3) Money Movement Services. 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 95,000 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 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 disbursement services utilized by our partners. Our Money Movement Services segment consists of revenues and expenses generated on a per transaction basis from our services that specialize in facilitating the movement of cash on behalf of consumers and businesses, such as money processing services and tax refund processing services. Our money processing services, such as cash deposit and disbursements, are marketed to third-party banks, program managers, and other companies seeking cash deposit and disbursement capabilities for their customers. Those customers, including our own accountholders, can access our cash deposit and disbursement services at any of the locations within our network of retail distributors and neighborhood Financial Service Centers. We market our tax-related financial services through a network of tax preparation franchises, independent tax professionals and online tax preparation providers. 23 Table of Contents GREEN DOT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED) Note 19—Segment Information (continued) 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 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 key financial information for each of our reportable segments for the periods then ended: Three Months Ended June 30, 2025 Consumer Services B2B Services Money Movement Services Corporate and Other Total (In thousands) Total segment revenues $ 93,099 $ 348,650 $ 50,848 $ 8,567 $ 501,164 Segment expenses (1) Sales and marketing expenses (2) 31,576 2,856 14,855 — 49,287 Processing expenses (3) 9,118 273,434 533 — 283,085 Transaction losses and fraud management (4) 15,824 26,136 ( 1,220 ) — 40,740 Customer support and related expenses (5) 3,487 18,244 570 — 22,301 Compensation and benefits expenses (6) — — — 33,905 33,905 Other segment items (7) — — 1,998 24,423 26,421 Total segment expenses 60,005 320,670 16,736 58,328 455,739 Segment profit $ 33,094 $ 27,980 $ 34,112 $ ( 49,761 ) $ 45,425 Three Months Ended June 30, 2024 Consumer Services B2B Services Money Movement Services Corporate and Other Total (In thousands) Total segment revenues $ 96,620 $ 252,056 $ 52,963 $ 917 $ 402,556 Segment expenses (1) Sales and marketing expenses (2) 31,761 4,606 15,278 — 51,645 Processing expenses (3) 9,215 189,180 404 — 198,799 Transaction losses and fraud management (4) 17,316 26,233 ( 1,227 ) — 42,322 Customer support and related expenses (5) 3,879 12,959 500 — 17,338 Compensation and benefits expenses (6) — — — 32,948 32,948 Other segment items (7) — — 2,717 22,789 25,506 Total segment expenses 62,171 232,978 17,672 55,737 368,558 Segment profit $ 34,449 $ 19,078 $ 35,291 $ ( 54,820 ) $ 33,998 24 Table of Contents GREEN DOT CORPORATION NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED) 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. (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 and recoveries 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. 25 Table of Contents 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 June 30, Six Months Ended June 30, 2025 2024 2025 2024 (In thousands) Total segment revenues $ 501,164 $ 402,556 $ 1,057,128 $ 849,979 Embedded finance commissions and processing expenses 4,563 5,046 8,990 10,146 Other income ( 1,551 ) ( 481 ) ( 3,068 ) ( 1,016 ) Total operating revenues $ 504,176 $ 407,121 $ 1,063,050 $ 859,109 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 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 loss before income taxes Depreciation and amortization of property, equipment and internal-use software 16,078 15,827 31,262 32,259 Stock based compensation and related employer taxes 5,759 7,513 9,202 16,219 Amortization of acquired intangible assets 5,199 5,385 10,399 11,049 Impairment charges 805 2,115 866 8,520 Legal settlement expenses 1,256 26,147 2,193 32,027 Other expense 2,929 678 7,918 6,269 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 ) Loss before income taxes $ ( 62,923 ) $ ( 29,469 ) $ ( 29,268 ) $ ( 22,182 ) 26 Table of Contents