21 unchanged sentences
Consolidated Financial Results and Trends
−Removed: Our consolidated results of operations for the three and nine months ended September 30, 2025 and 2024 were as follows:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 Change % 2025 2024 Change %
+Added: Our consolidated results of operations for the three months ended March 31, 2026 and 2025 were as follows:
+Added: Three Months Ended March 31,
+Added: 2026 2025 Change %
(In thousands, except percentages)
1 unchanged sentence
Total operating expenses 587,209 498,129 89,080 17.9 %
−Removed: Net loss (30,791) (7,840) (22,951) 292.7 % (52,043) (31,805) (20,238) 63.6 %
+Added: Net income 53,753 25,773 27,980 108.6 %
Refer to "Segment Results" below for a summary of financial results of each of our reportable segments.
Total operating revenues
−Removed: Our total operating revenues for the three and nine months ended September 30, 2025 increased $85.1 million, or 21%, and $289.0 million, or 23%, respectively, over the prior year comparable periods, driven primarily by higher revenues in our B2B Services segment, partially offset by lower revenues earned in our Consumer Services segment.
−Removed: Continued growth of certain BaaS partner programs generated an increase of 18% and 20% in our total gross dollar volume for the three and nine months ended September 30, 2025, respectively, over the prior year comparable periods, and increased the number of consolidated active accounts during three months ended September 30, 2025 by 1%, which together increased our total operating revenues year-over-year.
−Removed: However, as discussed below, our total operating revenues were negatively impacted by unfavorable trends and factors in our deposit account programs, driving, among other things, a reduction in purchase volume and the effective interchange rates we earn thereon, and a reduction in the number of cash transfers of 10% and 7% for the three and nine months ended September 30, 2025, respectively, from the prior year comparable periods.
−Removed: In our B2B Services segment, revenues increased during the three and nine months ended September 30, 2025 by 32% and 37%, respectively, over the prior year comparable periods.
−Removed: The increase was driven by strong year-over-year growth in our gross dollar volume, which increased during the three and nine months ended September 30, 2025 by 22% and 23%, respectively, and to a lesser extent, growth in purchase volume, which increased by 1% and 2%, respectively, over the prior year comparable periods.
−Removed: The number of active accounts for the three months ended September 30, 2025 increased by 13% over the prior year comparable period.
+Added: Our total operating revenues for the three months ended March 31, 2026 increased $97.4 million, or 17%, over the prior year comparable period, driven primarily by higher revenues in our B2B Services segment and to a lesser extent in our Money Movement Services segment, partially offset by lower revenues earned in our Consumer Services segment.
+Added: Continued growth of certain BaaS partner programs generated an increase of 16% in our total gross dollar volume for the three months ended March 31, 2026 over the prior year comparable period, which increased our total operating revenues year-over-year.
+Added: However, as discussed below, our total operating revenues for the three months ended March 31, 2026 were negatively impacted by unfavorable trends and factors in our deposit account programs, driving, among other things, a decrease in the number of active accounts, purchase volume, and number of cash transfers of 4%, 8%, and 7%, respectively, from the prior year comparable period.
+Added: In our B2B Services segment, revenues increased during the three months ended March 31, 2026 by 22% over the prior year comparable period.
+Added: The increase was driven by strong year-over-year growth in our gross dollar volume, which increased during the three months ended March 31, 2026 by 19%, and to a lesser extent, growth in the number of active accounts, which increased by 7% over the prior year comparable period.
+Added: These increases in revenues were partially offset by a decrease in interchange revenue due to a decrease in purchase volume of 3% from the prior year comparable period.
The growth in gross dollar volume was driven primarily by certain BaaS programs that do not generate interchange fees and resulted in a net increase in segment revenue due to higher program management service fees earned from these BaaS partners.
−Removed: In our Consumer Services segment, revenues decreased during the three and nine months ended September 30, 2025 by 10% and 6%, respectively, from the prior year comparable periods.
−Removed: Our gross dollar volume and purchase volume declined by 9% and 6%, respectively, for the three months ended September 30, 2025, and the number of active accounts and direct deposit accounts both declined by 9%.
−Removed: Similarly, both gross dollar volume and purchase volume declined for the nine months ended September 30, 2025 by 6% and 5%, respectively, from the prior year comparable period.
−Removed: While we are seeing some moderation in these declining trends, we believe these decreases in our Consumer Services segment remain attributable to several persistent factors, including macro-economic factors affecting consumer behavior and other competitive trends that have impacted account acquisition.
+Added: In our Consumer Services segment, revenues decreased during the three months ended March 31, 2026 by 9% from the prior year comparable period.
+Added: Our gross dollar volume and purchase volume declined by 8% and 11%, respectively, for the three months ended March 31, 2026, and the number of active accounts and direct deposit accounts declined by 16% and 7%, respectively.
+Added: While we saw some moderation in these declining trends in 2025, we believe these decreases in our Consumer Services segment remain attributable to several persistent factors, including macro-economic factors affecting consumer behavior and other competitive trends that have impacted account acquisition.
These factors had a corresponding negative impact on the amount of accountholder fee revenue we earn from accounts, including monthly maintenance fees, ATM fees and interchange fees.
−Removed: In our Money Movement Services segment, revenues decreased during the three months ended September 30, 2025 by 6% and increased by 2% during the nine months ended September 30, 2025, from the prior year comparable periods.
−Removed: The decrease in our Money Movement Services revenue during the three months ended September 30, 2025 was primarily driven by a decrease in our cash transfer revenues, partially offset by an increase in tax processing revenues.
−Removed: The decrease in our cash transfer revenues was primarily due to a 10% decrease in the number of cash transfers processed from the comparable prior year period.
+Added: These decreases in segment revenues were partially offset by fees generated from our overdraft protection programs due to expanded usage by our accountholders.
+Added: In our Money Movement Services segment, revenues increased during the three months ended March 31, 2026 by 19% from the prior year comparable period.
+Added: The increase in our Money Movement Services segment during the three months ended March 31, 2026 was driven primarily by an increase in our tax processing revenues, partially offset by a decrease in cash transfer revenues.
+Added: Although the number of tax refunds processed decreased by 3% for the three months ended March 31, 2026, as compared to the prior year period, our tax processing revenues increased due to the expansion of our taxpayer advance programs.
+Added: The decrease in the number of tax refunds processed was principally attributable to our online tax preparation partners.
+Added: The increase in tax processing revenues for the three months ended March 31, 2026 was partially offset by a 7% decrease in the number of cash transfers processed from the prior year comparable period.
The decline in the number of cash transfers processed was primarily due to a lower number of active accounts within our Consumer Services segment discussed above, and to a lesser extent, a lower number of cash transfers processed for third-party programs.
The Green Dot Network is a service provider to accountholders in both our Consumer Services and B2B Services segments, as well as third-party programs.
−Removed: Although the number of cash transfers from third-party programs decreased slightly year over year, we continue to experience a strong concentration from our third-party programs, and represented the majority of our total cash transfers as of September 30, 2025.
−Removed: Our tax processing
−Removed: revenues increased during the three months ended September 30, 2025 due to a 3% increase in the number of tax refunds processed and from higher ancillary tax program fees that are associated with tax refund transfers.
−Removed: The increase in our Money Movement Services segment during the nine months ended September 30, 2025 was driven primarily by an increase in our tax processing revenues, partially offset by a decrease in cash transfer revenues.
−Removed: Although the number of tax refunds processed decreased by 13% for the nine months ended September 30, 2025, as compared to the prior year period, our tax processing revenues increased due to the expansion of our taxpayer advance programs and a favorable mix-shift in the distribution channel in which the tax refund was generated.
−Removed: The decrease in the number of tax refunds processed during the nine months ended September 30, 2025 was principally attributable to our online tax preparation partners.
−Removed: Due to the seasonal nature of our tax products and services, substantially all of our tax processing revenues are earned during the first half of each year.
−Removed: The increase in tax processing revenues for the nine months ended September 30, 2025 was partially offset by a 7% decline in the number of cash transfers processed from the prior year comparable period, due to the same reasons discussed above.
−Removed: Revenues within our Corporate and Other segment were driven primarily by net interest income earned by Green Dot Bank, which increased by 41% and 51% for the three and nine months ended September 30, 2025, respectively, over the prior year comparable periods.
−Removed: The increase in net interest income was primarily the result of yields earned from an increase in cash from deposit programs with our partners and to a lesser extent, higher yielding investments from our bond repositioning strategy and a decrease in interest shared with certain BaaS partners (a reduction of revenue).
+Added: Although the number of cash transfers from third-party programs decreased slightly year over year, they continue to represent the majority of our total cash transfers as of March 31, 2026.
+Added: Revenues within our Corporate and Other segment were driven primarily by net interest income earned by Green Dot Bank, which increased by 26% for the three months ended March 31, 2026, over the prior year comparable period.
+Added: The increase in net interest income was primarily the result of both the size of our investments portfolio and higher yielding investments therein from our bond repositioning strategy, as well as a decrease in interest shared with certain BaaS partners (a reduction of revenue).
Total operating expenses
−Removed: Our total operating expenses for the three and nine months ended September 30, 2025 increased $115.0 million, or 28%, and $231.7 million, or 18%, respectively, over the prior year comparable periods.
−Removed: For the three months ended September 30, 2025, the increase in total operating expenses was driven primarily by an increase in our processing expenses from the growth in gross dollar volume associated with certain BaaS account programs within our B2B Services segment discussed above.
−Removed: In addition, our total operating expenses increased due to an increase in other general and administrative expenses, driven primarily by an increase in overall transaction losses attributable to an increase in our dispute loss rates, higher professional services fees associated with our strategic review process and our anti-money laundering ("AML") regulatory compliance initiatives, and an increase in software licenses and hosting costs due to investments in our platform and operations.
−Removed: As discussed further below, we also recorded restructuring and other charges associated with our decision to exit our operations in China.
−Removed: To a lesser extent, compensation and benefits expenses increased, driven primarily by higher accrued bonus compensation expense due to our current financial performance relative to our annual targets, partially offset by a decrease in employee stock-based compensation expense due to forfeitures of awards.
−Removed: These increases were partially offset by lower sales and marketing expenses principally due to a decrease in supply chain materials expenses, which are comprised of debit card plastics and related materials costs, from fewer active accounts, a decrease in revenue-sharing arrangements in our tax processing business and a decrease in our marketing expenses in our Consumer Services business.
−Removed: During the third quarter of 2025, we announced a plan to exit our operational activities in China by the end of 2025 as a means of reducing complexity and promoting long-term structural improvements for our business.
−Removed: As a result of this transition, we recorded restructuring and other charges of approximately $19.9 million during the three months ended September 30, 2025.
−Removed: These charges were primarily related to severance and employee benefits and other direct costs associated with the restructuring, including lease termination costs.
−Removed: Substantially all of the restructuring expenses we expect to incur from this plan were accrued for during the third quarter of 2025.
−Removed: Our total operating expenses for the nine months ended September 30, 2025 increased over the prior year comparable period, driven by similar factors as discussed above for the three months ended September 30, 2025.
−Removed: Sales and marketing expenses decreased due to the same factors discussed above.
−Removed: Compensation and benefits expenses increased for the same reasons discussed above, as well as because of an increase in third-party call center support costs associated with the growth of our BaaS account programs discussed above.
−Removed: Our processing expenses increased during the nine months ended September 30, 2025 due to the same factors discussed above.
−Removed: Other general and administrative expenses decreased primarily due to the timing of accruals in the prior year related to the civil money penalty under our Consent Order from the Federal Reserve Board that did not recur in the current period, and to a lesser extent, a decrease in overall transaction losses attributable to lower customer dispute volume across our portfolios and favorable reductions in our dispute loss rates, and lower professional services fees related to our AML programs due to the year-over-year timing of spend on certain initiatives.
−Removed: These decreases were partially offset by an increase in software licenses and hosting costs due to investments in our platform and
−Removed: operations, and an increase from expenses associated with our strategic review process.
−Removed: Other general and administrative expenses also decreased due to the settlement payment and impairment charges related to the termination of our partnership agreement to develop a new core banking system in the prior year comparable period that did not recur in the current period.
−Removed: Other expense, net
−Removed: Other expense, net for the three months ended September 30, 2025 decreased $2.4 million and for the nine months ended September 30, 2025 increased $91.7 million, from the prior year comparable periods.
−Removed: The decrease in other expense, net for three months ended September 30, 2025 was primarily driven by a decrease in equity method losses associated with TailFin Labs, LLC ("TailFin") due to lower operating expenses year over year, as well as higher income earned from bank-owned life insurance policies.
−Removed: The increase in other expense, net for the nine months ended September 30, 2025 resulted principally from a $70 million incentive payment made by TailFin in connection with the extension of the Walmart MoneyCard agreement and related agreements in the second quarter of 2025.
−Removed: In addition, during the first quarter of 2025, we determined we would sell certain available-for-sales securities in order to reposition the proceeds into higher yielding assets, which resulted in a realized loss of $24.8 million for the nine months ended September 30, 2025.
−Removed: These increases were partially offset by higher income earned from bank-owned life insurance policies.
−Removed: Our income tax benefit for the three months ended September 30, 2025 increased by $4.6 million over the prior year comparable period primarily due to an increase in our loss before taxes and a decrease in 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.
−Removed: Our effective tax rate for the nine months ended September 30, 2025 was 19.9%, an increase from (4.6)% for the prior year comparable period.
−Removed: The increase in our effective tax rate was due to several factors, including a lower tax rate benefit from reduced general business credits, an increase 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.
−Removed: These increases in our effective tax rate were partially offset by a decrease in the amount of compensation expense that was subject to the Internal Revenue Code (the "IRC") Section 162(m) limitation on the deductibility of certain executive compensation, a decrease in tax expense associated with shortfalls from stock-based compensation, and a decrease in tax expense from nondeductible expenses and penalties primarily related to the civil money penalty under our Consent Order discussed above.
−Removed: On July 4, 2025, H.R.
−Removed: 1, commonly referred to as the “One Big Beautiful Bill Act" (“OBBBA”) was signed into law, enacting significant changes to the U.S.
−Removed: federal tax code with various effective dates from 2025 to 2027.
−Removed: 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.
−Removed: We are currently assessing the impact of these tax law changes on our effective tax rate and deferred tax assets in 2025 as well as future periods and evaluating multiple strategies for implementation of these tax law changes.
−Removed: 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.
−Removed: Department of the Treasury.
−Removed: We will continue to monitor additional guidance as it becomes available and reflect the impact in future periods as appropriate.
−Removed: In December 2021, the Organization for Economic Cooperation and Development ("OECD") released model rules introducing a 15% global minimum tax rate for large multinational corporations ("Pillar Two").
−Removed: Our foreign subsidiary operates in China which has enacted legislation consistent with the OECD model rules effective beginning in 2024.
−Removed: The results of this legislation do not have a material impact on our consolidated financial statements.
−Removed: We are monitoring further legislative developments and continuing to evaluate the potential impact of Pillar Two on our consolidated financial statements, but do not expect it will have a material impact on our results of operations in future periods.
+Added: Our total operating expenses for the three months ended March 31, 2026 increased $89.1 million, or 18%, over the prior year comparable period.
+Added: The increase in total operating expenses was driven primarily by an increase in our processing expenses from the growth in gross dollar volume associated with certain BaaS account programs within our B2B Services segment, which is discussed above.
+Added: To a lesser extent, our total operating expenses increased due to an increase in other general and administrative expenses, driven primarily by higher professional services fees associated with our proposed transactions with CommerceOne and Smith Ventures, as well as our anti-money laundering ("AML") regulatory compliance initiatives, and an increase in depreciation and amortization expense and software licenses and hosting costs due to investments in our platform and operations.
+Added: These increases in other general and administrative expenses were partially offset by a decrease in overall transaction losses attributable to a decrease in customer dispute volume across our portfolios and a favorable reduction in our dispute loss rates.
+Added: Total operating expenses were partially offset by a decrease in compensation and benefits expenses, driven primarily by a reduction in third-party call center support costs associated with certain of our BaaS account programs discussed above, and a decrease in salary and wage expenses and rent expense due to the closure of our China operations announced in September 2025, partially offset by higher employee stock-based compensation expense due to forfeitures of certain awards in the prior year comparable period.
+Added: Other income and expense, net
+Added: Other income and expense, net for the three months ended March 31, 2026 decreased $25.9 million, from the prior year comparable period.
+Added: During the first quarter of 2025, we determined we would sell certain available-for-sale securities in order to reposition the proceeds into higher yielding assets, which resulted in a realized loss of $24.5 million for the three months ended March 31, 2025.
+Added: Additionally, our equity method losses associated with TailFin Labs, LLC ("TailFin") decreased during the three months ended March 31, 2026 from the comparable prior year period due to lower operating expenses incurred.
+Added: Our income tax benefit for the three months ended March 31, 2026 increased by $6.0 million over the prior year comparable period primarily due to an increase in income before taxes.
+Added: Our effective tax rate for the three months ended March 31, 2026 was 20.5%, a decrease from 23.4% for the prior year comparable period.
+Added: The decrease in our effective tax rate was due to several factors, including a higher tax rate benefit from increased general business credits, a decrease in state income taxes expense, net of federal benefits, a higher tax rate benefit from the increase in cash surrender value in bank-owned life insurance policies, and a decrease in tax expense associated with shortfalls from stock-based compensation.
+Added: These decreases in our effective tax rate were partially offset by an increase in the amount of compensation expense that was subject to the IRC Section 162(m) limitation on the deductibility of certain executive compensation and an increase in the valuation allowance on our deferred tax assets.
Outlook and Other Trends Affecting Our Business
−Removed: While we are still experiencing a difficult macro-economic environment, competitive headwinds and other factors that have contributed to declining trends in our consolidated operating results in recent periods, excluding any impact from our strategic review process and non-operating items such as our equity method losses in TailFin, we continue to expect our core results of operations will stabilize on a full year basis year-over-year in 2025 based on our anticipated initiatives and cost reduction measures we have implemented.
−Removed: In March 2025, we announced that we had initiated a process to explore potential strategic alternatives.
−Removed: No assurances can be given as to the outcome or timing of the strategic review process, including without limitation that such process will result in a
−Removed: transaction or that any transaction, if pursued, will be successfully completed.
−Removed: We do not intend to disclose further developments regarding the process unless and until it is determined that further disclosure is appropriate.
+Added: While we are still experiencing a difficult macro-economic environment, competitive headwinds and other factors that have contributed to declining trends in our consolidated operating results in recent periods, excluding impacts from the proposed transactions with CommerceOne and Smith Ventures and other non-operating items, such as our equity method losses in TailFin, we continue to expect our core results of operations will stabilize on a full year basis year-over-year in 2026 based on our anticipated initiatives and cost-reduction measures we have implemented.
We intend to continue to make growth-oriented investments and incur other expenditures that we believe will benefit our long-term financial results.
−Removed: Our growth-oriented investments are focused on, among other things, accelerating our ability to onboard new partners in our B2B Services and Money Movement segments, adding new features and functionality to our Arc platform, cost-effectively re-engaging in strategic marketing initiatives in support of our GO2bank product, and other initiatives across our account programs with the objective of returning to active account growth.
−Removed: We have created synergies from our processor conversion and expect the implementation of our card management platform will allow us to continue to realize reductions in our processing expenses as we seek to expand account programs.
−Removed: In March 2025, we also initiated a re-alignment of teams and resources across the enterprise in a continual effort to better support our strategic priorities and growth channels, and improve our operating efficiency.
−Removed: We expect these re-alignments, including the exit from our operational activities in China, to further improve our cost structure year-over-year.
−Removed: Despite the meaningful reductions to our cost structure we have achieved across our organization through our various initiatives, we are incurring increased expenses in other areas as we conduct our strategic review process, incur or accrue for additional retention and interim officer compensation expenses and incur additional expenses in connection with our ongoing investments in our AML program, including improvements to our compliance controls, policies and procedures.
−Removed: While expenses related to our AML programs decreased through the first half of 2025 on a year-over-year basis, this was in part a timing matter, and we have incurred and expect will continue to incur higher expenses in this area during the second half of the year.
−Removed: We believe investments in our AML program will ultimately help us continue to remediate matters identified in the Consent Order from the previous year, reduce our fraud losses over the long term and cost-efficiently scale our compliance and regulatory programs as we look to grow our business.
−Removed: In October 2025, the Federal Reserve decreased interest rates by an additional 25 basis points to a current range of 3.75% to 4.00%.
+Added: Our growth-oriented investments are focused on, among other things, accelerating our ability to onboard new partners in our B2B Services and Money Movement segments, adding new features and functionality to our Arc platform, cost-effectively implementing strategic marketing initiatives in support of our GO2bank product, and other initiatives across our account programs with the objective of returning to active account growth.
+Added: In 2025, we initiated a re-alignment of teams and resources across the enterprise in a continual effort to better support our strategic priorities and growth channels, and improve our operating efficiency.
+Added: these re-alignments, including the exit from our operational activities in China, to further improve our cost structure year-over-year.
+Added: Despite the meaningful reductions in our cost structure that we have achieved across our organization through our various completed and ongoing initiatives, we are incurring increased expenses in other areas as we endeavor to complete the proposed transactions with CommerceOne and Smith Ventures, incur or accrue for additional retention and officer compensation expenses and incur expenses in connection with our ongoing investments in our AML program, including improvements to our compliance controls, policies and procedures.
+Added: We believe investments in our AML program will ultimately help us continue to remediate matters identified, reduce our fraud losses over the long term and cost-efficiently scale our compliance and regulatory programs as we look to grow our business.
+Added: In December 2025, the Federal Reserve decreased interest rates by an additional 25 basis points to a current range of 3.50% to 3.75%.
The Federal Reserve's decision-making policies for short-term interest rates will continue to impact the amount of net interest income we earn in the future.
−Removed: In general, while higher short-term interest rates benefit the yield we earn on our cash, certain of our BaaS partner arrangements allow for the BaaS partner to share in a significant portion of the interest earned from accountholder deposits (which are recorded as a reduction of revenue in our consolidated financial statements), and yields on our investment portfolio tend to lag interest rate increases as securities mature and proceeds are reinvested.
+Added: In general, while higher short-term interest rates benefit the yield we earn on our cash, certain of our BaaS partner arrangements allow for the BaaS partner to share in a significant portion of the interest earned from accountholder deposits (which are recorded as a reduction of revenue in our consolidated financial statements), and fixed yields on our investment portfolio tend to lag interest rate increases as securities mature and proceeds are reinvested.
Accordingly, the net effect has had, and we expect will continue to have, a negative impact on our consolidated financial statements and will be dependent upon future interest rate changes enacted by the Federal Reserve.
−Removed: To address some of this dynamic, we have begun to reposition a portion of our investment securities portfolio and our cash into variable rate debt securities to improve net yields and balance the effect of our interest sharing arrangements with BaaS partners.
+Added: In an effort to mitigate these impacts, beginning in the second quarter of 2025, we started to gradually reposition a portion of our investment securities portfolio and our cash into variable rate debt securities to improve net yields, and we continue with our investment strategies to balance the effect of our interest sharing arrangements with BaaS partners.
Further, the duration and magnitude of the continuing effects of macro-economic factors remain uncertain and dependent on various factors outside of our control.
3 unchanged sentences
We believe the following measures are the primary indicators of our quarterly and annual revenues:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 Change % 2025 2024 Change %
+Added: Three Months Ended March 31,
+Added: 2026 2025 Change %
(In millions, except percentages)
Gross dollar volume $ 43,217 $ 37,252 $ 5,965 16.0 %
−Removed: Number of active accounts* 3.51 3.46 0.05 1.4 % n/a n/a n/a n/a
+Added: Number of active accounts* 3.43 3.58 (0.15) (4.2) %
Purchase volume $ 4,706 $ 5,113 $ (407) (8.0) %
1 unchanged sentence
Number of tax refunds processed 7.78 7.98 (0.2) (2.5) %
−Removed: * Represents the number of active accounts as of September 30, 2025 and 2024, respectively.
+Added: * Represents the number of active accounts as of March 31, 2026 and 2025, respectively.
See “Segment Results” for additional information and discussion regarding key metrics performance by segment.
49 unchanged sentences
Operating Expenses
−Removed: We classify our operating expenses into the following four categories:
+Added: We classify our operating expenses into the following categories:
Sales and Marketing Expenses — Sales and marketing expenses consist 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 personalized debit
17 unchanged sentences
These costs vary with the total number of active accounts in our portfolio, as do losses from customer disputed transactions, unrecovered customer purchase transaction overdrafts and fraud.
−Removed: Costs associated with professional services, depreciation and amortization of our property and equipment, amortization of our acquired intangible assets, impairment charges of long-lived assets, rent and utilities vary based upon our investment in infrastructure, business development, risk management, internal controls and strategic review process and are generally not correlated with our operating revenues or other transaction metrics.
+Added: Costs associated with professional services, depreciation and amortization of our property and equipment, amortization of our acquired intangible assets, impairment charges of long-lived assets, rent and utilities that vary based upon our investment in infrastructure, business development, risk management, internal controls and activities relating to acquisitions, divestitures and other strategic transactions, such as our strategic review process and the proposed transactions with CommerceOne and Smith Ventures, are generally not correlated with our operating revenues or other transaction metrics.
Restructuring and Other Charges — Restructuring and other charges consist principally of charges related to employee severance and benefits, as well as expenses associated with the termination of our facility lease and other miscellaneous exit costs.
2 unchanged sentences
Other exit-related costs are recognized as incurred.
−Removed: Other Expense, net
−Removed: Other expense, net includes income and expenses we generally do not consider normal operating activities, such as earnings, losses or impairment attributable to equity method investments, realized gains or losses on investment securities, income earned on bank-owned life insurance policies, and changes in valuation allowances on loans held for sale, amongst other similar items that may arise from time to time.
−Removed: Income Tax Expense and Benefit
−Removed: Our income tax expense and benefit consists of the federal and state corporate income taxes accrued on income resulting from the sale of our products and services.
+Added: Other Income and Expense, net
+Added: Other income and expense, net includes income and expenses we generally do not consider normal operating activities, such as earnings, losses or impairment attributable to equity method investments, realized gains or losses on investment securities, income earned on bank-owned life insurance policies, and changes in valuation allowances on loans held for sale, amongst other similar items that may arise from time to time.
+Added: Income Tax Expense
+Added: Our income tax expense consists of the federal and state corporate income taxes accrued on income resulting from the sale of our products and services.
Our effective income tax rate may differ from the 21% U.S.
−Removed: federal statutory rate due to a number of factors, including state income taxes, general business credits, non-deductible expenses and penalties, increases or decreases in valuation allowances and liabilities for uncertain tax positions, excess tax benefits or shortfalls on stock compensation awards, audit developments, and legislative changes.
−Removed: See Note 10—Income Taxes to the Consolidated Financial Statements included herein for a discussion of the significant tax differences that impacted our effective tax rate.
+Added: federal statutory rate due to a number of factors, including state income taxes, research and development tax credits, non-deductible expenses, increases or decreases in valuation allowances and liabilities for uncertain tax positions, excess tax benefits or shortfalls on stock compensation awards, audit developments, and legislative changes.
+Added: Note 10—Income Taxes to the Consolidated Financial Statements included herein for a discussion of the significant tax differences that impacted our effective tax rate.
Critical Accounting Estimates
−Removed: There have been no material changes during the nine months ended September 30, 2025 to the critical accounting estimates disclosed in Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2024.
−Removed: Comparison of Consolidated Results for the Three Months Ended September 30, 2025 and 2024
+Added: There have been no material changes during the three months ended March 31, 2026 to the critical accounting estimates disclosed in Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025.
+Added: Comparison of Consolidated Results for the Three Months Ended March 31, 2026 and 2025
Operating Revenues
The following table presents a breakdown of our operating revenues among card revenues and other fees, cash processing revenues, interchange revenues and net interest income:
−Removed: Three Months Ended September 30,
+Added: Three Months Ended March 31,
Amount % of Total
8 unchanged sentences
Total operating revenues $ 656,247 100.0 % $ 558,874 100.0 %
−Removed: Card Revenues and Other Fees — Card revenues and other fees totaled $393.1 million for the three months ended September 30, 2025, an increase of $82.7 million, or 27%, from the comparable prior year period.
+Added: Card Revenues and Other Fees — Card revenues and other fees totaled $448.7 million for the three months ended March 31, 2026, an increase of $72.7 million, or 19%, from the comparable prior year period.
Card revenues and other fees increased primarily due to growth in gross dollar volume in our B2B Services segment programs, which resulted in higher program management service fees earned from our BaaS partners.
These increases were partially offset by decreases in certain accountholder fees, such as monthly maintenance fees and ATM fees, as a result of a decline in the number of active accounts in our Consumer Services segment during the current period.
−Removed: Cash Processing Revenues — Cash processing revenues totaled $33.8 million for the three months ended September 30, 2025, a decrease of $1.1 million, or 3%, from the comparable prior year period.
−Removed: The decrease was primarily attributable to a decrease in our cash transfer revenues due to a 10% decrease in the number of cash transfers processed due to a lower number of active accounts within our Consumer Services segment.
−Removed: The decrease in cash transfer revenues was partially offset by an increase in our tax processing revenues for the three months ended September 30, 2025 due to a 3% increase in the number of tax refunds processed and from higher ancillary tax program fees that are associated with tax refund transfers.
−Removed: Interchange Revenues — Interchange revenues totaled $45.3 million for the three months ended September 30, 2025, a decrease of $3.1 million, or 6%, from the comparable prior year period.
−Removed: The decrease was primarily due to a decrease in purchase volume of 3% and a decrease in the effective interchange rate earned from the comparable prior year period, which declined due to a mix-shift toward categories of consumer purchases with lower effective rates.
−Removed: In addition, our interchange fees have both fixed and variable components, and as a result, the effective rate we earn may vary based on the size of transactions, among other factors.
−Removed: Interest Income, net — Net interest income totaled $22.7 million for the three months ended September 30, 2025, an increase of $6.6 million, or 41%, from the comparable prior year period.
−Removed: The increase in net interest income was primarily the result of yields earned from an increase in cash from deposit programs with our partners and higher yielding investments from our bond repositioning strategy, and a decrease in interest shared with certain BaaS partners (a reduction of revenue).
+Added: Decreases in accountholder fees were partially offset by an increase in fees generated from our overdraft protection programs due to expanded usage by our accountholders.
+Added: Cash Processing Revenues — Cash processing revenues totaled $136.4 million for the three months ended March 31, 2026, an increase of $23.0 million, or 20%, from the comparable prior year period.
+Added: In our Money Movement Services segment, our tax processing revenues increased due to the expansion of our taxpayer advance programs, partially offset by a 7% decline in the number of cash transfers processed from the prior year comparable period.
+Added: We generated an increase in our tax processing revenues during the three months ended March 31, 2026 despite a 3% decrease in the number of tax refunds processed.
+Added: The decrease in the number of tax refunds processed was principally attributable to the performance of our online tax preparation partners.
+Added: The decline in the number of cash transfers processed was primarily due to a lower number of active accounts within our Consumer Services segment and to a lesser extent, a lower number of cash transfers processed for third-party programs.
+Added: Interchange Revenues — Interchange revenues totaled $44.0 million for the three months ended March 31, 2026, a decrease of $3.9 million, or 8%, from the comparable prior year period.
+Added: The decrease was primarily due to a decrease in purchase volume of 8% as our effective interchange rate earned from the comparable prior year period remained consistent.
+Added: Our interchange fees have both fixed and variable components, and as a result, the effective rate we earn may vary based on the size of transactions, among other factors.
+Added: Interest Income, net — Net interest income totaled $27.2 million for the three months ended March 31, 2026, an increase of $5.6 million, or 26%, from the comparable prior year period.
+Added: The increase in net interest income was primarily the result of both the size of our investments portfolio and higher yielding investments therein from our bond repositioning strategy, as well as a decrease in interest shared with certain BaaS partners (a reduction of revenue).
Operating Expenses
The following table presents a breakdown of our operating expenses among sales and marketing, compensation and benefits, processing, and other general and administrative expenses:
−Removed: Three Months Ended September 30,
+Added: Three Months Ended March 31,
Amount % of Total
9 unchanged sentences
Total operating expenses $ 587,209 89.4 % $ 498,129 89.2 %
−Removed: Sales and Marketing Expenses — Sales and marketing expenses totaled $48.2 million for the three months ended September 30, 2025, a decrease of $4.4 million, or 8%, from the comparable prior year period.
−Removed: This decrease was driven primarily by a decrease in supply chain materials expenses, which are comprised of debit card plastics and related materials costs, from fewer active accounts, a decrease in revenue-sharing arrangements in our tax processing business and a decrease in our marketing expenses in our Consumer Services business.
−Removed: Compensation and Benefits Expenses — Compensation and benefits expenses totaled $63.4 million for the three months ended September 30, 2025, an increase of $1.6 million, or 3%, from the comparable prior year period.
−Removed: The increase was driven primarily by an increase in accrued bonus compensation expense due to our current financial performance relative to our annual targets, partially offset by a decrease in employee stock-based compensation expense due to forfeitures of awards.
−Removed: Processing Expenses — Processing expenses totaled $309.3 million for the three months ended September 30, 2025, an increase of $81.1 million, or 36%, from the comparable prior year period.
+Added: Sales and Marketing Expenses — Sales and marketing expenses totaled $59.3 million for the three months ended March 31, 2026, a decrease of $0.4 million, or 1%, from the comparable prior year period.
+Added: This decrease was driven primarily by a decrease in supply chain materials expenses, which are comprised of card packages and personalized debit cards, from fewer active accounts and a decrease in our marketing expenses in our Consumer Services business, partially offset by an increase in revenue-sharing arrangements in our tax processing business.
+Added: Compensation and Benefits Expenses — Compensation and benefits expenses totaled $59.8 million for the three months ended March 31, 2026, a decrease of $6.4 million, or 10%, from the comparable prior year period.
+Added: The decrease was driven primarily by a decrease in third-party call center support costs associated with certain BaaS account programs within our B2B Services segment, a decrease in salary and wage expenses due to the closure of our China operations announced in September 2025, partially offset by higher employee stock-based compensation expense due to forfeitures of certain awards in the prior year comparable period.
+Added: Processing Expenses — Processing expenses totaled $374.6 million for the three months ended March 31, 2026, an increase of $89.3 million, or 31%, from the comparable prior year period.
This increase was principally due to growth in gross dollar volume on certain BaaS account programs within our B2B Services segment.
−Removed: Other General and Administrative Expenses — Other general and administrative expenses totaled $86.8 million for the three months ended September 30, 2025, an increase of $16.8 million, or 24%, from the comparable prior year period.
−Removed: This increase was driven primarily by an increase in overall transaction losses attributable to an increase in our dispute loss rates, higher professional services fees associated with our strategic review process and our AML regulatory compliance initiatives, and an increase in software licenses and hosting costs due to investments in our platform and operations.
−Removed: Restructuring and Other Charges — Restructuring and other charges totaled $19.9 million for the three months ended September 30, 2025, and due to our previously announced restructuring plan discussed under "Overview." Additionally, refer to Note 19 — Restructuring and Other Charges in the Consolidated Financial Statements included herein for a more detailed discussion of our restructuring and other charges.
−Removed: Other Expense, net
−Removed: Other expense, net totaled $1.3 million for the three months ended September 30, 2025, a decrease of $2.4 million, from the prior year comparable period.
−Removed: This decrease was primarily driven by a decrease in equity method losses associated with TailFin due to lower operating expenses year over year, as well as higher income earned from bank-owned life insurance policies.
−Removed: Income Tax Expense and Benefit
−Removed: The following table presents a breakdown of our effective tax rate among federal, state, and other:
−Removed: Three Months Ended September 30,
−Removed: federal statutory tax rate 21.0 % 21.0 %
−Removed: State income taxes, net of federal tax benefit 2.9 (8.7)
−Removed: Foreign tax rate differential (3.1) (2.6)
−Removed: General business credits 0.3 (24.4)
−Removed: Stock-based compensation (0.3) (2.6)
−Removed: IRC 162(m) limitation (0.8) (6.3)
−Removed: Bank-owned life insurance income 1.2 (13.0)
−Removed: Bank-owned life insurance surrender — (19.2)
−Removed: Nondeductible expenses and penalties (0.1) 57.5
−Removed: Global intangible low-tax income tax 0.2 3.0
−Removed: Change in valuation allowance (7.4) —
−Removed: Other (0.1) (0.1)
−Removed: Effective tax rate 13.8 % 4.6 %
−Removed: Our income tax benefit totaled $4.9 million for the three months ended September 30, 2025, representing an increase of $4.6 million from the prior year comparable period, primarily due to an increase in our loss before taxes and a decrease in nondeductible expenses and penalties primarily related to the tax effect associated with the civil money penalty we incurred in 2024 for our Consent Order from the Federal Reserve Board.
−Removed: The increase in our effective tax rate for the three months ended September 30, 2025 from the prior year comparable period was due to several factors, including an increase of $0.2 million in the amount of compensation expense that was subject to the IRC Section 162(m) limitation on the deductibility of certain executive compensation, an increase of $2.6 million in the valuation allowance on the deferred tax assets of our China subsidiary, a lower tax rate benefit due to a decrease of $0.3 million in the amount of general business credits, and a lower tax rate benefit from bank-owned life insurance policies income.
−Removed: These increases in our effective tax rate were partially offset by a decrease of $1.8 million in state income taxes expense, net of federal benefits, a decrease of $0.2 million in the tax expense associated with shortfalls from stock-based compensation, a decrease of $4.7 million in tax expense due to nondeductible expenses and penalties discussed above, and a decrease of $1.6 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.
−Removed: The "Other" category in our effective tax rate consists of a variety of permanent differences, none of which were individually significant.
−Removed: Comparison of Consolidated Results for the Nine Months Ended September 30, 2025 and 2024
−Removed: Operating Revenues
−Removed: The following table presents a breakdown of our operating revenues among card revenues and other fees, cash processing revenues, interchange revenues and net interest income:
−Removed: Nine Months Ended September 30,
−Removed: Amount % of Total
−Removed: Operating Revenues Amount % of Total
−Removed: Operating Revenues
−Removed: (In thousands, except percentages)
−Removed: Operating revenues:
−Removed: Card revenues and other fees $ 1,150,240 73.8 % $ 878,002 69.2 %
−Removed: Cash processing revenues 201,623 12.9 198,447 15.6
−Removed: Interchange revenues 140,215 9.1 148,950 11.8
−Removed: Interest income, net 65,798 4.2 43,453 3.4
−Removed: Total operating revenues $ 1,557,876 100.0 % $ 1,268,852 100.0 %
−Removed: Card Revenues and Other Fees — Card revenues and other fees totaled $1,150.2 million for the nine months ended September 30, 2025, an increase of $272.2 million, or 31%, from the comparable prior year period.
−Removed: This increase was driven principally by the same factors discussed above under “Comparison of Three-Month Periods Ended September 30, 2025 and 2024—Operating Revenues—Card Revenues and Other Fees." In addition, this net increase was further partially offset by lower breakage revenue on our gift card portfolio.
−Removed: Cash Processing Revenues — Cash processing revenues totaled $201.6 million for the nine months ended September 30, 2025, an increase of $3.2 million, or 2%, from the comparable prior year period.
−Removed: In our Money Movement Services segment, our tax processing revenues increased from the expansion of our taxpayer advance program and a favorable mix-shift in the distribution channel in which tax refunds were generated, despite a 13% decline in the number of tax refunds processed.
−Removed: The decrease in the number of tax refunds processed is principally attributable to our online tax preparation partners.
−Removed: The increase in tax processing revenues was partially offset by a 7% decline in the number of cash transfers processed during the nine months ended September 30, 2025 from the prior year comparable period.
−Removed: The decline in the number of cash transfers processed was due to a lower number of active accounts within our Consumer Services segment.
−Removed: Interchange Revenues — Interchange revenues totaled $140.2 million for the nine months ended September 30, 2025, a decrease of $8.8 million, or 6%, from the comparable prior year period.
−Removed: The decrease was primarily due to a decrease in purchase volume of 2% and a decrease in the effective interchange rate earned as discussed under “Comparison of Three-Month Periods Ended September 30, 2025 and 2024—Operating Revenues—Interchange Revenues."
−Removed: Interest Income, net — Net interest income totaled $65.8 million for the nine months ended September 30, 2025, an increase of $22.3 million, or 51%, from the comparable prior year period.
−Removed: This increase was driven principally by the same factors discussed above under “Comparison of Three-Month Periods Ended September 30, 2025 and 2024—Operating Revenues—Interest Income, net."
−Removed: Operating Expenses
−Removed: The following table presents a breakdown of our operating expenses among sales and marketing, compensation and benefits, processing, and other general and administrative expenses:
−Removed: Nine Months Ended September 30,
−Removed: Amount % of Total
−Removed: Operating Revenues Amount % of Total
−Removed: Operating Revenues
−Removed: (In thousands, except percentages)
−Removed: Operating expenses:
−Removed: Sales and marketing expenses $ 158,090 10.1 % $ 167,948 13.2 %
−Removed: Compensation and benefits expenses 193,472 12.4 189,967 15.0
−Removed: Processing expenses 887,841 57.0 631,789 49.8
−Removed: Other general and administrative expenses 257,258 16.5 295,193 23.3
−Removed: Restructuring and other charges 19,902 1.3 — —
−Removed: Total operating expenses $ 1,516,563 97.3 % $ 1,284,897 101.3 %
−Removed: Sales and Marketing Expenses — Sales and marketing expenses totaled $158.1 million for the nine months ended September 30, 2025, a decrease of $9.8 million, or 6%, from the comparable prior year period.
−Removed: This decrease was driven primarily by the same factors discussed above under “Comparison of Three-Month Periods Ended September 30, 2025 and 2024—Operating Expenses—Sales and Marketing Expenses."
−Removed: Compensation and Benefits Expenses — Compensation and benefits expenses totaled $193.5 million for the nine months ended September 30, 2025, an increase of $3.5 million, or 2%, from the comparable prior year period.
−Removed: This increase was driven primarily by the same factors discussed above under “Comparison of Three-Month Periods Ended September 30, 2025 and 2024—Operating Expenses—Compensation and Benefits Expenses" as well as an increase in third-party call center support costs associated with the growth of the BaaS account programs within our B2B Services segment.
−Removed: Processing Expenses — Processing expenses totaled $887.8 million for the nine months ended September 30, 2025, an increase of $256.0 million, or 41%, from the comparable prior year period.
−Removed: This increase was driven primarily by the same factors discussed above under “Comparison of Three-Month Periods Ended September 30, 2025 and 2024—Operating Expenses—Processing Expenses."
−Removed: Other General and Administrative Expenses — Other general and administrative expenses totaled $257.3 million for the nine months ended September 30, 2025, a decrease of $37.9 million, or 13%, from the comparable prior year period.
−Removed: This decrease was driven primarily by the timing of accruals in the prior year period related to the civil money penalty under our Consent Order from the Federal Reserve Board, and to a lesser extent, a decrease in overall transaction losses attributable to lower customer dispute volume across our portfolios and favorable reductions in our dispute loss rates, and lower professional services fees related to our AML programs due to the year-over-year timing of spend on certain initiatives.
−Removed: These decreases were partially offset by an increase in software licenses and hosting costs due to investments in our platform and operations, and an increase from expenses associated with our strategic review process.
−Removed: Other general and administrative expenses also decreased due to the settlement payment and impairment charges related to the termination of our partnership agreement to develop a new core banking system in the prior year comparable period that did not recur in the current period.
−Removed: Restructuring and Other Charges — Restructuring and other charges totaled $19.9 million for the nine months ended September 30, 2025 and due to our previously announced restructuring plan discussed under "Overview." Additionally, refer to Note 19 — Restructuring and Other Charges in the Consolidated Financial Statements included herein for a more detailed discussion of our restructuring and other charges.
−Removed: Other Expense, net
−Removed: Other expense, net totaled $101.7 million for the nine months ended September 30, 2025, an increase of $91.7 million, from the prior year comparable period.
−Removed: This increase was driven by our equity method losses associated with TailFin and resulted principally from a $70 million incentive payment that TailFin made in connection with the extension of the Walmart MoneyCard agreement and related agreements in the second quarter of 2025.
−Removed: We recorded the incentive payment as a component of equity in losses attributable to TailFin during the second quarter of 2025 under our HLBV method of accounting.
−Removed: In addition, during the first quarter of 2025, we determined we would sell certain available-for-sales securities in order to reposition the proceeds into higher yielding assets, which resulted in a realized loss of $24.8 million for the nine months ended September 30, 2025.
−Removed: These increases were partially offset by higher income earned from bank-owned life insurance policies.
+Added: Other General and Administrative Expenses — Other general and administrative expenses totaled $93.4 million for the three months ended March 31, 2026, an increase of $6.5 million, or 7%, from the comparable prior year period.
+Added: This increase was driven primarily by higher professional services fees associated with our proposed transactions with CommerceOne and Smith Ventures, and our AML regulatory compliance initiatives, and an increase in depreciation and amortization expense and software licenses and hosting costs due to investments in our platform and operations.
+Added: These increases were partially offset by a decrease in overall transaction losses attributable to a decrease in customer dispute volume across our portfolios and a favorable reduction in our dispute loss rates.
+Added: Restructuring and Other Charges — Restructuring and other charges totaled $0.1 million for the three months ended March 31, 2026, due to our previously announced restructuring plan discussed under "Overview." Additionally, refer to Note 19 — Restructuring and Other Charges in the Consolidated Financial Statements included herein for a more detailed discussion of our restructuring and other charges.
+Added: Other Income and Expense, net
+Added: Other income and expense, net totaled $0.2 million for the three months ended March 31, 2026, a decrease of $25.9 million, from the prior year comparable period.
+Added: During the first quarter of 2025, we determined we would sell certain available-for-sale securities in order to reposition the proceeds into higher yielding assets, which resulted in a realized loss of $24.5 million for the three months ended March 31, 2025.
+Added: Additionally, our equity method losses associated with TailFin Labs, LLC ("TailFin") decreased during the three months ended March 31, 2026 from the comparable prior year period due to lower operating expenses incurred.
Income Tax Expense and Benefit
The following table presents a breakdown of our effective tax rate among federal, state, and other:
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
federal statutory tax rate 21.0 % 21.0 %
5 unchanged sentences
Bank-owned life insurance income (2.0) (1.0)
−Removed: Bank-owned life insurance surrender — (7.4)
−Removed: Nondeductible expenses and penalties (0.2) (32.3)
−Removed: Global intangible low-tax income tax — (1.5)
+Added: Nondeductible expenses 0.2 0.3
+Added: Nondeductible transaction related costs 0.1 —
Change in valuation allowance 2.1 —
−Removed: Other (0.1) (0.1)
Effective tax rate 20.5 % 23.4 %
−Removed: Our income tax benefit totaled $12.9 million for the nine months ended September 30, 2025, representing an increase of $14.4 million from the prior year comparable period, driven primarily by the same factors discussed above under “Comparison of Three-Month Periods Ended September 30, 2025 and 2024—Income Tax Expense and Benefit."
−Removed: The increase in our effective tax rate for the nine months ended September 30, 2025 from the prior year comparable period was due to several factors, including a reduced tax rate benefit due to an increase of $0.8 million in the amount of compensation expense that was subject to the IRC 162(m) limitation on the deductibility of certain executive compensation, a decrease of $1.0 million in general business credits, an increase of $2.6 million in the valuation allowance on the deferred tax assets of our China subsidiary, and a lower tax rate benefit from the cash surrender value in bank-owned life insurance policies.
−Removed: These increases were partially offset by a decrease of $0.9 million in state income taxes expense, net of federal benefits, a decrease of $1.2 million in tax expense associated with shortfalls from stock-based compensation, a decrease of $2.3 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 in 2024, and a decrease of $9.7 million in tax expense from nondeductible expenses and penalties associated with the civil money penalty we incurred in 2024 for our Consent Order.
+Added: Our income tax expense totaled $13.9 million for the three months ended March 31, 2026, representing an increase of $6.0 million from the prior year comparable period, primarily due to an increase in our income before taxes.
+Added: The net decrease in our effective tax rate for the three months ended March 31, 2026 from the prior year comparable period was due to several factors, including a decrease of $0.5 million in state income taxes expense, net of federal benefits, a decrease of $1.1 million in tax expense associated with shortfalls from stock-based compensation, an increase of $1.0 million in the tax benefit from the cash surrender value in bank-owned life insurance policies, and a higher tax rate benefit due to an increase of $1.0 million in general business credits.
+Added: These decreases were partially offset by an increase of $0.9 million in the amount of compensation expense that was subject to the IRC 162(m) limitation on the deductibility of certain executive compensation and an increase in the valuation allowance recorded against our 2026 federal and state research credits.
+Added: For the three months ended March 31, 2026, we recorded valuation allowances of $1.4 million against our 2026 federal research credits, which is reflected in change in valuation allowance, and $1.1 million against our 2026 state research credits, reflected in state income taxes, net of federal tax benefit in our effective tax rate reconciliation.
The "Other" category in our effective tax rate consists of a variety of permanent differences, none of which were individually significant.
Segment Results
−Removed: The results of operations and key metrics of our B2B Services segment for the three and nine months ended September 30, 2025 and 2024 were as follows:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 Change % 2025 2024 Change %
+Added: The results of operations and key metrics of our B2B Services segment for the three months ended March 31, 2026 and 2025 were as follows:
+Added: Three Months Ended March 31,
+Added: 2026 2025 Change %
(In thousands, except percentages)
5 unchanged sentences
Gross dollar volume $ 39,338 $ 33,014 $ 6,324 19.2 %
−Removed: Number of active accounts* 1.89 1.68 0.21 12.5 % n/a n/a n/a n/a
+Added: Number of active accounts* 1.91 1.78 0.13 7.3 %
Purchase volume $ 1,917 $ 1,986 $ (69) (3.5) %
−Removed: * Represents total number of active accounts as of September 30, 2025 and 2024, respectively.
+Added: * Represents total number of active accounts as of March 31, 2026 and 2025, respectively.
As additional supplemental information, our key metrics within our B2B Services segment is presented on a quarterly basis as follows:
−Removed: Q3 Q2 Q1 Q4 Q3 Q2 Q1
+Added: Q1 Q4 Q3 Q2 Q1
(In millions)
3 unchanged sentences
* Represents total number of active accounts as of the end of each quarter.
−Removed: Segment revenues within our B2B Services for the three and nine months ended September 30, 2025 increased $87.8 million, or 32%, and $285.2 million, or 37%, respectively, over the prior year comparable periods, while our segment expenses for the three and nine months ended September 30, 2025 increased $86.0 million, or 35%, and $265.6 million, or 38%, respectively.
−Removed: Our gross dollar volume, purchase volume, and number of active accounts increased during the three months ended September 30, 2025 by 22%, 1%, and 13%, respectively, over the prior year comparable period.
−Removed: Our gross dollar volume and purchase volume increased year-over-year by similar levels during the nine months ended September 30, 2025.
+Added: Segment revenues within our B2B Services for the three months ended March 31, 2026 increased $75.6 million, or 22%, over the prior year comparable period, while our segment expenses for the three months ended March 31, 2026 increased $74.0 million, or 24%.
+Added: Our gross dollar volume and number of active accounts increased during the three months ended March 31, 2026 by 19% and 7%, respectively, over the comparable prior year period, while purchase volume decreased by 3% year over year.
We have continued to experience organic growth from both new and existing users concentrated in certain BaaS programs that tend to yield higher gross dollar volume per active user but do not generate comparable levels of interchange fees.
The growth in gross dollar volume from these BaaS programs resulted in a net increase in segment revenue due to higher program management service fees earned from these BaaS partners.
−Removed: Segment expenses increased for the three and nine months ended September 30, 2025 over the prior year comparable periods, principally due to higher processing expenses associated with the growth of certain BaaS account programs.
−Removed: Additionally, segment expenses increased for the three months ended September 30, 2025 over the prior year comparable period from higher transaction losses due to increases in our dispute loss rates and dollar volume and higher third-party call center support costs as a result of increases in gross dollar volume and the number of active accounts.
−Removed: Segment expenses for the nine months ended September 30, 2025 was driven by these same factors, however, our transaction losses decreased slightly due to favorable reductions in our dispute loss rates on a full year basis.
−Removed: As a result of these factors, our segment profit increased for the three and nine months ended September 30, 2025 by approximately 7% and 30%, respectively, over the prior year comparable periods.
−Removed: Although limited, our segment profit increased year-over-year from improvement in our cost structure and revised economics of certain partnerships, despite the impact of certain BaaS partnerships largely providing for a fixed profit.
+Added: Segment expenses increased for the three months ended March 31, 2026 over the comparable prior year period, principally due to higher processing expenses associated with the growth of certain BaaS account programs, partially offset by lower third-party call center support costs as a result of decreases in call volume and lower transaction losses due to decreases in our dispute loss rates and incoming volume.
+Added: As a result of these factors, our segment profit increased for the three months ended March 31, 2026 by approximately 6% over the prior year comparable period.
+Added: However, this segment also experienced margin compression because certain BaaS partnerships are largely structured based on a fixed profit and therefore, our segment profit for certain arrangements will not scale with revenue growth.
Consumer Services
−Removed: The results of operations and key metrics of our Consumer Services segment for the three and nine months ended September 30, 2025 and 2024 were as follows:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 Change % 2025 2024 Change %
+Added: The results of operations and key metrics of our Consumer Services segment for the three months ended March 31, 2026 and 2025 were as follows:
+Added: Three Months Ended March 31,
+Added: 2026 2025 Change %
(In thousands, except percentages)
5 unchanged sentences
Gross dollar volume $ 3,879 $ 4,238 $ (359) (8.5) %
−Removed: Number of active accounts* 1.62 1.78 (0.16) (9.0) % n/a n/a n/a n/a
−Removed: Direct deposit active accounts* 0.40 0.44 (0.04) (9.1) % n/a n/a n/a n/a
+Added: Number of active accounts* 1.52 1.80 (0.28) (15.6) %
+Added: Direct deposit active accounts* 0.38 0.41 (0.03) (7.3) %
Purchase volume $ 2,789 $ 3,127 $ (338) (10.8) %
−Removed: * Represents total number of active and direct deposit active accounts as of September 30, 2025 and 2024, respectively.
+Added: * Represents total number of active and direct deposit active accounts as of March 31, 2026 and 2025, respectively.
As additional supplemental information, our key metrics within our Consumer Services segment is presented on a quarterly basis as follows:
−Removed: Q3 Q2 Q1 Q4 Q3 Q2 Q1
+Added: Q1 Q4 Q3 Q2 Q1
(In millions)
4 unchanged sentences
* Represents total number of active accounts as of the end of each quarter.
−Removed: Segment revenues within Consumer Services for the three and nine months ended September 30, 2025 decreased $9.7 million, or 10%, and $18.6 million, or 6%, respectively, from the prior year comparable periods, while our segment expenses for the three and nine months ended September 30, 2025 decreased by $2.0 million, or 3%, and $9.9 million, or 5%, respectively.
−Removed: Our gross dollar volume and purchase volume declined by 9% and 6%, respectively, for the three months ended September 30, 2025, and both the number of active accounts and direct deposit accounts declined by 9% from the prior year comparable periods, primarily due to each of the factors discussed above in "Overview." These factors include macro-economic factors leading to economic challenges for consumers and other competitive trends that have impacted account acquisition.
−Removed: Our gross dollar volume and purchase volume decreased year-over-year by similar levels during the nine months ended September 30, 2025.
+Added: Segment revenues within Consumer Services for the three months ended March 31, 2026 decreased $8.8 million, or 9%, from the comparable prior year period, while our segment expenses for the three months ended March 31, 2026 decreased by $0.6 million, or 1%.
+Added: Our gross dollar volume and purchase volume declined by 8% and 11%, respectively, for the three months ended March 31, 2026 from the prior year comparable period, and the number of active accounts and direct deposit accounts declined by 16% and 7%, respectively, primarily due to each of the factors discussed above in "Overview." These factors include macro-economic factors leading to economic challenges for consumers and other competitive trends that have impacted account acquisition.
As a result of these decreases in each of our key metrics, our monthly maintenance fee revenues, ATM fee revenues and interchange revenues decreased year over year.
−Removed: In addition, our interchange rate declined due to a mix-shift toward categories of consumer purchases with lower effective rates for the comparable period, and a lower average spend per transaction.
−Removed: Segment expenses for the three and nine months ended September 30, 2025 decreased from the comparable prior year periods primarily due to a decrease in overall transaction losses attributable to lower customer dispute volume across our portfolios and favorable reductions in our dispute loss rates, and lower supply chain material expenses due to fewer active accounts, partially offset by an increase in sales commissions from higher revenues on products subject to tiered revenue-sharing agreements.
−Removed: Overall, segment profit decreased for the three and nine months ended September 30, 2025 by approximately 19% and 8%, respectively, from the prior year comparable periods.
+Added: These decreases in segment revenues were partially offset by fees generated from our overdraft protection programs due to expanded usage by our accountholders.
+Added: Segment expenses for the three months ended March 31, 2026 decreased from the comparable prior year period primarily due to a decrease in overall transaction losses attributable to lower customer dispute volume across our portfolios and favorable reductions in our dispute loss rates, lower supply chain material expenses due to fewer active accounts, and a decrease in sales commissions from lower revenues on products subject to tiered revenue-sharing agreements.
+Added: Overall, segment profit decreased for the three months ended March 31, 2026 by approximately 24% from the prior year comparable period.
Money Movement Services
−Removed: The results of operations and key metrics of our Money Movement Services segment for the three and nine months ended September 30, 2025 and 2024 were as follows:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 Change % 2025 2024 Change %
+Added: The results of operations and key metrics of our Money Movement Services segment for the three months ended March 31, 2026 and 2025 were as follows:
+Added: Three Months Ended March 31,
+Added: 2026 2025 Change %
(In thousands, except percentages)
7 unchanged sentences
As additional supplemental information, our key metrics within our Money Movement Services segment is presented on a quarterly basis as follows:
−Removed: Q3 Q2 Q1 Q4 Q3 Q2 Q1
+Added: Q1 Q4 Q3 Q2 Q1
(In millions)
1 unchanged sentence
Number of tax refunds processed 7.78 0.11 0.20 3.73 7.98
−Removed: Segment revenues within our Money Movement services for the three months ended September 30, 2025 decreased $2.0 million, or 6%, and for the nine months ended September 30, 2025 increased $2.9 million, or 2%, from the prior year comparable periods.
−Removed: Segment expenses for the three and nine months ended September 30, 2025 decreased $2.2 million, or 12%, and $7.0 million, or 9%, respectively.
−Removed: The decrease in segment revenues for the three months ended September 30, 2025 was driven by a decrease in our cash transfer revenues due to a 10% decrease in the number of cash transfers processed.
−Removed: The decline in the number of cash transfers processed was due to a lower number of active accounts within our Consumer Services segment and to a lesser extent, a lower number of cash transfers processed for third-party programs.
−Removed: The decrease was partially offset by slightly higher tax processing revenues due to an 3% increase in the number of tax refunds processed and from higher ancillary tax program fees that are associated with tax refund transfers.
−Removed: The increase in segment revenues for the nine months ended September 30, 2025 was driven by higher tax processing revenues, which increased due to the expansion of our taxpayer advance program and a favorable mix-shift in the distribution channel in which tax refunds were generated, despite a 13% decline in the number of tax refunds processed.
−Removed: The decrease in the number of tax refunds processed during the nine months ended September 30, 2025 was principally attributable to our online tax preparation partners.
−Removed: These increases were partially offset by a 7% decline in the number of cash transfers processed during the nine months ended September 30, 2025 from the prior year comparable period, which was attributable to the same reasons discussed above.
−Removed: Segment expenses decreased during the three and nine months ended September 30, 2025 primarily due to a decrease in revenue-sharing arrangements in our tax processing business.
−Removed: Overall, segment profit increased for the three and nine months ended September 30, 2025 by approximately 1% and 9%, respectively, from the prior year comparable periods.
+Added: Segment revenues within our Money Movement services for the three months ended March 31, 2026 increased $20.5 million, or 19%, from the prior year comparable period.
+Added: Segment expenses for the three months ended March 31, 2026 increased $8.8 million, or 26%.
+Added: The increase in segment revenues for the three months ended March 31, 2026 was driven by higher tax processing revenues, which increased due to the expansion of our taxpayer advance programs, partially offset by a 7% decline in the number of cash transfers processed from the prior year comparable period.
+Added: We generated an increase in our tax processing revenues during the three months ended March 31, 2026 despite a 3% decrease in the number of tax refunds processed.
+Added: The decrease in the number of tax refunds processed was principally attributable to the performance of our online tax preparation partners.
+Added: The decline in the number of cash transfers processed was primarily due to a lower number of active accounts within our Consumer Services segment and to a lesser extent, a lower number of cash transfers processed for third-party programs.
+Added: Segment expenses increased during the three months ended March 31, 2026 primarily from an increase in third-party costs and related expenses due to growth across our tax processing services, partially offset by lower sales commissions from lower cash transfer revenues.
+Added: Overall, segment profit increased for the three months ended March 31, 2026 by approximately 15% from the prior year comparable period.
Corporate and Other
−Removed: The results of operations and key metrics of our Corporate and Other segment for the three and nine months ended September 30, 2025 and 2024 were as follows:
−Removed: Three Months Ended September 30, Nine Months Ended September 30,
−Removed: 2025 2024 Change % 2025 2024 Change %
+Added: The results of operations and key metrics of our Corporate and Other segment for the three months ended March 31, 2026 and 2025 were as follows:
+Added: Three Months Ended March 31,
+Added: 2026 2025 Change %
(In thousands, except percentages)
8 unchanged sentences
Refer to Note 20—Segment Information to the Consolidated Financial Statements included herein for a summary reconciliation.
−Removed: Revenues within our Corporate and Other segment were driven primarily by an increase in net interest income, which increased by 41% and 51% for the three and nine months ended September 30, 2025, respectively, from the
−Removed: prior year comparable periods.
−Removed: The increase in net interest income was primarily the result of yields earned from an increase in cash from deposit programs with our partners and to a lesser extent higher yielding investments from our bond repositioning strategy, and a decrease in interest shared with certain BaaS partners (a reduction of revenue).
−Removed: Unallocated corporate expenses for the three and nine months ended September 30, 2025 increased by approximately 17% and 4%, respectively, over the prior year comparable periods.
−Removed: The increase in unallocated corporate expenses for the three months ended September 30, 2025 was driven primarily by an increase in accrued bonus compensation expense due to our current financial performance relative to our annual targets and higher software licenses and hosting costs due to investments in our platform and operations, and higher professional services fees related to our AML regulatory compliance initiatives.
−Removed: The net increase for the nine months ended September 30, 2025 was impacted by these same factors, partially offset by a decrease from lower professional services fees related to our AML programs due to the year-over-year timing of spend on certain initiatives.
+Added: Revenues within our Corporate and Other segment were driven primarily by an increase in net interest income, which increased by 26% for the three months ended March 31, 2026, from the comparable prior year period.
+Added: The increase in net interest income was primarily the result of both the size of our investments portfolio and higher yielding investments therein from our bond repositioning strategy, as well as a decrease in interest shared with certain BaaS partners (a reduction of revenue).
+Added: Unallocated corporate expenses for the three months ended March 31, 2026 increased by approximately 4%, over the prior year comparable period.
+Added: The increase in unallocated corporate expenses for the three months ended March 31, 2026 was driven primarily by higher professional services fees related to our AML regulatory compliance initiatives and higher software licenses and hosting costs due to investments in our platform and operations, partially offset by a decrease in salary and wage expenses and rent expense due to the closure of our China operations announced in September 2025.
Liquidity and Capital Resources
The following table summarizes our major sources and uses of cash for the periods presented:
−Removed: Nine Months Ended September 30,
+Added: Three Months Ended March 31,
(In thousands)
4 unchanged sentences
Increase in unrestricted cash, cash equivalents and restricted cash $ 224,679 $ 180,453
−Removed: For the nine months ended September 30, 2025 and 2024, we financed our operations primarily through our cash flows provided by operating activities, customer funds held on deposit and borrowings from our senior unsecured notes.
−Removed: As of September 30, 2025, our primary source of liquidity was unrestricted cash and cash equivalents totaling $1.6 billion.
+Added: For the three months ended March 31, 2026 and 2025, we financed our operations primarily through our cash flows provided by operating activities, customer funds held on deposit and net borrowings from the Federal Home Loan Bank ("FHLB").
+Added: As of March 31, 2026, our primary source of liquidity was unrestricted cash and cash equivalents totaling $1.6 billion.
We also consider our $3.0 billion of available-for-sale investment securities to be highly liquid instruments.
We use trend and variance analysis as well as our detailed budgets and forecasts to project future cash needs, making adjustments to the projections when needed.
−Removed: We believe that our current unrestricted cash and cash equivalents, cash flows from operations and borrowing capacity under our revolving line of credit will be sufficient to meet our working capital, capital expenditures, and any other capital needs for at least the next 12 months.
+Added: We believe that our current unrestricted cash and cash equivalents, cash flows from operations, borrowing capacity under our revolving line of credit, and our ability to access borrowings from the FHLB will be sufficient to meet our working capital, capital expenditures, and any other capital needs for at least the next 12 months.
We are currently not aware of any trends or demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in our liquidity increasing or decreasing in any material way that will impact our capital needs during or beyond the next 12 months.
1 unchanged sentence
Cash Flows from Operating Activities
−Removed: Our $201.0 million of net cash provided by operating activities during the nine months ended September 30, 2025 was the result of $52.0 million of net loss, adjusted for certain non-cash operating items of $211.5 million and increases in net changes in our working capital assets and liabilities of $41.6 million.
−Removed: Our $104.4 million of net cash provided by operating activities during the nine months ended September 30, 2024 was the result of $31.8 million of net losses, adjusted for certain non-cash operating items of $139.5 million and decreases in net changes in our working capital assets and liabilities of $3.3 million, which included the payment of $44 million for the civil money penalty included in our Consent Order.
+Added: Our $95.1 million of net cash provided by operating activities during the three months ended March 31, 2026 was the result of $53.8 million of net income, adjusted for certain non-cash operating items of $50.2 million and decreases in net changes in our working capital assets and liabilities of $8.9 million.
+Added: Our $108.7 million of net cash provided by operating activities during the three months ended March 31, 2025 was the result of $25.8 million of net income, adjusted for certain non-cash operating items of $62.8 million and increases in net changes in our working capital assets and liabilities of $20.2 million.
Cash Flows from Investing Activities
−Removed: Our $287.5 million of net cash used in investing activities during the nine months ended September 30, 2025 was primarily due to purchases of available-for-sale securities, net of proceeds from sales and maturities, of $206.4 million, and to a lesser extent by the acquisition of property and equipment of $58.7 million and net changes in loans of $20.3 million.
−Removed: Our $85.8 million of net cash provided by investing activities during the nine months ended September 30, 2024 was primarily due to proceeds from maturities of available-for-sale securities, net of purchases, of $143.1 million and the surrender of a portion of our bank-owned life insurance policies of $55.1 million, partially offset by capital contributions related to our investment in TailFin Labs, LLC of $35.0 million, the acquisition of property and
−Removed: equipment of $52.2 million and net changes in loans of $24.4 million.
−Removed: Our final payment under our commitment with TailFin Labs, LLC was made in January 2024.
+Added: Our $566.6 million of net cash used in investing activities during the three months ended March 31, 2026 was primarily due to purchases of available-for-sale securities, net of proceeds from sales and maturities, of $508.3 million, and to a lesser extent, the acquisition of property and equipment of $19.0 million, net changes in loans of $16.1 million, and net purchases of FHLB activity stock for $22.5 million necessitated by our short-term borrowings from the FHLB.
+Added: Our $63.5 million of net cash used in investing activities during the three months ended March 31, 2025 was primarily due to purchases of available-for-sale securities, net of maturities and sales, of $25.9 million, the acquisition of property and equipment of $19.4 million and net changes in loans of $17.6 million.
Cash Flows from Financing Activities
−Removed: Our $131.4 million of net cash provided by financing activities during the nine months ended September 30, 2025 was principally the result of a net increase in customer deposits of $204.0 million and borrowings on our notes payable $14.9 million , partially offset by a net decrease in obligations to customers of $86.7 million.
−Removed: Refer to additional discussion below for our borrowings and repayments of debt.
−Removed: Our $576.9 million of net cash provided by financing activities during the nine months ended September 30, 2024 was principally the result of a net increase in customer deposits of $547.5 million and in obligations to customers of $46.0 million.
+Added: Our $696.2 million of net cash provided by financing activities during the three months ended March 31, 2026 was principally the result of net short term borrowings from the FHLB of $500.0 million in support of our tax refund processing business, a net increase in customer deposits of $112.4 million and a net increase in obligations to customers of $87.9 million.
+Added: Refer to additional discussion below for our borrowings and repayments from our liquidity sources, including the FHLB.
+Added: Our $135.2 million of net cash provided by financing activities during the three months ended March 31, 2025 was principally the result of a net increase in customer deposits of $159.8 million partially offset by a net decrease in obligations to customers of $36.6 million.
Other Sources of Liquidity
8 unchanged sentences
Interest payments are due monthly, and accrue based on the then-outstanding principal balance.
−Removed: We had no outstanding balance as of September 30, 2025.
−Removed: 2019 Revolving Facility
−Removed: In October 2019, we entered into a secured credit agreement with Wells Fargo Bank, National Association, and other lenders party thereto.
−Removed: The credit agreement provided for a $100.0 million five-year revolving line of credit (the "2019 Revolving Facility"), which matured in October 2024.
−Removed: The proceeds of any borrowings under the 2019 Revolving Facility were used for working capital and other general corporate purposes, subject to the terms and conditions set forth in the credit agreement.
−Removed: As of September 30, 2024, the then-outstanding balance on the 2019 Revolving Facility was repaid in full, and the 2019 Revolving Facility terminated at its maturity date.
+Added: We had no outstanding balance as of March 31, 2026.
Other Sources
−Removed: Green Dot Bank has the ability to access various sources of funding, including advances from the Federal Home Loan Bank and the Federal Reserve's discount window.
+Added: Green Dot Bank has the ability to access various sources of funding, including advances from the FHLB and the Federal Reserve's discount window.
Availability of these borrowings is subject to various factors, including maintaining eligibility requirements and the amount of pledged collateral.
−Removed: These sources may be used from time to time to support our short-term liquidity needs.
+Added: These sources may be used from time to time to support our short-term liquidity needs and lines of business.
+Added: We had $500 million outstanding in advances from the FHLB as of March 31, 2026, which was subsequently repaid in full on April 1, 2026.
Material Cash Requirements
−Removed: While the overall macro-economic environment, the effect of high inflation and interest rates, and other factors described in "Outlook and Other Trends Affecting Our Business" above have created economic uncertainty and impacted how we manage our liquidity and capital resources, we intend to continue to invest in growth and cost efficiency initiatives in the normal course of business until we reach a conclusion regarding the process we recently initiated to explore potential strategic alternatives.
−Removed: The amount and timing of these investments and the related cash outflows in future periods is difficult to predict and is dependent on a number of factors including the rate of change of computer hardware and software used in our business and our business outlook as a result of macro-economic uncertainties.
+Added: While the overall macro-economic environment, the effect of high inflation and interest rates, and other factors described in "Outlook and Other Trends Affecting Our Business" above have created economic uncertainty and impacted how we manage our liquidity and capital resources, we intend to continue to invest in growth and cost efficiency initiatives in the normal course of business, subject to the consummation of the proposed transactions with CommerceOne and Smith Ventures.
+Added: The amount and timing of these investments and the related cash outflows in future periods are difficult to predict and is dependent on a number of factors including the rate of change of computer hardware and software used in our business and our business outlook as a result of macro-economic uncertainties.
We intend to continue to invest in new products and programs, new features for our existing products and IT infrastructure in order to scale and operate effectively to meet our strategic objectives.
−Removed: We expect our capital expenditures in 2025 to be at similar levels compared to our annual investments in recent years.
+Added: However, we expect our capital expenditures in 2026 to be lower compared to our annual investments in 2025.
We expect to fund these capital expenditures primarily through our cash flows provided by operating activities.
1 unchanged sentence
The nature of these transactions, however, makes it difficult to predict the amount and timing of such cash requirements.
−Removed: Additionally, we have made and may further make periodic cash contributions to our subsidiary bank, Green Dot Bank, to maintain its capital, leverage and other financial commitments at levels we have agreed to
−Removed: with our regulators.
+Added: Additionally, we have made and may further make periodic cash contributions to our subsidiary bank, Green Dot Bank, to maintain its capital, leverage and other financial commitments at levels we have agreed to with our regulators.
We may need to increase the size of our cash contributions to Green Dot Bank to maintain its capital, leverage and other financial commitments.
Contractual Obligations
−Removed: There have been no material changes during the nine months ended September 30, 2025 to our contractual obligations disclosed in Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2024.
+Added: There have been no material changes during the three months ended March 31, 2026 to our contractual obligations disclosed in Management's Discussion and Analysis of Financial Condition and Results of Operations included in our Annual Report on Form 10-K for the year ended December 31, 2025.
Capital Requirements for Bank Holding Companies
14 unchanged sentences
Basel III Rules.
−Removed: As of September 30, 2025 and December 31, 2024, we and Green Dot Bank were categorized as "well-capitalized" under applicable regulatory standards.
+Added: As of March 31, 2026 and December 31, 2025, we and Green Dot Bank were categorized as "well-capitalized" under applicable regulatory standards.
To be categorized as "well-capitalized," we and Green Dot Bank must maintain specific total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below.
−Removed: There were no conditions or events since September 30, 2025 which management believes would have changed our category as "well-capitalized."
+Added: There were no conditions or events since March 31, 2026, which management believes would have changed our category as "well-capitalized."
The definitions associated with the amounts and ratios below are as follows:
18 unchanged sentences
The standardized risk weights are prescribed in the bank capital rules and reflect regulatory judgment regarding the riskiness of a type of asset or exposure
−Removed: The actual amounts and ratios, and required "well-capitalized" minimum capital amounts and ratios at September 30, 2025 and December 31, 2024 were as follows:
−Removed: September 30, 2025
+Added: The actual amounts and ratios, and required "well-capitalized" minimum capital amounts and ratios at March 31, 2026 and December 31, 2025 were as follows:
+Added: March 31, 2026
Amount Ratio Regulatory Minimum "Well-capitalized" Minimum
24 unchanged sentences
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.