What changed in this filing

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Item 1. Financial Statements

2026-08-10 compared with 2026-05-11 · 248 added, 159 removed, 672 unchanged (38% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Assets (In thousands, except par value)

8 unchanged sentences

Investment securities available-for-sale, at fair value 3,033,341 2,467,843

Loans to bank customers, net of allowance for credit losses of $ 21,645 and $ 21,053 as of March 31, 2026 and December 31, 2025, respectively

Loans to bank customers, net of allowance for credit losses of $ 38,005 and $ 21,053 as of June 30, 2026 and December 31, 2025, respectively

44,252 55,700

15 unchanged sentences

Deferred revenue 4,307 4,224

Federal Home Loan Bank advances 500,000 —

Income tax payable — 2,366

7 unchanged sentences

Class A common stock, $ 0.001 par value;

100,000 shares authorized as of March 31, 2026 and December 31, 2025;

56,661 and 55,565 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively

100,000 shares authorized as of June 30, 2026 and December 31, 2025;

56,985 and 55,565 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively

Additional paid-in capital 430,971 427,477

6 unchanged sentences

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31,

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

2026 2025 2026 2025

(In thousands, except per share data)

12 unchanged sentences

Total operating expenses 596,644 490,777 1,183,853 988,906

Operating income 69,038 60,745

Operating (loss) income ( 761 ) 13,399 68,277 74,144

Interest expense, net 1,581 1,631 3,157 3,017

Other income (expense), net 177 ( 25,704 )

Income before income taxes 67,639 33,655

Income tax expense 13,886 7,882

Net income $ 53,753 $ 25,773

Basic earnings per common share:

Other (expense) income, net ( 13 ) ( 74,691 ) 164 ( 100,395 )

(Loss) income before income taxes ( 2,355 ) ( 62,923 ) 65,284 ( 29,268 )

Income tax (benefit) expense ( 268 ) ( 15,898 ) 13,618 ( 8,016 )

Net (loss) income $ ( 2,087 ) $ ( 47,025 ) $ 51,666 $ ( 21,252 )

Basic (loss) earnings per common share:

$ ( 0.04 ) $ ( 0.85 ) $ 0.92 $ ( 0.39 )

Diluted earnings per common share $ 0.93 $ 0.47

Diluted (loss) earnings per common share $ ( 0.04 ) $ ( 0.85 ) $ 0.89 $ ( 0.39 )

Basic weighted-average common shares issued and outstanding:

4 unchanged sentences

GREEN DOT CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Three Months Ended March 31,

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME AND LOSS

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

2026 2025 2026 2025

(In thousands)

Net income $ 53,753 $ 25,773

Other comprehensive income

Net (loss) income $ ( 2,087 ) $ ( 47,025 ) $ 51,666 $ ( 21,252 )

Other comprehensive (loss) income

Unrealized holding (losses) income, net of tax ( 2,068 ) 11,867 ( 6,005 ) 41,188

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

Comprehensive income $ 49,816 $ 73,486

Comprehensive (loss) income $ ( 4,155 ) $ ( 34,946 ) $ 45,661 $ 38,540

See notes to unaudited consolidated financial statements

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

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

1 unchanged sentence

(In thousands)

Balance at December 31, 2025 55,565 $ 56 $ 427,477 $ 644,736 $ ( 182,024 ) $ 890,245

Balance at March 31, 2026 56,661 $ 57 $ 427,915 $ 698,489 $ ( 185,961 ) $ 940,500

Common stock issued under stock plans, net of withholdings and related tax effects 324 — ( 276 ) — — ( 276 )

Stock-based compensation — — 3,332 — — 3,332

Net income — — — 53,753 — 53,753

Net loss — — — ( 2,087 ) — ( 2,087 )

Other comprehensive loss — — — — ( 2,068 ) ( 2,068 )

Balance at June 30, 2026 56,985 $ 57 $ 430,971 $ 696,402 $ ( 188,029 ) $ 939,401

Three Months Ended June 30, 2025

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

Shares Amount

(In thousands)

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

Three Months Ended March 31, 2025

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

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

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

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

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

See notes to unaudited consolidated financial statements

GREEN DOT CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (CONTINUED)

Six Months Ended June 30, 2026

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

5 unchanged sentences

Net income — — — 51,666 — 51,666

Other comprehensive loss — — — — ( 6,005 ) ( 6,005 )

Balance at June 30, 2026 56,985 $ 57 $ 430,971 $ 696,402 $ ( 188,029 ) $ 939,401

Six Months Ended June 30, 2025

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

Shares Amount

(In thousands)

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

Common stock issued under stock plans, net of withholdings and related tax effects 1,161 — — — — —

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

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

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

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

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

See notes to unaudited consolidated financial statements

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Three Months Ended March 31,

Six Months Ended June 30,

(In thousands)

Operating activities

Net income $ 53,753 $ 25,773

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

Net income (loss) $ 51,666 $ ( 21,252 )

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

Depreciation and amortization of property, equipment and internal-use software 36,798 31,262

24 unchanged sentences

Other investing activities ( 957 ) ( 921 )

Net cash used in investing activities ( 566,597 ) ( 63,457 )

Net cash (used in) provided by investing activities ( 627,790 ) 501,664

Financing activities

Borrowings on notes payable — 14,860

Net borrowings from Federal Home Loan Bank 500,000 —

Proceeds from ESPP purchases 820 2,633

4 unchanged sentences

Net cash provided by financing activities 154,797 40,762

Net increase in unrestricted cash, cash equivalents and restricted cash 224,679 180,453

Net (decrease) increase in unrestricted cash, cash equivalents and restricted cash ( 278,308 ) 720,127

Unrestricted cash, cash equivalents and restricted cash, beginning of period 1,421,734 1,592,435

1 unchanged sentence

Cash paid for interest $ 8,337 $ 6,549

Cash (refunded from) paid for income taxes $ ( 122 ) $ 3

Cash paid for income taxes $ 3,160 $ 5,374

Reconciliation of unrestricted cash, cash equivalents and restricted cash at end of period:

15 unchanged sentences

Also on November 23, 2025, we entered into a separation agreement (the “Separation Agreement”), with New CommerceOne and Green Dot OpCo, LLC, a newly formed Delaware limited liability company and affiliate of Smith Ventures LLC, an Alabama limited liability company (“Payments Buyer”), pursuant to which, upon the terms and subject to the conditions therein, following the First Mergers, (i) Green Dot Corporation will convert into a limited liability company, (ii) Green Dot Corporation will distribute the stock of Green Dot Bank to Compass Sub Northwest, Inc., a Delaware corporation and direct, wholly owned subsidiary of New CommerceOne, and (iii) Payments Buyer will acquire Green Dot Corporation and its non-bank financial technology and related assets and operations (the “Payments Business”) for $ 690 million (the “Payments Sale”), the proceeds of which will be paid to New CommerceOne and are expected to be used to fund the Per Share Cash Consideration and to retire certain indebtedness of Green Dot Corporation.

The Merger Agreement and the Separation Agreement were unanimously approved by our Board of Directors.

The closing of the transactions contemplated by the Merger Agreement and the Separation Agreement remains subject to the receipt of required regulatory approvals, approval by the stockholders of Green Dot Corporation and CommerceOne and the satisfaction of other customary closing conditions.

All board and stockholder approvals under the Merger Agreement and the Separation Agreement have been obtained and the closing of the transactions contemplated thereby remains subject to the receipt of required regulatory approvals, and the satisfaction of other customary closing conditions.

For additional information regarding potential risks and uncertainties associated with such transactions, please see Part II, Item 1A, Risk Factors below.

8 unchanged sentences

Reference is made to our Annual Report on Form 10-K for the year ended December 31, 2025 for additional disclosures, including a summary of our significant accounting policies.

There have been no material changes to our previously disclosed significant accounting policies during the three months ended March 31, 2026.

There have been no material changes to our previously disclosed significant accounting policies during the six months ended June 30, 2026.

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

2 unchanged sentences

accordingly, accounting estimates require the exercise of judgment.

These financial statements were prepared using information reasonably available as of March 31, 2026 and through the date of this report.

These financial statements were prepared using information reasonably available as of June 30, 2026 and through the date of this report.

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

24 unchanged sentences

Note 3—Revenues (continued)

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

B2B Services Consumer Services Money Movement Services Total

4 unchanged sentences

$ 439,701 $ 83,033 $ 51,659 $ 574,393

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

B2B Services Consumer Services Money Movement Services Total

4 unchanged sentences

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

Six Months Ended June 30, 2026

B2B Services Consumer Services Money Movement Services Total

Timing of recognition (In thousands)

Transferred point in time $ 78,519 $ 130,759 $ 185,147 $ 394,425

Transferred over time 770,340 37,014 1,619 808,973

Operating revenues (1)

$ 848,859 $ 167,773 $ 186,766 $ 1,203,398

Six Months Ended June 30, 2025

B2B Services Consumer Services Money Movement Services Total

Timing of recognition (In thousands)

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

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

Operating revenues (1)

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

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

1 unchanged sentence

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

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

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

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

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

We recognized approximately $ 1.6 million and $ 2.3 million in revenue for the three months ended March 31, 2026 and 2025, respectively, that were included in deferred revenue at the beginning of the respective periods and did not recognize any revenue during these periods from performance obligations satisfied in previous periods.

We recognized approximately $ 0.5 million in revenue for each of the three months ended June 30, 2026 and 2025, and $ 2.1 million and $ 2.7 million for the six months ended June 30, 2026 and 2025, respectively, that were included in deferred revenue at the beginning of the respective periods and did not recognize any revenue during these periods from performance obligations satisfied in previous periods.

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

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

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 4— Investment Securities

2 unchanged sentences

(In thousands)

March 31, 2026

June 30, 2026

Agency bond securities $ 179,228 $ — $ ( 23,153 ) $ 156,075

9 unchanged sentences

Total investment securities $ 2,707,799 $ 1,478 $ ( 241,434 ) $ 2,467,843

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 4—Investment Securities (continued)

As of March 31, 2026 and December 31, 2025, the gross unrealized losses and fair values of available-for-sale investment securities that were in unrealized loss positions were as follows:

As of June 30, 2026 and December 31, 2025, the gross unrealized losses and fair values of available-for-sale investment securities that were in unrealized loss positions were as follows:

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

1 unchanged sentence

(In thousands)

March 31, 2026

June 30, 2026

Agency bond securities $ — $ — $ 156,075 $ ( 23,153 ) $ 156,075 $ ( 23,153 )

11 unchanged sentences

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

As such, we have not recorded any credit-related impairment loss during the three months ended March 31, 2026 or 2025 on our available-for-sale investment securities.

Unrealized losses as of March 31, 2026 and December 31, 2025 are the result of increases in interest rates relative to when they were purchased as a portion of our investment portfolio is comprised of fixed rate securities.

The underlying securities within our investment portfolio that were in an unrealized loss position as of March 31, 2026 and December 31, 2025 was due to the timing of our investment purchases, as a significant portion of our investments were purchased prior to increases in interest rates by the Federal Reserve, and general volatility in market conditions.

As such, we have not recorded any credit-related impairment loss during the three and six months ended June 30, 2026 or 2025 on our available-for-sale investment securities.

Unrealized losses as of June 30, 2026 and December 31, 2025 are the result of increases in interest rates relative to when they were purchased as a portion of our investment portfolio is comprised of fixed rate securities.

The underlying securities within our investment portfolio that were in an unrealized loss position as of June 30, 2026 and December 31, 2025 was due to the timing of our investment purchases, as a significant portion of our investments were purchased prior to increases in interest rates by the Board of Governors of the Federal Reserve (the "Federal Reserve"), and general volatility in market conditions.

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

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 4—Investment Securities (continued)

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

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

As a result, we recorded a realized loss of approximately $ 24.8 million during the first half of 2025 because we no longer had the intent to hold the securities until recovery of their amortized cost bases.

The losses were reflected as a component of other income and expense, net on our consolidated statement of operations.

As of March 31, 2026, the contractual maturities of our available-for-sale investment securities were as follows:

As of June 30, 2026, the contractual maturities of our available-for-sale investment securities were as follows:

Amortized cost Fair value

7 unchanged sentences

See Note 2 — Summary of Significant Accounting Policies.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 5— Accounts Receivable

Accounts receivable, net consisted of the following:

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(In thousands)

13 unchanged sentences

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

Three Months Ended March 31,

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

2026 2025 2026 2025

(In thousands)

9 unchanged sentences

(In thousands)

March 31, 2026

June 30, 2026

Residential $ — $ — $ — $ — $ 7,519 $ 7,519

22 unchanged sentences

See Note 2 — Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2025 for further information on the criteria for classification as nonperforming.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(In thousands)

2 unchanged sentences

Total loans $ 1,465 $ 1,854

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 6—Loans to Bank Customers (continued)

Credit Quality Indicators

5 unchanged sentences

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

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 6—Loans to Bank Customers (continued)

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

Non-Classified Classified Non-Classified Classified

8 unchanged sentences

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

Three Months Ended March 31,

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

2026 2025 2026 2025

(In thousands)

3 unchanged sentences

Recoveries of loans previously charged off 29 30 146 64

Other 9,448 — 9,448 —

Balance, end of period $ 38,005 $ 22,406 $ 38,005 $ 22,406

8 unchanged sentences

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

Each partner’s allocation of income or loss in the period is equal to the change in the amount of net equity they are legally able to claim based on a hypothetical liquidation of the entity at the end of a reporting period compared to the

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 7—Equity Method Investments (continued)

beginning of that period, adjusted for any capital transactions.

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

3 unchanged sentences

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

As of March 31, 2026 and December 31, 2025, our net investment in TailFin amounted to approximately $ 40.1 million and $ 41.8 million, respectively, and is included in the long-term portion of prepaid expenses and other assets on our consolidated balance sheets.

Under the HLBV method and based on the terms of the agreement, we recorded equity in losses attributable to TailFin of approximately $ 1.7 million and $ 2.8 million for the three months ended March 31, 2026 and 2025, respectively.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 7—Equity Method Investments (continued)

As of June 30, 2026 and December 31, 2025, our net investment in TailFin amounted to approximately $ 38.3 million and $ 41.8 million, respectively, and is included in the long-term portion of prepaid expenses and other assets on our consolidated balance sheets.

Under the HLBV method and based on the terms of the agreement, we recorded equity in losses attributable to TailFin of approximately $ 1.8 million and $ 75.8 million for the three months ended June 30, 2026 and 2025, respectively, and $ 3.4 million and $ 78.5 million for the six months ended June 30, 2026 and 2025, respectively.

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

5 unchanged sentences

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

Three Months Ended March 31,

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

2026 2025 2026 2025

(In thousands)

3 unchanged sentences

Net loss ( 1,779 ) ( 7,255 ) ( 3,439 ) ( 10,013 )

Investor HLBV basis adjustment (1)

— ( 68,495 ) — ( 68,495 )

Equity in losses attributable to TailFin $ ( 1,779 ) $ ( 75,750 ) $ ( 3,439 ) $ ( 78,508 )

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

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

Other equity method investments

Our equity method investments also include an investment held by our bank, which amounted to $ 3.3 million and $ 3.0 million, respectively, as of March 31, 2026 and December 31, 2025.

Equity in earnings and losses from this investment for the three months ended March 31, 2026 and 2025 were not significant.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Our equity method investments also include an investment held by our bank, which amounted to $ 3.4 million and $ 3.0 million, respectively, as of June 30, 2026 and December 31, 2025.

Equity in earnings and losses from this investment for the three and six months ended June 30, 2026 and 2025 were not significant.

Note 8— Deposits

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(In thousands)

8 unchanged sentences

Total deposits $ 4,640,329 $ 4,416,294

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 8—Deposits (continued)

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

March 31, 2026

June 30, 2026

(In thousands)

4 unchanged sentences

Due in 2030 299

Thereafter 262

Total time deposits $ 6,167

7 unchanged sentences

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

As of March 31, 2026, we were in compliance with all affirmative and negative covenants thereunder.

As of June 30, 2026, we were in compliance with all affirmative and negative covenants thereunder.

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

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

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

(In thousands)

2 unchanged sentences

Notes payable, net of unamortized discount and issuance costs $ 63,739 $ 63,541

We incurred total cash interest expense on our debt of approximately $ 1.4 million and $ 1.2 million during the three months ended March 31, 2026 and 2025, respectively.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 9—Debt (continued)

We incurred total cash interest expense on our debt of approximately $ 1.4 million during each of the three months ended June 30, 2026 and 2025, and $ 2.8 million and $ 2.7 million during the six months ended June 30, 2026 and 2025, respectively.

FHLB Advances

2 unchanged sentences

These sources may be used from time to time to support our short-term liquidity needs and lines of business.

The $ 500 million in net borrowings outstanding with the FHLB as of March 31, 2026 was in support of our tax refund processing business.

The entirety of the outstanding balance was repaid on April 1, 2026.

Interest expense on FHLB borrowings during the three months ended March 31, 2026 and 2025 amounted to approximately $ 1.3 million and $ 1.0 million, respectively.

There were no net borrowings outstanding with the FHLB as of June 30, 2026 or December 31, 2025.

Interest expense incurred on FHLB borrowings in fiscal years 2026 or 2025 were not material.

2025 Revolving Facility

2 unchanged sentences

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

We had no outstanding balances as of March 31, 2026 and December 31, 2025.

We had no outstanding balances as of June 30, 2026 and December 31, 2025.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 10— Income Taxes

Our income tax expense for the three months ended March 31, 2026 and 2025 differs from the amount computed by applying the statutory federal income tax rate to income before income taxes.

Our income tax expense for the six months ended June 30, 2026 and 2025 differs from the amount computed by applying the statutory federal income tax rate to income before income taxes.

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

Three Months Ended March 31,

Six Months Ended June 30,

federal statutory tax rate 21.0 % 21.0 %

8 unchanged sentences

Change in valuation allowance 2.3 —

Global intangible low-tax income tax — ( 0.2 )

Other 0.1 ( 0.1 )

Effective tax rate 20.9 % 27.4 %

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

The effective tax rate for the three months ended March 31, 2026 and 2025 differs from the statutory federal income tax rate of 21%, primarily due to state income taxes, net of federal tax benefits, general business credits, stock-based compensation, cash surrender value growth in bank owned life insurance policies, the Internal Revenue Code (the "IRC") 162(m) limitation on the deductibility of executive compensation, and the change in valuation allowance.

The net decrease in the 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.

These decreases were partially offset by an increase of $ 0.9 million in the amount of compensation expense that

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 10—Income Taxes (continued)

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.

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 effective tax rate for the six months ended June 30, 2026 and 2025 differs from the statutory federal income tax rate of 21%, primarily due to state income taxes, net of federal tax benefits, general business credits, stock-based compensation, cash surrender value growth in bank owned life insurance policies, the Internal Revenue Code (the "IRC") 162(m) limitation on the deductibility of executive compensation, and the change in valuation allowance.

The net decrease in the effective tax rate for the six months ended June 30, 2026 from the prior year comparable period was due to several factors, including a decrease of $ 1.4 million in tax expense associated with shortfalls from stock-based compensation, an increase of $ 0.9 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.

These decreases were partially offset by an increase of $ 2.7 million in state income taxes expense, net of federal benefits, an increase of $ 0.4 million in the amount of compensation expense that was subject to the IRC 162(m) limitation on the deductibility of certain executive compensation, an increase of $ 0.4 million in nondeductible transaction related costs, and an increase in the valuation allowance recorded against our 2026 federal and state research credits.

For the six months ended June 30, 2026, we recorded valuation allowances of $ 1.1 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.

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

For the three months ended March 31, 2026 and 2025, the provision for GILTI tax expense was not material to our financial statements.

For the six months ended June 30, 2026 and 2025, the provision for GILTI tax expense was not material to our financial statements.

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

As of March 31, 2026, we have a valuation allowance recorded against our 2026 federal research credits, state research credits, certain state net operating loss carryforwards, a portion of our capital loss carryforwards, and the deferred tax assets of our China subsidiary as we believe it is more-likely-than-not that the tax benefits related to these items will not be realized.

During the three months ended March 31, 2026, we recorded a valuation allowance of approximately $ 2.5 million against our 2026 federal and state research credits as we determined it was more-likely-than-not that the benefit of these credits would not be realized;

As of June 30, 2026, we have a valuation allowance recorded against our 2026 federal research credits, state research credits, certain state net operating loss carryforwards, a portion of our capital loss carryforwards, and the deferred tax assets of our China subsidiary as we believe it is more-likely-than-not that the tax benefits related to these items will not be realized.

During the six months ended June 30, 2026, we recorded a valuation allowance of approximately $ 2.2 million against our 2026 federal and state research credits as we determined it was more-likely-than-not that the benefit of these credits would not be realized;

accordingly, no tax benefit was recognized for the 2026 federal and state research credits in the current period.

1 unchanged sentence

As of December 31, 2025, we recorded a valuation allowance of approximately $ 21.6 million against our state research credits, certain state net operating loss carryforwards, a portion of our capital loss carryforwards, and the deferred tax assets of our China subsidiary as we determined it was more-likely-than-not that the tax benefits related to these items would not be realized.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 10—Income Taxes (continued)

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

1 unchanged sentence

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

As of March 31, 2026, we had federal net operating loss carryforwards of approximately $ 304.9 million, state net operating loss carryforwards of approximately $ 309.1 million, and capital loss carryforwards of approximately $ 2.5 million which will be available to offset future income.

As of June 30, 2026, we had federal net operating loss carryforwards of approximately $ 304.9 million, state net operating loss carryforwards of approximately $ 309.1 million, and capital loss carryforwards of approximately $ 2.5 million which will be available to offset future income.

In regard to the federal net operating loss carryforwards, $ 9.0 million will expire between 2030 and 2034 and are subject to an annual IRC Section 382 limitation which restricts their utilization against taxable income in future periods, while the remaining balance of approximately $ 294.0 million does not expire and carries forward indefinitely.

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In addition, we have federal business tax credits of approximately $ 1.6 million that can be carried forward indefinitely and we have state business tax credits of approximately $ 24.4 million that can be carried forward indefinitely.

As of March 31, 2026 and December 31, 2025, we had a liability of $ 12.4 million and $ 11.4 million, respectively, for unrecognized tax benefits related to various federal and state income tax matters excluding interest, penalties and related tax benefits.

As of June 30, 2026 and December 31, 2025, we had a liability of $ 12.4 million and $ 11.4 million, respectively, for unrecognized tax benefits related to various federal and state income tax matters excluding interest, penalties and related tax benefits.

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

Three Months Ended March 31,

Six Months Ended June 30,

(In thousands)

3 unchanged sentences

The total amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate $ 12,001 $ 13,135

As of March 31, 2026 and 2025, we recognized accrued interest and penalties related to unrecognized tax benefits of approximately $ 1.3 million and $ 1.8 million, respectively.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

As of June 30, 2026 and 2025, we recognized accrued interest and penalties related to unrecognized tax benefits of approximately $ 1.4 million and $ 2.0 million, respectively.

Note 11— Stockholders' Equity

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

As of March 31, 2026, we had an authorized $ 4.5 million remaining under our stock repurchase program for additional repurchases.

There were no repurchases during the three months ended March 31, 2026.

As of June 30, 2026, we had an authorized $ 4.5 million remaining under our stock repurchase program for additional repurchases.

There were no repurchases during the six months ended June 30, 2026.

Pursuant to the Merger Agreement and the Separation Agreement, we are restricted from making further repurchases without the approval of CommerceOne and Payments Buyer, respectively.

Note 12— Stock-Based Compensation

We currently grant restricted stock unit awards to employees, directors and non-employee consultants under our 2010 Equity Incentive Plan and from time to time may also grant stock option awards.

We grant restricted stock unit awards to employees, directors and non-employee consultants under our 2010 Equity Incentive Plan and from time to time may also grant stock option awards.

Through our 2010 Employee Stock Purchase Plan, employees are also able to purchase shares of our Class A common stock at a discount through payroll deductions.

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

The total stock-based compensation expense recognized was $ 4.5 million and $ 3.0 million for the three months ended March 31, 2026 and 2025, respectively.

The total stock-based compensation expense recognized was $ 3.3 million and $ 5.7 million for the three months ended June 30, 2026 and 2025, respectively, and $ 7.8 million and $ 8.8 million for the six months ended June 30, 2026 and 2025, respectively.

Restricted Stock Units

Restricted stock unit activity for awards subject to only service conditions was as follows for the three months ended March 31, 2026:

Restricted stock unit activity for awards subject to only service conditions was as follows for the six months ended June 30, 2026:

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 12—Stock-Based Compensation (continued)

Shares Weighted-Average Grant-Date Fair Value

4 unchanged sentences

Restricted stock units canceled ( 175 ) 8.50

Outstanding at March 31, 2026

Outstanding at June 30, 2026

Performance-Based Restricted Stock Units

Performance-based restricted stock unit activity for the three months ended March 31, 2026 was as follows:

Performance-based restricted stock unit activity for the six months ended June 30, 2026 was as follows:

Shares Weighted-Average Grant-Date Fair Value

3 unchanged sentences

Performance restricted stock units canceled ( 285 ) 16.96

Outstanding at March 31, 2026

Outstanding at June 30, 2026

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

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

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 13— Earnings per Common Share

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

Three Months Ended March 31,

Note 13— Earnings and Loss per Common Share

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

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

2026 2025 2026 2025

(In thousands, except per share data)

Basic earnings per Class A common share

Net income $ 53,753 $ 25,773

Basic earnings (loss) per Class A common share

Net (loss) income $ ( 2,087 ) $ ( 47,025 ) $ 51,666 $ ( 21,252 )

Weighted-average Class A shares issued and outstanding 56,765 55,127 56,257 54,746

Basic earnings per Class A common share $ 0.96 $ 0.47

Diluted earnings per Class A common share

Net income allocated to Class A common stockholders $ 53,753 $ 25,773

Basic (loss) earnings per Class A common share $ ( 0.04 ) $ ( 0.85 ) $ 0.92 $ ( 0.39 )

Diluted earnings (loss) per Class A common share

Net (loss) income allocated to Class A common stockholders $ ( 2,087 ) $ ( 47,025 ) $ 51,666 $ ( 21,252 )

Weighted-average Class A shares issued and outstanding 56,765 55,127 56,257 54,746

2 unchanged sentences

Performance-based restricted stock units — — 108 —

Employee stock purchase plan — 52

Diluted weighted-average Class A shares issued and outstanding 56,765 55,127 58,043 54,746

Diluted earnings per Class A common share $ 0.93 $ 0.47

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

Diluted (loss) earnings per Class A common share $ ( 0.04 ) $ ( 0.85 ) $ 0.89 $ ( 0.39 )

As a result of our net losses for the periods presented above, the dilutive impacts of certain potential common shares were excluded from our dilutive weighted-average shares since their inclusion would have been anti-dilutive.

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 13—Earnings and Loss per Common Share (continued)

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

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

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

Three Months Ended March 31,

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

2026 2025 2026 2025

(In thousands)

3 unchanged sentences

Total 461 978 461 1,128

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 14— Fair Value Measurements

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For more information regarding the fair value hierarchy and how we measure fair value, see Note 2–Summary of Significant Accounting Policies to the Consolidated Financial Statements of our Annual Report on Form 10-K for the year ended December 31, 2025.

As of March 31, 2026 and December 31, 2025, our assets carried at fair value on a recurring basis were as follows:

As of June 30, 2026 and December 31, 2025, our assets carried at fair value on a recurring basis were as follows:

Level 1 Level 2 Level 3 Total Fair Value

March 31, 2026 (In thousands)

June 30, 2026 (In thousands)

Investment securities:

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Total assets $ — $ 2,467,843 $ — $ 2,467,843

We based the fair value of our fixed income securities held as of March 31, 2026 and December 31, 2025 on quoted prices in active markets for similar assets.

We had no transfers between Level 1, Level 2 or Level 3 assets or liabilities during the three months ended March 31, 2026 or 2025.

We based the fair value of our fixed income securities held as of June 30, 2026 and December 31, 2025 on quoted prices in active markets for similar assets.

We had no transfers between Level 1, Level 2 or Level 3 assets or liabilities during the three and six months ended June 30, 2026 or 2025.

GREEN DOT CORPORATION

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

The carrying amount of our outstanding Notes at March 31, 2026 approximates fair value because the interest rate charged is commensurate with current market rates for issuers of similar risk.

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

The carrying amount of our outstanding Notes at June 30, 2026 approximates fair value because the interest rate charged is commensurate with current market rates for issuers of similar risk.

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

Fair Value of Financial Instruments

The carrying values and fair values of certain financial instruments that were not carried at fair value, excluding short-term financial instruments and debt, for which the carrying value approximates fair value at March 31, 2026 and December 31, 2025 are presented in the table below.

March 31, 2026 December 31, 2025

The carrying values and fair values of certain financial instruments that were not carried at fair value, excluding short-term financial instruments and debt, for which the carrying value approximates fair value at June 30, 2026 and December 31, 2025 are presented in the table below.

June 30, 2026 December 31, 2025

Carrying Value Fair Value Carrying Value Fair Value

9 unchanged sentences

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

Our leases have remaining lease terms of approximately 2 years to 7 years, some of which generally include renewal options of varying terms.

Our total lease expense amounted to approximately $ 0.2 million and $ 0.9 million for the three months ended March 31, 2026 and 2025, respectively.

Our leases have remaining lease terms of approximately 1 year to 7 years, some of which generally include renewal options of varying terms.

Our total lease expense amounted to approximately $ 0.2 million and $ 0.9 million for the three months ended June 30, 2026 and 2025, respectively, and $ 0.4 million and $ 1.8 million for the six months ended June 30, 2026 and 2025, respectively.

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

2 unchanged sentences

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

March 31, 2026

June 30, 2026

Cash paid for operating lease liabilities (in thousands) $ 219

1 unchanged sentence

Weighted average discount rate 5.4 %

Maturities of our operating lease liabilities as of March 31, 2026 are as follows:

Maturities of our operating lease liabilities as of June 30, 2026 are as follows:

Operating Leases

13 unchanged sentences

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

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

The suit asserts purported claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act") for allegedly misleading statements regarding our business strategy.

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

3 unchanged sentences

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

On September 18, 2025, the parties jointly filed a

GREEN DOT CORPORATION

1 unchanged sentence

Note 17—Commitments and Contingencies (continued)

September 18, 2025, the parties jointly filed a Notice of Settlement, and on October 17, 2025, plaintiffs filed a motion for preliminary approval of the settlement, which the Court has taken under submission.

Notice of Settlement, and on October 17, 2025, plaintiffs filed a motion for preliminary approval of the settlement, which the Court has taken under submission.

Pursuant to the terms of the settlement (which are subject to final documentation and court approval), we expect to pay $ 40.0 million to the plaintiffs in resolution of all claims against us and our two former officers.

If the settlement is approved by the Court, the settlement amount will be funded from available insurance coverage and this amount, less fees and expenses, will be distributed to purchasers of our securities between May 9, 2018 and November 7, 2019 who file valid proofs of claim under procedures to be implemented by the Court.

The expected settlement amount is reflected as of March 31, 2026 and December 31, 2025 within the current portion of other accrued liabilities on our consolidated financial statements, with a corresponding insurance recovery recorded within accounts receivable, net.

The expected settlement amount is reflected as of June 30, 2026 and December 31, 2025 within the current portion of other accrued liabilities on our consolidated financial statements, with a corresponding insurance recovery recorded within accounts receivable, net.

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

8 unchanged sentences

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

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

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

24 unchanged sentences

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

In addition, approximately 60 % and 56 % of our total operating revenues for the three months ended March 31, 2026 and 2025, respectively, were generated from a single BaaS partner, but without a corresponding concentration to our gross profit for the respective periods.

In addition, approximately 70 % and 63 % of our total operating revenues for the three months ended June 30, 2026 and 2025, respectively, and 64 % and 59 % for the six months ended June 30, 2026 and 2025, respectively, were generated from a single BaaS partner, but without a corresponding concentration to our gross profit for the respective periods.

Note 19— Restructuring and Other Charges

3 unchanged sentences

Any residual restructuring charges are related to support costs for the formal dissolution of the legal entity.

During the three months ended March 31, 2026 restructuring and other charges amounted to less than $ 0.1 million.

Note 20— Segment Information

19 unchanged sentences

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

Three Months Ended March 31, 2026

Three Months Ended June 30, 2026

B2B Services Consumer Services Money Movement Services Corporate and Other Total

16 unchanged sentences

Segment profit $ 32,439 $ 25,829 $ 30,155 $ ( 48,247 ) $ 40,176

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

B2B Services Consumer Services Money Movement Services Corporate and Other Total

19 unchanged sentences

Note 20—Segment Information (continued)

Six Months Ended June 30, 2026

B2B Services Consumer Services Money Movement Services Corporate and Other Total

(In thousands)

Total segment revenues $ 865,977 $ 171,233 $ 177,594 $ 28,513 $ 1,243,317

Segment expenses (1)

Sales and marketing expenses (2)

5,070 62,583 39,550 — 107,203

Processing expenses (3)

724,816 17,318 1,117 — 743,251

Transaction losses and fraud management (4)

41,692 28,218 12,207 — 82,117

Customer support and related expenses (5)

29,638 8,621 1,953 — 40,212

Compensation and benefits expenses (6)

— — — 67,221 67,221

Other segment items (7)

3,627 3,191 4,168 49,711 60,697

Total segment expenses 804,843 119,931 58,995 116,932 1,100,701

Segment profit $ 61,134 $ 51,302 $ 118,599 $ ( 88,419 ) $ 142,616

Six Months Ended June 30, 2025

B2B Services Consumer Services Money Movement Services Corporate and Other Total

(In thousands)

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

Segment expenses (1)

Sales and marketing expenses (2)

6,872 64,874 36,258 — 108,004

Processing expenses (3)

538,950 18,300 1,255 — 558,505

Transaction losses and fraud management (4)

51,949 30,174 6,405 — 88,528

Customer support and related expenses (5)

37,738 8,281 1,967 — 47,986

Compensation and benefits expenses (6)

— — — 66,405 66,405

Other segment items (7)

— — 4,272 47,444 51,716

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

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

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

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

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

(2) 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 partners, and personalized debit cards who have activated their cards.

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

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

2 unchanged sentences

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

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

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

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

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

GREEN DOT CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (CONTINUED)

Note 20—Segment Information (continued)

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

Three Months Ended March 31,

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

2026 2025 2026 2025

(In thousands)

4 unchanged sentences

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

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

Three Months Ended March 31,

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

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

2026 2025 2026 2025

(In thousands)

Total segment profit $ 40,176 $ 45,425 $ 142,616 $ 135,984

Reconciliation to income before income taxes

Reconciliation to (loss) income before income taxes

Depreciation and amortization of property, equipment and internal-use software 18,665 16,078 36,798 31,262

6 unchanged sentences

Other expense 1,720 1,953 4,011 6,496

Operating income 69,038 60,745

Operating (loss) income ( 761 ) 13,399 68,277 74,144

Interest expense, net 1,581 1,631 3,157 3,017

Other income (expense), net 177 ( 25,704 )

Income before income taxes $ 67,639 $ 33,655

Other (expense) income, net ( 13 ) ( 74,691 ) 164 ( 100,395 )

(Loss) income before income taxes $ ( 2,355 ) $ ( 62,923 ) $ 65,284 $ ( 29,268 )

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

What changed 10-Q

Item 1. Financial Statements