Green Dot Stock Declines 4% Since Reporting Q3 Earnings Beat

Green Dot GDOT reported impressive third-quarter 2025 results as both earnings and revenues beat the Zacks Consensus Estimate.

The better-than-expected results failed to impress the market, as the stock has declined 4% since the earnings release on Nov. 10.

Quarterly earnings per share (EPS) (excluding 62 cents from non-recurring items) of 6 cents outpaced the consensus estimated loss of 11 cents and improved 53.9% from the year-ago quarter. Revenues of $491.9 million beat the Zacks Consensus Estimate by 1% and increased 20% on a year-over-year basis.

Green Dot Corporation Price, Consensus and EPS Surprise

Green Dot Corporation price-consensus-eps-surprise-chart | Green Dot Corporation Quote

Green Dot’s Segmental Revenues

B2B Services revenues increased 32% in the third quarter of 2025 to $364.2 million. This segment’s revenue growth was fueled by a BaaS partner and stability across the BaaS portfolio. 

Money Movement Services’ revenues declined 6% from the year-ago quarter to $29.8 million. Growth was impacted by a slight dip in Money Processing, while Tax Processing saw revenue growth.

The Consumer Services segment’s revenues amounted to $88.3 million, down 10% on a year-over-year basis. The decline continues to stem largely from secular headwinds in the Retail channel, partially offset by the impact of the recent launch of PLS.

GDOT’s Key Metrics

GDOT’s gross dollar volume increased 18% from the year-ago quarter to $39.5 million. Purchase volume fell 5.1% year over year to $4.74 billion. The company ended the quarter with $3.51 million in active accounts, up 0.9% on a year-over-year basis.

Green Dot’s Operating Results

Adjusted EBITDA totaled $23.57 million, decreasing 17% on a year-over-year basis. The adjusted EBITDA margin plummeted 220 basis points to 4.8%.

Balance Sheet & Cash Flow of GDOT

Green Dot exited the third quarter with an unrestricted cash and cash equivalent balance of $1.64 billion compared with $1.59 billion at the end of the fourth quarter of 2024. GDOT had no long-term debt. It generated $201.03 million of cash from operating activities.

Guidance Offered by GDOT

Green Dot has provided its 2025 guidance for total operating revenues to range between $2 and $2.1 billion. The midpoint of the guided range ($2.05 billion) is in line with the Zacks Consensus Estimate.

Adjusted EPS guidance is the band of $1.31-$1.44, up from its previous guidance range of $1.28-$1.42. The mid-point of the guided range ($1.375) is above the Zacks Consensus Estimate of $1.35. Adjusted EBITDA is anticipated to be in the band of $165-$175 million, up from its previous guidance range of $160-$170 million.

Green Dot currently has a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Omnicom Group Inc. OMC reported impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

Earnings of $2.15 per share beat the consensus estimate by 4.2% and increased 10.3% year over year. Total revenues of $4.04 billion surpassed the consensus estimate by 0.4% and rose 4% year over year. The increase in the top line was led by a 2.6% jump in revenues from organic growth.

ManpowerGroup, Inc. MAN posted impressive third-quarter 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

Quarterly adjusted EPS came in at 83 cents, which beat the Zacks Consensus Estimate by 1.2% but decreased 35.7% year over year. Total revenues of $4.63 billion surpassed the consensus estimate by 0.6% and rose 2.3% year over year.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research