GDOT's Earnings and Revenues Surpass Estimates in Q1

Green Dot Corporation GDOT reported impressive first-quarter 2025 results. Earnings and revenues beat the Zacks Consensus Estimate.

Quarterly earnings per share (excluding 59 cents from non-recurring items) of $1.06 outpaced the consensus estimate by 51.4% and improved 79.7% from the year-ago quarter. Revenues of $556 million beat the Zacks Consensus Estimate by 10.2% and increased 23% 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 41.8% in the first quarter of 2025 to $342 million. This segment’s revenue growth was fueled by a BaaS partner and stability across the BaaS portfolio. 

Money Movement Services’ revenues improved 7% from the year-ago quarter to $110.3 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 $95.3 million, down 5.6% on a year-over-year basis. Declines continue to remain largely driven by 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 5.6% from the year-ago quarter to $37.3 billion. Purchase volume fell 0.7% year over year to $5.1 billion. The company ended the quarter with $3.6 million in active accounts, down 2.5% on a year-over-year basis.

Green Dot’s Operating Results

Adjusted EBITDA totaled $90.6 million, increasing 24% on a year-over-year basis. The adjusted EBITDA margin plummeted 310 basis points to 16.3%.

Balance Sheet & Cash Flow of GDOT

Green Dot exited the first quarter with an unrestricted cash and cash equivalent balance of $1.8 billion compared with $1.6 billion in the fourth quarter of 2024. GDOT had no long-term debt. It generated $108.7 million of cash from operating activities. The company’s capital expenditure was $109.3 million.

Guidance

GDOT has provided its 2025 guidance for total operating revenues to range between $2 and $2.1 billion. The Zacks Consensus Estimate for the same is pegged at $1.89 billion.

Adjusted earnings per share guidance is the band of $1.14-$1.28, up from its previous guidance range of $1.05-$1.20. The Zacks Consensus Estimate for earnings is pegged at $1.11 per share. Adjusted EBITDA is anticipated to be in the band of $150-$160 million, up from its previous guidance range of $145 million-$155 million.

Green Dot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Fiserv, Inc. FI reported mixed first-quarter 2025 results. The company’s earnings beat the Zacks Consensus Estimate, while revenues missed the mark.

FI’s adjusted earnings per share of $2.14 beat the consensus mark by 2.9% and gained 13.8% year over year. Adjusted revenues of $4.8 billion lagged the consensus estimate by 1.6% but rose 5.5% on a year-over-year basis. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

The Interpublic Group of Companies, Inc. IPG reported mixed first-quarter 2025 results. The company’s earnings topped the Zacks Consensus Estimate, while revenues missed the mark.

IPG’s adjusted earnings of 33 cents per share surpassed the Zacks Consensus Estimate by 10% but decreased 8.3% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2 billion missed the consensus estimate by a slight margin and declined 20% year over year. Total revenues of $2.3 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2 billion.

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

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