Green Dot — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total operating revenues for the three months ended September 30, 2026, were $601.1 million, a 21% increase year-over-year from $494.8 million; for the nine months ended September 30, 2026, revenues were $1,853.2 million, a 19% increase from $1,557.9 million.
• Non-GAAP total operating revenues for the quarter were $596.4 million (up 21% YoY) and $1,839.7 million for the nine months (up 19% YoY).
• GAAP net loss for the quarter was $7.4 million compared to a $30.8 million loss in the prior year; GAAP net income for the nine months was $44.3 million compared to a $52.0 million loss in the prior year.
• Non-GAAP net income for the quarter was $3.1 million (down 12% YoY) and $83.0 million for the nine months (down 1% YoY).
• Adjusted EBITDA for the quarter was $25.8 million, up 9% year-over-year; for the nine months, Adjusted EBITDA was $168.4 million, up 6% year-over-year.
• Adjusted EBITDA margin for the quarter was 4.3% (down 0.5 percentage points from 4.8% in the prior year); for the nine months, the margin was 9.2% (down 1.1 percentage points from 10.3%).
• Diluted GAAP loss per share was $0.13 for the quarter compared to $0.56 in the prior year; diluted GAAP earnings per share for the nine months were $0.76 compared to a $0.95 loss.
• Diluted Non-GAAP earnings per share were $0.05 for the quarter (down from $0.06) and $1.43 for the nine months (down from $1.49).
• Cash at the holding company was approximately $38 million as of September 30, 2026.
• Total assets were $6.26 billion as of September 30, 2026, compared to $5.99 billion as of December 31, 2025.
• Deposits increased to $4.73 billion as of September 30, 2026, from $4.42 billion as of December 31, 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2026, was $158.2 million, compared to $201.0 million in the prior year period.

Guidance and Future Outlook:

• Green Dot will not provide 2026 financial guidance in conjunction with this earnings release due to the proposed acquisition.
• The company expects the proposed transactions with Smith Ventures and CommerceOne to be completed by the first quarter of 2027, subject to regulatory approvals.
• Green Dot anticipates continued revenue and deposit growth supported by a pipeline of launches and opportunities in the BaaS channel.
• The company expects to improve momentum in the Money Movement segment through cash transfer and digital disbursement launches and a solid schedule of upcoming launches.
• Green Dot believes the Consumer Services segment is positioned to return to growth following the completion of the first phase of user experience modernization and the introduction of a more consistent marketing cadence.
• The company expects to see additional opportunities to strengthen its earnings profile and balance sheet as it enhances its investment mix and grows deposits from embedded finance offerings.

Business Segments and Product Lines:

• B2B Services: Segment revenue grew significantly, driven by a significant BaaS partner and broader BaaS portfolio growth. Active accounts increased, and the segment profit grew year-over-year. Margins declined modestly due to revenue mix changes, particularly the growth of a significant partner. The rapid! employer services division is being repositioned to focus on Earned Wage Access (EWA), with active accounts in the pay card business posting two consecutive quarters of growth and purchase volume recording its first positive year-over-year growth in over three years.
• Consumer Services: Segment revenue and profit declined year-over-year due to lower revenue and revenue mix. The retail channel faces headwinds from consumers shifting to digital banking apps, though the launch of PLS Financial Services helped moderate declines. The direct channel revenue declined due to a reduction in active accounts resulting from reduced marketing spend. Key metrics such as volume and revenue per active account continued to grow due to improved consumer engagement and utilization of features like overdraft.
• Money Movement Services: Revenue declined slightly due to modest declines in both tax and money processing. Year-to-date tax revenue was up almost 17% driven by market share gains and a new franchise partner. Money processing revenue declined as a solid increase in third-party transactions did not fully offset revenue headwinds from the Consumer segment's active base. Margins were affected by revenue declines and a higher percentage of earnings coming from the lower-margin money processing business.
• Corporate and Other: Revenue experienced solid year-over-year growth driven by rate cuts improving the spread on cash and investments. Corporate expenses decreased modestly as ongoing investments in compliance and risk management were offset by strict cost controls.

Market and Competitive Landscape:

• The embedded finance space is experiencing increasing demand and opportunity, which Green Dot is capitalizing on.
• Green Dot maintains a strong pipeline of prospective partners, presenting substantial growth opportunities via fee-based transaction revenues and deposits invested in high-quality, interest-bearing assets.
• Prospective partners are prioritizing compliance and regulatory support when selecting a platform partner, reinforcing Green Dot's investment in regulatory infrastructure.
• The tax processing business gained market share and launched a significant new franchise partner.
• The money processing business saw growth in third-party transactions accelerate modestly after a year of declines, reflecting the health of the remaining partner base.

Risks and Challenges:

• The completion of the proposed transactions with Smith Ventures and CommerceOne is subject to regulatory approvals from the Federal Reserve System, the Alabama State Banking Department, and the Utah Department of Financial Institutions.
• Risks include the potential for the cost savings and synergies from the transaction not being fully realized or taking longer than anticipated.
• There is a risk of disruption to business operations as a result of the announcement and pendency of the proposed transaction.
• Integration of the businesses or separation of the non-bank fintech business from the bank could be materially delayed, costly, or difficult.
• Failure to satisfy closing conditions or obtain governmental approvals on the expected timeline could adversely affect the combined company.
• Reputational risk and reactions from customers, suppliers, employees, or partners to the proposed transactions.
• Challenges in retaining or hiring key personnel following the transactions.
• General competitive, economic, political, and regulatory conditions, including changes in interest rates, inflation, and asset quality.

Management Commentary and Tone:

• William I. Jacobs, Chairman and CEO, stated the company delivered another strong quarter of growth and efficiency, bolstered by operational improvements and balance sheet optimization.
• Jess Unruh, CFO, noted that third-quarter results came in modestly ahead of expectations, driven by moderate outperformance in operating divisions and effective cost control.
• Management highlighted that adjusted EBITDA was up 9% in the quarter and 6% year-to-date.
• The tone emphasized a focus on driving efficiency, with non-volume related expenses down modestly compared to the prior year.
• Management expressed optimism about the Earned Wage Access (EWA) market given its size, strong demand, and attractive margins.
• The company remains committed to investing in its regulatory infrastructure and believes these efforts are materializing in pipelines as partners prioritize compliance.

Other Key Points:

• On November 24, 2025, Green Dot announced agreements to be acquired by affiliates of Smith Ventures and CommerceOne.
• Upon closing, Smith Ventures will acquire and privatize Green Dot's non-bank financial technology business assets and operations.
• CommerceOne will acquire Green Dot Bank and its associated assets, serving as the FinTech business's exclusive sponsor bank.
• The 2026 Annual Meeting of Stockholders is scheduled for December 21, 2026, to comply with NYSE listing standards and Delaware law in the event the transactions are not completed before December 31, 2026.
• Green Dot will not host an earnings conference call for this quarter.
• The company purchased federal energy tax credits of $28.4 million during the nine months ended September 30, 2026.
• Green Dot Bank is a subsidiary of Green Dot Corporation and a member of the FDIC.