Green Dot Q2 2025 slides: Revenue surges 24% as B2B segment drives growth

Green Dot Corporation (NYSE:GDOT) presented its second quarter 2025 financial results on August 11, 2025, showcasing strong performance with significant revenue and earnings growth. The fintech company, known for its banking and payment solutions, reported substantial year-over-year improvements across key metrics, primarily driven by its B2B Services segment and strategic partnerships.

Quarterly Performance Highlights

Green Dot reported Non-GAAP revenue of $501 million for Q2 2025, representing a 24% increase compared to the same period last year. Adjusted EBITDA rose 34% year-over-year to $45 million, while Non-GAAP earnings per share jumped 60% to $0.40. The company also reported a 2% year-over-year growth in active accounts, reaching 3.48 million.

As shown in the following consolidated results chart, Green Dot has maintained consistent quarterly revenue growth from Q2 2024 through Q2 2025, with a particularly strong performance in Q1 2025:

The company’s key operational metrics also showed positive momentum, with Gross Dollar Volume (GDV) increasing to $38.5 billion in Q2 2025 from $32.1 billion in Q2 2024. Active accounts grew modestly year-over-year, reflecting the company’s ability to expand its customer base despite competitive pressures in certain segments.

The following chart illustrates Green Dot’s consolidated key metrics, highlighting the growth in GDV and active accounts:

Segment Analysis

Green Dot’s performance varied across its three main business segments, with B2B Services emerging as the primary growth driver.

The B2B Services segment, which includes Banking-as-a-Service (BaaS) solutions and the rapid! PayCard division, posted impressive results with revenue of $349 million, up 38% from $253 million in Q2 2024. This segment’s growth was fueled by strategic partnerships and new client acquisitions.

Meanwhile, the Consumer Services segment showed signs of stabilization with revenue of $93 million, down slightly from $97 million in Q2 2024. The company noted that declines in this segment are moderating, suggesting potential stabilization in the coming quarters.

The Money Movement Services segment experienced a modest decline, with revenue decreasing to $31 million from $32 million in Q2 2024. This segment, which includes cash transfers and tax processing services, faced challenges due to reduced transaction volumes from Green Dot-issued active accounts.

Strategic Initiatives and Partnerships

A key highlight from Green Dot’s presentation was the announcement of strategic partnerships that reinforce the company’s position in the embedded finance market. The company reported that its Samsung (KS:005930) partnership has gone live, potentially opening up significant new revenue streams.

Additionally, Green Dot announced Credit Sesame as a new BaaS partner, further expanding its presence in the financial technology ecosystem. These partnerships align with the company’s strategy to leverage its banking infrastructure and payment processing capabilities to drive growth through embedded finance solutions.

As highlighted in the company’s key themes for the quarter, these strategic initiatives are central to Green Dot’s growth strategy:

The BaaS division within the B2B Services segment showed particularly strong performance, with revenue increasing to $330 million in Q2 2025 from $231 million in Q2 2024. This division’s active accounts grew to 1.24 million, up from 0.97 million a year earlier, demonstrating the success of Green Dot’s partnership-driven approach.

Forward-Looking Statements and Guidance

Green Dot reaffirmed its full-year 2025 guidance, projecting Non-GAAP revenue of $2.0-$2.1 billion, Adjusted EBITDA of $160-$170 million, and Non-GAAP EPS of $1.28-$1.42. This guidance suggests continued confidence in the company’s growth trajectory, particularly in the B2B Services segment.

The following chart outlines Green Dot’s 2025 guidance and outlook:

The company expects the B2B Services segment to continue driving growth, with further expansion anticipated from strategic partnerships. For the Consumer Services segment, Green Dot projects moderating declines as it focuses on enhancing product offerings and customer experience.

Green Dot’s stock closed at $9.64 on August 11, 2025, up 3.01% for the day, with the stock trading in the aftermarket at $9.80, up an additional 1.66%. This positive market reaction suggests investor confidence in the company’s performance and outlook.

The company’s current stock price remains well below its 52-week high of $13.58, potentially indicating room for growth if Green Dot continues to execute on its strategic initiatives and maintains its positive financial trajectory.

Full presentation:

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