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Green Dot (GDOT) Up 15.2% Since Last Earnings Report: Can It Continue?

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It has been about a month since the last earnings report for Green Dot (GDOT - Free Report) . Shares have added about 15.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Green Dot due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Green Dot Corporation before we dive into how investors and analysts have reacted as of late.

Green Dot Beats on Q3 Earnings

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

Quarterly EPS 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’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. Adjusted EPS guidance is the band of $1.31-$1.44, up from its previous guidance range of $1.28-$1.42. Adjusted EBITDA is anticipated to be in the band of $165-$175 million, up from its previous guidance range of $160-$170 million.

How Have Estimates Been Moving Since Then?

It turns out, estimates review have trended downward during the past month.

The consensus estimate has shifted -162.5% due to these changes.

VGM Scores

At this time, Green Dot has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock has a score of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Green Dot has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Green Dot belongs to the Zacks Financial Transaction Services industry. Another stock from the same industry, Corpay (CPAY - Free Report) , has gained 3.3% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.

Corpay reported revenues of $1.17 billion in the last reported quarter, representing a year-over-year change of +13.9%. EPS of $5.70 for the same period compares with $5.00 a year ago.

For the current quarter, Corpay is expected to post earnings of $5.93 per share, indicating a change of +10.6% from the year-ago quarter. The Zacks Consensus Estimate has changed +0% over the last 30 days.

Corpay has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.


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