10-Q · May 11, 2026
Green Dot Corporation reported exceptionally strong Q1 2026 results, with revenues of $652 million and EPS of $1.12, far exceeding analyst expectations. Performance was primarily bolstered by a 22% revenue growth in the…
Earnings analysis · 10-Q
GDOT earnings analysis
Filed August 10, 2026 · Our reading of the company's report
The latest report
Green Dot delivered strong 18.2% year-over-year Q2 revenue growth to $595.883 million, led by B2B Services, and six-month operating cash flow improved to $194.685 million. However, higher processing and…
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Green Dot delivered strong 18.2% year-over-year Q2 revenue growth to $595.883 million, led by B2B Services, and six-month operating cash flow improved to $194.685 million. However, higher processing and transaction-related costs drove a $761 thousand operating loss and diluted EPS of negative $0.04, while Consumer Services revenue and profit declined 9.0% and 22.0%, respectively. Liquidity remains substantial with $1.143 billion of unrestricted cash and $3.033 billion of investment securities, but transaction execution, BaaS concentration, margin compression, consumer account attrition and regulatory compliance remain significant risks. Numeric 2026 guidance remains withdrawn.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.04
- Operating margin
- -0.13%
What stood out
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Revenue grew 18% year over year
Q2 operating revenue was $595.883 million, up $91.707 million, or 18.2%, from $504.176 million in Q2 2025. Revenue declined from $656 million in Q1 2026 based on the quarterly history provided.
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B2B remained the growth engine
B2B Services revenue rose 28.6% to $448.435 million, driven by 22.0% growth in gross dollar volume to $42.253 billion and a 9.4% increase in active accounts to 1.98 million.
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Year-to-date segment profit improved
Six-month segment profit increased to $142.616 million from $135.984 million, a 4.9% increase, led by Money Movement Services profit growth of 6.9% to $118.599 million and B2B profit growth of 10.9% to $61.134 million.
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Operating cash generation strengthened
Operating cash flow increased to $194.685 million for the six months ended June 30, 2026 from $177.701 million in the prior-year period. Capital expenditures were $38.878 million, or approximately 3.1% of six-month revenue of $1.252 billion.
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Deposits and bank capital increased
Deposits increased $224.035 million to $4.640 billion from December 31, 2025, while Green Dot Bank remained well-capitalized with an 8.6% Tier 1 leverage ratio and a 32.4% total risk-based capital ratio at June 30, 2026.
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Earnings benefited from nonrecurring items
The prior-year quarter included a $70 million TailFin incentive payment and a $74.691 million other expense, while Q2 2026 other expense was only $13 thousand. This helped net loss improve to $2.087 million from $47.025 million, although operating income was a $761 thousand loss versus $13.399 million of income.
What to watch
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Operating profitability deteriorated
Q2 operating expenses increased 21.6% to $596.644 million, exceeding the 18.2% revenue increase, and operating income moved to a $761 thousand loss from $13.399 million of income. The implied operating margin was approximately negative 0.1%, down from approximately 2.7% in Q2 2025 and 10.5% in Q1 2026 based on the provided history.
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Consumer account trends remain weak
Consumer Services revenue fell 9.0% to $84.752 million and segment profit fell 22.0% to $25.829 million. Active accounts declined 12.0% to 1.47 million, direct-deposit active accounts declined 7.3% to 0.38 million, and purchase volume declined 10.4% to $2.679 billion.
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BaaS growth is compressing margins
Processing expenses rose 34.6% to $394.692 million in Q2, primarily due to higher BaaS-related volume, while B2B segment profit increased only 15.9% to $32.439 million on 28.6% revenue growth. Management also noted that certain BaaS arrangements are structured around fixed profit, creating margin compression.
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Transaction execution remains material
The proposed CommerceOne merger and $690 million Payments Sale remain subject to required regulatory approvals and other closing conditions. If the Merger Agreement is terminated under certain circumstances, Green Dot may owe CommerceOne a $27 million termination fee; transaction and related acquisition costs were $4.864 million in Q2 and $6.278 million year to date.
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Partner and settlement concentration
Approximately 70% of Q2 operating revenue and 64% of six-month operating revenue came from a single BaaS partner. Settlement assets subject to counterparty risk totaled $970.363 million at June 30, 2026, creating exposure if retail distributors or banking partners delay or fail to remit funds.
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Tax volume and compliance costs weigh
Money Movement Services revenue declined 7.8% to $46.889 million in Q2 as tax refunds processed fell 22.5% to 2.89 million and cash transfers declined 1.9% to 7.38 million. The filing also cites ongoing AML investment and regulatory scrutiny, including a prior $44 million Federal Reserve civil money penalty under the 2024 Consent Order.
Management's outlook
No numeric revenue or EPS guidance was provided. The company previously withdrew 2026 financial guidance in its August 10, 2026 earnings release because of the proposed CommerceOne and Smith Ventures transactions. The 10-Q states that, excluding transaction impacts and other non-operating items, management expects core results to stabilize year over year on a full-year basis in 2026.
Earlier filings 4
10-K · April 30, 2026
Green Dot Corporation's 10-K report for 2025 indicates a challenging year, with revenues declining slightly and structural changes underway, including a significant upcoming merger. The company's financial strategy…
10-K · March 16, 2026
Green Dot’s 2025 10-K describes a fintech + bank-holding strategy focused on B2B (BaaS and employer/payroll), Consumer (GO2bank, retail distribution) and Money Movement (cash & tax processing). Revenue increased…
10-Q · November 10, 2025
Green Dot reported Q3 2025 operating revenues of $494.826M, up from $409.743M in Q3 2024, driven by strong B2B Services growth. Despite revenue expansion, the company recorded an operating loss of $32.831M and a net…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.