Green Dot (GDOT) AI Stock Analysis

• Market Cap: $676.58M
• Dividend Yield: N/A
• Average Volume (3M): 602.35K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: 23.12%
• EPS Growth: 19.37%
• Country: US
• Employees: 1,150
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Credit Services
• EPS (TTM): 0.06
• Shares Outstanding: 55,548,620
• 10 Day Avg. Volume: 603,758
• 30 Day Avg. Volume: 602,352
• PEG Ratio: 0.04
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 80.26
• Enterprise Value/Market Cap: -1.32
• Enterprise Value/Revenue: -0.44
• Enterprise Value/Gross Profit: -1.51
• Enterprise Value/Ebitda: -5.82
• 1Y Price Target: $14.25
• Price Target Upside: 17.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: $13.50 ▲(10.84% Upside)

The score is driven primarily by moderate financial fundamentals: improved cash generation and low leverage are offset by ongoing profitability and ROE weakness. Sentiment is supported by earnings-call momentum (B2B growth and raised EBITDA guidance) and positive corporate events (strategic transactions and leadership stabilization), while valuation remains a key drag due to negative earnings and no dividend support. Technicals are neutral overall.

Positive Factors

B2B / BaaS Revenue Momentum

Sustained B2B and Banking-as-a-Service growth expands recurring, contractually-backed revenue and reduces reliance on volatile consumer fees. Large partnerships (Stripe, Workday, crypto.com) deepen distribution and scale Green Dot's platform, improving long-term revenue predictability and cross-sell potential.

Improved Free Cash Flow Generation

A meaningful rise in free cash flow enhances financial flexibility to fund product investment, BaaS expansion, and strategic transactions without heavy new leverage. Durable cash generation supports operational resilience through business cycles and enables execution of long-term strategic priorities.

Conservative Capital Structure

Very low leverage provides capacity to absorb shocks, pursue M&A or strategic carve-outs, and meet regulatory capital needs for the bank franchise. A strong capital base underpins long-term stability and optionality versus peers with higher balance-sheet risk.

Negative Factors

Negative Profitability Metrics

Persistent negative margins and ROE indicate the company is not efficiently converting revenue into shareholder returns. Over time this constrains reinvestment, limits the ability to fund growth organically, and raises pressure to improve unit economics or restructure business lines.

Adjusted EBITDA Contraction

A double-digit EBITDA decline despite revenue growth signals margin compression or rising operating costs tied to scaling B2B initiatives. Sustained EBITDA weakness reduces internal funding for strategic projects and may force disruptive cost actions or asset sales to restore profitability.

Weakness in Consumer / Retail Channels

Declines in consumer accounts and retail/direct revenues erode a historically stable fee base and increase reliance on B2B. If consumer recovery is slow, revenue concentration in BaaS raises execution risk and limits diversification, making long-term growth more sensitive to partner dynamics.

Green Dot Business Overview & Revenue Model

Company Description

Green Dot Corporation, a financial technology and bank holding company, provides various financial products to consumers and businesses in the United States. It operates through three segments: Consumer Services, Business to Business Services, and Money Movement Services. The company offers deposit account programs, including consumer and small business checking account products, network-branded reloadable prepaid debit cards and gift cards, and secured credit programs. It also provides money processing services, such as cash transfer services that enable consumers to deposit or pick up cash and pay bills with cash at the point-of-sale at any participating retailer; and simply paid disbursement services, which enable wages and authorized funds disbursement to its deposit account programs and accounts issued by any third-party bank or program manager. In addition, the company offers tax processing services comprising tax refund transfers, which provide the processing technology to facilitate receipt of a taxpayers' refund proceeds; small business lending to independent tax preparation providers that seek small advances; and fast cash advance, a loan that enables tax refund recipients. Green Dot Corporation was incorporated in 1999 and is headquartered in Austin, Texas.

How the Company Makes Money

Green Dot generates revenue through multiple streams, primarily from fees associated with its prepaid debit card services. These fees include activation fees, monthly service fees, transaction fees, and ATM withdrawal fees. Additionally, the company earns money from interest on cash balances held on its cards, as well as from interchange fees charged to merchants when customers use their Green Dot cards for purchases. Significant partnerships with major retailers and financial institutions also contribute to its earnings, as they allow Green Dot to expand its distribution channels and enhance its service offerings. Furthermore, Green Dot has diversified its revenue by providing banking as a service (BaaS) solutions to other companies, enabling them to offer their own financial products backed by Green Dot's infrastructure.

Green Dot Financial Statement Overview

Summary

Moderate revenue growth and strong TTM free cash flow growth are positives, supported by low leverage (debt-to-equity 0.08). However, profitability and efficiency remain weak with a negative net margin (-1.24%) and negative ROE (-5.14%), limiting the financial performance score.

Income Statement

Green Dot's income statement shows a mixed performance. The TTM (Trailing-Twelve-Months) revenue growth rate of 4.41% indicates moderate growth, but the company is struggling with profitability, as evidenced by a negative net profit margin of -1.24%. The gross profit margin has declined over the years, and the EBIT and EBITDA margins are relatively low, suggesting operational challenges.

Balance Sheet

The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.08, indicating conservative leverage. However, the return on equity is negative at -5.14%, highlighting inefficiencies in generating returns for shareholders. The equity ratio remains healthy, suggesting a strong capital structure.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth rate of 42.35% in the TTM, indicating improved cash generation. However, the operating cash flow to net income ratio is low, suggesting potential issues in converting earnings into cash. The free cash flow to net income ratio of 0.69 indicates a reasonable level of cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.01B	1.72B	1.50B	1.45B	1.43B	1.25B
Gross Profit	590.28M	580.08M	620.54M	723.91M	779.08M	726.13M
EBITDA	153.62M	77.53M	102.61M	174.73M	151.12M	115.44M
Net Income	-46.94M	-26.70M	6.72M	64.21M	47.48M	23.13M
Balance Sheet
Total Assets	5.77B	5.43B	4.82B	4.79B	4.73B	4.12B
Cash, Cash Equivalents and Short-Term Investments	1.64B	1.62B	716.12M	813.95M	1.32B	1.49B
Total Debt	66.55M	59.58M	67.06M	43.41M	15.13M	24.81M
Total Liabilities	4.85B	4.56B	3.96B	4.01B	3.65B	3.11B
Stockholders Equity	913.29M	873.59M	859.35M	781.48M	1.07B	1.01B
Cash Flow
Free Cash Flow	97.20M	7.10M	21.58M	193.36M	109.60M	150.14M
Operating Cash Flow	178.01M	81.38M	97.52M	277.69M	167.03M	209.18M
Investing Cash Flow	-291.87M	81.40M	33.16M	-820.19M	-1.37B	-785.83M
Financing Cash Flow	297.63M	743.15M	-264.02M	36.71M	1.03B	1.01B

Green Dot Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.18
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDOT, the sentiment is Negative. The current price of 12.18 is below the 20-day moving average (MA) of 12.39, below the 50-day MA of 12.54, and above the 200-day MA of 11.58, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 42.70 is Neutral, neither overbought nor oversold. The STOCH value of 58.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GDOT.

Green Dot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMF	79 Outperform	$7.72B	11.12	21.41%	6.07%	9.51%	29.38%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WU	67 Neutral	$2.98B	4.07	97.70%	10.18%	-2.51%	17.47%
SOFI	67 Neutral	$28.75B	59.87	5.66%	―	22.40%	215.81%
ALLY	60 Neutral	$13.02B	17.84	5.80%	2.58%	-6.89%	-33.20%
GDOT	56 Neutral	$676.58M	-14.33	-5.09%	―	23.12%	19.37%
UPST	55 Neutral	$3.82B	172.30	4.81%	―	73.29%	―

Green Dot Corporate Events

Green Dot finalizes executive leadership with permanent appointments

On January 7, 2026, Green Dot Corporation reported that the interim leadership roles held since March 2025 by William I. Jacobs and Chris Ruppel were made permanent, marking a formal transition in its executive team. Effective January 6, 2026, the board appointed Jacobs as Chief Executive Officer of Green Dot Corporation and Ruppel as President of the company and as Chief Executive Officer and President of Green Dot Bank, signaling a move toward leadership stability that may shape the company’s strategic direction and operations across its banking and financial services businesses.

The most recent analyst rating on (GDOT) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Green Dot stock, see the GDOT Stock Forecast page.

Green Dot Announces Merger with CommerceOne Financial

On November 23, 2025, Green Dot Corporation entered into a Merger Agreement with CommerceOne Financial Corporation and its subsidiaries, involving a series of mergers and conversions. This strategic move will result in Green Dot converting into a limited liability company and distributing its bank stock to a newly formed subsidiary of CommerceOne, while its non-bank financial technology assets will be acquired by an affiliate of Smith Ventures. The merger and separation agreements have been approved by Green Dot’s board and are subject to customary conditions and regulatory approvals. The transaction is expected to enhance Green Dot’s market positioning by focusing on its core financial technology operations.

The most recent analyst rating on (GDOT) stock is a Hold with a $14.25 price target. To see the full list of analyst forecasts on Green Dot stock, see the GDOT Stock Forecast page.

Green Dot Announces Acquisition by Smith Ventures

On November 24, 2025, Green Dot Corporation announced strategic transactions involving its acquisition by Smith Ventures and CommerceOne Financial Corporation. Smith Ventures will privatize Green Dot’s non-bank financial technology assets, while CommerceOne will acquire Green Dot Bank to form a new publicly traded bank holding company. These transactions aim to unlock growth opportunities, with Green Dot shareholders receiving cash and shares in the new entity. The strategic moves are expected to enhance value for stakeholders, with the transactions anticipated to close in the second quarter of 2026.

The most recent analyst rating on (GDOT) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Green Dot stock, see the GDOT Stock Forecast page.