Green Dot (GDOT) AI Stock Analysis

• Market Cap: $698.25M
• Dividend Yield: N/A
• Average Volume (3M): 831.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.71
• 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: 1,355,646
• 30 Day Avg. Volume: 831,889
• 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: -1.18
• Enterprise Value/Revenue: -0.41
• Enterprise Value/Gross Profit: -1.40
• Enterprise Value/Ebitda: -5.38
• 1Y Price Target: $16.13
• Price Target Upside: 28.32% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.33
• Revenue Forecast (FY): $2.06B

• Rating: 56 Neutral
• Price Target: $13.00 ▲(3.42% Upside)

Green Dot's overall stock score reflects moderate financial performance with significant challenges in profitability and efficiency. Technical analysis indicates short-term bullish momentum, but valuation concerns persist due to negative profitability. The earnings call provided some optimism with strong revenue growth and strategic partnerships, but ongoing challenges in certain segments temper the outlook.

Positive Factors

Revenue Growth

Strong revenue growth in the B2B segment and interest income indicates robust market demand and effective business strategies, supporting long-term expansion.

New Partnerships

Strategic partnerships with major companies enhance Green Dot's service offerings and market reach, fostering sustainable growth and competitive advantage.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, enabling Green Dot to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Profitability Challenges

Ongoing profitability challenges may hinder Green Dot's ability to reinvest in its business and deliver shareholder returns, impacting long-term financial health.

Consumer Segment Challenges

Declining performance in the consumer segment suggests potential market saturation or competitive pressures, which could limit growth and profitability in this area.

Operational Challenges

Low operational margins indicate inefficiencies that could affect Green Dot's ability to scale profitably, necessitating strategic improvements for sustainable growth.

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

Green Dot exhibits moderate growth with challenges in profitability and efficiency. The income statement shows a negative net profit margin and low EBIT and EBITDA margins. The balance sheet is stable with low leverage, but the negative return on equity indicates inefficiencies. Cash flow generation has improved, but there are concerns about converting earnings into cash.

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: Positive
• Last Price: 12.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GDOT, the sentiment is Positive. The current price of 12.57 is above the 20-day moving average (MA) of 11.49, above the 50-day MA of 12.47, and above the 200-day MA of 10.56, indicating a bullish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 61.00 is Neutral, neither overbought nor oversold. The STOCH value of 81.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GDOT.

Green Dot Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OMF	77 Outperform	$7.30B	10.53	21.41%	6.72%	9.51%	29.38%
SOFI	71 Outperform	$35.84B	53.89	8.59%	―	22.40%	215.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
WU	65 Neutral	$2.79B	3.82	97.70%	10.69%	-2.51%	17.47%
GDOT	56 Neutral	$698.25M	―	-5.09%	―	23.12%	19.37%
ALLY	56 Neutral	$12.72B	24.87	4.25%	2.91%	-6.89%	-33.20%
UPST	55 Neutral	$4.37B	197.37	4.81%	―	73.29%	―

Green Dot Corporate Events

Green Dot Corp’s Earnings Call Highlights Growth Amid Challenges

Green Dot Corp’s recent earnings call painted a picture of robust growth tempered by certain challenges. The overall sentiment was positive, with strong revenue growth driven by new partnerships and the expanding embedded finance market. However, the company acknowledged ongoing challenges in the consumer segment and the Rapid Employer Services channel. Despite these hurdles, strategic initiatives and cost management efforts are yielding positive results, although some headwinds persist.

Green Dot Corporation Reports Strong Q3 2025 Results

Green Dot Corporation is a financial technology platform and registered bank holding company that provides banking and payment solutions to consumers and businesses, operating primarily in the fintech sector with a focus on embedded finance and banking-as-a-service (BaaS).

Green Dot Announces Exit from China Operations

On September 2, 2025, Green Dot Corporation announced its plan to exit operations in China by the end of 2025, impacting approximately 240 employees, or 22% of its global workforce. This strategic move is expected to reduce annual spending by $6 million to $7 million, despite incurring exit costs of $22 million to $24 million, primarily for severance and termination benefits.

The most recent analyst rating on (GDOT) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Green Dot stock, see the GDOT Stock Forecast page.

Green Dot Corp’s Earnings Call Highlights Growth Amid Challenges

Green Dot Corp’s recent earnings call reflected a balanced sentiment, highlighting both robust financial growth and strategic expansions, particularly in embedded finance. However, challenges were noted in specific areas such as Rapid Employer Services and money processing, which are experiencing slower growth or declines. The company’s new partnerships and product launches are contributing positively to its momentum.

Green Dot Corp Reports Increased Revenues Amid Net Loss

Green Dot Corporation is a financial technology platform and registered bank holding company that offers a wide range of banking and payment solutions, including debit, checking, credit, prepaid, and payroll cards, as well as money processing services. In its latest earnings report for the quarter ended June 30, 2025, Green Dot Corporation reported a net loss of $47 million, compared to a net loss of $28.7 million in the same quarter of the previous year. Despite the loss, the company saw a significant increase in operating revenues, which rose to $504.2 million from $407.1 million in the prior year period. The increase in revenues was driven by higher card revenues and other fees, which grew to $381.2 million from $286.1 million, and an increase in interest income. However, the company also experienced higher operating expenses, particularly in processing expenses, which contributed to the overall net loss. Looking ahead, Green Dot Corporation remains focused on its strategic initiatives and continues to evaluate opportunities to enhance its product offerings and operational efficiencies, aiming to improve its financial performance in the coming quarters.