Green Dot (GDOT) AI Stock Analysis

• Market Cap: $715.47M
• Dividend Yield: N/A
• Average Volume (3M): 1.10M
• 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: 820,053
• 30 Day Avg. Volume: 1,097,727
• 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: -1.16
• Enterprise Value/Revenue: -0.41
• Enterprise Value/Gross Profit: -1.40
• Enterprise Value/Ebitda: -5.38
• 1Y Price Target: $16.13
• Price Target Upside: 25.23% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 1.33
• Revenue Forecast (FY): $2.06B

• Rating: 61 Neutral
• Price Target: $13.50 ▲(4.81% Upside)

Green Dot's overall stock score reflects a combination of mixed financial performance and positive technical momentum. The company's strategic initiatives and partnerships are promising, but profitability challenges and valuation concerns weigh on the score. The recent corporate events, while positive, are already factored into the earnings call analysis.

Positive Factors

Revenue Growth

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

New Partnerships

Strategic partnerships with major companies enhance Green Dot's market reach and product offerings, fostering sustainable competitive advantages.

Merger with CommerceOne

The merger is expected to enhance market positioning by focusing on core financial technology operations, driving long-term growth and efficiency.

Negative Factors

Profitability Challenges

Ongoing profitability issues, indicated by negative net margins, could hinder financial stability and limit reinvestment in growth initiatives.

EBITDA Decline

Declining EBITDA reflects operational challenges and may impact cash flow, affecting the company's ability to fund future growth and innovation.

Consumer Segment Challenges

Challenges in the consumer segment could weaken market presence and revenue streams, necessitating strategic adjustments to regain momentum.

Green Dot Business Overview & Revenue Model

Company Description

Green Dot Corporation (GDOT) is a financial technology and bank holding company that specializes in providing innovative payment solutions and financial services. Founded in 1999, the company operates primarily in the prepaid debit card sector and offers a variety of products including prepaid Visa and Mastercard debit cards, mobile banking services, and cash management solutions. Green Dot aims to empower consumers by providing accessible financial products that help them manage their money effectively, especially targeting the underbanked population.

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: 12.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 12.88 is above the 20-day moving average (MA) of 12.81, above the 50-day MA of 12.29, and above the 200-day MA of 10.92, indicating a bullish trend. The MACD of 0.26 indicates Positive momentum. The RSI at 53.84 is Neutral, neither overbought nor oversold. The STOCH value of 17.87 is Positive, 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	79 Outperform	$8.04B	11.59	21.41%	6.11%	9.51%	29.38%
WU	69 Neutral	$3.04B	4.15	97.70%	9.58%	-2.51%	17.47%
SOFI	68 Neutral	$34.33B	49.39	8.59%	―	22.40%	215.81%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ALLY	67 Neutral	$14.07B	27.51	4.25%	2.63%	-6.89%	-33.20%
GDOT	61 Neutral	$715.47M	-15.15	-5.09%	―	23.12%	19.37%
UPST	55 Neutral	$4.63B	208.91	4.81%	―	73.29%	―

Green Dot Corporate Events

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.

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.