Green Dot (GDOT) AI Stock Analysis

• Market Cap: $743.92M
• Dividend Yield: N/A
• Average Volume (3M): 873.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: 22.15%
• EPS Growth: 57.64%
• Country: US
• Employees: 1,150
• Sector: Financial
• Sector Strength: 74
• Industry: Financial - Credit Services
• EPS (TTM): 0.40
• Shares Outstanding: 55,392,704
• 10 Day Avg. Volume: 1,177,603
• 30 Day Avg. Volume: 873,905
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: -2.21
• Enterprise Value/Revenue: -0.85
• Enterprise Value/Gross Profit: -2.80
• Enterprise Value/Ebitda: -10.50
• 1Y Price Target: $15.00
• Price Target Upside: 11.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 67 Neutral
• Price Target: $15.00 ▲(11.69% Upside)

Green Dot's overall stock score is driven by strong technical indicators and positive earnings call sentiment, suggesting potential growth. However, the negative valuation metrics and profitability challenges weigh down the score. The company's strategic initiatives and improved cash flow provide optimism, but the stock remains risky due to its current valuation.

Positive Factors

Competitive Positioning

The company has made encouraging progress in improving its competitive positioning, including the renewals of its two largest customers and several recent BaaS partner wins, including Samsung, Crypto.com, and Credit Sesame.

Profitability and Guidance

Green Dot shares are up 18% after the company reported better than expected results and raised 2025 adjusted EBITDA guidance, indicating improving profitability.

Strategic Review and Leadership

Shares are up 27% attributed to the announcement of the strategic review, new leadership, and improving sentiment as fundamental results and sales momentum have shown early signs of progress.

Negative Factors

Customer Deconversions and Headwinds

Sluggish trends at Green Dot are attributed to customer deconversions, retail business headwinds, and management's decision to shutter brands.

Margin Pressure

Margin pressure has been driven by incremental costs and growth of the large BaaS customer.

Retail Division Challenges

Turning around the retail division will remain a challenge, as it experienced a 9% decline.

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 products, including activation fees, monthly maintenance fees, and transaction fees. Additionally, the company earns money from interchange fees collected when customers use their cards for purchases. Green Dot also offers banking-as-a-service (BaaS) solutions, enabling other businesses to provide financial products under their own brands, which contributes to its revenue through service fees and partnerships. Significant partnerships, such as those with major retailers and e-commerce platforms, enhance its distribution channels and customer reach, further boosting its earnings.

Green Dot Financial Statement Overview

Summary

Green Dot exhibits a mixed financial performance. Revenue growth and operational efficiencies are positive highlights, but net profitability is a challenge. The balance sheet is solid with low leverage, while cash flows show strong improvement, contributing to financial resilience. Focus on improving net income could further enhance financial health.

Income Statement

The income statement reflects moderate growth with a revenue increase of 6.2% TTM compared to the previous year. However, profitability is a concern as indicated by a negative net profit margin of -0.31% for TTM. Gross profit margin remains healthy at 32.67% but has decreased compared to previous years. The EBIT and EBITDA margins have shown improvement in the TTM, suggesting operational efficiency gains.

Balance Sheet

The balance sheet is robust with a strong equity ratio of 16.54%, indicating a solid equity base relative to total assets. The debt-to-equity ratio is low at 0.08, reflecting low leverage and reduced financial risk. Return on equity is negative in TTM due to net losses, which is a point of concern.

Cash Flow

Cash flow analysis shows a positive trajectory with free cash flow growing significantly by 206.1% in the TTM. Operating cash flow also improved, reflecting effective cash management. The operating cash flow to net income ratio is strong, indicating good cash generation capabilities despite net income challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.93B	1.72B	1.50B	1.45B	1.43B	1.25B
Gross Profit	587.88M	580.08M	620.54M	723.91M	694.43M	726.89M
EBITDA	156.60M	77.53M	102.61M	174.73M	151.12M	114.98M
Net Income	-23.99M	-26.70M	6.72M	64.21M	47.48M	23.13M
Balance Sheet
Total Assets	5.58B	5.43B	4.82B	4.79B	4.73B	4.12B
Cash, Cash Equivalents and Short-Term Investments	2.31B	1.62B	716.12M	813.95M	1.32B	1.49B
Total Debt	73.39M	59.58M	67.06M	43.74M	15.13M	24.57M
Total Liabilities	4.66B	4.56B	3.96B	4.01B	3.65B	3.11B
Stockholders Equity	920.88M	873.59M	859.35M	781.48M	1.07B	1.01B
Cash Flow
Free Cash Flow	95.62M	7.10M	21.58M	193.36M	105.10M	150.14M
Operating Cash Flow	138.41M	81.38M	97.52M	277.69M	162.53M	209.18M
Investing Cash Flow	575.28M	81.40M	33.16M	-820.19M	-1.37B	-785.83M
Financing Cash Flow	281.65M	743.15M	-264.02M	36.71M	1.03B	1.01B

Green Dot Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 13.43 is above the 20-day moving average (MA) of 11.93, above the 50-day MA of 11.09, and above the 200-day MA of 9.66, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 65.52 is Neutral, neither overbought nor oversold. The STOCH value of 37.41 is Neutral, 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
FINV	81 Outperform	$2.25B	6.31	18.75%	3.12%	8.41%	34.76%
YRD	74 Outperform	$519.30M	3.00	13.64%	6.49%	12.69%	-35.36%
QD	70 Outperform	$754.63M	10.80	4.57%	―	-39.25%	―
LC	69 Neutral	$1.90B	25.83	5.50%	―	7.54%	70.26%
Sector *	68 Neutral	$17.69B	11.82	10.30%	3.73%	9.66%	0.42%
GDOT	67 Neutral	$743.92M	―	-2.68%	―	22.15%	57.64%
UPST	49 Neutral	$6.63B	―	-0.96%	―	60.62%	96.91%

Green Dot Corporate Events

Green Dot Extends Interim CEO Jacobs’ Tenure

On June 19, 2025, Green Dot Corporation’s Compensation Committee approved a compensation package for Mr. Jacobs, the interim CEO, extending his service through January 7, 2026. The package includes a monthly salary, service award, restricted stock units, and a potential one-time bonus based on performance metrics, highlighting the company’s focus on strategic planning and leadership transition.

Green Dot Approves Amendments to Equity Plans

On May 22, 2025, Green Dot Corporation held its Annual Meeting of Stockholders, where stockholders approved amendments to the company’s 2010 Equity Incentive Plan and Employee Stock Purchase Plan. These amendments increase the authorized shares for issuance by 2.4 million and 5 million for the respective plans, potentially enhancing employee incentives and stockholder value.