Green Dot (GDOT) AI Stock Analysis

• Market Cap: $449.96M
• Dividend Yield: N/A
• Average Volume (3M): 754.25K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: 14.82%
• EPS Growth: -461.78%
• Country: US
• Employees: 1,150
• Sector: Financial
• Sector Strength: 86
• Industry: Financial - Credit Services
• EPS (TTM): 1.06
• Shares Outstanding: 54,873,356
• 10 Day Avg. Volume: 419,061
• 30 Day Avg. Volume: 754,250
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: -2.16
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -0.56
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.67
• Price Target Upside: 22.64% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

Green Dot's overall stock score reflects a blend of strong revenue growth and significant operational challenges. The company's solid balance sheet and strategic investments in compliance are positives, but profitability issues and increased liabilities weigh on the score. Technical analysis shows mixed signals, with short-term positive momentum but longer-term caution. The earnings call highlights growth opportunities, particularly in the B2B segment, but also notes continued challenges in the Consumer segment and increased compliance costs.

Positive Factors

Earnings

Green Dot reported better than expected March quarter results and moderately raised full-year guidance.

Financial Performance

For the first time since the March quarter of 2022, all three segments posted year-over-year EBITDA growth and total active accounts rose for the second consecutive quarter.

Market Position

Green Dot is uniquely positioned to benefit from the growth of embedded finance.

Negative Factors

Margin Pressure

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

Potential Buyer Limitations

Green Dot's bank charter has limited the list of potential buyers in industry consolidation.

Retail Division Challenges

Turning around the retail division will remain a challenge, as it fell 9% in 2024.

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 Corporation makes money primarily through a combination of fees and service charges associated with its financial products. The company earns revenue from cardholder fees, which include monthly maintenance fees, transaction fees, and ATM withdrawal fees associated with its prepaid and reloadable debit cards. Additionally, Green Dot generates income through interchange fees collected from merchants whenever customers use their cards for purchases. Another significant revenue stream comes from its banking-as-a-service platform, which provides white-label banking solutions to partners, including major retailers and technology companies. These partnerships allow Green Dot to receive fees for account management and transaction processing. Interest income from cash deposits is another source of revenue, although it is less significant compared to fees and service charges.

Green Dot Financial Statement Overview

Summary

Green Dot shows mixed financial performance. Revenue growth is promising, but profitability issues, particularly the negative EBIT and net income, are concerning. The balance sheet is strong with low leverage, but increasing liabilities are a warning sign. Cash flow management is variable, with recent declines in free cash flow growth. Operational efficiency and cash stabilization need improvement.

Income Statement

Green Dot's revenue has shown consistent growth over the years, with a noticeable increase from $1.25 billion in 2020 to $1.72 billion in 2024. However, the company has faced profitability challenges, as reflected in the declining EBIT and net income margins, with a significant net loss in 2024. The gross profit remains stable, but the negative EBIT and EBITDA margins in 2024 highlight operational inefficiencies.

Balance Sheet

The balance sheet shows a healthy equity base with stockholders' equity increasing over time. The debt-to-equity ratio remains low, indicating prudent debt management. However, the equity ratio is declining, reflecting an increasing reliance on liabilities. Despite these concerns, the company's strong cash position and increasing total assets provide a stable financial foundation.

Cash Flow

Green Dot's cash flow from operations is positive, although it has decreased from previous years. The free cash flow has experienced significant fluctuations, indicating variability in cash flow management. The operating cash flow to net income ratio is positive, suggesting effective conversion of income to cash. However, the free cash flow to net income ratio is affected by the net losses in recent years.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.72B	1.50B	1.45B	1.43B	1.25B
	Gross Profit
1.72B	620.54M	724.17M	779.23M	726.89M
	EBIT
-1.67M	22.67M	94.38M	66.47M	30.07M
	EBITDA
77.53M	100.63M	164.79M	148.65M	115.44M
	Net Income Common Stockholders
-26.70M	6.72M	64.21M	47.48M	23.13M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.62B	716.12M	813.95M	1.32B	1.49B
	Total Assets
5.43B	4.82B	4.79B	4.73B	4.11B
	Total Debt
59.58M	67.06M	43.74M	15.13M	24.57M
	Net Debt
-1.53B	-615.21M	-770.20M	-1.31B	-1.47B
	Total Liabilities
4.56B	3.96B	4.01B	3.65B	3.10B
	Stockholders Equity
873.59M	859.35M	781.48M	1.07B	1.01B
Cash Flow		Free Cash Flow
7.10M	21.58M	193.36M	105.10M	150.14M
	Operating Cash Flow
81.38M	97.52M	277.69M	162.53M	209.18M
	Investing Cash Flow
81.40M	33.16M	-820.19M	-1.37B	-785.83M
	Financing Cash Flow
743.15M	-264.02M	36.71M	1.03B	1.01B

Green Dot Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 8.7 is above the 20-day moving average (MA) of 7.96, above the 50-day MA of 7.74, and below the 200-day MA of 9.77, indicating a neutral trend. The MACD of 0.18 indicates Negative momentum. The RSI at 63.42 is Neutral, neither overbought nor oversold. The STOCH value of 66.22 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	78 Outperform	$2.19B	6.72	16.47%	3.09%	2.51%	7.06%
YRD	75 Outperform	$557.52M	2.52	17.96%	6.06%	17.03%	-23.72%
GDOT	66 Neutral	$449.96M	―	-3.08%	―	14.82%	-461.78%
Sector *	64 Neutral	$12.54B	9.79	7.92%	16985.69%	12.58%	-6.07%
LC	62 Neutral	$1.14B	22.49	3.86%	―	5.72%	31.82%
UPST	57 Neutral	$4.89B	―	-10.30%	―	34.69%	63.65%
QD	53 Neutral	$494.26M	43.85	0.80%	―	15.74%	225.35%

Green Dot Corporate Events

Green Dot Announces Leadership Change and Strategic Review

On March 7, 2025, Green Dot Corporation announced a leadership transition with William I Jacobs appointed as interim CEO and Chris Ruppel as interim President, following the departure of George Gresham. The company also engaged Citi to explore strategic alternatives, indicating a potential shift in its business strategy. This move could impact Green Dot’s market positioning and stakeholder interests, although the outcome of the strategic review remains uncertain.