Green Dot Narrows Loss as Revenue Growth Holds

The Tip Desk · November 12, 2026 · 4 min read

GAAP operating revenue reached $601.1 million in the third quarter, up 21%, while the net loss narrowed to $7.4 million.

Green Dot Corporation (GDOT), a financial technology and bank holding company, reported GAAP total operating revenues of $601.1 million for the three months ended September 30, 2026, up 21% from $494.8 million a year earlier.

The net loss narrowed to $7.4 million from a $30.8 million loss a year earlier. Diluted loss per share was $0.13, compared with $0.56. Non-GAAP total operating revenues were $596.4 million. Adjusted EBITDA rose 9% to $25.8 million from $23.6 million. The adjusted EBITDA margin compressed to 4.3% from 4.8%. Non-GAAP net income fell 12% to $3.1 million, or $0.05 a share.

Chief Financial Officer Jess Unruh said third-quarter results came in modestly ahead of the company’s expectations, with adjusted EBITDA up 9% in the quarter and 6% year-to-date. She said the company continued making selective investments and that non-volume related expenses were down modestly compared with last year. Chairman and Chief Executive Officer William I Jacobs said the quarter was bolstered by efforts to improve operations, optimize the balance sheet and capitalize on demand in embedded finance.

Consolidated gross dollar volume rose to $47.18 billion from $45.91 billion in the second quarter. Active accounts declined to 3.38 million from 3.45 million. Purchase volume fell to $4.60 billion from $4.70 billion.

B2B Services gross dollar volume increased to $43.67 billion from $42.25 billion. B2B active accounts rose to 2.00 million from 1.98 million. B2B purchase volume rose to $2.07 billion from $2.03 billion. The company said B2B segment profit grew year over year, driven by higher demand and activity in BaaS. BaaS margins declined modestly due to revenue mix, particularly the growth of a significant partner.

In rapid! employer services, margins declined from the prior-year period, primarily due to declines in revenue. On a sequential basis, pay-card actives posted two consecutive quarters of growth, and purchase volume recorded its first positive quarter of year-over-year growth in over three years. Green Dot said that points to initial success in repositioning the pay-card salesforce. It said it has reinvested some cost savings into Earned Wage Access capabilities, sales support and integrations with new payroll platforms.

Consumer Services gross dollar volume declined to $3.51 billion from $3.65 billion. Consumer active accounts fell to 1.38 million from 1.47 million. Consumer purchase volume declined to $2.53 billion from $2.68 billion. The company said the segment continued to face headwinds in retail and from lower marketing spend in its direct business. Segment profit and margins declined year-over-year due to lower revenue and revenue mix. Volume and revenue per active continued to grow as engagement and overdraft utilization rose.

Money Movement cash transfers rose to 7.61 million from 7.38 million. Tax refunds processed were 0.15 million in the third quarter versus 2.89 million in the second quarter, a seasonal drop. Money Movement Services revenue was down slightly due to modest declines in both tax and money processing. Year-to-date tax revenue was up almost 17%, which the company attributed to market share gains and the launch of a significant new franchise partner. Money processing third-party transactions accelerated modestly after a year of declines from the loss of two low-margin customers. Money processing and tax margins were down from last year.

Corporate and Other revenue, consisting primarily of interest income net of partner interest sharing, experienced solid growth year over year. The company said rate cuts over the past couple of years improved the spread between what it earns on cash and investments and what it shares with partners. Corporate expenses decreased modestly and as a percentage of revenue continued to decline. Cash at the holding company was approximately $38 million as of September 30, 2026.

On November 24, 2025, Green Dot announced agreements to be acquired by affiliates of Smith Ventures and CommerceOne Financial Corporation. Upon closing, Smith Ventures will acquire the non-bank FinTech business and CommerceOne will acquire Green Dot Bank. Completion remains subject to regulatory approvals and is expected by the first quarter of 2027. The board called a 2026 Annual Meeting for December 21, 2026, to comply with NYSE listing standards and Delaware law if the transactions will not be completed before December 31, 2026. Because of the proposed transactions, Green Dot will not host an earnings conference call nor provide 2026 financial guidance with this release.