Green Dot Q2 profit misses estimates, dragged by retail, marketing pressure

Green Dot

10/08/2026 21:23

Overview
US fintech and bank holding company reported Q2 operating revenue up 18% yr/yr
Adjusted EPS, net income and EBITDA for Q2 declined yr/yr
Company is preparing for acquisition by Smith Ventures and CommerceOne

Outlook
Green Dot will not provide 2026 financial guidance due to pending acquisition
Company expects continued revenue and deposit growth in BaaS from new and existing partners
Green Dot sees growth opportunities from new Money Movement launches and partner additions

Result Drivers
B2B GROWTH AND MIX - Revenue growth in B2B Services led by a significant BaaS partner and broader portfolio gains, though margins declined due to revenue mix
TAX BUSINESS TIMING - Q2 revenue in Money Movement Services declined due to tax processing revenue shifting to Q1, but year-to-date tax business revenue rose on market share gains and a new franchise partner
RETAIL AND MARKETING PRESSURE - Consumer Services segment continued to face headwinds from retail channel pressures and reduced marketing spend, though engagement with features like overdraft improved

Company press release: ID:nBw2Z0w6Va

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
$591.26 mln
 
Q2 Adjusted EPS
Miss
$0.26
$0.37 (2 Analysts)
Q2 Loss Per Share
 
$0.04
 
Q2 Adjusted Net Income
Miss
$14.91 mln
$21.90 mln (2 Analysts)
Q2 Net Loss
 
$2.09 mln
 
Q2 Adjusted EBITDA
Miss
$40.18 mln
$47.38 mln (2 Analysts)

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the consumer lending peer group is "buy."
Wall Street's median 12-month price target for Green Dot Corporation is $16.13, about 22.6% above its August 7 closing price of $13.15
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads
Aug 8 - Trump-linked fintech firm AI Financial sells unit to Prime Delta
Aug 7 - US regulator rejects Dutch fintech Bunq's application for national bank charter
Aug 10 - Trading platform Plus500 reports higher core profit as US business gains traction

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)