Green Dot Corp ( (GDOT) ) has released its Q4 earnings. Here is a breakdown of the information Green Dot Corp presented to its investors.
Green Dot Corporation is a financial technology platform and registered bank holding company that provides banking and payment solutions to consumers and businesses, specializing in digital banking and embedded finance services.
In its latest earnings report, Green Dot Corporation announced a positive fourth quarter for 2024, highlighting growth in active accounts and expansion in its embedded finance business through new partnerships. The company also provided guidance for 2025, focusing on growth driven by embedded finance and money movement services.
Key financial metrics for the fourth quarter of 2024 showed a 24% increase in total operating revenues compared to the previous year, reaching $455 million. The company reported a net income of $5.1 million, a significant improvement from a loss of $23.6 million in the same quarter of 2023. Non-GAAP net income also rose to $22.2 million, marking a 203% increase year-over-year. Green Dot’s B2B services segment was a major contributor to revenue growth, with a 70% increase in adjusted EBITDA.
Despite the positive quarter, Green Dot’s 2025 guidance anticipates a decline in adjusted EBITDA due to challenges in the Consumer Services segment. However, the company remains optimistic about growth in its B2B and Money Movement segments, which are central to its embedded finance strategy.
Looking ahead, Green Dot’s management expects continued growth in embedded finance and money movement services, projecting non-GAAP total operating revenues between $1.85 billion and $1.90 billion for 2025, representing a 10% increase year-over-year at the midpoint.