Green Dot Corporation Reports $1.72 Billion Revenue with Net Loss of $26.7 Million for Fiscal Year 2024

Green Dot Corporation reported a total operating revenue of $1.72 billion for the fiscal year ending December 31, 2024, marking a 15% increase from $1.50 billion in 2023. However, the company experienced a net loss of $26.7 million, a significant decline from a net income of $6.7 million in the previous year. This downturn in profitability is attributed to rising operating expenses, which increased by 17% to $1.73 billion, driven primarily by higher processing costs and compliance-related expenses, including a $44 million civil money penalty related to a consent order with the Federal Reserve.

The company's performance varied across its business segments. The B2B Services segment saw a notable revenue increase of 40%, reaching $1.08 billion, largely due to growth in gross dollar volume from Banking-as-a-Service (BaaS) partnerships. In contrast, the Consumer Services segment faced a revenue decline of 19%, totaling $402.5 million, as the average number of active accounts decreased by 18%. The Money Movement Services segment reported a modest revenue increase of 4%, driven by tax processing revenues, despite a decline in cash transfer revenues.

Operationally, Green Dot reported a gross dollar volume of $131.6 billion, a 32.7% increase from the previous year, alongside a 2.8% rise in the number of active accounts, totaling 3.67 million. However, the company noted a 10% decrease in purchase volume and a 5% decline in cash transfers, indicating challenges in customer engagement and retention. The company continues to focus on its flagship product, GO2bank, which aims to improve financial health for consumers, particularly those living paycheck to paycheck.

Looking ahead, Green Dot anticipates stabilization in its financial results for 2025, driven by strategic marketing initiatives and cost reduction measures. The company plans to invest in growth-oriented projects while managing its expenses, particularly in light of the recent interest rate cuts by the Federal Reserve, which may impact net interest income. Green Dot remains committed to enhancing its compliance infrastructure and addressing operational challenges to foster long-term growth and profitability.