Why Is Green Dot (GDOT) Up 8.6% Since Last Earnings Report?

A month has gone by since the last earnings report for Green Dot (GDOT). Shares have added about 8.6% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Green Dot due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent catalysts for Green Dot Corporation before we dive into how investors and analysts have reacted as of late.Green Dot Beats on Q2 EarningsGreen Dot Corporation reported impressive second-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.Quarterly earnings per share (excluding $1.25 from non-recurring items) of 40 cents outpaced the consensus estimate by more than 100% and improved 60% from the year-ago quarter. Revenues of $501.2 million beat the Zacks Consensus Estimate by 1.1% and increased 23.1% on a year-over-year basis.Green Dot’s Segmental RevenuesB2B Services revenues increased 38.3% in the second quarter of 2025 to $348.7 million. This segment’s revenue growth was fueled by a BaaS partner and stability across the BaaS portfolio.Money Movement Services’ revenues declined 4% from the year-ago quarter to $50.85 million. Growth was impacted by a slight dip in Money Processing, while Tax Processing saw revenue growth.The Consumer Services segment’s revenues amounted to $93.1 million, down 3.64% on a year-over-year basis. Declines continue to remain largely due to secular headwinds in the Retail channel, partially offset by the impact of the recent launch of PLS.GDOT’s Key MetricsGDOT’s gross dollar volume increased 20% from the year-ago quarter to $38.55 billion. Purchase volume fell 0.4% year over year to $4.99 billion. The company ended the quarter with $3.48 million in active accounts, up 2.1% on a year-over-year basis.Green Dot’s Operating ResultsAdjusted EBITDA totaled $45.43 million, increasing 34% on a year-over-year basis. The adjusted EBITDA margin plummeted 70 basis points to 9.1%.Balance Sheet & Cash Flow of GDOTGreen Dot exited the second quarter with an unrestricted cash and cash equivalent balance of $2.3 billion compared with $1.59 billion at the end of the fourth quarter of 2024. GDOT had no long-term debt. It generated $177.7 million of cash from operating activities. The company’s capital expenditure was $109.3 million.Guidance Offered by GDOTGreen Dot has provided its 2025 guidance for total operating revenues to range between $2 and $2.1 billion. Adjusted earnings per share guidance is the band of $1.28-$1.42, up from its previous guidance range of $1.14-$1.28. Adjusted EBITDA is anticipated to be in the band of $160-$170 million, up from its previous guidance range of $150 million-$160 million.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a flat trend in estimates review.VGM ScoresCurrently, Green Dot has a subpar Growth Score of D, a grade with the same score on the momentum front. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.Outlook Green Dot has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.Performance of an Industry PlayerGreen Dot is part of the Zacks Financial Transaction Services industry. Over the past month, Western Union (WU), a stock from the same industry, has gained 3.9%. The company reported its results for the quarter ended June 2025 more than a month ago.Western Union reported revenues of $1.03 billion in the last reported quarter, representing a year-over-year change of -3.8%. EPS of $0.42 for the same period compares with $0.44 a year ago.For the current quarter, Western Union is expected to post earnings of $0.43 per share, indicating a change of -6.5% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.The overall direction and magnitude of estimate revisions translate into a Zacks Rank #5 (Strong Sell) for Western Union. Also, the stock has a VGM Score of C.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. 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Click to get this free report Green Dot Corporation (GDOT): Free Stock Analysis Report The Western Union Company (WU): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks