Fri, Nov 8, 10:26 PM (253 days ago)
For the third quarter of 2024, Green Dot Corporation (GDOT) reported total operating revenues of $409,743, a 16.1% increase from the previous year, primarily driven by growth in the B2B Services segment. However, net loss increased to $7,840, compared to a loss of $6,265 in Q3 2023, reflecting challenges in the Consumer Services segment, where revenues fell by 17% due to a decline in active accounts and purchase volumes. Operating expenses also rose by 14.7% to $412,675, attributed to increased processing expenses and third-party support costs. Cash flow from operations was $104,395, down from $132,448 in the prior year, while cash equivalents surged to $1.45 billion. The company issued $50 million in senior unsecured notes to enhance liquidity. The effective tax rate dropped to 4.6% from 25.6%, influenced by a lower taxable income and various tax credits. Looking ahead, GDOT anticipates stabilization in operations amidst ongoing economic pressures, aiming for growth through strategic investments and enhanced compliance measures following a recent consent order with the Federal Reserve.