GREEN DOT CORP
For the period ended Dec 31, 2025. Filed Mar 16, 2026.
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FY2025 · Filed Mar 16, 2026
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Report of Independent Registered Public Accounting Firm (PCAOB ID:
Report of Independent Registered Public Accounting Firm
To the Stockholders and the Board of Directors of Green Dot Corporation
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Green Dot Corporation (the Company) as of December 31, 2025 and 2024, the related consolidated statements of operations, comprehensive income and loss, changes in stockholders’ equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated March 16, 2026 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
| Revenue Recognition | |
| Description of the Matter | As shown in the consolidated statement of operations and discussed in Note 2 and Note 3 of the consolidated financial statements, the Company recorded card revenues and other fees of $1.57 billion, interchange revenues of $184.6 million, and cash processing revenues of $240.2 million in operating revenues for the year ended December 31, 2025. Card revenues and other fees consist of monthly maintenance fees, new card fees, ATM fees and other card revenues, which include transaction-based fees, revenue associated with the Company’s overdraft protection fees, gift card program revenues and BaaS partner program management service fees. The Company records estimated cash-back rewards as a reduction to card revenues and other fees. Cash processing revenues include cash transfer revenues, tax refund processing service revenues, disbursement revenues, and other tax processing service revenues. The Company’s revenue recognition differs between each of these discrete revenue streams. The Company recognizes revenue when control of the promised goods or services is transferred to customers in an amount that reflects the consideration the Company expects to be entitled to in exchange for the goods or services. |
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| Except for gift card program revenues, auditing card revenues and other fees (monthly maintenance fees, ATM fees, transaction-based fees, overdraft protection, and BaaS partner program management service fees), interchange revenues, and cash transfer revenues was complex due to 1) high aggregate dollar value and large volume of revenue-generating transactions, 2) the number and complexity of contracts, and the number of participating servicer and sub-servicers involved with each revenue stream, and 3) the number of systems and processes involved in the processing of such transactions, including third-party service organizations and the reliance on these systems. | |
| How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company’s processes, systems and controls related to the recognition of Revenue, including, among others, controls related to management’s assessment of when control of goods and services is transferred to customers, and the Company’s use of relevant third-party service organizations.Our audit procedures included, among others, assessing a sample of contracts to determine whether terms that may impact revenue recognition were identified and properly considered in the Company’s evaluation of the accounting for the contracts, calculating revenue per transaction based upon card revenues and other fees (monthly maintenance fees, ATM fees, transaction-based fees, overdraft protection fees, and BaaS partner program management service fees), interchange revenues, and cash transfer revenues recognized and relevant non-financial metrics for each revenue stream (e.g., purchase volumes and number of card activations) and comparing the revenue per transaction for each revenue stream to historical trends and expectations based on contractual rates and historical data. We tested revenue transaction details on a sample basis for certain card revenues and other fees revenue by agreeing such revenues and fees to third party supporting documentation. |
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| Realizability of Deferred Tax Assets | |
| Description of the Matter | At December 31, 2025, the Company had gross deferred tax assets of $146.1 million, partially offset by a valuation allowance of $21.6 million. As discussed in Note 2 and Note 14 to the consolidated financial statements, the Company recognizes a valuation allowance to reduce the carrying value of its deferred tax assets to the amount that management believes is more likely than not to be realized.Auditing the Company’s assessment of the deferred tax assets was complex with regard to evaluating management’s judgements used in estimating the realizability of the deferred tax assets. Evaluation of the timing of the deferred tax reversals involved a high degree of auditor judgment to assess. |
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| How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested the operating effectiveness of internal controls over the Company’s process, systems and controls related to the realizability of deferred tax assets, including controls over management’s projections of the amount and timing of future taxable income.To test the realizability of deferred tax assets, our audit procedures included among others, evaluating the methodologies used, testing the reasonableness of the key assumptions used by the Company to develop projections of future taxable income and testing the underlying data used by the Company. For example, we compared the projections of future taxable income with historical results, evaluating the likelihood of realization under multiple possible scenarios. In addition, with the assistance of our tax professionals, we tested the Company’s scheduling of the reversal of existing temporary taxable differences. |
| Goodwill Impairment Assessment | |
| Description of the Matter | At December 31, 2025, the balance of the Company’s goodwill was $301.8 million. As discussed in Note 2 and Note 9 of the consolidated financial statements, goodwill is tested for impairment at least annually on November 30 at the reporting unit level, or when events or circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying amount. The Company performed a quantitative analysis for the annual impairment testing of reporting units using both a market approach and a discounted cash flow model to estimate the fair value of the reporting unit. The Company determined the fair value of its reporting units exceeded the carrying value.Auditing the Company’s reporting units’ goodwill impairment assessment was complex and highly judgmental due to the significant estimation required in determining the fair value of the reporting units. In particular, the fair value estimate was sensitive to the significant assumptions, including forecasts estimated future cash flows, earnings multiples of similarly situated guideline public companies, and estimated discount rates, which are affected by expectations about future market or economic conditions. |
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| How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design and tested operating effectiveness of the Company’s processes, systems and controls over the goodwill impairment, including, among others, controls over management’s review of the valuation methods, models and the significant assumptions.Our audit procedures included, among others, assessing the suitability and application of the valuation methodology and evaluating the significant assumptions and the underlying data used by the Company in its analysis. We compared the significant assumptions used by management to current industry and economic trends, market information, and other relevant factors. We performed sensitivity analyses of significant assumptions to determine what changes in assumptions are particularly sensitive when assessing the likelihood of impairment. We assessed the historical accuracy of management’s estimates. In addition, we involved valuation specialists to assist in the evaluation of the methodology and models used by the Company and certain significant assumptions. |
/s/Ernst & Young LLP
We have served as the Company’s auditor since 2005.
Los Angeles, California
March 16, 2026
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