GDOT

Green Dot's FY2025 reveals a deeply troubled operating model masquerading as a growth story. Revenue grew 19.8% to $1.99B, but this top-line acceleration came at a brutal cost: net income collapsed from -$26.7M to -$98.9M, a 270% deterioration, and the company has now posted two consecutive years of losses after producing roughly $50-65M in net income from FY2021-2022. The MD&A makes the mechanics painfully clear — card revenues and other fees jumped 27% to $1.57B driven by BaaS partner growth, but processing expenses ballooned 39% (+$343M) to $1.23B, now consuming 59.1% of revenue vs. 51.5% the prior year. This is the classic 'banking-as-a-service' margin problem: GDOT is essentially a low-margin rails provider for its BaaS partners, where every dollar of incremental partner volume drags nearly as much processing cost with it.