Company: GDOT
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001386278-25-000076
Chunk: 189

Company: GREEN DOT CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 189
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uring and Other Charges in the Consolidated Financial Statements included herein for a more detailed discussion of our restructuring and other charges.

Other Expense, net

Other expense, net totaled $1.3 million for the three months ended September 30, 2025, a decrease of $2.4 million, from the prior year comparable period. This decrease was primarily driven by a decrease in equity method losses associated with TailFin due to lower operating expenses year over year, as well as higher income earned from bank-owned life insurance policies.

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Income Tax Expense and Benefit

The following table presents a breakdown of our effective tax rate among federal, state, and other:

 Three Months Ended September 30, 20252024U.S. federal statutory tax rate21.0 %21.0 %State income taxes, net of federal tax benefit2.9 (8.7)Foreign tax rate differential(3.1)(2.6)General business credits0.3 (24.4)Stock-based compensation(0.3)(2.6)IRC 162(m) limitation(0.8)(6.3)Bank-owned life insurance income1.2 (13.0)Bank-owned life insurance surrender— (19.2)Nondeductible expenses and penalties(0.1)57.5 Global intangible low-tax income tax0.2 3.0 Change in valuation allowance(7.4)— Other(0.1)(0.1)Effective tax rate13.8 %4.6 %

Our income tax benefit totaled $4.9 million for the three months ended September 30, 2025, representing an increase of $4.6 million from the prior year comparable period, primarily due to an increase in our loss before taxes and a decrease in nondeductible expenses and penalties primarily related to the tax effect associated with the civil money penalty we incurred in 2024 for our Consent Order from the Federal Reserve Board.

The increase in our effective tax rate for the three months ended September 30, 2025 from the prior year comparable period was due to several factors, including an increase of $0.2 million in the amount of compensation expense that was subject to the IRC Section 162(m) limitation on the deductibility of certain executive compensation, an increase of $2.6 million in the valuation allowance on the deferred tax assets of our China subsidiary, a lower tax rate benefit due to a decrease of $0.3