Company: GDOT
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001386278-25-000076
Chunk: 177

Company: GREEN DOT CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 177
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 30, 2025 increased over the prior year comparable period, driven by similar factors as discussed above for the three months ended September 30, 2025. Sales and marketing expenses decreased due to the same factors discussed above. Compensation and benefits expenses increased for the same reasons discussed above, as well as because of an increase in third-party call center support costs associated with the growth of our BaaS account programs discussed above. Our processing expenses increased during the nine months ended September 30, 2025 due to the same factors discussed above. Other general and administrative expenses decreased primarily due to the timing of accruals in the prior year related to the civil money penalty under our Consent Order from the Federal Reserve Board that did not recur in the current period, and to a lesser extent, a decrease in overall transaction losses attributable to lower customer dispute volume across our portfolios and favorable reductions in our dispute loss rates, and lower professional services fees related to our AML programs due to the year-over-year timing of spend on certain initiatives. These decreases were partially offset by an increase in software licenses and hosting costs due to investments in our platform and 

31

operations, and an increase from expenses associated with our strategic review process. Other general and administrative expenses also decreased due to the settlement payment and impairment charges related to the termination of our partnership agreement to develop a new core banking system in the prior year comparable period that did not recur in the current period.

Other expense, net

Other expense, net for the three months ended September 30, 2025 decreased $2.4 million and for the nine months ended September 30, 2025 increased $91.7 million, from the prior year comparable periods. 

The decrease in other expense, net for three months ended September 30, 2025 was primarily driven by a decrease in equity method losses associated with TailFin Labs, LLC ("TailFin") due to lower operating expenses year over year, as well as higher income earned from bank-owned life insurance policies.

The increase in other expense, net for the nine months ended September 30, 2025 resulted principally from a $70 million incentive payment made by TailFin in connection with the extension of the Walmart MoneyCard agreement and related agreements in the second quarter of 2025. In addition, during the first quarter of 2025, we determined we would sell certain available-for-sales securities in order to reposition the proceeds into higher yielding assets, which resulted in a realized loss of $24.8 million for the nine months