Company: GDOT
Filing Date: 2025-11-10
Form Type: 10-Q
Source: 0001386278-25-000076
Chunk: 187

Company: GREEN DOT CORP
Filing Date: 2025-11-10
Form: 10-Q
Item: Part I, Item 8
Chunk 187
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 a result of a decline in the number of active accounts in our Consumer Services segment during the current period.

Cash Processing Revenues — Cash processing revenues totaled $33.8 million for the three months ended September 30, 2025, a decrease of $1.1 million, or 3%, from the comparable prior year period. The decrease was primarily attributable to a decrease in our cash transfer revenues due to a 10% decrease in the number of cash transfers processed due to a lower number of active accounts within our Consumer Services segment. The decrease in cash transfer revenues was partially offset by an increase in our tax processing revenues for the three months ended September 30, 2025 due to a 3% increase in the number of tax refunds processed and from higher ancillary tax program fees that are associated with tax refund transfers. 

Interchange Revenues — Interchange revenues totaled $45.3 million for the three months ended September 30, 2025, a decrease of $3.1 million, or 6%, from the comparable prior year period. The decrease was primarily due to a decrease in purchase volume of 3% and a decrease in the effective interchange rate earned from the comparable prior year period, which declined due to a mix-shift toward categories of consumer purchases with lower effective rates. In addition, our interchange fees have both fixed and variable components, and as a result, the effective rate we earn may vary based on the size of transactions, among other factors.

Interest Income, net — Net interest income totaled $22.7 million for the three months ended September 30, 2025, an increase of $6.6 million, or 41%, from the comparable prior year period. The increase in net interest income was primarily the result of yields earned from an increase in cash from deposit programs with our partners and higher yielding investments from our bond repositioning strategy, and a decrease in interest shared with certain BaaS partners (a reduction of revenue).

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Operating Expenses

The following table presents a breakdown of our operating expenses among sales and marketing, compensation and benefits, processing, and other general and administrative expenses:

 Three Months Ended September 30, 20252024Amount% of TotalOperating RevenuesAmount% of TotalOperating Revenues (In thousands, except percentages)Operating expenses:    Sales and marketing expenses$48,243 9.7 %$52,626 12.8 %Compensation and benefits expenses63,411 12.8 61,795