Company: GDOT
Filing Date: 2025-08-11
Form Type: 10-Q
Source: 0001386278-25-000064
Chunk: 252

Company: GREEN DOT CORP
Filing Date: 2025-08-11
Form: 10-Q
Item: Part I, Item 2
Chunk 252
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 loss of $24.8 million for the six months ended June 30, 2025.

39

Income Tax Expense and Benefit

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

 Six Months Ended June 30, 20252024U.S. federal statutory tax rate21.0 %21.0 %State income taxes, net of federal tax benefit5.7 11.5 Foreign tax rate differential0.3 2.9 General business credits1.6 24.9 Stock-based compensation(4.9)(12.6)IRC 162(m) limitation2.3 7.5 Bank-owned life insurance income2.0 8.7 Bank-owned life insurance surrender— (3.1)Nondeductible expenses and penalties(0.3)(65.5)Global intangible low-tax income tax(0.2)(3.2)Other(0.1)(0.1)Effective tax rate27.4 %(8.0)%

Our income tax benefit totaled $8.0 million for the six months ended June 30, 2025, representing an increase of $9.8 million, or 550%, from the prior year comparable period, driven primarily by the same factors discussed above under “Comparison of Three-Month Periods Ended June 30, 2025 and 2024—Income Tax Expense and Benefit."

The increase in our effective tax rate for the six months ended June 30, 2025 from the prior year comparable period was due to several factors, including an increase of $1.0 million in the amount of compensation expense that was subject to the IRC 162(m) limitation on the deductibility of certain executive compensation, a reduced tax rate benefit due to a decrease of $0.6 million in general business credits, an increase of $0.9 million in state income taxes expense, net of federal benefits, and a lower tax rate benefit from the cash surrender value in bank-owned life insurance policies. These increases were partially offset by a decrease of $0.8 million in tax expense associated with shortfalls from stock-based compensation, a decrease of $0.7 million related to bank-owned life insurance surrender penalties we incurred in connection with the surrender and restructuring of our existing bank-owned life insurance policies in 2024, and a decrease of $14.5 million in tax expense from nondeductible expenses and penalties associated with the