Green Dot Posts 109% Net Income Gain Ahead of Sale

Green Dot, a FinTech and bank holding company serving consumers and businesses, continued strengthening its platform and optimizing its balance sheet during the first quarter as it readies for acquisition, Green Dot CEO William Jacobs said in a Monday (May 11) earnings release.

“These efforts help ensure the company has a strong foundation and ample growth opportunity going forward, as well as in its next chapter with Smith Ventures and CommerceOne,” Jacobs said in the release.

Green Dot announced in November that it was selling its nonbank financial technology business and operations to Smith Ventures, which is a private equity company, and its Green Dot Bank to CommerceOne Financial, which is the parent company of Birmingham, Alabama-headquartered CommerceOne Bank.

The company did not host an earnings call about its first-quarter financial results because of these proposed transactions, according to the Monday release. The closing of the transactions remains subject to shareholder approval, regulatory approval and other customary closing conditions.

“The parties received early termination of the waiting period under the Hart-Scott-Rodino Act and have filed regulatory applications to all applicable U.S. federal and state bank authorities,” the company said in the release.

In the first quarter, Green Dot grew its total operating revenues 17% year over year to $656.2 million, its net income 109% to $53.8 million, and its diluted earnings per common share 98% to 93 cents.

The company’s first-quarter performance was led by its tax processing business and outperformance in several other divisions, Green Dot Chief Financial Officer Jess Unruh said in the release.

“As we continue making investments that support top-line growth, we are also building a culture of cost discipline that helps drive our bottom-line results, as we benefited from modestly lower operating expenses in the quarter,” Unruh said.

During the first quarter, Green Dot announced in a March 5 press release that money transfer company DolFinTech introduced new demand deposit accounts (DDAs) powered by Green Dot’s embedded finance platform.

The companies said in the release that DolFinTech serves outbound remittance markets in the United States, Canada and Spain to more than 20 destination countries, and that the new DDAs are designed to empower Hispanic and other underserved communities.

DolFinTech has more than 500 company stores, 5,000 retail agent locations and a growing digital presence, per the release.

In its Monday press release, Green Dot said: “In the first quarter of 2026, Green Dot maintained a strong pipeline of prospective partners that continue to present substantial growth opportunities via its fee-based transaction revenues and through deposits that are strategically invested in high-quality, interest-bearing assets.”

The PYMNTS Intelligence report “The Embedded Finance Scale Factor: How Firm Size Shapes Strategy, Technology and Partnership Decisions,” a Green Dot collaboration, found that about 80% of small and middle-market firms plan to upgrade their embedded finance capabilities within the next 12 months.