Green Dot (GDOT) faces sale talks, CEO shakeup, and regulatory blowback


It’s not often a company with customers like Apple (AAPL), Amazon (AMZN), and Intuit (INTU) finds itself in crisis mode.

That appears to be the case with Green Dot (GDOT), an Utah-based digital bank and fintech pioneer behind many of the prepaid card services consumers rely on today.

Last month, Green Dot announced that its board had tapped Citigroup to “explore potential strategic alternatives.”

Citi is one of the top dealmakers on Wall Street in M&A, signaling that Green Dot could be headed for a major overhaul or acquisition.

“The Board of Directors and management team are committed to acting in the best interests of Green Dot, its stockholders and its stakeholders,” the company said in a press release. “No assurances can be given as to the outcome or timing of the strategic review process.”

For now, there are more questions than answers, but the company’s Q1 earnings call on May 8 may offer some much-needed clarity.

The strategic review wasn’t the only surprise.

Green Dot also disclosed that George Gresham had “ceased serving” as CEO and president. Board chairman William Jacobs has stepped in as interim CEO.

Gresham had only held the job since 2022, replacing Dan Henry who was fired without public explanation.

The stock is down 21.3% year to date.

Mounting losses, shrinking margins, and regulatory pain

Gresham’s exit came just one week after Green Dot reported a net loss of $27.6 million for 2024.

Despite serving as the banking backbone for Apple Cash, Apple Card, and Walmart’s prepaid debit program, the company has struggled to turn a profit.

Apple-related revenue surged 50% last year to $948 million, accounting for roughly 55% of total revenue, up from 43% in 2023. But margins remain razor thin.

In a recent note, analysts at William Blair warned that incremental costs from Green Dot’s largest BaaS client were squeezing profits.

Meanwhile, revenue from Walmart declined 32% to $171 million, making up just 10% of the top line.

The company’s struggles are not limited to its income statement.

Last summer, the Federal Reserve fined Green Dot $44 million for “unsafe and unsound practices” in the marketing and servicing of prepaid debit cards.

The Fed also cited failures in disclosing refund-related fees tied to tax services between 2017 and 2022.

Back then, Gresham said the violations stemmed from “practices in place years ago” and that the company was “taking meaningful steps to correct and remediate those issues.”

With earnings looming and a sale potentially on the table, Green Dot’s next chapter — or owner — could arrive sooner than expected.


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