Revenue materially beat the published expectation, but earnings did not. Non-GAAP revenue reached $591.3 million versus a published consensus of roughly $537 million, while non-GAAP diluted EPS was $0.26 versus approximately $0.37 expected. That makes the quarter a clear top-line beat but an earnings miss overall.
| Metric | Q2 2026 | Q2 2025 | Change / expectation |
|---|---|---|---|
| Non-GAAP revenue | $591.3M | $501.2M | +18%; versus ~$537M consensus |
| Adjusted EBITDA | $40.2M | $45.4M | -12% |
| Adjusted EBITDA margin | 6.8% | 9.1% | Down 2.3 percentage points |
| Non-GAAP net income | $14.9M | $22.2M | -33% |
| Non-GAAP diluted EPS | $0.26 | $0.40 | -35%; versus ~$0.37 consensus |
| GAAP diluted EPS | $(0.04) | $(0.85) | Improved year over year |
The revenue growth is concentrated in the more promising B2B business. B2B revenue rose to $448.4 million from $348.7 million, while B2B segment profit increased to $32.4 million from $28.0 million. Money Movement revenue fell year over year because tax-processing revenue shifted into the first quarter, although the segment remained up year to date. (Segment Revenue; Segment Profit)
The central weakness is conversion of revenue into profit. Processing expenses rose 35% to $394.7 million, well ahead of the 18% revenue increase, pushing adjusted EBITDA down 12% and reducing the margin from 9.1% to 6.8%. Consumer Services remained the drag: revenue declined to $84.8 million from $93.1 million and segment profit fell to $25.8 million from $33.1 million. (Income Statement; Segment Revenue; Segment Profit)
The year-to-date picture is better than the quarter, but not enough to erase the margin issue. Six-month adjusted EBITDA increased 5% to $142.6 million, while non-GAAP EPS declined 5% to $1.38. The company attributes the quarterly profit decline partly to tax-season timing, but the filing also shows ongoing Consumer weakness and lower BaaS margins from mix. (Financial Highlights; Segment Profit)
The acquisition remains the main forward context, not a new catalyst from this filing. Green Dot again disclosed that Smith Ventures plans to acquire the non-bank fintech operations and CommerceOne plans to acquire Green Dot Bank; shareholder approval and early HSR termination are already complete, but bank-regulatory approvals and customary closing conditions remain outstanding. The company also withheld 2026 guidance and an earnings call because of the pending transactions. (Proposed Transactions; Outlook)
Net read: a mixed quarter that lands as an earnings miss. The large revenue beat and improving B2B trends are meaningful, but the market expected profitability alongside that growth, and adjusted EPS came in below consensus while margins compressed. The result therefore improves the growth narrative without confirming stronger near-term earnings conversion.
Read the original 8-K on SEC EDGAR ↗