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Green Dot Corporation (GDOT), the world’s largest prepaid debit card company, has seen its stock price surge nearly 30% year-to-date, trading under $15 a share, following a strong Q2 earnings report in early August. This report revealed an earnings per share (EPS) of $0.40, surpassing expectations of $0.17 by 135% and marking a 60% increase from $0.25 year-over-year.
The company projects annual revenue to exceed $2 billion, following a record $1.72 billion in 2024, driven by strategic partnerships with major companies like Walmart and Uber. Green Dot’s forward earnings multiple is currently 10X, which is notably below the industry average of 15X. Furthermore, fiscal 2025 EPS estimates increased over 10% from $1.22 to $1.35 in the past month.
Green Dot is expanding its Banking as-a-Service (BaaS) footprint, attracting lucrative partnerships that have strengthened its position in the financial transaction services industry. The company’s positive outlook may benefit from anticipated declines in rates, which could increase consumer spending.
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