Green Dot Reports Third Quarter 2021 Results

1

Reconciliations of total operating revenues to non-GAAP total operating revenues, net income to non-GAAP net income, diluted earnings per share to non-GAAP diluted earnings per share, and net income to adjusted EBITDA, respectively, are provided in the tables immediately following the consolidated financial statements. Additional information about the Company's non-GAAP financial measures can be found under the caption “About Non-GAAP Financial Measures” below.

2021

2020

Q3

Q2

Q1

Q4

Q3

Q2

Q1

(In millions)

Consolidated (1)

Gross dollar volume

$

16,404

$

17,399

$

20,666

$

14,349

$

14,453

$

15,107

$

14,294

Number of active accounts

5.37

6.03

6.35

5.45

5.72

6.25

5.74

Purchase volume

$

7,356

$

8,870

$

10,445

$

6,861

$

7,600

$

8,477

$

8,282

Consumer Services

Gross dollar volume

$

6,811

$

8,188

$

10,156

$

7,562

$

8,333

$

8,683

$

7,561

Number of active accounts

3.38

3.97

4.07

3.73

3.98

4.10

3.70

Direct deposit active accounts

0.83

0.92

0.97

0.88

0.91

0.90

0.89

Purchase volume

$

5,166

$

6,455

$

7,138

$

5,176

$

5,840

$

6,123

$

5,555

B2B Services

Gross dollar volume

$

9,593

$

9,211

$

10,510

$

6,787

$

6,120

$

6,424

$

6,733

Number of active accounts

1.99

2.06

2.28

1.72

1.74

2.15

2.04

Purchase volume

$

2,190

$

2,415

$

3,307

$

1,685

$

1,760

$

2,354

$

2,727

Money Movement

Number of cash transfers

10.05

10.19

10.32

11.29

12.81

12.48

12.13

Number of tax refunds processed

0.43

4.15

7.44

0.11

0.75

1.90

9.70

(1) Represents the sum of Green Dot's Consumer Services and B2B Services segments.

Range

Low

High

(In millions, except per share data)

Adjusted EBITDA

$

217.0

$

223.0

Depreciation and amortization*

(58.0)

(58.0)

Non-GAAP pre-tax income

$

159.0

$

165.0

Tax impact**

(36.6)

(38.0)

Non-GAAP net income

$

122.4

$

127.1

Non-GAAP diluted weighted-average shares issued and outstanding

56.0

56.0

Non-GAAP earnings per share

$

2.19

$

2.27

*

Excludes the impact of amortization of acquired intangible assets

**

Assumes a non-GAAP effective tax rate of approximately 23% for full year.

2

For additional information, see reconciliations of forward-looking guidance for these non-GAAP financial measures to their respective, most directly comparable projected GAAP financial measures provided in the tables immediately following the reconciliation of Net Income to Adjusted EBITDA.

GREEN DOT CORPORATION

CONSOLIDATED BALANCE SHEETS

September 30, 2021

December 31, 2020

(unaudited)

Assets

(In thousands, except par value)

Current assets:

Unrestricted cash and cash equivalents

$

1,804,826

$

1,491,842

Restricted cash

4,150

4,859

Settlement assets

452,602

782,262

Accounts receivable, net

74,474

67,755

Prepaid expenses and other assets

62,764

66,705

Income tax receivable

990

—

Total current assets

2,399,806

2,413,423

Investment securities available-for-sale, at fair value

1,188,216

970,969

Loans to bank customers, net of allowance for loan losses of $7,451 and $757 as of September 30, 2021 and December 31, 2020, respectively

28,157

21,011

Prepaid expenses and other assets

131,180

40,481

Property, equipment, and internal-use software, net

132,276

133,400

Operating lease right-of-use assets

11,308

13,134

Deferred expenses

7,379

18,332

Net deferred tax assets

18,683

12,739

Goodwill and intangible assets

474,344

491,778

Total assets

$

4,391,349

$

4,115,267

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

41,956

$

34,823

Deposits

2,959,386

2,735,116

Obligations to customers

122,522

95,375

Settlement obligations

12,705

17,759

Amounts due to card issuing banks for overdrawn accounts

438

235

Other accrued liabilities

120,455

145,359

Operating lease liabilities

7,516

8,175

Deferred revenue

14,576

28,584

Income tax payable

11,265

12,146

Total current liabilities

3,290,819

3,077,572

Other accrued liabilities

2,190

4,275

Operating lease liabilities

9,209

16,396

Net deferred tax liabilities

7,192

7,192

Total liabilities

3,309,410

3,105,435

Stockholders’ equity:

Class A common stock, $0.001 par value; 100,000 shares authorized as of September 30, 2021 and December 31, 2020; 54,671 and 54,034 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively

55

54

Additional paid-in capital

386,465

354,460

Retained earnings

709,893

651,890

Accumulated other comprehensive (loss) income

(14,474)

3,428

Total stockholders’ equity

1,081,939

1,009,832

Total liabilities and stockholders’ equity

$

4,391,349

$

4,115,267

GREEN DOT CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

(In thousands, except per share data)

Operating revenues:

Card revenues and other fees

$

202,482

$

146,648

$

586,431

$

440,723

Cash processing revenues

47,516

57,526

205,256

246,042

Interchange revenues

85,888

84,876

298,229

271,712

Interest income, net

3,613

2,020

12,442

11,002

Total operating revenues

339,499

291,070

1,102,358

969,479

Operating expenses:

Sales and marketing expenses

84,002

96,189

299,412

319,738

Compensation and benefits expenses

65,045

61,077

199,996

173,009

Processing expenses

95,731

74,158

287,716

216,624

Other general and administrative expenses

85,891

62,296

240,616

198,519

Total operating expenses

330,669

293,720

1,027,740

907,890

Operating income (loss)

8,830

(2,650

)

74,618

61,589

Interest expense, net

38

39

113

723

Other income (expense), net

849

(1,650

)

1,396

696

Income (loss) before income taxes

9,641

(4,339

)

75,901

61,562

Income tax expense (benefit)

2,306

(1,347

)

17,898

14,415

Net income (loss)

$

7,335

$

(2,992

)

$

58,003

$

47,147

Basic earnings (loss) per common share:

$

0.13

$

(0.06

)

$

1.06

$

0.89

Diluted earnings (loss) per common share:

$

0.13

$

(0.06

)

$

1.04

$

0.87

Basic weighted-average common shares issued and outstanding:

54,221

52,635

53,961

52,269

Diluted weighted-average common shares issued and outstanding:

55,415

52,635

55,180

53,455

GREEN DOT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Nine Months Ended September 30,

2021

2020

(In thousands)

Operating activities

Net income

$

58,003

$

47,147

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization of property, equipment and internal-use software

42,446

43,014

Amortization of intangible assets

20,831

21,175

Provision for uncollectible overdrawn accounts from purchase transactions

14,201

6,743

Provision for loan losses

18,728

501

Stock-based compensation

37,111

36,793

(Earnings) losses in equity method investments

(1,314

)

4,313

Realized gain on sale of available-for-sale investment securities

—

(5,062

)

Amortization of premium on available-for-sale investment securities

2,330

618

Amortization of deferred financing costs

127

127

Impairment of long-lived assets

—

1,099

Changes in operating assets and liabilities:

Accounts receivable, net

(20,920

)

8,625

Prepaid expenses and other assets

4,595

12,724

Deferred expenses

10,953

10,031

Accounts payable and other accrued liabilities

(17,706

)

19,471

Deferred revenue

(14,326

)

(15,068

)

Income tax receivable/payable

(1,846

)

8,842

Other, net

(5,979

)

(2,242

)

Net cash provided by operating activities

147,234

198,851

Investing activities

Purchases of available-for-sale investment securities

(374,754

)

(295,287

)

Proceeds from maturities of available-for-sale securities

124,482

80,840

Proceeds from sales and calls of available-for-sale securities

6,823

187,830

Payments for acquisition of property and equipment

(39,644

)

(43,898

)

Net changes in loans

(25,874

)

493

Investment in TailFin Labs, LLC

(35,000

)

(35,000

)

Purchase of bank-owned life insurance policies

(55,000

)

—

Other

(688

)

(916

)

Net cash used in investing activities

(399,655

)

(105,938

)

Financing activities

Borrowings on revolving line of credit

—

100,000

Repayments on revolving line of credit

—

(135,000

)

Proceeds from exercise of options and ESPP purchases

5,283

5,104

Taxes paid related to net share settlement of equity awards

(10,388

)

(8,153

)

Net changes in deposits

221,048

1,108,354

Net changes in settlement assets and obligations to customers

351,753

(84,304

)

Contingent consideration payments

(3,000

)

(3,000

)

Net cash provided by financing activities

564,696

983,001

Net increase in unrestricted cash, cash equivalents and restricted cash

312,275

1,075,914

Unrestricted cash, cash equivalents and restricted cash, beginning of period

1,496,701

1,066,154

Unrestricted cash, cash equivalents and restricted cash, end of period

$

1,808,976

$

2,142,068

Cash paid for interest

$

1,174

$

839

Cash paid for income taxes

$

19,394

$

5,497

Reconciliation of unrestricted cash, cash equivalents and restricted cash at end of period:

Unrestricted cash and cash equivalents

$

1,804,826

$

2,136,375

Restricted cash

4,150

5,693

Total unrestricted cash, cash equivalents and restricted cash, end of period

$

1,808,976

$

2,142,068

GREEN DOT CORPORATION

REPORTABLE SEGMENTS

(UNAUDITED)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Segment Revenue

(In thousands)

Consumer Services

$

167,455

$

150,554

$

533,889

$

466,115

B2B Services

118,171

77,064

336,735

227,523

Money Movement Services

45,596

56,536

201,982

242,255

Corporate and Other

(2,298

)

(4,710

)

(5,939

)

(9,889

)

Total segment revenues

328,924

279,444

1,066,667

926,004

Net revenue adjustment (8)

10,575

11,626

35,691

43,475

Total operating revenues

$

339,499

$

291,070

$

1,102,358

$

969,479

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

Segment Profit

(In thousands)

Consumer Services

$

60,084

$

51,494

$

169,401

$

160,291

B2B Services

18,501

16,372

54,208

52,526

Money Movement Services

18,718

17,974

105,724

112,535

Corporate and Other

(51,057

)

(52,151

)

(146,803

)

(154,295

)

Total segment profit *

46,246

33,689

182,530

171,057

Reconciliation to income (loss) before income taxes

Depreciation and amortization of property, equipment and internal-use software

15,265

14,839

42,446

43,014

Stock based compensation and related employer taxes

11,579

12,018

37,205

37,354

Amortization of acquired intangible assets

6,944

6,944

20,831

21,175

Impairment charges

—

31

—

1,099

Other expense

3,628

2,507

7,430

6,826

Operating income (loss)

8,830

(2,650

)

74,618

61,589

Interest expense, net

38

39

113

723

Other income (expense), net

849

(1,650

)

1,396

696

Income (loss) before income taxes

$

9,641

$

(4,339

)

$

75,901

$

61,562

* Total segment profit is also referred to herein as adjusted EBITDA in its non-GAAP measures. Additional information about the Company's non-GAAP financial measures can be found under the caption “About Non-GAAP Financial Measures."

GREEN DOT CORPORATION

Reconciliation of Total Operating Revenues to Non-GAAP Total Operating Revenues (1)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

(In thousands)

Total operating revenues

$

339,499

$

291,070

$

1,102,358

$

969,479

Net revenue adjustments (8)

(10,575

)

(11,626

)

(35,691

)

(43,475

)

Non-GAAP total operating revenues

$

328,924

$

279,444

$

1,066,667

$

926,004

Reconciliation of Net Income to Non-GAAP Net Income (1)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

(In thousands, except per share data)

Net income (loss)

$

7,335

$

(2,992

)

$

58,003

$

47,147

Stock-based compensation and related employer payroll taxes (3)

11,579

12,018

37,205

37,354

Amortization of acquired intangible assets (4)

6,944

6,944

20,831

21,175

Transaction costs (4)

608

—

1,732

—

Amortization of deferred financing costs (5)

42

43

126

127

Impairment charges (5)

—

31

—

1,099

Extraordinary severance expenses (6)

665

2,716

3,913

7,035

Legal settlement expenses (gain) (5)

2,300

(208

)

2,310

(208

)

(Earnings) losses in equity method investments (5)

(736

)

1,597

(1,314

)

4,313

Realized gain on sale of investment securities (5)

—

—

—

(5,062

)

Other (income) expense, net (5)

(58

)

52

(607

)

52

Income tax effect (7)

(4,724

)

(6,406

)

(14,381

)

(15,447

)

Non-GAAP net income

$

23,955

$

13,795

$

107,818

$

97,585

Diluted earnings (loss) per common share

GAAP

$

0.13

$

(0.06

)

$

1.04

$

0.87

Non-GAAP

$

0.43

$

0.25

$

1.94

$

1.80

Diluted weighted-average common shares issued and outstanding

GAAP

55,415

52,635

55,180

53,455

Non-GAAP

55,849

54,841

55,694

54,291

Reconciliation of GAAP to Non-GAAP Diluted Weighted-Average

Shares Issued and Outstanding

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

(In thousands)

Diluted weighted-average shares issued and outstanding

55,415

52,635

55,180

53,455

Weighted-average unvested Walmart restricted shares (9)

434

759

514

836

Anti-dilutive shares due to GAAP net loss

—

1,447

—

—

Non-GAAP diluted weighted-average shares issued and outstanding

55,849

54,841

55,694

54,291

GREEN DOT CORPORATION

Supplemental Detail on Non-GAAP Diluted Weighted-Average Common Shares Issued and Outstanding

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

(In thousands)

Class A common stock outstanding as of September 30:

54,671

53,459

54,671

53,459

Weighting adjustment

(16

)

(65

)

(196

)

(354

)

Dilutive potential shares:

Stock options

506

426

483

208

Service based restricted stock units

417

751

440

658

Performance-based restricted stock units

252

231

277

298

Employee stock purchase plan

19

39

19

22

Non-GAAP diluted weighted-average shares issued and outstanding

55,849

54,841

55,694

54,291

Reconciliation of Net Income to Adjusted EBITDA (1)

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2021

2020

2021

2020

(In thousands)

Net income (loss)

$

7,335

$

(2,992

)

$

58,003

$

47,147

Interest expense, net (2)

38

39

113

723

Income tax expense (benefit)

2,306

(1,347

)

17,898

14,415

Depreciation and amortization of property, equipment and internal-use software (2)

15,265

14,839

42,446

43,014

Stock-based compensation and related employer payroll taxes (2)(3)

11,579

12,018

37,205

37,354

Amortization of acquired intangible assets (2)(4)

6,944

6,944

20,831

21,175

Transaction costs (2)(4)

608

—

1,732

—

Impairment charges (2)(5)

—

31

—

1,099

Extraordinary severance expenses (2)(6)

665

2,716

3,913

7,035

(Earnings) losses in equity method investments (2)(5)

(736

)

1,597

(1,314

)

4,313

Realized gain on sale of investment securities (2)(5)

—

—

—

(5,062

)

Legal settlement expenses (gain) (2)(5)

2,300

(208

)

2,310

(208

)

Other (income) expense, net (2)(5)

(58

)

52

(607

)

52

Adjusted EBITDA

$

46,246

$

33,689

$

182,530

$

171,057

Non-GAAP total operating revenues

$

328,924

$

279,444

$

1,066,667

$

926,004

Adjusted EBITDA/Non-GAAP total operating revenues (adjusted EBITDA margin)

14.1

%

12.1

%

17.1

%

18.5

%

GREEN DOT CORPORATION

Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to

Projected GAAP Total Operating Revenues (1)

(Unaudited)

FY 2021

Range

Low

High

(In millions)

Total operating revenues

$

1,418

$

1,428

Net revenue adjustments (8)

(48

)

(48

)

Non-GAAP total operating revenues

$

1,370

$

1,380

Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to

Projected GAAP Net Income (1)

(Unaudited)

FY 2021

Range

Low

High

(In millions)

Net income

$

56.4

$

60.9

Adjustments (10)

160.6

162.1

Adjusted EBITDA

$

217.0

$

223.0

Non-GAAP total operating revenues

$

1,380

$

1,370

Adjusted EBITDA / Non-GAAP total operating revenues (Adjusted EBITDA margin)

15.7

%

16.3

%

Reconciliation of Forward Looking Guidance for Non-GAAP Financial Measures to

Projected GAAP Net Income and GAAP Diluted Weighted-Average Shares Issued and Outstanding (1)

(Unaudited)

FY 2021

Range

Low

High

(In millions, except per share data)

Net income

$

56.4

$

60.9

Adjustments (10)

66.1

66.1

Non-GAAP net income

$

122.4

$

127.1

Diluted earnings per share

GAAP

$

1.02

$

1.10

Non-GAAP

$

2.19

$

2.27

Diluted weighted-average shares issued and outstanding

GAAP

55.5

55.5

Weighted-average unvested Walmart restricted shares (9)

0.5

0.5

Non-GAAP

56.0

56.0

(1)

To supplement Green Dot’s consolidated financial statements presented in accordance with GAAP, Green Dot uses measures of operating results that are adjusted to exclude various, primarily non-cash, expenses and charges. These financial measures are not calculated or presented in accordance with GAAP and should not be considered as alternatives to or substitutes for operating revenues, operating income, net income or any other measure of financial performance calculated and presented in accordance with GAAP. These financial measures may not be comparable to similarly-titled measures of other organizations because other organizations may not calculate their measures in the same manner as Green Dot does. These financial measures are adjusted to eliminate the impact of items that Green Dot does not consider indicative of its core operating performance. You are encouraged to evaluate these adjustments and the reasons Green Dot considers them appropriate.

Green Dot believes that the non-GAAP financial measures it presents are useful to investors in evaluating Green Dot’s operating performance for the following reasons:

• Green Dot records stock-based compensation from period to period, and recorded stock-based compensation expenses and related employer payroll taxes, net of forfeitures, of approximately $11.6 million and $12.0 million for the three months ended September 30, 2021 and 2020, respectively. By comparing Green Dot’s adjusted EBITDA, non-GAAP net income and non-GAAP diluted earnings per share in different historical periods, investors can evaluate Green Dot’s operating results without the additional variations caused by stock-based compensation expense and related employer payroll taxes, which may not be comparable from period to period due to changes in the fair market value of Green Dot’s Class A common stock (which is influenced by external factors like the volatility of public markets and the financial performance of Green Dot’s peers) and is not a key measure of Green Dot’s operations;

• adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to items, such as non-operating net interest income and expense, income tax benefit and expense, depreciation and amortization, stock-based compensation and related employer payroll taxes, changes in the fair value of contingent consideration, transaction costs, impairment charges, severance costs related to extraordinary personnel reductions, certain legal settlement charges, earnings or losses from equity method investments, realized gains or losses on the sale of investment securities, and other charges and income that can vary substantially from company to company depending upon their respective financing structures and accounting policies, the book values of their assets, their capital structures and the methods by which their assets were acquired; and

• securities analysts use adjusted EBITDA as a supplemental measure to evaluate the overall operating performance of companies.

Green Dot’s management uses the non-GAAP financial measures:

• as measures of operating performance, because they exclude the impact of items not directly resulting from Green Dot’s core operations;

• for planning purposes, including the preparation of Green Dot’s annual operating budget;

• to allocate resources to enhance the financial performance of Green Dot’s business;

• to evaluate the effectiveness of Green Dot’s business strategies;

• to establish metrics for variable compensation; and

• in communications with Green Dot’s board of directors concerning Green Dot’s financial performance.

Green Dot understands that, although adjusted EBITDA and other non-GAAP financial measures are frequently used by investors and securities analysts in their evaluations of companies, these measures have limitations as an analytical tool, and you should not consider them in isolation or as substitutes for analysis of Green Dot’s results of operations as reported under GAAP. Some of these limitations are:

• that these measures do not reflect Green Dot’s capital expenditures or future requirements for capital expenditures or other contractual commitments;

• that these measures do not reflect changes in, or cash requirements for, Green Dot’s working capital needs;

• that these measures do not reflect non-operating interest expense or interest income;

• that these measures do not reflect cash requirements for income taxes;

• that, although depreciation and amortization are non-cash charges, the assets being depreciated or amortized will often have to be replaced in the future, and these measures do not reflect any cash requirements for these replacements; and

• that other companies in Green Dot’s industry may calculate these measures differently than Green Dot does, limiting their usefulness as comparative measures.

(2)

Green Dot does not include any income tax impact of the associated non-GAAP adjustment to adjusted EBITDA, as the case may be, because each of these non-GAAP financial measures is provided before income tax expense.

(3)

This expense consists primarily of expenses for restricted stock units (including performance-based restricted stock units), performance-based stock options and related employer payroll taxes. Stock-based compensation expense is not comparable from period to period due to changes in the fair market value of Green Dot’s Class A common stock (which is influenced by external factors like the volatility of public markets and the financial performance of Green Dot’s peers) and is not a key measure of Green Dot’s operations. Green Dot excludes stock-based compensation expense from its non-GAAP financial measures primarily because it consists of non-cash expenses that Green Dot does not believe are reflective of ongoing operating results. Green Dot also believes that it is not useful to investors to understand the impact of stock-based compensation to its results of operations. Further, the related employer payroll taxes are dependent upon volatility in Green Dot's stock price, as well as the timing and size of option exercises and vesting of restricted stock units, over which Green Dot has limited to no control. This expense is included as a component of compensation and benefits expenses on Green Dot's consolidated statements of operations.

(4)

Green Dot excludes certain income and expenses that are the result of acquisitions. These acquisition-related adjustments include items such as the amortization of acquired intangible assets, changes in the fair value of contingent consideration, settlements of contingencies established at time of acquisition and other acquisition related charges, such as integration charges and professional and legal fees, which result in Green Dot recording expenses or fair value adjustments in its GAAP financial statements. Green Dot analyzes the performance of its operations without regard to these adjustments. In determining whether any acquisition-related adjustment is appropriate, Green Dot takes into consideration, among other things, how such adjustments would or would not aid in the understanding of the performance of its operations. These items are included as a component of other general and administrative expenses on Green Dot's consolidated statements of operations, as applicable for the periods presented.

(5)

Green Dot excludes certain income and expenses that are not reflective of ongoing operating results. It is difficult to estimate the amount or timing of these items in advance. Although these events are reflected in Green Dot's GAAP financial statements, Green Dot excludes them in its non-GAAP financial measures because Green Dot believes these items may limit the comparability of ongoing operations with prior and future periods. These adjustments include items such as amortization attributable to deferred financing costs, impairment charges related to long-lived assets, earnings or losses from equity method investments, credit-related impairment and/or realized gains or losses on the sale of investment securities, legal settlement expenses and other income and expenses, as applicable for the periods presented. In determining whether any such adjustment is appropriate, Green Dot takes into consideration, among other things, how such adjustments would or would not aid in the understanding of the performance of its operations. Each of these adjustments, except for amortization of deferred financing costs, earnings and losses from equity method investments and credit-related impairment and/or realized gains and losses on the sale of investment securities, which are all included below operating income, are included within other general and administrative expenses on Green Dot's consolidated statements of operations.

(6)

During the three and nine months ended September 30, 2021, Green Dot recorded charges of $0.7 million and $3.9 million, respectively, principally related to severance benefits, which were paid out in connection with the transition and employment agreements of certain former executives and other personnel. Although severance expenses are an ordinary part of its operations, the magnitude and scale of these costs are not indicative of its core operating performance. This expense is included as a component of compensation and benefits expenses on Green Dot's consolidated statements of operations.

(7)

Represents the tax effect for the related non-GAAP measure adjustments using Green Dot's year to date non-GAAP effective tax rate. It also excludes both the impact of excess tax benefits related to stock-based compensation and the IRC §162(m) limitation that applies to performance-based restricted stock units and stock options expense as of September 30, 2021.

(8)

Represents commissions and certain processing-related costs associated with Banking as a Service ("BaaS") products and services where Green Dot does not control customer acquisition. This adjustment is netted against Green Dot's B2B Services revenues when evaluating segment performance.

(9)

Represents the weighted average of the unvested balance of restricted shares issued to Walmart in January 2020. Walmart is entitled to voting rights and participate in any dividends paid on the unvested balance and therefore, the shares are included in the computation of non-GAAP diluted earnings per share.

(10)

These amounts represent estimated adjustments for non-operating net interest income, income taxes, depreciation and amortization, employee stock-based compensation and related employer taxes, contingent consideration, transaction costs, impairment charges, severance costs related to extraordinary personnel reductions, earnings and losses from equity method investments, realized gains and losses from investment securities, legal settlement gains and expenses and other income and expenses. Employee stock-based compensation expense includes assumptions about the future fair value of the Company’s Class A common stock (which is influenced by external factors like the volatility of public markets and the financial performance of the Company’s peers).