Good day, and welcome to the Green Dot Corporation Third Quarter 2025 Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. To ask questions, you may press star then 1 on your touch-tone phone. And to withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Timothy Wayne Willi of Investor Relations. Please go ahead.

Thank you, and good afternoon, everyone. Today, we are discussing Green Dot's third quarter 2025 financial and operating results. Following our remarks, we will open the call for your questions. Our most recent earnings release that accompanies this call and webcast can be found at ir.green.com. As a reminder, our comments may include forward-looking statements and expectations regarding future results and performance. Please refer to the cautionary language in the earnings release and Green Dot's filings with the Securities and Exchange Commission, including our most recent Form 10-Ks and 10-Q, for additional information concerning factors that could cause actual results to differ materially from the forward-looking statements. During the call, we will refer to our financial measures that do not conform with generally accepted accounting principles. For the sake of clarity, unless otherwise noted, all numbers we talk about today will be on a non-GAAP basis. Information may be calculated differently than similar non-GAAP data presented by other companies. Quantitative reconciliation of our non-GAAP financial information to the directly comparable GAAP financial information appears in today's press release. The content of this call is the property of the Green Dot Corporation and is subject to copyright protection.

Now I'll turn it over to Bill. Bill?

Good afternoon, and thank you for joining our third quarter 2025 earnings call. Today, I will start with some comments on the quarter and then turn it over to Chris Ruppel for an update on our business development and go-to-market efforts. Jess Unruh will then discuss her financials in more detail, and I will conclude with some final comments and observations before taking your questions. First, regarding the strategic review, we continue to make progress, and we will provide updates when appropriate. Now let's turn to the quarter. It was a strong third quarter with results continuing to outpace our expectations. Adjusted revenue was up 21%, and while adjusted EBITDA declined 17%, the decline was expected, and our EBITDA in the quarter was substantially better than our internal projections. Jess will provide more detail on our financial results shortly. The team remains focused on strengthening our revenue engine by signing and launching new partners in the quarter, driving scale and savings in our operations, and investing in our infrastructure to support customers and partners while ensuring that we position the company for sustainable, long-term growth. As part of these efforts, we moved to cease operations in Shanghai in support of our business needs and growth strategy, including our goals to optimize our platforms and processes and reduce operational and geopolitical risks. We are pleased with the progress we've made on these initiatives thus far. With the transition, our teams have delivered on behalf of our partners and customers. We are seeing continued momentum and increasing demand in embedded finance, the broad range of banking as a service and money processing tools and features offered from our end-to-end embedded finance platform, ARC. During the quarter, we announced the launch of crypto.com's cash earned products feature, launched real-time payments with Dayforce, and announced a new partnership with Stripe as well as new signings with Workday for EWA and AM Scott in the FSC channel. We are preparing for product launches with Dolphintech, Credit Sesame, and other partners across the franchise. And we continued building a strong, healthy pipeline to fuel future growth. On our last call, I discussed our focus on the importance of improving the profitability of our balance sheet. We are making progress in those efforts with a growing list of customers, particularly on our ARC platform. We view balance sheet growth, not just transactions and account growth, as another growth driver in the company. The balance sheet is an important component of our growth and earning story, and we intend to continue to invest in our ability to manage that growth and improve its profitability. Now let me turn it over to Chris Ruppel to provide an update on our development and our go-to-market efforts. Chris?

Thank you, Bill, and good afternoon, everyone. As Bill mentioned, we're continuing to build on the momentum we saw in the first half of the year. The third quarter was busy with new business wins, partner launches, and collaborating with our BaaS, retail, and GDN partners on new initiatives to deliver growth both for us and our partners. Let me touch on several of the more noteworthy developments since our last earnings call. In October, we announced the launch of crypto.com's cash earn feature, a high-yield savings feature added to crypto.com's seamless embedded banking experience. And the initial results are encouraging. We are continuing to explore additional products and features we can bring to crypto.com's platform in the future. Our financial service center channel is also presenting exciting possibilities and growth opportunities. As Bill mentioned, we are very pleased to announce we have signed a new agreement with AmScot, a financial service center leader and a valued money processing partner on our Green Dot network. And as part of the new agreement, we'll expand our relationship to include a demand deposit account offered at Amscot's 235 locations. Additionally, we are excited about the expected launch of Dole Fintech's banking product in retail locations across the country in December. With approximately 5,500 agent locations, Dole Fintech will build on our momentum in the FSC market. This launch, coupled with our relationship with PLS and another recently signed FSC partner including Amscot, is expected to drive new account growth in a relatively new market for Green Dot. That is expected to help offset the declines that we've seen in our retail channel in recent years. We continue to see the FSC channel as an attractive opportunity. These partners are more engaged with their customers, and we believe will view our products as…

Thank you, Chris, and good afternoon, everyone. In the third quarter, our non-GAAP revenue grew 21% year over year while adjusted EBITDA declined 17%. Our top-line growth was primarily driven by the performance of our B2B segment and interest income. This was partially offset by ongoing trends in our consumer segment. Although adjusted EBITDA declined, the reduction was substantially less than anticipated, largely due to high-margin revenue growth, continued expense management efforts, and certain favorable timing factors. Now let me touch on the factors that influence the performance of our segment. Refer to our press release and quarterly slide deck for segment results and key metrics. First up is our B2B segment, which is comprised of our BaaS channel, powered by our ARC platform, and our Rapid Employer Services Division. Revenue growth of just over 30% continues to be driven by a significant BaaS partner along with growth in the rest of the BaaS portfolio. Key operating metrics within the BaaS channel, such as active accounts and purchase volume, continue to show solid increases as we collaborate to drive growth with existing partners and launch new ones. We're doing a great job helping our partners grow their programs and find new ways to offer more products and services to their customers. At the same time, we're focused on the partnerships we've just rolled out and busy working on new integrations. Thanks to what we've achieved so far and the strong pipeline of upcoming launches and opportunities, I feel really good about the BaaS channel keeping up its positive momentum. Our Rapid Employer Services channel continues to show the challenges faced by our partners in the staffing industry. Similar to previous quarters, revenue declined because there were fewer active accounts and less transaction activity. Although the staffing sector has yet to…

Thank you, Jess. It was another solid quarter, and we are pleased with the progress we are making as we sign, launch, and expand our partnerships. At the same time, we're working to improve the profitability of our balance sheet and continue executing on our operational imperatives, including realigning our resources to support our core priorities and growth strategy. We launched crypto.com in the quarter, and we are preparing to launch Credit Sesame and other recently signed BaaS partners, as well as two new FSC partners and Stripe as a money processing partner, helping us capture the opportunities in the SMB market. Just as important, those customers that we have worked with for many years continue to place their trust in us to help them deliver on their own aspirations for embedded finance. And we are thrilled that they recognize the value of partnering with us with numerous renewals and product launches. While it is still early to provide guidance for 2026, let me provide you with my perspective as we begin to exit 2025 and think more intently about 2026. Over the last several years, Green Dot has navigated a variety of challenges and headwinds. This put pressure on our bottom line results as we chose to simultaneously invest in the future of Green Dot. Based on our results this year and our updated outlook, I believe we have stabilized and helped to position the company for sustainable growth. As I think about 2026, I believe that we have a solid stepping-off point to work with based on our 2025 performance. There are still many things to take into consideration. We continue to face some headwinds in our consumer business, and we have investments we would like to make that got shelved in prior years. But unlike prior years,…

We will now begin the question and answer session. To ask a question, please press star then 1 on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. And to withdraw your question, please press star then 2. Please limit yourself to one question and one follow-up. And if you have further questions, you may reenter the question queue. Our first question for today will come from Cristopher Kennedy with William Blair. Please go ahead.

Yes. Good afternoon. Thanks for taking the question. You talked about the strong demand for embedded finance and the rising tide. Can you just talk about what's driving that? Is it an improved regulatory environment? Or what else are you seeing out there in the market?

Chris, thank you for your question. This is Chris Ruppel. I think we've talked in the past about the pipeline that we're building in our business development efforts. And I think when we talk about the rising tide, that's both through surveys. We see companies that are interested in bringing embedded finance solutions into their customer ecosystems through their mobile apps or other environments to help deepen those relationships, monetize those relationships in different ways, and provide greater utility to their customers. And so that's generating demand. We see that increasingly being accepted as a strategic imperative for those companies. And so that, coupled with our business development efforts and our sort of rising appreciation of our value in that marketplace and prominence in that marketplace, is allowing us to grow our business development pipeline and give us confidence in our ability to grow the B2B embedded finance segment on a go-forward basis.

Understood. And then just as a follow-up, can you just talk about the timeline to revenue from all the new signings and onboardings that you have this year and kind of how you think that will impact the income statement as we look into 2026? Thank you.

So speaking generally about the timeline, it varies based on the type of solution that we're supporting. Our money movement solutions generally have a lower timeline for implementation. But generally, our current structure is that for closing an account, a new partner this year, often, they're launching in a six to eight-month timeframe. We're bringing that back, so it's been closer to six months. And then there's a revenue ramp with the new customers as they come on board, and that depends on the specifics of their particular solution and whether they have an existing program that we're replacing or if it's a de novo embedded finance solution. And so those things generally tend to cause the revenue ramp to move from sort of anywhere from six months to a year. So, I mean, that's a general timeframe based on implementation and then revenue ramp. So it is an extended ramp as you look out over time, but one that we've walked through with many of the customers and are active in working with those customers to shorten the ramp times within each of those organizations. Jess, I don't know if you have anything else you'd like to add to that.

No. I think that was fine. To reduce the time to onboard. I think that's helpful to investors.

Yeah. Thank you, Bill. So we have an internal project called Project 30. I think we may have discussed this in prior earnings calls, and that's an internal project to move our implementation time down. Our goal for this year was to reduce implementation from a go-live perspective by sixty days. Our ultimate goal is thirty days for technical implementation, recognizing that there are other non-technical factors in the program launches and coordination with customers that often take longer than that. But to the degree that we can reduce the time and effort required for launching new customers, we want to drive that to thirty days and then work on the rest of the promotion of the program and rollout of the program with our partners. So as we think about the business on a go-forward, the timelines I gave are sort of current and where we have been historically, but we intend to reduce those times significantly when we go forward and are actively pursuing a path of work to get there.

Right. Thanks for taking the questions.

Your next question will come from George Frederick Sutton with Craig Hallum. Please go ahead.

Thank you. Pushing a little more on the embedded finance acceleration that you're seeing in the pipeline and in the broader market. I'm just curious, how are you focusing your efforts? Is it high-quality ads? Are there limitations to your ability in terms of the number of folks that you can add at one time? Just curious how you're thinking about that.

George, thank you so much for your question, and I appreciate diving into this. So I think we've talked about in the past that our main focus has always been on helping the world's leading brands power their embedded finance solutions. And so we have been purposely targeting customers that have either large customer bases that they're able to leverage their embedded finance solution into. And so, you know, that's been or have an existing program that they're converting to us. Either way, we know the program has the possibility for significant scale. And since we're looking at those programs, we're looking at those partners. Part of the benefit of our Project 30 initiative is that as we reduce the onboarding time, it'll help our internal ability to go down market into what I say, mid-market customers that we might not take the risk on today. But will be worth pursuing when we have a more streamlined onboarding process and a reduced technical build. And there, we can invest in companies of smaller size that may grow to have scale and to be worthwhile programs where today, we wouldn't take the risk on those programs because of our limitations. And so that's where Project 30 comes into play. But today, we are specifically targeting larger marquee brands that have large installed customer bases they can leverage the opportunity into.

Well, speaking of large brands, obviously, Workday and the EWA space is an enormous win and Stripe on the Green Dot Network side. Can you just give us a sense of the impacts that you could ultimately see once these are both rolled out?

So within Workday, we have achieved integration for our EWA platform with them, and ultimately, it will come down to our ability to close partners in that space. But Workday is a great platform and sort of an indication of the integrations that we're doing with similar systems to allow us to leverage into a greater number of employers across the country to sell either in partnership with those partners or directly into employers that are on various platforms. So we've been working over a multi-year period to create integrations to cover the majority of the market, and we believe we're reaching maturity in that. And Workday is a great example of that, which we're very excited about that partnership and the possibility to service Workday customers and their employees with our EarnWage Access solution. So I think there's potential scale, and it'll take time for us to work through from a sales and marketing perspective. But the technical integration is done, and we can support employers that are engaged using the Workday platform today. I'm very, very excited about that possibility and continue to grow our customer base into the Workday platform. As it relates to Stripe, which is on the money movement space, particularly for business cash depositing into the Stripe ecosystem, we're working with Stripe on their marketing promotion of the service inside of their ecosystem. And we're very excited about that partnership and having success in this first phase, but I think it'll take some time for us to develop and understand the customer need within their platform as they continue to look for and promote into the platform for the use of the cash depositing. But what we see in the rest of our business, the need for cash, the use of cash in the overall economy is still very, very high, so we're bullish on the opportunity. And, of course, the scale that Stripe has in the market would lend to even with modest adoption inside of their platform would be a significant piece of business for us.

Great. Thank you, guys.

This concludes our question and answer session. I would like to turn the conference back over to Mr. William I. Jacobs for any closing remarks.

Well, I'd like to thank everybody for joining us on our call today. We're pleased with the position that Green Dot is in, and we think the future is bright for us. I'd like to thank my associates Jess Unruh and Chris Ruppel, who did a great job today talking to investors. So thank you very much for joining us, and we look forward to talking to you again.

Bye. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.