Green Dot Corporation (NYSE: GDOT) saw its stock price surge 26.84% in pre-market trading on Tuesday, following the release of its impressive second-quarter 2025 financial results and an upward revision of its full-year guidance. The financial technology company significantly outperformed market expectations, prompting a strong positive reaction from investors.
Green Dot reported Q2 adjusted earnings per share of $0.40, more than doubling the analyst consensus estimate of $0.18 and marking a 60% increase from the same period last year. The company's quarterly revenue also exceeded expectations, coming in at $504.18 million compared to the consensus estimate of $490.57 million, representing a robust 23.8% year-over-year growth. This strong performance demonstrates Green Dot's ability to capitalize on growing demand for its prepaid debit cards and banking services.
Adding to the positive sentiment, Green Dot raised its outlook for the full year 2025. The company now expects adjusted earnings per share between $1.28 and $1.42, up from the previous guidance of $1.14 to $1.28. Additionally, Green Dot increased its adjusted EBITDA forecast to $160-170 million from $150-160 million. The improved guidance signals management's confidence in the company's growth trajectory and operational efficiency, despite reporting a net loss of $47.025 million for the quarter. Analysts note that Green Dot is continuing to pick up traction and build on momentum, particularly in its Banking as a Service (BaaS) offerings with new and expanding partnerships. This positive outlook has led at least one brokerage to raise its price target for the stock, implying further upside potential.