Green Dot Q2 profit misses estimates, dragged by retail, marketing pressure

The current average analyst rating on the shares is hold. The breakdown of recommendations is 1 strong buy or buy, 2 hold and no sell or strong sell.

The average consensus recommendation for the consumer lending peer group is buy. Wall Street's median 12-month price target for Green Dot Corporation is $16.13, about 22.6% above its August 7 closing price of $13.15.

The stock recently traded at 8 times the next 12-month earnings versus a P/E of 8 three months ago.

Revenue growth in B2B Services was led by a significant BaaS partner and broader portfolio gains, though margins declined due to revenue mix.

Q2 revenue in Money Movement Services declined because tax processing revenue shifted to the first quarter, but year-to-date tax business revenue rose on market share gains and a new franchise partner.

Consumer Services continued to face headwinds from retail channel pressures and reduced marketing spend, though engagement with features like overdraft improved.