In a recent series of transactions, Topline Capital Management, LLC, and its board member, Collin McBirney, sold a significant portion of their holdings in Green Dot Corp (NYSE:). According to a Form 4 filing with the Securities and Exchange Commission, the sales occurred between December 27 and December 31, 2024, involving a total of 959,180 shares of common stock. The sale comes as Green Dot, with a market capitalization of $570 million, is trading below its fair value according to InvestingPro analysis, with analyst price targets ranging from $10 to $15.
The shares were sold at prices ranging from $10.44 to $10.54 per share, resulting in a total transaction value of approximately $10,071,696. After these transactions, the remaining shares owned by the obligee amount to a total of 5,376,787 shares. These transactions were made via Topline Capital Partners (WA:), LP, a Delaware limited partnership affiliated with Topline Capital Management. Although the company currently maintains a FAIR rating of financial health, analysts expect net income growth in the coming year, and comprehensive details are available in the Pro Research Report covering this fintech player.
The filing said both Topline Capital Management and Collin McBirney disclaim beneficial ownership of the stock other than their pecuniary interest, as noted in the report’s notes.
In other recent news, Green Dot Corp. reported a successful third quarter in 2024, which was marked by a 16% increase in non-GAAP revenue and a 19% year-over-year increase in adjusted EBITDA. This strong performance was due in part to the success of the company’s new embedded financial platform, ARC, and an increase in active accounts, the first since the first quarter of 2021. Despite facing challenges in the retail channel, Green Dot revised its full-year revenue guidance upward to between 1, $65 billion and $1.7 billion, while slightly lowering its adjusted EBITDA guidance for the full year.
These recent developments also include expected modest revenue growth and improved adjusted EBITDA margins in the fourth quarter. The company expects annual adjusted EBITDA to be between $164 million and $166 million. However, ongoing issues with retail channels led to a downward adjustment in adjusted EBITDA guidance for the full year.
The B2B segment, fueled by significant partnerships and the launch of ARC, is expected to drive growth with low revenue growth of 30% in the fourth quarter. Despite the positive developments, the company adjusted its full-year Adjusted EBITDA guidance downward due to a slight decline in cash flow revenue. Green Dot remains committed to improving performance and expanding its portfolio of brands through strategic investments in embedded financing.
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