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•	Total operating revenues on a generally accepted accounting principles (GAAP) basis were $150.9 million for the fourth quarter of 2015 from $150.6 million for the fourth quarter of 2014

•	GAAP net loss was $6.1 million for the fourth quarter of 2015 from GAAP net loss of $0.8 million for the fourth quarter of 2014

•	GAAP basic and diluted loss per common share were $0.12 for the fourth quarter of 2015 from $0.02 for the fourth quarter of 2014

•	Non-GAAP total operating revenues1 were $151.0 million for the fourth quarter of 2015 from $153.0 million for the fourth quarter of 2014

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•	Non-GAAP net income1 was $3.3 million for the fourth quarter of 2015 from $8.3 million for the fourth quarter of 2014

•	Non-GAAP diluted earnings per share1 was $0.06 for the fourth quarter of 2015 from $0.16 for the fourth quarter of 2014

•	Adjusted EBITDA1 was $12.7 million, or 8% of non-GAAP total operating revenues1 for the fourth quarter of 2015 from $25.8 million, or 17% of non-GAAP total operating revenues1 for the fourth quarter of 2014

•	Green Dot Bank received regulatory approval to use its bank charter to engage in consumer lending. The ability to engage in certain lending activities enables Green Dot’s subsidiary bank to increase its profit contribution to the consolidated Green Dot Corporation over time and enables the bank to expand its value to millions of Green Dot’s current prepaid card and checking account customers.

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Green Dot Bank’s first lending product on a national scale will be the Green Dot Bank secured credit card. A “secured credit card” is specifically designed to help consumers establish or improve their credit score with the major credit bureaus. The card works like any Visa or MasterCard credit card, except that the customer makes a collateral deposit in Green Dot Bank equal to the card’s credit line.

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Green Dot’s new lending marketplace initiative, Green Dot Money, is expected to connect interested consumers with interested lenders. While it is in the early stages of development, the Company believes Green Dot Money has the potential to generate increased customer loyalty and high-margin revenue from placement fees paid to Green Dot by the marketplace lenders who are successfully paired with borrowers.

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Green Dot is pleased to announce that it has entered into a multi-year agreement with OneMain Financial to provide an integrated prepaid card solution for the millions of customers who apply for and receive loans from OneMain’s network of 2,000 branches and through its online properties. One of the initiatives between the two companies will be for borrowers to be given the option to place their loan proceeds on a Green Dot/OneMain branded prepaid card in lieu of a check or traditional bank deposit, thereby allowing the customer to access their loan proceeds more quickly and conveniently.

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Green Dot is pleased to welcome AAFES, the Army and Airforce Exchange Service to the list of Green Dot retail locations. “AAFES,” is the superstore retailer on U.S. Army and Air Force installations worldwide. America’s military service men and women represent a large customer segment for Green Dot’s products and services and we are proud to have been chosen to provide our high quality, low-cost FDIC insured bank products to America’s military personnel and their families.

•	Green Dot is pleased to welcome convenience store, Kwik Trip, and their 516 locations as a new Green Dot retail distributor.

•	Green Dot entered into agreements with four new Financial Service Center companies representing over 240 new check cashing stores nationwide selling Green Dot brand prepaid cards and reload services. Green Dot now sells its products and services in over 4,000 FSC locations coast to coast, up from zero locations just three years ago.

•	Since Q4, Green Dot completed an additional $10 million in share buy-backs as part of the company’s previously announced $150 million repurchase authorization. So far, in the first six months since the buy-back program received regulatory approval, Green Dot has repurchased $50 million of its shares. The company is committed to executing the remaining $100 million over the next 24 months.

•	In Q4, 2015, Green Dot successfully completed the first wave of account conversions from its legacy TSYS processing platform to its new MasterCard PTS processing platform. This wave consisted of approximately 33 million consumer records, or approximately 30% of all accounts on file. The Company is on track to complete the remaining conversion waves over the course of 2016.

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In January, Green Dot successfully transitioned its prepaid products, including the new Walmart MoneyCard product and two new Green Dot branded prepaid card products to the company’s modern, efficient and feature-rich “GoBank Product Technology Platform (GoBank PTP). The Company expects this change to increase the efficiency of Green Dot’s operations. Additionally, Green Dot’s new prepaid cards will be able to offer GoBank style features including award-winning mobile apps, the ability to integrate with ApplePay and other mobile payment systems, cash-back rewards, the ability to write paper checks, the ability to receive early credit on direct deposited funds, mobile phone check deposit, person-to-person payments and an embedded FDIC insured savings account.

•	Green Dot has completed its first full year of operation at the company’s state-of-the-art Shanghai, China technology development center, surpassing its internal goals for both the quantity and quality of code produced from this facility.

•	Green Dot’s Enterprise Product Delivery Office (EPDO) has successfully led the completion of phase 1 integration for the AccountNow and AchieveCard acquisitions, generating an incremental $13 million of profit contribution from those subsidiaries through December 31, 2015. Savings resulted from the consolidation of call centers, risk operations, marketing functions and technology functions.

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Green Dot launched a new merchandising initiative with Anderson Merchandisers to ensure in-stock rates of greater than 90% at all Walmart stores nationwide. The initiative calls for merchandisers on the “Green Team” to visit stores weekly to replenish inventory and maintain displays to ensure maximum sales rates of the Company’s prepaid cards, its GoBank checking account and Green Dot’s large variety of Visa gift cards sold under the Walmart brand.

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Green Dot successfully launched the new Walmart MoneyCard product and the new Green Dot Everyday Visa product at all Walmart stores nationwide. Both prepaid products launched on time and on budget and are the first to be powered by Green Dot’s new GoBank PTP. These new prepaid products offer superior features for customers and superior unit economics for Green Dot compared to all previous MoneyCard and Green Dot card versions.

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The roll outs of the new Green Dot Everyday Prepaid Card and the new Green Dot 5% Cash Back Visa Debit Card at Green Dot’s remaining retail locations are on schedule and on budget. The Company expects that by the end of April, substantially all of Green Dot’s top selling retail chains nationwide will be selling these new products, which feature superior features for customers and superior unit economics for Green Dot compared to all previous Green Dot card offerings.

•	The roll out of the new MoneyPak product is on schedule to launch in April 2016. The new MoneyPak, with mobile and web-based risk controls powered by Green Dot’s GoBank Product Technology Platform, is designed to help the company win back former users of the original MoneyPak product.

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TPG, Green Dot’s tax refund processing subsidiary, rolled out a new Green Dot prepaid card integration where customers of EROs using TPG’s refund processing services are offered the opportunity to receive their tax refund on a Green Dot prepaid card. Additionally, select customers can receive up to a $750 advance of their tax refund amount loaded to that Green Dot prepaid card. The program rolled out in January to a select group of independent tax preparers nationwide.

•	Green Dot expects full year non-GAAP total operating revenues to be between $700 million and $705 million.

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•	The Company expects adjusted EBITDA between $154 million and $158 million, including $11 million in unusual incremental launch expenses.

•	The Company expects adjusted EBITDA between $165 million and $169 million, excluding $11 million in unusual incremental launch expense.

•	The Company expects non-GAAP EPS between $1.35 and $1.40, including $11 million in unusual incremental launch expense.

•	The Company expects non-GAAP EPS between $1.48 and $1.53, excluding $11 million in unusual incremental launch expense

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(1)

To supplement the Company’s consolidated financial statements presented in accordance with GAAP, the Company 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 we do. These financial measures are adjusted to eliminate the impact of items that the Company does not consider indicative of its core operating performance. You are encouraged to evaluate these adjustments and the reasons we consider them appropriate.

▪

stock-based retailer incentive compensation is a non-cash GAAP accounting charge that is an offset to the Company’s actual revenues from operations as the Company has historically calculated them. This charge resulted from the monthly lapsing of the Company’s right to repurchase a portion of the 2,208,552 shares it issued to its largest distributor, Walmart, in May 2010. By adding back this charge to the Company’s GAAP total operating revenues, investors can make direct comparisons of the Company’s revenues from operations prior to May 2015, when the repurchase right fully lapsed, and thus more easily perceive trends in the Company’s core operations. Further, because the monthly charge is based on the then-current fair market value of the shares as to which the Company’s repurchase right lapses, adding back this charge eliminates fluctuations in the Company’s operating revenues caused by variations in its stock price and thus provides insight on the operating revenues directly associated with those core operations;

▪

the Company records employee stock-based compensation from period to period, and recorded employee stock-based compensation expenses of approximately $7.9 million and $6.2 million for the three months ended December 31, 2015 and 2014, respectively. By comparing the Company’s adjusted EBITDA, non-GAAP net income and non-GAAP diluted earnings per share in different historical periods, investors can evaluate the Company’s operating results without the additional variations caused by employee stock-based compensation expense, which may not be comparable from period to period due to changes in the fair market 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) and is not a key measure of the Company’s operations;

▪

adjusted EBITDA is widely used by investors to measure a company’s operating performance without regard to items, such as net interest income and expense, income tax benefit and expense, depreciation and amortization, employee stock-based compensation expense, stock-based retailer incentive compensation expense, contingent consideration, other charges and income, transaction costs, and impairment charges 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.

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

▪	for planning purposes, including the preparation of the Company’s annual operating budget;

▪	to allocate resources to enhance the financial performance of the Company’s business;

▪	to evaluate the effectiveness of the Company’s business strategies; and

▪	in communications with the Company’s board of directors concerning the Company’s financial performance.

▪	that these measures do not reflect the Company’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, the Company’s working capital needs;

▪	that these measures do not reflect 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

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▪	that other companies in the Company’s industry may calculate these measures differently than the Company does, limiting their usefulness as comparative measures.

(2)

This expense consists of the recorded fair value of the shares of Class A common stock for which the Company’s right to repurchase has lapsed pursuant to the terms of the May 2010 agreement under which they were issued to Wal-Mart Stores, Inc., a contra-revenue component of the Company’s total operating revenues. The Company does not believe these non-cash expenses are reflective of ongoing operating results. Our right to repurchase any shares issued to Walmart fully lapsed during the three months ended June 30, 2015. As a result, we will no longer recognize stock-based retailer incentive compensation in future periods.

(3)

This expense consists of certain co-op advertising costs recognized as contra-revenue under GAAP. The Company believes the substance of the costs incurred are a result of advertising and is not reflective of ongoing total operating revenues. The Company believes that excluding co-op advertising costs from total operating revenues facilitates the comparison of our financial results to the Company's historical operating results. Prior to 2015, the Company did not have any co-op advertising costs recorded as contra-revenue.

(4)	The Company does not include any income tax impact of the associated non-GAAP adjustment to non-GAAP total operating revenues or adjusted EBITDA, as the case may be, because each of these non-GAAP financial measures is provided before income tax expense.

(5)

This expense consists primarily of expenses for employee stock options and restricted stock units. Employee stock-based compensation expense is not comparable from period to period due to changes in the fair market 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) and is not a key measure of the Company’s operations. The Company excludes employee stock-based compensation expense from its non-GAAP financial measures primarily because it consists of non-cash expenses that the Company does not believe are reflective of ongoing operating results. Further, the Company believes that it is useful to investors to understand the impact of employee stock-based compensation to its results of operations.

(6)

The Company excludes certain income and expenses that are the result of acquisitions. These acquisition related adjustments include 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 the Company recording expenses or fair value adjustments in its GAAP financial statements. The Company analyzes the performance of its operations without regard to these adjustments. In determining whether any acquisition related adjustment is appropriate, the Company takes into consideration, among other things, how such adjustments would or would not aid in the understanding of the performance of its operations.

(7)

The Company 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 the Company's GAAP financial statements, the Company excludes them in it's non-GAAP financial measures because the Company believes these items may limit the comparability of ongoing operations with prior and future periods. These adjustments include amortization attributable to deferred financing costs, impairment charges related to internal-use software and other charges related to gain or loss contingencies. In determining whether any such adjustments is appropriate, the Company takes into consideration, among other things, how such adjustments would or would not aid in the understanding of the performance of its operations.

(8)	Represents the tax effect for the related non-GAAP measure adjustments using the Company's year to date effective tax rate.

(9)

These amounts represent estimated adjustments for net interest income, income taxes, depreciation and amortization, employee stock-based compensation expense, stock-based retailer incentive compensation expense, contingent consideration, other income and expenses and transaction costs. Employee stock-based compensation expense and stock-based retailer incentive compensation expense include assumptions about the future fair market 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).