B2B segment revenue grew nearly 40%, driven by a significant BaaS partner and growth in the BaaS portfolio.
Consumer Services segment revenue declined but active account declines moderated, with retail channel showing flat active accounts and slight increases in key metrics.
Corporate segment revenues increased due to higher interest income from balance sheet optimization and bond repositioning.
Green Dot reported a strong Q2 2025 with adjusted revenue up 24% year-over-year and adjusted EBITDA up 34%, both exceeding expectations.
Money Movement segment saw tax business outperform expectations with profits up over 10%, while money processing revenue declined modestly due to lower transaction volumes but improved revenue per transaction.
Non-GAAP EPS reached $0.40 per share, a 60% increase year-over-year.
Overall segment margins were flat year-over-year, with margin improvements in direct channel offsetting retail declines.
Rapid Employer Services revenue declined due to challenges in the staffing industry, but margin expanded by 45 basis points due to improved profitability.
Credit quality improved materially with net charge-offs less than $1 million when normalized for USPS and acquired portfolio impacts.
EBITDA margin for the payments segment improved to approximately 14%, with a long-term goal of exceeding 40%.
Factoring invoice size was influenced by customer mix and market pressures, with a diverse portfolio including both small and large carriers.
Noninterest-bearing deposit growth was strong, driven by mortgage warehouse deposits and payments float.
The Greenscreens acquisition added roughly $10 million in contracted ARR with an expected drag of about $3 million per quarter on earnings due to amortization and expenses.
The second quarter 2025 results showed positive revenue growth, particularly in the transportation businesses.
Adjusted EBITDA was $66 million, representing a 25% margin despite a $7 million headwind from interest income, marking the fifth consecutive quarter of positive adjusted EBITDA excluding interest income.
Customer funds held increased 17% year-over-year to $7 billion, partially offsetting lower interest income due to rate declines.
Net income was $19 million, down from $32 million in the prior year quarter, with basic and diluted EPS at $0.05 versus $0.09 previously.
Operating expenses rose 19% driven by labor costs, transaction costs, acquisitions, and investments in card products and technology.
Payoneer reported Q2 2025 revenues of $261 million, up 9% year-over-year, with revenue excluding interest income reaching a record $202 million, up 16% year-over-year.
Transaction costs increased 10% to $41 million but decreased as a percentage of revenue excluding interest income, reflecting operational efficiencies.
Strategic Balance Sheet Repositioning through Portfolio Sales
U.S. Bancorp divested approximately $6 billion in mortgage and auto loans in Q2, leveraging favorable rate environment for asset sales.
The sale of $4.6 billion in mortgage loans was aimed at shifting the asset mix towards supporting fee growth and higher-margin, multiservice clients.
Proceeds from asset sales were reinvested into investment securities, with a $57 million loss from restructuring, expected to benefit net interest income within 2 years.
The company plans to continue opportunistic asset sales aligned with market conditions to support strategic growth objectives.
Dafinchi