It's been no secret that the Pasadena, Calif., company's earnings have floundered amidst lost shelf space at Walmart and other retailers.
In its third quarter, Green Dot's profit fell to $10.6 million, down from $13.3 million from a year earlier. Earnings per share also fell to 24 cents, a 20% drop from the same period in 2011.
"It's not just the lost shelf space, though," says Aite Group senior analyst Madeline K. Aufseeser. "It's the average tenure of the card in the wallet, and how many dollars are getting loaded on those cards… Their average direct deposit ratio is far less than" their competitors.
Green Dot still has a chance to bounce back, she says.
"The market is growing exponentially, Green Dot has just as much opportunity to grow as any other," Aufseeser added.