Revenue growth following RushCard deal propels Green Dot

Growth in revenue from prepaid cards helped Green Dot more than double second-quarter profits.

The Pasadena, Calif., company reported net income of $19.3 million, up from $8 million in the same period a year earlier.

The results were helped by a $49.1 million increase in operating revenues, which included $22.8 million in additional card revenues and other fees, as well as a $16.5 million boost in interchange fees.

Green Dot is a prepaid card pioneer that in recent years has expanded into tax refund processing, mobile deposit accounts and other business lines.

Back in February, Green Dot completed the acquisition of UniRush, which added the RushCard brand to the acquiring company's existing line of prepaid cards. At the time the deal was announced, Green Dot projected that by the end of 2017 the acquisition would generate approximately $70 million to $80 million in adjusted revenue, which is not calculated using generally accepted accounting principles.

A little over a year ago, Green Dot CEO Steve Streit was fighting for his job, as a hedge fund that had become the company's largest shareholder sought to oust him from the firm he founded in 1999. But that feud ended in March of this year when a managing director at the hedge fund was named an adviser to Green Dot's board.