Nice Quarter for Green Dot: Someone Tell Wall Street

Hidden in its most recent 10-q, Green Dot reports that use of its cards and of its reload products surged.

Green Dot now has more than 5.5 million active general purpose re-loadable cards. Activations were up 33.3 percent relative to the same period a year ago. Reloads, which constitute a great cash flow stream for the company, increased 30.7 percent. If each reload costs $3.95, then Green Dot brings in about $33.4 million per month through MoneyPak and point-of-sale swipe reloads.

The conundrum is that in spite of these results, Green Dot’s shares are in a deep swoon. Net income was up $47.8 percent, yet their shares are down (to $29) by more than 50 percent from their peak in January 2011 ($64).

In other news, Columbus Bank & Trust notified Green Dot that they would not renew their partnership. Columbus Bank & Trust had served as the issuer for Green Dot-branded cards. GE Money Bank issues the Wal-Mart cards operated through Green Dot. That relationship remains in place.