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While Clip Money (OTC:CLPMF) reported growth of 248% in Q2 2025 to $1.3 million in revenues, it buried the lede by not calling out that it launched service through Green Dot at 4,000 Walmart stores in the US. Restricted by Walmart from issuing a press release, the launch was found in the company’s MD&A filing. It stated, “On January 10, 2025, Clip partnered with Green Dot Corporation through an agreement providing participation in selected merchant locations through the Green Dot network for cash deposit services. Today, Clip and Green Dot support over 4,000 locations in the U.S. at Walmart locations.” The significance of this should be emphasized. The company has now almost doubled its locations with the flip of a switch, and with that, significantly increased its earnings potential.
Customers have already started using the service at Walmart, and the company thinks that about 20% of the new customers signed up in Q2 came on specifically because the Walmart locations were added. While the company is busy just dealing with potential from these US stores, it hasn’t penetrated Walmart outside the US (Canada seems reasonable) or even Sam’s Club. Many customer leads are coming from Green Dot, leveraging Clip Money’s marketing and sales, but we expect the company could add more staff in 2026, particularly as it focuses on a new bank vertical given its huge footprint.
The company added a net 10 new ClipDrop deposit locations in Q2, 24 new shopping malls, and signed 294 new users, which included new retailer customers: Earthbound Trading Company, Tumi, and a nationwide eyecare customer. The company ended the quarter with 483 ClipDrops installed compared to 347 last year. When you add in 3,500 ATMs and the 4,000 Walmart stores in the Green Dot network, you are at 8,500 locations, far exceeding the reach of any bank. Green Dot has 95,000 outlets; the final number of outlets added will be far more than 4,000, but not the entire 95,000. Management still expects to sign a bank or two this year, as it is an inexpensive way to serve business customers without adding physical locations. With bank deals, Clip Money expects to earn transaction fees, monthly access fees, and an initial integration fee as it did with Green Dot.
Given the company’s current revenue level, we expect gross margins to be positive and improving from now on as economics continue to improve from higher prices charged to new customers combined with economies of scale. With expanding margins and increased revenue, we expect that Clip Money should reach operating breakeven by the end of 2026, if not sooner.
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