Dave Inc.

What they do

Dave operates a mobile-first financial platform offering ExtraCash, short-duration (average ~11-12 days) advances underwritten by its proprietary CashAI engine. The company also offers Dave Checking and Dave Debit Card products, and generates subscription revenue. Its regulated bank partners originate certain products; a program agreement with Coastal Community Bank is shifting ExtraCash receivables to an off-balance-sheet structure.

Revenue drivers

• ExtraCash advances — Core product; Q2 2026 originations were $2.3 billion, up 27% year-over-year; net monetization rate of 4.8%. Revenue is tied to fees and tips on advances and assumes credit losses.
• Subscription revenue — Grew 87% year-over-year in Q2 2026 following a mid-2025 price increase from $1 to $3 per month for new members; contributes to higher customer lifetime value.
• Dave Debit Card — Card actives generate ~1.7x monthly ARPU versus non-card users; Q2 2026 card spend was $530 million, up 7% year-over-year, and drives interchange and engagement.

Recent performance

Q2 2026 revenue was $170.8 million, up 30% year-over-year; GAAP net income was $6.7 million, reflecting $36.9 million in non-cash warrant and earnout remeasurement charges. Adjusted EBITDA rose 48% year-over-year to $75.5 million (44% margin). MTMs reached 3.08 million, up 17% year-over-year, and the 28-day past due rate improved to 2.12% from 2.26%. FY2025 revenue was $554.2 million with net income of $196.0 million and EPS of $13.53.

Strategy

Management is deploying CashAI v6.0, launched late in Q2 2026, to improve approval amounts and delinquency rates, and is relaxing legacy fee caps and raising ExtraCash limits to expand ARPU. The Coastal Community Bank program reduces reliance on the debt facility and moves ExtraCash receivables off balance sheet, with coastal retaining a Fed Funds-rate-based variable rate exposure. Dave Flex is in early test cohorts as a new product; management expects MTM growth to accelerate in H2 2026 on strong member acquisition trends. The company raised FY2026 guidance for revenue, Adjusted EBITDA, and Adjusted Diluted EPS.

Risks

• ExtraCash credit risk — Elevated unemployment or reduced consumer spending could impair member settlement capacity; the allowance for credit losses was $37.6 million at December 31, 2025, and underwriting relies on CashAI's accuracy.
• Regulatory/legal exposure — The company faces litigation expenses related to an FTC/DOJ matter, which are now excluded from Adjusted EBITDA, and its products (fees, subscription pricing) could attract additional regulatory scrutiny.
• Bank partner concentration — Dave relies on two bank partners and intends to eventually rely on one; disruption in these relationships or the Coastal transition could affect origination capacity and funding.
• Competition and AI technology risk — The financial services industry is highly competitive, and failure to keep pace with rapid AI developments or member pricing expectations could reduce platform usage and results.

Outlook

For FY2026, management raised revenue guidance to $725-735 million (31-33% year-over-year growth) from $710-720 million, and Adjusted EBITDA to $315-325 million from $305-315 million. The company cites strong first-half performance, product roadmap depth, and expected acceleration in MTM growth in the second half. Adjusted EBITDA margin was 44% in Q2 2026, with management highlighting significant operating leverage.