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1. Company Snapshot

1.a. Company Description

Dave Inc.provides a suite of financial products and services through its financial service online platform.The company offers Insights, a personal financial management tool to manage income and expenses between paychecks for members; ExtraCash, a free overdraft and short-term credit alternative, which allows members to advance funds to their account and avoid a fee; and Side Hustle, a job application portal.


It also provides Dave Banking, a digital checking and demand deposit account.The company was founded in 2015 and is based in West Hollywood, California.

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1.b. Last Insights on DAVE

Dave Inc.'s recent performance was driven by strong Q4 2024 earnings and revenue beat, with record revenue up 38% Y/Y to $100.9 million and net income increasing $16.6 million Y/Y to $16.8 million. The company's adjusted EBITDA surged 234% Y/Y to $33.4 million, significantly exceeding high-end guidance. Dave's impressive financial performance was fueled by its expanding product offerings, improved execution, and strong end markets, positioning it well for 2025. The company's focus on AI-driven credit underwriting and low-cost digital banking solutions provides a competitive edge, tapping into the underbanked market and reducing customer acquisition costs.

1.c. Company Highlights

2. Strong Q3 Earnings: Dave's Revenue Surges 63%

Daves' Q3 2025 financial results were robust, with revenue growing 63% year-over-year to $150.8 million. Adjusted EBITDA reached $58.7 million, demonstrating the company's ability to scale its business efficiently. Non-GAAP gross profit grew 62% year-over-year to $104.2 million, with a non-GAAP gross margin of 69%. The company's earnings per share (EPS) came in at $4.24, significantly beating estimates of $2.29. The strong EPS was a result of the company's continued focus on improving its credit economics and driving operational leverage.

Publication Date: Nov -21

📋 Highlights
  • Revenue Growth:: Revenue surged 63% YoY to $150.8 million, with adjusted EBITDA reaching $58.7 million.
  • Guidance Raised:: 2025 revenue now projected at $544-547 million; adjusted EBITDA guidance of $215-218 million.
  • Member & Revenue Metrics:: Monthly transacting members hit 2.77 million (+17%), ARPU rose 40%, and ExtraCash originations grew 49%.
  • Credit Performance:: 28-day DPD improved 11 bps to 2.15%, with CashAI v5.5 driving stronger credit outcomes and 200+ model variables.
  • Strategic Shifts:: Transitioning $213 avg. ExtraCash origination size to Coastal Bank by early 2026, freeing up capital and reducing funding obligations.

Key Drivers of Growth

The key drivers of Dave's growth were the 17% increase in monthly transacting members to 2.77 million and a 40% expansion in average revenue per user (ARPU). The company's new pricing model has driven better credit economics, despite slightly higher loss rates. The latest evolution of the company's underwriting engine, CashAI v5.5, has started to deliver stronger conversion, higher approval amounts, and improved credit outcomes. As Jason Wilk noted, CashAI v5.5 has led to superior credit performance, with 200 more variables input into the model.

Credit Performance and Provision Expense

The company is introducing a 28-day days past due (DPD) metric to provide a clearer picture of credit performance. In Q3, the 28-day DPD improved 11 basis points sequentially to 2.15%. The provision expense is expected to improve in Q4, supported by continued credit performance improvements and a more favorable quarter-end calendar. The company's focus on improving its credit economics is expected to drive further improvements in provision expense.

Operating Leverage and Marketing Spend

The company's operating leverage is strong, with an EBITDA margin of roughly 40%. Marketing spend increased to take advantage of favorable LTV to CAC, and the company expects to sustain this level of spend through year-end. The company believes this is a good balance between profitability and investment in new products. The Dave Card has seen 25% growth in Q3, with $510 million in spend, and the company views it as incremental to customer retention and lifetime value.

Valuation Metrics

Daves' current valuation metrics indicate a strong growth profile. The company's P/E Ratio is 16.75, P/S Ratio is 5.14, and EV/EBITDA is 18.07. The company's Return on Equity (ROE) is 65.84%, and Return on Invested Capital (ROIC) is 44.5%. Analysts estimate next year's revenue growth at 16.0%, indicating a continued strong growth trajectory. The company's Net Debt / EBITDA ratio is -0.37, indicating a healthy balance sheet.

Future Initiatives

The company is on track to begin transitioning ExtraCash receivables to a new off-balance sheet structure with Coastal Community Bank in early 2026. This is expected to reduce direct funding obligations, lower the cost of capital, and unlock liquidity. The company is also developing its BNPL product, currently in internal testing, and expects to start customer testing in the first quarter. The pace of ramping up the product will depend on conversion and loss rate performance.

3. NewsRoom

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Amino Innovations Appoints Dave Asprey, Jim Gunning, and Travis Rosbach as Strategic Advisors to Support Brand Growth and Market Expansion

Dec -05

Source: thenewswire.com

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3 Stocks You'll Wish You Bought Before 2026

Dec -03

Source: marketbeat.com

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Is CashAI the Engine Powering Dave's Fintech Momentum?

Dec -03

Source: zacks.com

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VistaPrint Appoints Dave DeSandre as SVP of North America Category Management

Dec -03

Source: businesswire.com

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Champion Homes Appoints Dave McKinstray as EVP, Chief Financial Officer and Treasurer

Dec -02

Source: businesswire.com

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Dave & Buster's Entertainment, Inc. to Report Third Quarter 2025 Financial Results on December 9, 2025

Nov -28

Source: globenewswire.com

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Dave Stock To $256?

Nov -18

Source: forbes.com

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Is DAVE INC (DAVE) Stock Outpacing Its Business Services Peers This Year?

Nov -18

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.81%)

6. Segments

Processing Fees

Expected Growth: 13.5%

Dave Inc.'s 13.5% growth in Processing Fees is driven by increasing adoption of digital payment solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on providing low-cost, convenient payment options has led to higher transaction volumes, contributing to the growth.

Tips

Expected Growth: 14.5%

Dave Inc.'s 14.5% growth is driven by increasing adoption of digital payment solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on user experience, innovative features, and competitive pricing have contributed to its rapid growth.

Transaction

Expected Growth: 13.8%

The 13.8% growth in transactions from Dave Inc. is driven by increasing adoption of digital payment systems, expansion into new markets, and strategic partnerships. Additionally, the company's focus on customer experience, innovative product offerings, and effective cost management have contributed to this growth.

Subscriptions

Expected Growth: 14.2%

Dave Inc.'s 14.2% subscription growth is driven by increasing demand for digital banking services, expansion into new markets, and strategic partnerships. Additionally, the company's user-friendly interface, competitive pricing, and innovative features such as budgeting tools and credit score monitoring have contributed to its growing customer base.

Other

Expected Growth: 13.2%

Dave Inc.'s 13.2% growth in 'Other' segment is driven by increasing adoption of digital payment solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, customer experience, and cost optimization have contributed to this growth.

7. Detailed Products

Dave's Digital Wallet

A mobile application that enables users to store, send, and receive digital currencies securely.

Dave's Cybersecurity Suite

A comprehensive cybersecurity solution that protects against malware, viruses, and other online threats.

Dave's E-commerce Platform

A scalable and customizable e-commerce platform for businesses to sell their products online.

Dave's Artificial Intelligence Services

A range of AI-powered services, including machine learning, natural language processing, and computer vision.

Dave's Cloud Infrastructure

A secure and scalable cloud infrastructure for hosting applications, storing data, and deploying services.

8. Dave Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Dave Inc. is moderate due to the presence of alternative products in the market.

Bargaining Power Of Customers

The bargaining power of customers is high due to the availability of multiple options and the ability to switch to competitors.

Bargaining Power Of Suppliers

The bargaining power of suppliers is low due to the presence of multiple suppliers and the ability to negotiate prices.

Threat Of New Entrants

The threat of new entrants is moderate due to the presence of barriers to entry and the need for significant investment to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of multiple competitors and the need to differentiate products and services.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 67.49%
Debt Cost 6.48%
Equity Weight 32.51%
Equity Cost 18.93%
WACC 10.53%
Leverage 207.61%

11. Quality Control: Dave Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Red Violet

A-Score: 5.5/10

Value: 0.9

Growth: 8.7

Quality: 7.6

Yield: 1.0

Momentum: 9.5

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Mitek Systems

A-Score: 5.0/10

Value: 5.3

Growth: 6.8

Quality: 6.8

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

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Stock-Card
Dave

A-Score: 4.8/10

Value: 1.1

Growth: 8.0

Quality: 8.7

Yield: 0.0

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

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Stock-Card
Grindr

A-Score: 4.5/10

Value: 4.8

Growth: 5.4

Quality: 4.9

Yield: 0.0

Momentum: 8.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Blend Labs

A-Score: 4.1/10

Value: 8.4

Growth: 6.2

Quality: 3.2

Yield: 0.0

Momentum: 5.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Viant Technology

A-Score: 3.9/10

Value: 6.2

Growth: 8.0

Quality: 5.3

Yield: 0.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

207.01$

Current Price

207.01$

Potential

-0.00%

Expected Cash-Flows