Core Insights - Dave Inc.'s profitability expanded significantly with adjusted net income increasing 233% year over year to $45.7 million in Q2 2025, and adjusted EBITDA rising 236% to $50.9 million, indicating strong operational improvements and scalability [1][4][7] - Management raised revenue guidance for 2025 to $505-$515 million from a previous estimate of $460-$475 million, and adjusted EBITDA guidance to $180-$190 million from $155-$165 million, reflecting confidence in effective cost management [2][4][7] - Despite improved margins, there are concerns regarding rising credit loss provisions due to an increase in delinquency rates to 2.4%, which may limit future margin expansion [3][4][7] Financial Performance - The stock price of Dave Inc. surged 394.9% over the past year, outperforming the industry growth of 63.9% and the S&P 500's rise of 15.5% [5] - The company trades at a forward price-to-earnings ratio of 16.55X, which is lower than the industry average of 26.07X, indicating potential valuation attractiveness [9] Market Position and Outlook - The Zacks Consensus Estimate for Dave's earnings for 2025 and 2026 has increased by 11.2% and 8.1%, respectively, over the past 60 days, suggesting positive market sentiment [11] - The company currently holds a Zacks Rank 4 (Sell), indicating a cautious outlook despite recent performance improvements [12]

Core Insights - Dave Inc. (DAVE) stock has experienced a remarkable growth of 416% over the past year, significantly outperforming the industry average of 77.2% and the Zacks S&P 500 composite's growth of 17.7% [1] - Despite the impressive annual performance, DAVE's shares have recently declined by 13.7% in the past month, contrasting with the industry's growth of 10.4% and the S&P 500's 3.3% growth, indicating a potential correction phase [4] - The company's membership base has grown by 16% year-over-year, reaching 2.6 million Monthly Transacting Members, which has driven a 64% increase in revenue and a 236% rise in adjusted EBITDA [6][9][10] Financial Performance - DAVE's revenue growth of 64% and adjusted EBITDA increase of 236% are attributed to a 51% rise in ExtraCash originations and a 27% growth in Dave Debit Card usage, reflecting high customer engagement [10] - The company reported a 28-day delinquency rate of 2.4% in Q2 2025, up from 2% in the same quarter last year, raising concerns about credit risk amid rising inflation and economic challenges [13] Competitive Landscape - DAVE faces intense competition from both neobanks and traditional banks, which are targeting the same demographic of tech-savvy millennials and Gen Zs [16][17] - Traditional banks are introducing small-dollar loans and overdraft protection services, increasing competition for DAVE [17] Investment Considerations - DAVE has never paid dividends since its inception in 2016, which may deter income-seeking investors despite its growth-oriented strategy [18] - The company is recommended for existing investors to consider booking profits due to recent corrections, while potential buyers are advised to refrain from investing at this time [20]

Summary of DAVE FY Conference Call - August 13, 2025 Company Overview - **Company**: DAVE - **Industry**: FinTech - **Business Model**: DAVE is a neo bank providing financial services aimed at underserved Americans, focusing on eliminating overdraft fees and minimum balance requirements while offering cash advances and credit-building opportunities [2][4] Key Financial Metrics - **User Base**: Over 12 million registered consumers, with nearly 3 million monthly transacting members [5] - **Revenue Growth**: Q2 revenue increased by over 60% to $131 million [5] - **EBITDA Growth**: EBITDA rose by nearly 300% to over $50 million for the quarter [5] - **Customer Acquisition Cost (CAC)**: CAC is under $20, with a payback period of four months [6][24] Product Highlights - **Extra Cash Product**: - Provides up to $500 of credit with no interest, no late fees, and no credit checks [6] - Average origination size per user increased by over 40% year-over-year [11] - Revenue model includes a 5% fee per transaction, capped at $15 [12] - **AI Underwriting**: - Utilizes cash flow data to assess credit risk, resulting in loss rates dropping from nearly 20% at inception to nearly 1% currently [9][20] - The AI model analyzes half a billion transactions to optimize risk assessment [9] Competitive Advantage - **Cost Structure**: DAVE operates with a digital-first model, significantly reducing operational costs compared to traditional banks, which incur about $300 annually to service a basic checking account [60] - **Market Position**: Positioned against major banks that rely on high overdraft fees, DAVE offers a more affordable alternative for consumers [59][64] Growth Strategy - **Customer Acquisition**: - DAVE's marketing strategy allows for acquiring customers at a significantly lower cost than competitors like Chime [35] - Plans to continue expanding the user base without aggressive spending due to healthy growth metrics [25] - **New Product Development**: - Introduction of a Buy Now Pay Later (BNPL) product aimed at providing longer-duration credit options [42] - Testing cashback rewards to incentivize usage of the DAVE debit card [39] Financial Health and Future Outlook - **Share Repurchase Authorization**: Announced a $125 million share repurchase program, indicating confidence in the company's financial health [68] - **Total Addressable Market (TAM)**: Estimated at 150 million Americans, with only 2.6 million monthly paying members currently, indicating significant growth potential [46] Additional Insights - **Pricing Strategy**: Increased subscription fee for new customers from $1 to $3, with no negative impact on conversion or retention [27][31] - **Banking Partnership**: Transitioned to Coastal Community Bank for loan origination, which will enhance cash flow by reducing receivables tied up in funding [52][53] This summary encapsulates the key points discussed during the DAVE FY Conference Call, highlighting the company's growth trajectory, competitive advantages, and strategic initiatives aimed at expanding its market presence.

Los Angeles, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Dave Inc. ("Dave" or the "Company") (Nasdaq: DAVE) today announced that its Board of Directors has approved an increase in the Company's share repurchase authorization to $125 million, which replaces the previous $50 million authorization announced on March 10, 2025. Since Dave reported its second quarter earnings on August 6th, the Company has deployed approximately $25 million to repurchase its common stock. Year-to-date, Dave has invested more than $45 milli ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements (Unaudited)](index=1&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents Dave Inc.'s unaudited condensed consolidated financial statements and detailed notes for specified periods [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Total Assets | $363,563 | $299,327 | | Total Liabilities | $146,489 | $116,226 | | Total Stockholders' Equity | $217,074 | $183,101 | - ExtraCash receivables, net, increased from **$175,857 thousand** as of December 31, 2024, to **$225,662 thousand** as of June 30, 2025, reflecting a significant increase in outstanding credit[16](index=16&type=chunk) - Warrant and earnout liabilities saw a substantial increase from **$2,928 thousand** at December 31, 2024, to **$31,267 thousand** at June 30, 2025[16](index=16&type=chunk) [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Operating Revenues, Net | $131,757 | $80,117 | $239,736 | $153,747 | | Total Operating Expenses | $90,675 | $74,448 | $163,505 | $142,679 | | Net Income | $9,040 | $6,358 | $37,852 | $40,601 | | Basic Net Income Per Share | $0.68 | $0.51 | $2.86 | $3.30 | | Diluted Net Income Per Share | $0.62 | $0.47 | $2.61 | $3.02 | - Total operating revenues, net, increased by **64%** for the three months ended June 30, 2025, compared to the same period in 2024, and by **56%** for the six months ended June 30, 2025, compared to 2024[22](index=22&type=chunk) - Net income increased by **42%** for the three months ended June 30, 2025, compared to the same period in 2024, but decreased by **6.8%** for the six months ended June 30, 2025, compared to 2024[22](index=22&type=chunk) [Condensed Consolidated Statements of Comprehensive Income](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income | $9,040 | $6,358 | $37,852 | $40,601 | | Other Comprehensive Gain (Loss) | $(132) | $73 | $(124) | $(574) | | Comprehensive Income | $8,908 | $6,431 | $37,728 | $40,027 | [Condensed Consolidated Statement of Stockholders' Equity](index=11&type=section&id=Condensed%20Consolidated%20Statement%20of%20Stockholders'%20Equity) - Total stockholders' equity increased from **$183,101 thousand** at January 1, 2025, to **$217,074 thousand** at June 30, 2025[28](index=28&type=chunk)[30](index=30&type=chunk) - The company repurchased **81,370 shares** of Class A common stock for **$6,960 thousand** during the six months ended June 30, 2025, recorded as treasury shares[30](index=30&type=chunk) - Net income contributed **$37,852 thousand** to stockholders' equity for the six months ended June 30, 2025[30](index=30&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net Cash Provided by Operating Activities | $113,484 | $46,391 | | Net Cash (Used in) Provided by Investing Activities | $(81,845) | $31,607 | | Net Cash Used in Financing Activities | $(19,488) | $(70,930) | | Net Increase in Cash and Cash Equivalents and Restricted Cash | $12,151 | $7,068 | - Net cash provided by operating activities significantly increased by **144.6%** to **$113,484 thousand** for the six months ended June 30, 2025, compared to **$46,391 thousand** in the prior year[32](index=32&type=chunk) - Investing activities shifted from providing **$31,607 thousand** in cash in 2024 to using **$81,845 thousand** in 2025, primarily due to increased net originations of ExtraCash receivables and purchases of investments[32](index=32&type=chunk) [Note 1 Organization and Nature of Business](index=15&type=section&id=Note%201%20Organization%20and%20Nature%20of%20Business) - Dave Inc. was launched in **2017** to provide a faster, more transparent, and lower-cost alternative to traditional financial institutions, focusing on underserved consumers[35](index=35&type=chunk) - **ExtraCash:** An AI-powered overdraft product offering up to **$500** credit without FICO or credit bureau data, with repayment scheduled based on forecasted paychecks. The company manages the entire risk management value chain[36](index=36&type=chunk)[38](index=38&type=chunk) - **Dave Checking:** A digital demand deposit account with premium features, no minimums or fees, FDIC pass-through insurance, and a Dave branded debit Mastercard. Revenues are driven by merchant interchange, Mastercard incentives, interest on deposits, and ancillary fees[40](index=40&type=chunk)[41](index=41&type=chunk) - **Personal Financial Management:** Includes a Budget tool for anticipating transactions and overdraft risks, Side Hustle for gig economy job opportunities, and Surveys for additional earning opportunities. These services generate monthly subscription revenue[42](index=42&type=chunk) [Note 2 Significant Accounting Policies](index=16&type=section&id=Note%202%20Significant%20Accounting%20Policies) - **Basis of Presentation:** Financial statements prepared in accordance with U.S. GAAP. Certain prior period amounts were reclassified for current period presentation without impacting net income or EPS[43](index=43&type=chunk) - **Principles of Consolidation:** Includes accounts of the Company and a variable interest entity (VIE), Dave OD Funding I, LLC, where Dave is the primary beneficiary[44](index=44&type=chunk) - **Revenue Recognition:** Service-based revenue includes processing and service fees (mandatory since Feb **2025**), subscriptions (recognized ratably), and other fees. Optional tips were discontinued in Feb **2025**. Transaction-based revenue includes interchange and ATM revenues, recognized at the point of transaction[45](index=45&type=chunk)[50](index=50&type=chunk)[51](index=51&type=chunk)[53](index=53&type=chunk)[54](index=54&type=chunk) - **Allowance for Credit Losses:** Estimated using an aging method and historical loss rates for short-term ExtraCash receivables (average **11 days**). Allowance is recognized immediately upon origination, with adjustments recognized in operating expenses[58](index=58&type=chunk)[68](index=68&type=chunk) - The company revised its statement of operations presentation, separating 'Financial network and transaction costs,' 'Advertising and activation costs' (including Member activation), and 'Technology and infrastructure' into distinct line items[47](index=47&type=chunk) Operating Revenues (in thousands) | Revenue Type | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Service based revenue, net | $121,593 | $71,651 | $219,444 | $137,213 | | Processing and service fees, net | $113,464 | $49,595 | $196,912 | $94,191 | | Tips | $- | $16,077 | $7,496 | $30,987 | | Subscriptions | $8,053 | $5,850 | $14,870 | $11,794 | | Transaction based revenue, net | $10,164 | $8,466 | $20,292 | $16,534 | | Total Operating Revenues, Net | $131,757 | $80,117 | $239,736 | $153,747 | [Note 3 Marketable Securities](index=31&type=section&id=Note%203%20Marketable%20Securities) - Marketable securities, consisting of publicly traded money market mutual funds, remained stable at **$99 thousand** as of June 30, 2025, compared to **$97 thousand** at December 31, 2024[102](index=102&type=chunk) - The investment portfolio had a weighted-average maturity of **35 days** at both periods[102](index=102&type=chunk) [Note 4 Investments](index=31&type=section&id=Note%204%20Investments) | Investment Type (in thousands) | Fair Value (June 30, 2025) | Fair Value (December 31, 2024) | | :----------------------------- | :------------------------- | :----------------------------- | | Corporate bonds | $2,415 | $4,212 | | Government securities | $38,652 | $36,261 | | Total Investments | $41,067 | $40,473 | - Total investments increased slightly from **$40,473 thousand** at December 31, 2024, to **$41,067 thousand** at June 30, 2025[103](index=103&type=chunk) - The company does not intend to sell these available-for-sale investments before recovery of amortized cost, and no credit-related impairment losses were recorded[105](index=105&type=chunk) [Note 5 ExtraCash Receivables, Net](index=32&type=section&id=Note%205%20ExtraCash%20Receivables,%20Net) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------- | :------------ | :---------------- | | Gross ExtraCash Receivables | $258,179 | $198,560 | | Allowance for Credit Losses | $(32,517) | $(22,703) | | ExtraCash Receivables, Net | $225,662 | $175,857 | Roll-forward of Allowance for Credit Losses (in thousands) | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :----------------------------- | :----------------------------- | | Opening Balance | $22,703 | $20,310 | | Plus: Provision for Credit Losses | $35,898 | $24,308 | | Plus: Amounts Recovered | $7,860 | $5,778 | | Less: Amounts Written-off | $(33,944) | $(29,903) |\ | Ending Balance | $32,517 | $20,493 | - The provision for credit losses increased due to a rise in ExtraCash origination volume from **$2.24 billion** (H1 **2024**) to **$3.32 billion** (H1 **2025**), despite improved collections performance[108](index=108&type=chunk) [Note 6 Intangible Assets, Net](index=33&type=section&id=Note%206%20Intangible%20Assets,%20Net) | Intangible Asset (in thousands) | Net Book Value (June 30, 2025) | Net Book Value (December 31, 2024) | | :------------------------------ | :----------------------------- | :--------------------------------- | | Internally developed software | $13,884 | $13,584 | | Domain name | $54 | $58 | | Total Intangible Assets, Net | $13,938 | $13,642 | - Internally developed software, with an estimated useful life of **3 years**, constitutes the majority of intangible assets[71](index=71&type=chunk)[109](index=109&type=chunk) - Amortization expense for the six months ended June 30, 2025, was **$2.8 million**, down from **$3.1 million** in the prior year[110](index=110&type=chunk) [Note 7 Accrued Expenses and Other Current Liabilities](index=34&type=section&id=Note%207%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) | Accrued Expense (in thousands) | June 30, 2025 | December 31, 2024 | | :----------------------------- | :------------ | :---------------- | | Income taxes payable | $6,668 | $1,476 | | Accrued professional and program fees | $5,882 | $4,718 | | Accrued compensation | $2,678 | $5,166 | | Accrued charitable contributions | $- | $2,223 | | Total Accrued Expenses | $17,165 | $16,707 | - Accrued charitable contributions decreased to **$0** at June 30, 2025, from **$2,223 thousand** at December 31, 2024, due to the discontinuation of the optional tips model in February 2025[112](index=112&type=chunk) | Other Current Liabilities (in thousands) | June 30, 2025 | December 31, 2024 | | :--------------------------------------- | :------------ | :---------------- | | Deferred transaction costs | $3,150 | $3,150 | | Other | $887 | $982 | | Total Other Current Liabilities | $4,037 | $4,132 | [Note 8 Convertible Note](index=34&type=section&id=Note%208%20Convertible%20Note) - On January 29, 2024, the company repurchased the **$105.7 million** outstanding balance of a convertible note from FTX Ventures Ltd. for **$71.0 million**, resulting in a gain on extinguishment of **$33.4 million**[115](index=115&type=chunk)[116](index=116&type=chunk) [Note 9 Warrant Liabilities](index=36&type=section&id=Note%209%20Warrant%20Liabilities) - As of June 30, 2025, there were **6,344,021 public warrants** and **5,100,214 private placement warrants** outstanding, each exercisable for one share of Class A Common Stock per **32 warrants**[117](index=117&type=chunk) - The exercise price for both public and private warrants is **$368** per share of Class A Common Stock (after a **32-for-1** stock split)[119](index=119&type=chunk) - The company issued warrants to lenders of its Debt Facility as a loan commitment fee, which are accounted for as a liability at fair value and remeasured each reporting period[124](index=124&type=chunk) [Note 10 Debt Facility](index=38&type=section&id=Note%2010%20Debt%20Facility) - The company's Debt Facility with Victory Park Management, LLC allows borrowing up to **$150 million**, with **$75.0 million** drawn as of June 30, 2025[127](index=127&type=chunk)[130](index=130&type=chunk) - The Third Amendment (Sept **2023**) extended the maturity to December **2026**, increased the commitment, and updated interest rates to SOFR plus **5.00%** (or **4.50%** for amounts over **$75M**)[127](index=127&type=chunk) - As of June 30, 2025, the company was not in compliance with the Minimum Receivable Loan-to-Value (LTV) Ratio covenant, but received a one-time limited waiver. The Fifth Amendment (July **2025**) subsequently removed this LTV ratio covenant[129](index=129&type=chunk) [Note 11 Commitments and Contingencies](index=40&type=section&id=Note%2011%20Commitments%20and%20Contingencies) - The company is a defendant in a lawsuit filed by the Department of Justice (DOJ) on December 30, 2024, alleging violations of Section 5(a) of the FTC Act and the Restore Online Shoppers' Confidence Act related to its ExtraCash product[133](index=133&type=chunk) - A **$7.0 million** litigation and settlement accrual was recorded as of June 30, 2025, for this matter, though the outcome remains uncertain and could result in higher costs[134](index=134&type=chunk) [Note 12 Leases](index=42&type=section&id=Note%2012%20Leases) - The company leases office space under operating leases, including a related-party sublease with PCJW Properties LLC (controlled by founders)[135](index=135&type=chunk)[136](index=136&type=chunk) - Total lease cost for the six months ended June 30, 2025, was **$174 thousand**, with cash paid for operating leases at **$193 thousand**[137](index=137&type=chunk) Future Minimum Lease Payments (in thousands) | Year | Related-Party Commitment | | :--- | :----------------------- | | 2025 (remaining) | $193 | | 2026 | $80 | | 2027 | $83 | | 2028 | $71 | | Total minimum lease payments | $427 | | Less: imputed interest | $(44) | | Total lease liabilities | $383 | [Note 13 Fair Value of Financial Instruments](index=43&type=section&id=Note%2013%20Fair%20Value%20of%20Financial%20Instruments) Fair Value Measurements (in thousands) | Category | June 30, 2025 Total | December 31, 2024 Total | | :------- | :------------------ | :---------------------- | | Assets | $41,166 | $40,570 | | Liabilities | $31,267 | $2,928 | - Warrant liabilities (public and private) and earnout liabilities are measured at fair value, with significant changes in fair value impacting net income[145](index=145&type=chunk)[147](index=147&type=chunk)[148](index=148&type=chunk) - The fair value of public warrant liability increased by **$10,467 thousand** from January 1, 2025, to June 30, 2025, while private warrant liability increased by **$10,376 thousand** in the same period[146](index=146&type=chunk)[148](index=148&type=chunk) - Earnout liabilities increased by **$7,496 thousand** from January 1, 2025, to June 30, 2025, primarily due to fluctuations in the Class A common stock price[150](index=150&type=chunk) [Note 14 Stockholders' Equity](index=47&type=section&id=Note%2014%20Stockholders'%20Equity) - The company has two classes of common stock: Class A (one vote per share) and Class V (ten votes per share), with Class V convertible to Class A on a one-to-one basis[153](index=153&type=chunk) - As of June 30, 2025, there were **12,083,076 Class A shares** and **1,414,082 Class V shares** outstanding[153](index=153&type=chunk) - During Q1 **2025**, the company used **$13.3 million** in cash for net share settlement of RSU tax withholding, resulting in **132,312 shares** not issued to employees[155](index=155&type=chunk) [Note 15 Stock-Based Compensation](index=48&type=section&id=Note%2015%20Stock-Based%20Compensation) - Stock-based compensation expense was **$8.3 million** for the three months and **$15.8 million** for the six months ended June 30, 2025, an increase from **$7.7 million** and **$13.8 million** respectively in 2024[157](index=157&type=chunk) - Unrecognized stock-based compensation cost for unvested stock options was **$1.4 million** (expected over **3.0 years**) and for nonvested RSUs was **$35.3 million** (expected over **2.9 years**) as of June 30, 2025[162](index=162&type=chunk)[165](index=165&type=chunk) - A price target milestone was achieved during Q2 **2025**, vesting **119,321 stock options** granted to the CEO[164](index=164&type=chunk) [Note 16 Related-Party Transactions](index=53&type=section&id=Note%2016%20Related-Party%20Transactions) - The company paid **$0.1 million** (three months) and **$0.2 million** (six months) in related-party lease payments to PCJW Properties LLC, controlled by its founders[174](index=174&type=chunk) - Interest expense related to the Debt Facility with Victory Park Management, LLC (a related party through a board member) totaled **$1.8 million** (three months) and **$3.5 million** (six months) for June 30, 2025[176](index=176&type=chunk) - Legal services from Mitchell Sandler LLC, where a company director is a partner, amounted to **$0.4 million** (three months) and **$0.6 million** (six months) for June 30, 2025[177](index=177&type=chunk) [Note 17 401(k) Savings Plan](index=53&type=section&id=Note%2017%20401(k)%20Savings%20Plan) - The company matches **100%** of the first **4%** of wages deferred by participating employees in its 401(k) savings plan[178](index=178&type=chunk) - Employer matching contributions were **$0.5 million** (three months) and **$1.1 million** (six months) for June 30, 2025, a slight increase from the prior year[178](index=178&type=chunk) [Note 18 Segment Information](index=53&type=section&id=Note%2018%20Segment%20Information) - The company operates as a single operating and reportable segment, with the Chief Executive Officer and Chief Financial Officer acting as joint Chief Operating Decision Makers (CODM)[179](index=179&type=chunk) - The CODM reviews financial information on a consolidated basis, focusing on net income, available liquidity, and ExtraCash receivables to allocate resources and evaluate performance[181](index=181&type=chunk)[183](index=183&type=chunk) [Note 19 Treasury Shares](index=56&type=section&id=Note%2019%20Treasury%20Shares) - In March **2025**, the Board authorized a share repurchase program of up to **$50.0 million** of Class A common stock[187](index=187&type=chunk) - During Q1 **2025**, the company repurchased **81,370 Class A shares** for **$6.9 million**, with **$43.1 million** remaining available under the authorization[188](index=188&type=chunk) - No share repurchases were made during the quarter ended June 30, 2025[189](index=189&type=chunk) [Note 20 Subsequent Events](index=56&type=section&id=Note%2020%20Subsequent%20Events) - On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, which is expected to decrease California apportioned income and state income tax expense for the company starting in 2025[191](index=191&type=chunk) - On July 14, 2025, the Fifth Amendment to the Financing Agreement was executed, removing the Loan-to-Value (LTV) financial covenant from the Debt Facility[192](index=192&type=chunk) - On August 4, 2025, an amendment to the Program Agreement with Coastal Community Bank was made, allowing receivables up to **$225 million** to be maintained on Coastal's balance sheet for up to **60 days** before being sold to the company[193](index=193&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=57&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes Dave Inc.'s financial condition, operating results, key performance factors, and critical accounting estimates [Company Overview](index=57&type=section&id=Company%20Overview) - Dave Inc. was founded in **2017** to provide accessible and affordable financial products, particularly ExtraCash, to underserved consumers living paycheck to paycheck[195](index=195&type=chunk) - Since inception, nearly **18 million** members have signed up, with almost **13 million** using at least one product, and the company has provided nearly **$18 billion** in ExtraCash[196](index=196&type=chunk) - The company has donated over **$23 million** to charity and maintains a **4.8-star** rating on the App Store[196](index=196&type=chunk)[197](index=197&type=chunk) [Market Opportunity](index=57&type=section&id=Market%20Opportunity) - Approximately **180 million** Americans (over **70%** of the U.S. population) are financially 'coping' or 'vulnerable,' representing a significant market for Dave's services[199](index=199&type=chunk) - Financially vulnerable populations pay over **$200 billion** annually in fees and interest for short-term credit, highlighting the need for lower-cost alternatives[199](index=199&type=chunk) - Dave leverages technology and AI to reduce costs and provide increased access to banking and credit products at lower costs, offering a stronger value proposition[200](index=200&type=chunk) [Key Factors Affecting Operating Results](index=58&type=section&id=Key%20Factors%20Affecting%20Operating%20Results) - **Member Growth and Activity:** Dependent on continued member growth, ability to offer new products, and generate additional revenues from existing members[203](index=203&type=chunk) - **Product Expansion:** Ongoing significant investments in developing, improving, and marketing financial products to enhance member well-being[204](index=204&type=chunk) - **Competition:** Faces competition from established financial institutions and lenders, requiring competitive pricing and member acquisition strategies[205](index=205&type=chunk) - **Concentration:** Relies on agreements with Evolve Bank & Trust and Coastal Community Bank for ExtraCash, deposit accounts, and debit card services[206](index=206&type=chunk) - **Industry Trends/General Economic Conditions:** Macroeconomic factors like interest rates, inflation, and unemployment can impact consumer spending, ExtraCash demand, and repayment ability. Dave's AI underwriting aims to mitigate these risks[207](index=207&type=chunk) [Key Components of Statements of Operations](index=60&type=section&id=Key%20Components%20of%20Statements%20of%20Operations) - **Operating Revenues:** Comprise Service based revenue (processing fees, subscriptions, lead generation) and Transaction based revenue (interchange, ATM fees, funding/withdrawal fees)[211](index=211&type=chunk) - **Operating Expenses:** Include Provision for Credit Losses (allowance for expected ExtraCash losses), Processing and Servicing Costs (third-party fees for ExtraCash recovery, bank account connections), Financial Network and Transaction Costs (program management, card network fees, fraud losses), Advertising and Activation Costs (marketing, new user onboarding), Compensation and Benefits (employee and contractor compensation), Technology and Infrastructure (SaaS solutions, cloud platforms), and Other Operating Expenses (charitable commitments, depreciation, legal, rent, etc.)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)[216](index=216&type=chunk)[217](index=217&type=chunk)[218](index=218&type=chunk)[219](index=219&type=chunk)[220](index=220&type=chunk)[221](index=221&type=chunk) - **Other (income) expenses:** Consist of interest income/expense, gain on extinguishment of debt, and changes in fair value of earnout and warrant liabilities[222](index=222&type=chunk) - **Provision for income taxes:** Federal and state corporate income taxes[222](index=222&type=chunk) [Comparison of the three months ended June 30, 2025 and 2024](index=62&type=section&id=Comparison%20of%20the%20three%20months%20ended%20June%2030,%202025%20and%202024) Operating Revenues (in thousands, except percentages) | Revenue Type | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :------------- | :------------ | :------------ | :--------- | :--------- | | Service based revenue, net | $121,593 | $71,651 | $49,942 | 70% | | Processing and service fees, net | $113,464 | $49,595 | $63,869 | 129% | | Tips | $- | $16,077 | $(16,077) | -100% | | Subscriptions | $8,053 | $5,850 | $2,203 | 38% | | Transaction based revenue, net | $10,164 | $8,466 | $1,698 | 20% | | Total | $131,757 | $80,117 | $51,640 | 64% | - **Processing and Service fees, net:** Increased by **129%** to **$113.5 million**, driven by a **16%** increase in average monthly transacting members, a **50%** rise in ExtraCash origination volume to **$1.79 billion**, and fee structure increases in February 2025[224](index=224&type=chunk) - **Tips:** Decreased by **100%** due to the elimination of the member tipping option in February 2025[225](index=225&type=chunk) - **Subscriptions:** Increased by **38%** to **$8.1 million**, attributed to growth in paying members and subscription fee increases in June 2025[226](index=226&type=chunk) - **Transaction based revenue, net:** Increased by **20%** to **$10.2 million**, primarily from higher interchange revenue due to increased member engagement with Checking Product and a **27%** rise in card spend and transaction volume[227](index=227&type=chunk) Operating Expenses (in thousands, except percentages) | Expense Type | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :------------- | :------------ | :------------ | :--------- | :--------- |\ | Provision for credit losses | $25,295 | $14,365 | $10,930 | 76% | | Processing and servicing costs | $7,170 | $7,499 | $(329) | -4% | | Financial network and transaction costs | $7,227 | $6,495 | $732 | 11% | | Advertising and activation costs | $15,456 | $12,883 | $2,573 | 20% | | Compensation and benefits | $26,430 | $24,245 | $2,185 | 9% | | Technology and infrastructure | $2,894 | $2,809 | $85 | 3% | | Other operating expenses | $6,203 | $6,152 | $51 | 1% | | Total | $90,675 | $74,448 | $16,227 | 22% | - **Provision for credit losses:** Increased by **76%** to **$25.3 million**, driven by higher ExtraCash origination volume and outstanding balances, partially offset by improved collections performance[228](index=228&type=chunk)[229](index=229&type=chunk) - **Processing and service costs:** Decreased by **4%** to **$7.2 million** due to technology enhancements and cost savings from processors, despite increased ExtraCash origination volume[228](index=228&type=chunk)[230](index=230&type=chunk) - **Financial network and transaction costs:** Increased by **11%** to **$7.2 million**, mainly from higher debit card network fees and processing costs due to a **27%** increase in transaction volume[233](index=233&type=chunk) - **Advertising and activation costs:** Increased by **20%** to **$15.5 million**, reflecting expanded marketing spend during the summer season to capitalize on higher ExtraCash demand[234](index=234&type=chunk) - **Compensation and benefits:** Increased by **9%** to **$26.4 million**, primarily due to higher payroll-related costs and stock-based compensation[235](index=235&type=chunk)[236](index=236&type=chunk) Other (income) expenses (in thousands, except percentages) | Item | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :--- | :------------ | :------------ | :--------- | :--------- | | Interest income | $(588) | $(537) | $(51) | 9% | | Interest expense | $1,777 | $1,965 | $(188) | -10% | | Changes in fair value of earnout liabilities | $7,894 | $(63) | $7,957 | -12630% | | Changes in fair value of public and private warrant liabilities | $20,491 | $(272) | $20,763 | -7633% | | Total | $29,574 | $1,093 | $28,481 | 2606% | - **Interest expense:** Decreased by **10%** to **$1.8 million**, primarily due to an overall decline in interest rates[240](index=240&type=chunk) - **Changes in fair value of earnout liability:** Shifted from a gain of **$0.06 million** to an expense of **$7.9 million**, driven by a significant increase in Class A common stock price[241](index=241&type=chunk) - **Changes in fair value of warrant liability:** Shifted from a gain of **$0.3 million** to an expense of **$20.5 million**, due to a significant increase in DAVEW warrant price and Class A common stock price[242](index=242&type=chunk) - Provision for income taxes increased by **238%** to **$2.5 million**, due to higher reported income in 2025 compared to a benefit in 2024[243](index=243&type=chunk) [Comparison of the six months ended June 30, 2025 and 2024](index=68&type=section&id=Comparison%20of%20the%20six%20months%20ended%20June%2030,%202025%20and%202024) Operating Revenues (in thousands, except percentages) | Revenue Type | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :------------- | :------------ | :------------ | :--------- | :--------- | | Service based revenue, net | $219,444 | $137,213 | $82,231 | 60% | | Processing and service fees, net | $196,912 | $94,191 | $102,721 | 109% | | Tips | $7,496 | $30,987 | $(23,491) | -76% | | Subscriptions | $14,870 | $11,794 | $3,076 | 26% | | Transaction based revenue, net | $20,292 | $16,534 | $3,758 | 23% | | Total | $239,736 | $153,747 | $85,989 | 56% | - **Processing and Service fees, net:** Increased by **109%** to **$196.9 million**, driven by a **15%** increase in average monthly transacting members, a **48%** rise in ExtraCash origination volume to **$3.32 billion**, and fee structure increases in February 2025[245](index=245&type=chunk) - **Tips:** Decreased by **76%** to **$7.5 million** due to the elimination of the member tipping option in February 2025[247](index=247&type=chunk) - **Subscriptions:** Increased by **26%** to **$14.9 million**, attributed to growth in paying members and subscription fee increases in June 2025[248](index=248&type=chunk) - **Transaction based revenue, net:** Increased by **23%** to **$20.3 million**, primarily from higher interchange revenue due to increased member engagement with Checking Product and a **25%** rise in card spend and transaction volume[249](index=249&type=chunk) Operating Expenses (in thousands, except percentages) | Expense Type | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :------------- | :------------ | :------------ | :--------- | :--------- | | Provision for credit losses | $35,898 | $24,308 | $11,590 | 48% | | Processing and servicing costs | $14,157 | $14,953 | $(796) | -5% | | Financial network and transaction costs | $14,266 | $12,850 | $1,416 | 11% | | Advertising and activation costs | $27,386 | $23,820 | $3,566 | 15% | | Compensation and benefits | $53,681 | $48,580 | $5,101 | 11% | | Technology and infrastructure | $5,620 | $5,504 | $116 | 2% | | Other operating expenses | $12,497 | $12,664 | $(167) | -1% | | Total | $163,505 | $142,679 | $20,826 | 15% | - **Provision for credit losses:** Increased by **48%** to **$35.9 million**, driven by a **49%** increase in ExtraCash origination volume, partially offset by improved collections performance[250](index=250&type=chunk)[251](index=251&type=chunk) - **Processing and service costs:** Decreased by **5%** to **$14.2 million** due to technology enhancements and cost savings, despite increased ExtraCash origination volume[250](index=250&type=chunk)[252](index=252&type=chunk) - **Financial network and transaction costs:** Increased by **11%** to **$14.3 million**, mainly from higher debit card network fees and processing costs due to a **25%** increase in transaction volume[255](index=255&type=chunk) - **Advertising and activation costs:** Increased by **15%** to **$27.4 million**, reflecting expanded marketing spend during the summer season[256](index=256&type=chunk) - **Compensation and benefits:** Increased by **11%** to **$53.7 million**, primarily due to higher payroll-related costs and stock-based compensation[257](index=257&type=chunk)[258](index=258&type=chunk) Other (income) expenses (in thousands, except percentages) | Item | June 30, 2025 | June 30, 2024 | Change ($) | Change (%) | | :--- | :------------ | :------------ | :--------- | :--------- | | Interest income | $(1,019) | $(2,032) | $1,013 | -50% | | Interest expense | $3,535 | $4,182 | $(647) | -15% | | Gain on extinguishment of convertible debt | $- | $(33,442) | $33,442 | -100% | | Changes in fair value of earnout liabilities | $7,496 | $133 | $7,363 | 5536% | | Changes in fair value of public and private warrant liabilities | $20,843 | $205 | $20,638 | 10067% | | Total | $30,855 | $(30,954) | $61,809 | -200% | - **Interest income:** Decreased by **50%** to **$1.0 million**, primarily due to a lower average total balance of investments held[262](index=262&type=chunk) - **Interest expense:** Decreased by **15%** to **$3.5 million**, attributable to an overall decline in interest rates and reduced expense from the convertible note repurchase[263](index=263&type=chunk) - **Gain on extinguishment of convertible debt:** Decreased by **100%** to **$0**, as the **$33.4 million** gain in 2024 was a one-time event from repurchasing the FTX Ventures Ltd. convertible note[264](index=264&type=chunk) - **Changes in fair value of earnout liability:** Increased to an expense of **$7.5 million** from **$0.1 million**, driven by a significant increase in Class A common stock price[265](index=265&type=chunk) - **Changes in fair value of warrant liability:** Increased to an expense of **$20.8 million** from **$0.2 million**, due to a significant increase in DAVEW warrant price and Class A common stock price[266](index=266&type=chunk) - Provision for income taxes increased by **429%** to **$7.5 million**, primarily due to a significant increase in reported income (excluding discrete items) in 2025 compared to 2024[267](index=267&type=chunk) [Non-GAAP Financial Measures](index=74&type=section&id=Non-GAAP%20Financial%20Measures) - Adjusted EBITDA is presented as a supplemental non-GAAP measure to evaluate operational performance, excluding items like interest, taxes, depreciation, amortization, stock-based compensation, and fair value changes of liabilities[269](index=269&type=chunk)[270](index=270&type=chunk) Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income | $9,040 | $6,358 | $37,852 | $40,601 | | Adjusted EBITDA | $50,949 | $15,157 | $95,115 | $28,336 | - Adjusted EBITDA significantly increased by **236%** for the three months and **236%** for the six months ended June 30, 2025, compared to the prior year periods[272](index=272&type=chunk) [Liquidity and Capital Resources](index=76&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2025, cash and cash equivalents, marketable securities, investments, and restricted cash totaled **$104.7 million**, up from **$91.9 million** at December 31, 2024[273](index=273&type=chunk) - The company believes its current cash on hand is sufficient to meet working capital, capital expenditure, and operational funding requirements for at least **12 months**[276](index=276&type=chunk) - **Share Repurchase Authorization:** In March **2025**, the Board authorized a **$50.0 million** share repurchase program. As of June 30, 2025, **$6.9 million** had been used to repurchase **81,370 Class A shares**, with **$43.1 million** remaining[278](index=278&type=chunk)[280](index=280&type=chunk) - **Material Cash Requirements:** Includes contractual payments for operating leases (**$0.4 million** total liability), monthly interest payments on the **$75.0 million** Debt Facility, and accruals for legal contingencies (**$7.0 million**)[281](index=281&type=chunk)[282](index=282&type=chunk)[283](index=283&type=chunk)[285](index=285&type=chunk) [Cash Flows Summary](index=78&type=section&id=Cash%20Flows%20Summary) | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Operating activities | $113,484 | $46,391 | | Investing activities | $(81,845) | $31,607 | | Financing activities | $(19,488) | $(70,930) | | Net increase in cash and cash equivalents and restricted cash | $12,151 | $7,068 | - **Operating Activities:** Net cash provided increased significantly to **$113.5 million** in H1 **2025**, driven by higher operating revenues and reduced expenses[288](index=288&type=chunk) - **Investing Activities:** Shifted to a net cash outflow of **$81.8 million** in H1 **2025**, primarily due to increased ExtraCash originations and investment purchases[290](index=290&type=chunk) - **Financing Activities:** Net cash used decreased to **$19.5 million** in H1 **2025**, mainly due to the absence of the convertible note paydown that occurred in H1 **2024**, partially offset by share repurchases and tax payments for net share settlements[292](index=292&type=chunk) [Critical Accounting Estimates](index=80&type=section&id=Critical%20Accounting%20Estimates) - **Allowance for Credit Losses:** Estimated using an aging method and historical loss rates for short-term ExtraCash receivables, with immediate recognition upon origination. Management assesses current economic conditions and forecasts for adjustments[297](index=297&type=chunk)[298](index=298&type=chunk) - **Income Taxes:** Follows ASC **740**, recognizing deferred tax assets/liabilities. The effective tax rate for interim periods is based on the estimated annual effective tax rate. Uncertain tax positions are recognized if more-likely-than-not to be sustained. A valuation allowance is recorded against deferred tax assets[300](index=300&type=chunk)[301](index=301&type=chunk)[302](index=302&type=chunk)[304](index=304&type=chunk) - California's new single sales factor apportionment method, effective **2025**, is expected to decrease the company's California apportioned income and state income tax expense[305](index=305&type=chunk) [Emerging Growth Company Status](index=82&type=section&id=Emerging%20Growth%20Company%20Status) - The company is an 'emerging growth company' and has elected to use the extended transition period for new or revised financial accounting standards until December 31, 2025[306](index=306&type=chunk) - This status allows the company to rely on exemptions from certain reporting requirements, such as auditor's attestation reports on internal controls and full executive compensation disclosures[308](index=308&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=84&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Market risk disclosures are not yet required for the company under current reporting regulations - Disclosures about market risk are not yet required for the company[310](index=310&type=chunk) [Item 4. Controls and Procedures](index=84&type=section&id=Item%204.%20Controls%20and%20Procedures) This section evaluates the effectiveness of disclosure controls and internal control over financial reporting - Management, with CEO and CFO participation, concluded that disclosure controls and procedures were effective as of June 30, 2025[311](index=311&type=chunk) - There were no material changes in internal control over financial reporting during the most recent fiscal quarter[312](index=312&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=85&type=section&id=Item%201.%20Legal%20Proceedings) This section details material pending legal proceedings and the company's general exposure to litigation risks - The company is involved in a material legal proceeding with the Department of Justice, as detailed in Note 11, and may face other legal proceedings in the ordinary course of business[315](index=315&type=chunk)[316](index=316&type=chunk) - Legal proceedings are subject to many unpredictable factors, and unfavorable outcomes could result in material costs, diversion of management resources, and reputational harm[316](index=316&type=chunk) [Item 1A. Risk Factors](index=85&type=section&id=Item%201A.%20Risk%20Factors) This section outlines key risks impacting the company's business, including credit, regulatory, and valuation volatility - **ExtraCash Credit Risk:** The ExtraCash product exposes the company to financial losses if members fail to repay, and underwriting criteria may not be sufficient, especially in economic downturns. Inaccurate or incomplete data used for underwriting could adversely affect financial results[318](index=318&type=chunk)[319](index=319&type=chunk)[320](index=320&type=chunk)[321](index=321&type=chunk)[322](index=322&type=chunk)[323](index=323&type=chunk) - **Reliance on Bank Partners:** The company primarily relies on Evolve Bank & Trust and Coastal Community Bank. Termination of these relationships or operational disruptions (e.g., regulatory restrictions, cybersecurity incidents) could severely impact business operations and financial condition[325](index=325&type=chunk)[326](index=326&type=chunk) - **Regulatory and Legal Environment:** Subject to extensive federal and state regulation, including oversight by the CFPB and FTC. Ongoing investigations and potential enforcement actions, such as the DOJ lawsuit, could lead to civil penalties, remediation, and significant costs. Consumer litigation and mass arbitrations also pose risks[329](index=329&type=chunk) - **Valuation Volatility:** Changes in the fair value of public and private warrants and earnout shares, which are sensitive to stock price fluctuations, can materially increase the volatility of net income[333](index=333&type=chunk)[334](index=334&type=chunk)[335](index=335&type=chunk)[338](index=338&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=90&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered equity sales or use of proceeds were reported for the period - No unregistered sales of equity securities or use of proceeds were reported[339](index=339&type=chunk) [Item 3. Defaults Upon Senior Securities](index=90&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - No defaults upon senior securities were reported[339](index=339&type=chunk) [Item 4. Mine Safety Disclosures](index=90&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Mine safety disclosures are not applicable to the company's operations - Mine safety disclosures are not applicable to the company[339](index=339&type=chunk) [Item 5. Other Information](index=90&type=section&id=Item%205.%20Other%20Information) This section discloses pre-arranged stock trading plans by the CEO, CFO, and a Board member - CEO Jason Wilk entered a plan on May 30, 2025, for potential sale of up to **100,000 Class A shares** between August 29, 2025, and May 29, 2026[339](index=339&type=chunk) - CFO Kyle Beilman entered a plan on June 4, 2025, for potential sale of up to **70,000 Class A shares** between September 3, 2025, and December 31, 2025[340](index=340&type=chunk) - Board member Yadin Rozov entered a plan on June 5, 2025, for potential sale of up to **19,386 Class A shares** between September 4, 2025, and December 31, 2025[341](index=341&type=chunk) - These trading plans are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act[341](index=341&type=chunk) [Item 6. Exhibits](index=90&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the Form 10-Q, including certifications and data files | Exhibit No. | Description | | :------------ | :---------- | | 31.1 | Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) | | 31.2 | Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) | | 32.1** | Certification of the Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. §1350 | | 101.INS | Inline XBRL Instance Document | | 101.SCH | Inline XBRL Taxonomy Extension Schema Document With Embedded Linkbase Documents | | 104 | Cover Page Interactive Data File |

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. DAVE INC shares have added about 174.8% since the beginning of the year versus the S&P 500's gain of 7.1%. What's Next for DAVE INC? While DAVE INC has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? Dave Inc. (DAVE) came out with quarterly ear ...

Financial Data and Key Metrics Changes - Revenue increased by 64% year over year to $131.7 million, marking the fastest growth rate in over five years [5][20] - Adjusted EBITDA more than tripled year over year to $50.9 million, representing the largest absolute adjusted EBITDA gain in company history [6][29] - GAAP net income rose by 42% to $9.1 million from $6.4 million in the same quarter last year [29] Business Line Data and Key Metrics Changes - Monthly transacting members (MTMs) increased by 16% year over year, totaling 12.9 million [5][20] - Average revenue per user (ARPU) grew by 42% to $200, driven by a new fee structure and increased member engagement [20] - Extra cash originations reached $1.8 billion, up 51% year over year, reflecting growth in multi-transaction members [9][10] Market Data and Key Metrics Changes - The company added 722,000 new members in Q2, with a total member base growth of 14% year over year [7][20] - The average extra cash origination size increased by 24% year over year to $206 [10] - The 28-day delinquency rate increased by approximately 37 basis points year over year, impacted by a third-party issue [11][12] Company Strategy and Development Direction - The company focuses on three strategic growth pillars: efficient member acquisition, enhanced member engagement through extra cash, and deepening relationships via the Dave card [6][13] - A new $3 monthly subscription fee was rolled out for new members, which is expected to enhance lifetime value without negatively impacting conversion or retention [14][15] - The company is positioned to optimize data usage and maintain member experience amid potential increases in data aggregator fees [16][17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue growing revenue and adjusted EBITDA, raising full-year guidance to $505 million to $515 million [32] - The company anticipates a growing contribution from the new subscription fee structure and expects to scale marketing investments in the second half of the year [26][32] - Management highlighted the importance of cash flow transaction data for their proprietary underwriting engine, Cash AI, which is undergoing enhancements [12][16] Other Important Information - The company ended the quarter with $104.7 million in cash and cash equivalents, up from $89.7 million at the end of Q1 [30][31] - A strategic partnership with Coastal Community Bank is expected to enhance banking infrastructure and capital efficiency [17][31] Q&A Session Summary Question: Transition to the new fee model and future revenue per advance - Management confirmed that the full benefit of the new fee structure was realized in Q2 and expressed optimism about future monetization and growth in originations per user [39] Question: Financial impact of moving receivables to Coastal - The new arrangement is expected to reduce costs by 200 basis points compared to the current setup, freeing up substantial cash for the company [42] Question: Impact of the $3 monthly subscription on customer behavior - Management indicated that extensive testing showed minimal impact on conversion or retention, with the new fee structure being accretive to lifetime value [46][48] Question: Details on the third-party issue affecting delinquencies - Management explained that a reporting issue caused delays in settlements, which has been resolved with additional measures implemented to prevent recurrence [54][55] Question: Rollout of the new AI engine and its impact on credit performance - The new model is expected to improve risk segmentation, leading to higher average origination sizes and lower delinquency rates [58] Question: Updated revenue guidance and its drivers - The increase in guidance is attributed to strong member acquisition, improved extra cash performance, and the new fee model [64] Question: M&A strategy and potential opportunities - Management is focused on M&A opportunities that can enhance customer acquisition and increase ARPU for existing members [70]

Financial Data and Key Metrics Changes - Revenue increased by 64% year over year to $131.7 million, marking the fastest growth rate in over five years [5][18] - Adjusted EBITDA more than tripled year over year to $50.9 million, representing the largest absolute adjusted EBITDA gain in company history [6][26] - GAAP net income rose by 42% to $9.1 million from $6.4 million in the same quarter last year [26] Business Line Data and Key Metrics Changes - Monthly transacting members increased by 16% year over year, reaching 12.9 million [5][6] - Extra Cash originations reached $1.8 billion, up 51% year over year and 17% sequentially [8] - Total card spend reached $493 million, reflecting a 27% year-over-year increase [12] Market Data and Key Metrics Changes - Customer acquisition cost (CAC) increased modestly by $1 sequentially to $19, while payback periods improved to an estimated four months [7] - The average extra cash origination size increased to $206, up 24% year over year [9] Company Strategy and Development Direction - The company focuses on three strategic growth pillars: efficient member acquisition, enhanced member engagement through Extra Cash, and deepening relationships via the Dave Card [6] - A new $3 monthly subscription fee was rolled out for new members, which is expected to enhance lifetime value [13][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to continue growing revenue and adjusted EBITDA, raising full-year guidance to $505 million to $515 million for revenue and $180 million to $190 million for adjusted EBITDA [28] - The company is well-positioned to optimize data usage and maintain member experience despite potential increases in data aggregator fees [15][65] Other Important Information - The company is transitioning extra cash receivables off-balance sheet, which is expected to reduce direct funding obligations and lower the cost of capital [27] - The Cash AI V5.5 model is in testing, designed to enhance credit risk assessment and improve underwriting precision [11] Q&A Session Summary Question: What is the remaining benefit related to the transition to the fee model? - Management indicated that the full benefit of the new fee structure was realized in Q2, with expectations for continued growth in originations per user [34] Question: What is the direct financial impact of moving receivables to Coastal? - The arrangement will reduce the cost of funds by 200 basis points and free up substantial cash, well north of $100 million [38] Question: How has the $3 monthly subscription affected customer acquisition and behavior? - Testing showed minimal impact on conversion or retention, and the new fee is expected to be accretive to lifetime value [41][42] Question: Can you provide more details on the third-party issue that affected delinquencies? - A reporting issue caused delays in settlements, resulting in a $3 million adverse impact on provision for credit losses [50] Question: How does the new AI engine impact average origination sizes and delinquency rates? - The new model aims to improve risk segmentation, potentially increasing average origination sizes while lowering delinquency rates [52][81]

Financial Highlights - Total revenue for Q2 2025 reached $132 million, a 64% year-over-year increase[36] - Non-GAAP gross profit for Q2 2025 was $92 million, representing a 78% year-over-year growth[36] - Adjusted EBITDA for Q2 2025 was $51 million, a 236% year-over-year increase[36] - The adjusted EBITDA margin expanded by approximately 2,000 basis points year-over-year to 39%[36] - ExtraCash™ origination volume grew 51% year-over-year, reaching $1.793 billion[36] Business Performance - Dave acquired 722,000 new members in Q2 2025, a 27% quarter-over-quarter increase, with a customer acquisition cost (CAC) of $19[45] - Total members reached 129 million in Q2 2025, a 14% year-over-year increase[50] - ExtraCash™ average size is $206[31] Guidance - The company raised its 2025 revenue guidance to $505 - $515 million, representing a 46% - 48% year-over-year growth[38] - The company raised its 2025 adjusted EBITDA guidance to $180 - $190 million, representing a 108% - 120% year-over-year growth[38]

Q2 2025 Financial Results Overview Dave Inc. reported strong Q2 2025 financial results with significant year-over-year growth across key metrics, leading to an upward revision of its full-year 2025 guidance [Headline Summary](index=1&type=section&id=Headline%20Summary) Dave Inc. reported strong Q2 2025 financial results with significant year-over-year growth across key metrics, including revenue, net income, and adjusted EBITDA, leading to an upward revision of its full-year 2025 guidance Q2 2025 Performance Summary (in millions) | Metric | Q2 2025 Performance | Y/Y Change | | :-------------------------- | :------------------ | :--------- | | Revenue | $131.7 Million | 64% | | Net Income | $9.1 Million | 42% | | Adjusted Net Income | $45.7 Million | 233% | | Adjusted EBITDA | $50.9 Million | 236% | | GAAP EPS (Diluted) | $0.62 | 32% | | Adjusted EPS (Diluted) | $3.14 | 210% | - Raised **2025 Revenue Guidance to $505-$515 Million** and **Adjusted EBITDA Guidance to $180-$190 Million**[1](index=1&type=chunk) [Quarterly Financial Highlights (GAAP & Non-GAAP)](index=2&type=section&id=Quarterly%20Financial%20Highlights%20(GAAP%20%26%20Non-GAAP)) Dave Inc. demonstrated accelerated revenue growth and improved profitability in Q2 2025, with non-GAAP gross profit margin expanding significantly year-over-year Quarterly Financial Performance (in millions) | Metric | 2Q25 | 2Q24 | % Change vs. prior year period | | :----------------------------- | :----- | :----- | :----------------------------- | | GAAP Operating Revenues, Net | $131.7 | $80.1 | 64% | | Non-GAAP Gross Profit* | $92.0 | $51.8 | 78% | | Non-GAAP Gross Profit Margin* | 70% | 65% | 500 bps | | GAAP Net Income | $9.1 | $6.4 | 42% | | Adjusted Net Income* | $45.7 | $13.7 | 233% | | Adjusted EBITDA* | $50.9 | $15.2 | 236% | | Adj. Net Income per Diluted Share* | $3.14 | $1.01 | 210% | [Operating Highlights](index=2&type=section&id=Operating%20Highlights) The company experienced robust growth in its user base and product utilization, with new members and monthly transacting members increasing, alongside a significant rise in ExtraCash originations and Dave Debit Card spend - **New Members** increased to **722,000**[7](index=7&type=chunk) - **Monthly Transacting Members ("MTMs")** increased **16% to 2.6 million**[7](index=7&type=chunk) - **ExtraCash originations** increased **51% to $1.8 billion**, with an average 28-Day delinquency rate of **2.40%** (vs **2.03%** in comparable period)[7](index=7&type=chunk) - **Dave Debit Card spend** increased **27% to $493 million**[7](index=7&type=chunk) [Liquidity Summary](index=2&type=section&id=Liquidity%20Summary) Dave Inc. maintained a strong liquidity position, with an increase in cash and equivalents, primarily driven by free cash flow generation - **Cash and cash equivalents, marketable securities, investments, and restricted cash** totaled **$104.7 million** as of June 30, 2025, up from **$89.7 million** as of March 31, 2025[7](index=7&type=chunk) - The increase was primarily attributable to **free cash flow generation**[7](index=7&type=chunk) - The Company did not increase utilization of its credit facility during the quarter[7](index=7&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Jason Wilk highlighted record-setting performance, accelerated revenue growth, and expanding gross margins, attributing success to the new fee structure and improved member lifetime value. CFO Kyle Beilman emphasized strong unit economics, capital efficiency, and the positive impact of the new subscription fee on growth and CAC payback periods - CEO Jason Wilk noted revenue growth accelerated for the third consecutive quarter to the fastest rate in over five years, driven by **ARPU expansion** and **Monthly Transacting Member growth**[2](index=2&type=chunk) - **Non-GAAP gross profit** rose **78% year-over-year**, with **non-GAAP gross margin expanding over 500 basis points to 70%**[2](index=2&type=chunk) - CFO Kyle Beilman stated that **member lifetime value** has improved meaningfully due to stronger monetization, conversion, and sustained retention under the new fee model, reducing **gross profit-derived CAC payback periods to 4 months**[8](index=8&type=chunk) Financial Guidance & Strategic Developments Dave Inc. updated its full-year 2025 financial guidance, reflecting strong performance and strategic initiatives aimed at enhancing operational efficiency and liquidity [FY 2025 Financial Guidance Update](index=3&type=section&id=FY%202025%20Financial%20Guidance%20Update) Dave Inc. raised its full-year 2025 financial guidance for both GAAP Operating Revenues and Adjusted EBITDA, reflecting increased confidence in continued strong performance FY 2025 Guidance Comparison (in millions) | Metric | Prior FY 2025 Guidance | New FY 2025 Guidance | | :----------------------- | :--------------------- | :------------------- | | GAAP Operating Revenues, Net | $460 - $475 million | $505 - $515 million | | Year-Over-Year Growth | 33% - 37% | 46% - 48% | | Adjusted EBITDA* | $155 - $165 million | $180 - $190 million | | Year-Over-Year Growth | 79% - 91% | 108% - 120% | [Strategic Initiatives & Operational Efficiency](index=3&type=section&id=Strategic%20Initiatives%20%26%20Operational%20Efficiency) The company is focused on enhancing its growth model efficiency through improved monetization and retention, and has amended its program agreement with Coastal Community Bank to optimize ExtraCash receivables management and unlock liquidity - **Member lifetime value** has improved meaningfully, driven by stronger monetization and conversion as well as sustained retention under the new fee model[8](index=8&type=chunk) - Estimated **gross profit-derived CAC payback periods** reduced to **4 months**, down from approximately **5 months** in Q2 of last year[8](index=8&type=chunk) - Completed an amendment to the program agreement with Coastal Community Bank, expecting to move a significant portion of **ExtraCash receivables off-balance sheet** by early next year, reducing funding obligations and lowering cost of funds[9](index=9&type=chunk) Corporate Information This section provides essential corporate details, including information about Dave, forward-looking statements, and non-GAAP financial measure definitions [About Dave](index=4&type=section&id=About%20Dave) Dave (Nasdaq: DAVE) is a leading U.S. neobank and fintech pioneer serving millions of everyday Americans by providing best-in-class banking services at a fraction of the price of incumbents using disruptive technologies - Dave is a leading U.S. neobank and fintech pioneer[13](index=13&type=chunk) - Serves millions of everyday Americans[13](index=13&type=chunk) - Uses disruptive technologies to provide best-in-class banking services at a fraction of the price of incumbents[13](index=13&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This press release includes forward-looking statements, which are subject to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and are subject to various risks and uncertainties that could cause actual results to differ materially from projections - Statements are subject to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995[14](index=14&type=chunk) - Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, including competition, technological developments, managing ExtraCash risks, customer retention, and regulatory compliance[14](index=14&type=chunk)[15](index=15&type=chunk) - Dave undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release[15](index=15&type=chunk) [Non-GAAP Financial Information](index=5&type=section&id=Non-GAAP%20Financial%20Information) The press release contains references to non-GAAP financial measures such as Adjusted Net Income, Adjusted EBITDA, non-GAAP gross profit, and adjusted net income per share. These measures are adjusted from GAAP results to exclude certain expenses, gains, and losses, used by management for performance assessment, and are supplemental to GAAP financial information - Non-GAAP financial measures include **Adjusted Net Income, Adjusted EBITDA, non-GAAP gross profit, non-GAAP gross profit margin**, and **adjusted net income per share**[16](index=16&type=chunk) - **Adjusted EBITDA** is defined as GAAP net income before interest, taxes, depreciation, amortization, and adjusted for specific non-recurring items and fair value changes[16](index=16&type=chunk) - These non-GAAP measures are supplemental, not a substitute for GAAP, and should be read in conjunction with consolidated financial statements[18](index=18&type=chunk) Condensed Consolidated Financial Statements This section presents Dave Inc.'s condensed consolidated financial statements, including statements of operations, reconciliations of operating expenses, gross profit, and adjusted EBITDA, and a summary of liquidity and capital resources [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The condensed consolidated statements of operations show Dave Inc.'s revenue and expense breakdown for the three and six months ended June 30, 2025, highlighting significant growth in total operating revenues and net income Condensed Consolidated Statements of Operations (in millions) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :-------------------------- | :------ | :------ | :------------ | :------------ | | Total operating revenues, net | $131.7 | $80.1 | $239.7 | $153.7 | | Total operating expenses | $90.7 | $74.4 | $163.5 | $142.6 | | Net income | $9.1 | $6.4 | $37.9 | $40.6 | | Net income per share (Diluted) | $0.62 | $0.47 | $2.61 | $3.02 | [Reconciliation of Operating Expenses to Variable Operating Expenses](index=7&type=section&id=Reconciliation%20of%20Operating%20Expenses%20to%20Variable%20Operating%20Expenses) This section provides a reconciliation of total operating expenses to variable operating expenses, detailing the components for the three and six months ended June 30, 2025 and 2024 Reconciliation of Operating Expenses (in millions) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :------------------- | :------ | :------ | :------------ | :------------ | | Operating expenses | $90.7 | $74.4 | $163.5 | $142.6 | | Advertising and activation costs | $(15.5) | $(12.9) | $(27.4) | $(23.8) | | Compensation and benefits | $(26.4) | $(24.3) | $(53.7) | $(48.6) | | Technology and infrastructure | $(2.9) | $(2.8) | $(5.6) | $(5.5) | | Other operating expenses | $(6.2) | $(6.1) | $(12.5) | $(12.7) | | Variable operating expenses | $39.7 | $28.3 | $64.3 | $52.0 | [Calculation of Non-GAAP Gross Profit](index=7&type=section&id=Calculation%20of%20Non-GAAP%20Gross%20Profit) This section calculates non-GAAP gross profit and gross profit margin by subtracting variable operating expenses from GAAP operating revenues, showing an increase in both for Q2 2025 and the six months ended June 30, 2025 Non-GAAP Gross Profit Calculation (in millions) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :----------------------- | :------ | :------ | :------------ | :------------ | | GAAP operating revenues, net | $131.7 | $80.1 | $239.7 | $153.7 | | Variable operating expenses | $(39.7) | $(28.3) | $(64.3) | $(52.0) | | Non-GAAP gross profit | $92.0 | $51.8 | $175.4 | $101.7 | | Non-GAAP gross profit margin | 70% | 65% | 73% | 66% | [Reconciliation of Net Income to Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This reconciliation details the adjustments made to GAAP net income to arrive at Adjusted EBITDA for the three and six months ended June 30, 2025 and 2024, showing a substantial increase in Adjusted EBITDA Reconciliation of Net Income to Adjusted EBITDA (in millions) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :------------------------------------ | :------ | :------ | :------------ | :------------ | | Net income | $9.1 | $6.4 | $37.9 | $40.6 | | Interest expense, net | $1.2 | $1.5 | $2.5 | $2.2 | | Provision for income taxes | $2.4 | $(1.8) | $7.5 | $1.4 | | Depreciation and amortization | $1.6 | $1.8 | $3.1 | $3.4 | | Stock-based compensation | $8.3 | $7.7 | $15.8 | $13.8 | | Changes in fair value of earnout liabilities | $7.9 | $(0.1) | $7.5 | $0.1 | | Changes in fair value of public and private warrant liabilities | $20.4 | $(0.3) | $20.8 | $0.2 | | Adjusted EBITDA | $50.9 | $15.2 | $95.1 | $28.3 | [Reconciliation of Net Income to Adjusted Net Income](index=8&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income) This reconciliation provides the adjustments from GAAP net income to Adjusted Net Income, demonstrating a significant increase in adjusted profitability for Q2 2025 and the six months ended June 30, 2025 Reconciliation of Net Income to Adjusted Net Income (in millions) | Metric | Q2 2025 | Q2 2024 | 6 Months 2025 | 6 Months 2024 | | :------------------------------------ | :------ | :------ | :------------ | :------------ | | Net income | $9.1 | $6.4 | $37.9 | $40.6 | | Stock-based compensation | $8.3 | $7.7 | $15.8 | $13.8 | | Changes in fair value of earnout liabilities | $7.9 | $(0.1) | $7.5 | $0.1 | | Changes in fair value of public and private warrant liabilities | $20.4 | $(0.3) | $20.8 | $0.2 | | Adjusted net income | $45.7 | $13.7 | $82.0 | $21.8 | | Adjusted net income per share (Diluted) | $3.14 | $1.01 | $5.66 | $1.63 | [Liquidity and Capital Resources](index=8&type=section&id=Liquidity%20and%20Capital%20Resources) This section provides a snapshot of Dave Inc.'s liquidity and capital resources as of June 30, 2025, and December 31, 2024, showing an increase in cash, cash equivalents, and total stockholders' equity Liquidity and Capital Resources (in millions) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Cash, cash equivalents and restricted cash | $63.5 | $51.4 | | Marketable securities | $0.1 | $0.1 | | Investments | $41.1 | $40.5 | | Working capital | $310.0 | $247.2 | | Total stockholders' equity | $217.1 | $183.1 | Supplementary Information This section provides details for the upcoming conference call and contact information for investor relations and media inquiries [Conference Call Details](index=3&type=section&id=Conference%20Call%20Details) Dave management will host a conference call on August 6, 2025, to discuss the Q2 2025 financial results, with details provided for dial-in and webcast access - Date: **Wednesday, August 6, 2025, at 8:30 a.m. Eastern time**[11](index=11&type=chunk) - Toll-free dial-in number: **(866) 652-5200**; International dial-in number: **(412) 317-6060**[11](index=11&type=chunk) - Webcast available at **https://event.choruscall.com/mediaframe/webcast.html?webcastid=6s8qoRxQ**, with replay and transcript on Dave's Investor Relations website[11](index=11&type=chunk) [Investor Relations & Media Contacts](index=6&type=section&id=Investor%20Relations%20%26%20Media%20Contacts) Contact information for investor relations and media inquiries is provided for stakeholders - Investor Relations Contact: **Sean Mansouri, CFA, Elevate IR, DAVE@elevate-ir.com**[20](index=20&type=chunk) - Media Contact: **Dan Ury, press@dave.com**[20](index=20&type=chunk)