Dave(DAVE) - 2025 Q2 - Quarterly Results

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 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] Quarterly Financial Highlights (GAAP & Non-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 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] - Monthly Transacting Members ("MTMs") increased 16% to 2.6 million[7] - 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] - Dave Debit Card spend increased 27% to $493 million[7] Liquidity Summary 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] - The increase was primarily attributable to free cash flow generation[7] - The Company did not increase utilization of its credit facility during the quarter[7] Management Commentary 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] - Non-GAAP gross profit rose 78% year-over-year, with non-GAAP gross margin expanding over 500 basis points to 70%[2] - 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] 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 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 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] - Estimated gross profit-derived CAC payback periods reduced to 4 months, down from approximately 5 months in Q2 of last year[8] - 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] Corporate Information This section provides essential corporate details, including information about Dave, forward-looking statements, and non-GAAP financial measure definitions About Dave 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] - Serves millions of everyday Americans[13] - Uses disruptive technologies to provide best-in-class banking services at a fraction of the price of incumbents[13] Forward-Looking Statements 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] - 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][15] - Dave undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release[15] Non-GAAP Financial Information 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] - 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] - These non-GAAP measures are supplemental, not a substitute for GAAP, and should be read in conjunction with consolidated financial statements[18] 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 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 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 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 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 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 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 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] - Toll-free dial-in number: (866) 652-5200; International dial-in number: (412) 317-6060[11] - Webcast available at https://event.choruscall.com/mediaframe/webcast.html?webcastid=6s8qoRxQ, with replay and transcript on Dave's Investor Relations website[11] Investor Relations & Media Contacts 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] - Media Contact: Dan Ury, press@dave.com[20]