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]