Plasma, a blockchain startup backed by billionaire Peter Thiel, just launched what could fundamentally disrupt traditional banking across emerging markets. Fresh off raising $373 million in a seven-times oversubscribed initial coin offering, the company announced Plasma One on Sept. 22. The stablecoin-native neobank promises to deliver “everyone, everywhere permissionless access to saving, spending, and earning in dollars,” according to the statement. Plasma says users can pay directly from their stablecoi ...

Latest iteration of proprietary cash flow underwriting engine approximately doubles inputs to optimize credit outcomesLos Angeles, Sept. 10, 2025 (GLOBE NEWSWIRE) -- Dave Inc. (“Dave” or the “Company”) (Nasdaq: DAVE), one of the nation’s leading neobanks, today announced the full implementation of CashAI v5.5, the latest advancement in the Company’s AI-driven, cash flow underwriting engine. v5.5 nearly doubles CashAI’s feature set versus prior models and optimizes around Dave’s new fee structure. Given the ...

Core Insights - Dave Inc. (DAVE) is set to report its second-quarter 2025 results on August 6, with earnings per share (EPS) expected to rise by 88.1% year-over-year to $1.9, and revenues projected at $112.7 million, indicating a 40.7% growth compared to the previous year [1][6]. Financial Performance - The consensus estimate for Q2 EPS is $1.90, unchanged over the past 60 days, while revenue estimates have shown a slight downward revision [2]. - DAVE has a strong earnings surprise history, surpassing the Zacks Consensus Estimate in the last four quarters with an average surprise of 274.5% [2]. Membership Growth and Revenue Drivers - DAVE reported 12.4 million members in Q1 2025, an increase of 569,000 from the previous year, driven by a new flat fee structure for ExtraCash transactions [5]. - The new fee model has improved monetization and conversion rates, contributing positively to user acquisition and retention [5][16]. Stock Performance - DAVE's stock has surged 661.1% over the past year, significantly outperforming its industry growth of 71.2% and the S&P 500's 20.8% increase [6][7]. - The current trailing 12-month price-to-earnings (P/E) ratio for DAVE is 22.01X, slightly below the industry average of 22.9X, but higher than peers like Jamf and Inspired Entertainment [9]. Profitability and Liquidity - DAVE exhibits strong profitability with a trailing 12-month return on equity (ROE) of 59.2%, compared to the industry average of 6.7%, and a return on invested capital (ROIC) of 26.7% [12]. - The company maintains a robust liquidity position with a current ratio of 8.59, significantly higher than the industry average of 1.84, indicating strong short-term financial health [12]. Market Position and Risks - DAVE serves the underbanked population, capitalizing on the growing neobank market and mobile banking trends, presenting significant growth opportunities [13]. - The company has implemented CashAI, a proprietary underwriting technology, which has improved ExtraCash origination by 46% year-over-year to $1.5 billion in Q1 2025 [14]. - Despite these strengths, DAVE's focus on subprime customers poses inherent risks, as this demographic is more susceptible to default [15][17].

Company Performance - Dave Inc.'s shares have increased by 132.9% year-to-date, significantly outperforming the industry growth of 9.8% and the S&P 500 composite's rise of 6% [1] - Over the past three months, Dave's stock surged by 140.3%, again surpassing CoreCard's 38.9% and Qifu Technology's 47.6% growth [4] - The stock's strong performance has attracted investor interest, suggesting a potential long-term investment opportunity [4] Neobank Market Dynamics - The neobank market is projected to grow at a CAGR of 40.3% from 2025 to 2034, driven by the needs of the underbanked demographic [5] - Dave's ExtraCash service provides interest-free cash advances up to $500 without traditional credit checks, targeting underbanked consumers [6] - The company utilizes bank account history and spending patterns to assess creditworthiness, allowing it to serve sub-prime or non-prime consumers [6] Financial Metrics - Dave's current stock price is at 19.74X forward 12-month earnings per share, lower than the industry average of 23.35X, indicating a potentially attractive valuation [10] - The company's trailing 12-month ROE is 59.2%, significantly higher than the industry average of 6.6%, while its ROIC stands at 26.7% compared to the industry's -8.5% [12] - Dave's current ratio of 8.59 exceeds the industry average of 1.84, reflecting a strong liquidity position and the ability to cover short-term obligations [14] Revenue and Earnings Outlook - The Zacks Consensus Estimate projects 2025 revenues of $475.8 million, representing a 36.7% increase from the previous year, with further growth of 23.8% expected in 2026 [16] - The consensus estimate for 2025 earnings per share is $8.76, indicating a 67.2% surge from the prior year, with a 35.1% increase anticipated in 2026 [16] Investment Recommendation - Given the successful ExtraCash product, simplified fee structure, and promising results from CashAI in reducing credit risk, Dave is positioned as a compelling investment opportunity [17][18] - The company's strong fundamentals, discounted valuation, and robust financial metrics further support the recommendation for investors to buy the stock [18]

Core Insights - Healthy cash flow is essential for a company's existence, development, and success, acting as the lifeblood of any business [1] - Companies such as Dave Inc. (DAVE), Nomad Foods Limited (NOMD), Great Lakes Dredge & Dock Corporation (GLDD), and Natural Gas Services Group, Inc. (NGS) are identified as potential investment opportunities due to their rising cash flows [2][9] Cash Flow Importance - Profitability alone does not guarantee a company's survival; uneven cash flow can lead to bankruptcy, making cash flow analysis crucial for prudent investment decisions [3] - In the current economic climate, analyzing a company's cash-generating efficiency is particularly relevant due to global uncertainties and liquidity concerns [4] Cash Flow Dynamics - Positive cash flow indicates an increase in liquid assets, enabling a company to meet obligations, reinvest, and return wealth to shareholders, while negative cash flow signifies declining liquidity [5] - Continuous growth in cash flow is necessary for future growth, reflecting management's efficiency and reducing reliance on external financing [6] Screening Parameters - Stocks were screened for those with cash flow in the latest quarter at least equal to the 5-year average, indicating a positive trend [7] - Additional criteria include Zacks Rank 1, average broker rating of 1, current price above $5, and a VGM Score of B or better [8] Selected Stocks - DAVE is a neobank and fintech innovator with a 33.8% improvement in the 2025 earnings per share estimate [10] - NOMD, a frozen food manufacturer, has a current-year earnings estimate of $2.07 per share, reflecting a 7.3% year-over-year increase [11] - GLDD, the largest U.S. dredging service provider, has seen a 34.8% upward revision in its 2025 earnings estimate to 93 cents per share [12] - NGS, which manufactures natural gas compressors, has an 18.6% improvement in its 2025 earnings estimate [12]