Core Insights - Dave Inc. (DAVE) is enhancing its credit infrastructure with AI-powered features, contributing to revenue growth and an increase in new subscribers [1][8] Group 1: ExtraCash Platform - DAVE's ExtraCash account allows clients to borrow between $25 and $500 without credit checks, interest, or late fees, utilizing a proprietary underwriting model called Cash AI [2] - The recent enhancement to Cash AI improves the evaluation process for identifying credible customers, reducing risk while increasing return on equity [3] Group 2: Cash AI v5.5 and Dave Card Features - The implementation of Cash AI v5.5 has nearly doubled the feature set of the underwriting engine, resulting in more accurate risk ranking, higher approval amounts, and lower delinquency rates [4] - The 28-day past due rate improved by 12% sequentially to 1.89% in Q4 2025, outperforming the guidance of below 2.1% [5] - The Dave Card, linked to ExtraCash accounts, saw a 17% year-over-year increase in spending, reaching $534 million in Q4 2025 due to pricing optimization [6][8] Group 3: Share Price Performance and Valuation - DAVE's stock price increased by 95% over the past year, outperforming TTEC Holdings, which declined by 25.5%, while the industry and GigaCloud Technology rose by 8.8% and 180.7%, respectively [7] - DAVE trades at a 12-month forward price-to-earnings ratio of 11.77X, higher than TTEC's 2.08X and GigaCloud's 10.51X, but lower than the industry average of 22.47X [9] Group 4: Earnings Estimates - The Zacks Consensus Estimate for DAVE's earnings for 2026 and 2027 has increased by 3.5% each over the past month [10] - Current earnings estimates for DAVE are $2.87 for Q1 2026 and $14.56 for the current year [11]

Financial Data and Key Metrics Changes - In 2025, the company achieved a revenue growth of 60%, reaching $554 million, and Adjusted EBITDA increased to $227 million with a margin of approximately 41% [4][15] - The company exceeded its initial revenue guidance by 30% and nearly doubled its original EBITDA guidance, resulting in an 86% flow-through rate on top-line outperformance for the year [4][5] - Full-year Adjusted EBITDA grew 162%, significantly outpacing revenue growth, driven by gross margin expansion and operating leverage [5][20] Business Line Data and Key Metrics Changes - The company acquired 867,000 new members in Q4, a 13% year-over-year increase, with a customer acquisition cost (CAC) of $20 [6][14] - Originations for ExtraCash reached a record $2.2 billion, up 50% year-over-year, driven by a 19% increase in multi-transaction members and a 20% increase in average ExtraCash size to $214 [7][8] - High-margin subscription revenue grew 92% year-over-year, benefiting from the new $3 monthly subscription fee for new members [9] Market Data and Key Metrics Changes - The company has 2.9 million multi-transaction members (MTMs), which is a small fraction of the total addressable market (TAM) of 185 million customers [6] - The 28-day past due rate improved 12% sequentially to 1.89%, outperforming guidance of below 2.1% for the quarter [8][15] - The net monetization rate expanded to an all-time high of 4.8%, with average revenue per ExtraCash origination net of losses growing 27% year-over-year [16] Company Strategy and Development Direction - The company aims to sustain mid-teens member growth and low double-digit average revenue per user (ARPU) growth as part of its growth algorithm [5][22] - The strategy includes efficient member acquisition, engaging members with ExtraCash, and deepening engagement through the Dave Card [6][7] - The company plans to transition ExtraCash receivables to a new off-balance sheet funding structure, expected to unlock over $200 million in incremental liquidity [20][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the growth algorithm and the potential for continued growth and profitability in 2026 [12][22] - The company anticipates revenue for 2026 to be in the range of $690 million to $710 million, representing year-over-year growth of approximately 25% to 28% [22][23] - Management noted that the current economic environment is stable, with no significant impacts from the tax refund season observed [71] Other Important Information - The company is currently in the discovery phase of a DOJ matter but believes it has been compliant with applicable laws [10] - The board approved an increase in the share repurchase authorization from $125 million to $300 million, reflecting confidence in the intrinsic value of shares [21] Q&A Session Summary Question: How close is the company to optimizing credit outcomes and gross profit growth? - Management indicated that there is still room for growth with CashAI v5.5, but testing for version 6.0 will begin later this year [26][28] Question: How much of members' monthly spend is currently captured by Dave? - The company captures about 30% of customers' ExtraCash spend, with expectations that the Pay in Four product will help drive incremental engagement [35][36] Question: Will the new subscription charges for Dave Card affect grandfathered accounts? - Current plans are to keep grandfathered accounts at $1 per month, with potential for future changes based on additional product value [46][52]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue growth of 60%, reaching $554 million, and adjusted EBITDA of $227 million with a margin of approximately 41% [4][15] - Adjusted EBITDA grew 162%, significantly outpacing revenue growth, driven by gross margin expansion and operating leverage [5][20] - The company outperformed its initial revenue guidance by 30% and nearly doubled its EBITDA guidance, achieving an 86% flow-through rate on top-line outperformance [4][20] Business Line Data and Key Metrics Changes - The company acquired 867,000 new members in Q4, a 13% year-over-year increase, with a customer acquisition cost (CAC) of $20 [6][14] - Multi-transaction members (MTMs) grew to 2.9 million, representing a small fraction of the total addressable market (TAM) of 185 million customers [5][6] - High-margin subscription revenue increased by 92% year-over-year, benefiting from the new $3 monthly subscription fee for new members [8][9] Market Data and Key Metrics Changes - The company reported a record $2.2 billion in ExtraCash originations, up 50% year-over-year, driven by a 19% increase in MTM growth and a 20% increase in average ExtraCash size [7][8] - The 28-day past due rate improved to 1.89%, outperforming guidance, indicating strong credit performance [8][15] - The net monetization rate expanded to an all-time high of 4.8%, reflecting improved credit performance and ARPU growth [16][20] Company Strategy and Development Direction - The company aims to sustain mid-teens member growth and low double-digit ARPU growth as part of its growth algorithm [5][22] - The strategic pillars include efficient member acquisition, engaging members with ExtraCash, and deepening engagement through the Dave Card [6][8] - The company plans to transition ExtraCash receivables to an off-balance sheet funding structure, unlocking significant liquidity and reducing capital costs [9][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the growth algorithm and the potential for continued expansion in 2026, with revenue guidance set at $690 million to $710 million [22][24] - The company anticipates that AI innovations will enhance product offerings and operational efficiency, leading to more growth opportunities [12][24] - Management noted that the current economic environment is stable, with no significant impacts from tax refund season observed [71] Other Important Information - The company is on track to begin customer testing of the Pay in Four product, which is expected to differentiate from traditional credit cards [10][11] - The board approved an increase in the share repurchase authorization from $125 million to $300 million, reflecting confidence in the company's intrinsic value [21][22] - The company plans to maintain a conservative approach to guidance, aiming for high confidence in delivering results [58][61] Q&A Session Summary Question: How close is the company to optimizing credit outcomes and gross profit growth? - Management indicated that there is still room for growth in average origination size and plans to test CashAI v6.0 later this year [28] Question: How does the company view the impact of the Pay in Four product on capturing wallet share? - Management sees the Pay in Four product as complementary to ExtraCash, expecting some cannibalization but also higher retention and lifetime value [43][44] Question: What is the expected range for the 28-day DPD rate in the guidance for the year? - Management expects the DPD rate to remain around 1.89%, which aligns with their gross margin guidance [40] Question: What is the impact of the subscription charge increase on customer retention? - Management reported no negative impact on retention or conversion from the subscription price increase, indicating strong customer acceptance [67] Question: How does the company plan to approach guidance moving forward? - Management emphasized a conservative approach to guidance, aiming to provide numbers they are confident in delivering [58][61]

Financial Data and Key Metrics Changes - In 2025, the company achieved record revenue of $554 million, representing a 60% year-over-year growth. Adjusted EBITDA reached $227 million with a margin of approximately 41% [4][21] - The company exceeded its initial revenue guidance by 30% and nearly doubled its original EBITDA guidance, outperforming revenue by $129 million and EBITDA by $112 million [4][5] - Full year Adjusted EBITDA grew 162%, significantly outpacing revenue growth, driven by gross margin expansion and operating leverage [5][21] Business Line Data and Key Metrics Changes - The company acquired 867,000 new members in Q4, a 13% increase year-over-year, with a customer acquisition cost (CAC) of $20 [6][7] - Originations for ExtraCash reached a record $2.2 billion, up 50% year-over-year, driven by a 19% increase in multi-transaction members and a 20% increase in average ExtraCash size to $214 [8][10] - High-margin subscription revenue grew 92% year-over-year, benefiting from the new $3 monthly subscription fee for new members [10] Market Data and Key Metrics Changes - The company has 2.9 million multi-transaction members (MTMs), which is a small fraction of the total addressable market (TAM) of 185 million customers [6] - The 28-day past due rate improved 12% sequentially to 1.89%, outperforming guidance of below 2.1% for the quarter [9][16] Company Strategy and Development Direction - The company aims to sustain mid-teens member growth and low double-digit average revenue per user (ARPU) growth, with ARPU expanding 36% year-over-year [5][24] - The strategic pillars include efficient member acquisition, engaging members with ExtraCash, and deepening engagement through the Dave Card [6][10] - The company plans to transition ExtraCash receivables to a new off-balance sheet funding structure, expected to unlock over $200 million in incremental liquidity [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth algorithm's durability, expecting revenue in the range of $690 million to $710 million for 2026, representing a year-over-year growth of approximately 25%-28% [24][25] - The company anticipates Adjusted EBITDA for 2026 to be in the range of $290 million to $305 million, with a focus on driving per-share value creation through opportunistic share repurchases [25][26] Other Important Information - The company is currently in the discovery phase of a DOJ matter, with no material updates [11] - Management believes that AI innovation will continue to benefit the business, enhancing product offerings and operational efficiency [12][13] Q&A Session Summary Question: How close is the company to optimizing credit outcomes and gross profit growth? - Management indicated that there is still room for growth in the current CashAI v5.5 model, with plans to test version 6.0 later this year [28][29] Question: How much of members' monthly spend is currently captured by Dave? - The company captures about 30% of customers' ExtraCash spend, with expectations that the Pay in Four product will help drive incremental engagement [37][38] Question: Will the Pay in Four product cannibalize ExtraCash? - Management anticipates some cannibalization but views the products as complementary, with expectations of higher lifetime value (LTV) for the Pay in Four product [45][46] Question: What is the current plan for subscription charges for Dave Card? - The current plan is to keep grandfathered accounts at $1 per month, with potential for future changes based on additional product value [47][50]

4Q 25 Earnings Presentation March 2, 2026 Disclaimer FORWARD-LOOKING STATEMENTS This presentation of Dave Inc. ("Dave" or the "Company") includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "future," "growth," "opportunity," "well-positioned," "forecasts," "intends," "estimates," "seeks," "targets," "anticipates," "remains," "should," "bel ...

Core Insights - Dave Inc.'s shares have increased by 173.5% over the past year, outperforming the industry growth of 17.8% and the Zacks S&P 500 Composite's rise of 20.3% [1][6] - The company has added 843,000 members in Q3 2025, bringing total membership to 13.5 million, a 17% year-over-year increase [5][15] - Dave's new fee model and CashAI v5.5 have significantly contributed to customer growth and retention [8][15] Performance Comparison - Dave's stock has outperformed peers such as LiveRamp, which saw a 6.3% decline, and Nable, which experienced a 22.9% drop [1][4] - In the last month, Dave's shares gained 15.2%, while LiveRamp and Nable lost 2.6% and 3.9%, respectively [4] Customer Growth and Acquisition - The increase in membership was driven by a 25% year-over-year rise in Dave Card spend, while customer acquisition cost (CAC) remained stable at $19 [5][6] - ExtraCash origination increased by 49% year-over-year, indicating successful marketing efforts [5] Financial Metrics - Dave's current ratio improved to 8.7 in Q3 2025, up from 6.81 a year ago, significantly exceeding the industry average of 1.58 [13] - The company trades at 16.56 times forward 12-month EPS, below the industry average of 26.11 times, making it attractive for value-oriented investors [9] Profitability - Dave's return on equity (ROE) stands at 77.8%, compared to the industry average of 15.3%, while its return on capital invested (ROIC) is 48.8%, well above the industry average of 7.7% [11] - These metrics indicate strong profitability and efficient shareholder return generation [11] Revenue and Earnings Projections - The Zacks Consensus Estimate for 2025 revenues is $546.1 million, reflecting a 57.3% increase from the previous year, with a further 20.2% anticipated growth in 2026 [14] - The consensus estimate for 2025 earnings per share is $12.96, indicating a 147.3% increase from the prior year, with an expected 8% rise in 2026 [14]

Core Insights - Dave Inc. (DAVE) achieved a 17% year-over-year growth in membership, ending Q3 2025 with 13.5 million members and acquiring 843,000 new members in the quarter [1][8] - Monthly transacting members increased by 17% year-over-year to 2.8 million, driven by a 25% rise in Dave Card spending to $510 million [1][8] Customer Acquisition and Marketing - Customer acquisition cost (CAC) remained flat at $19, despite a 22.3% increase in advertising and activation costs, indicating improved conversion rates and effective marketing strategies [2] - A 49% year-over-year increase in ExtraCash origination reflects the success of DAVE's marketing campaigns [2] Product and Fee Structure - The CashAI v5.5 underwriting engine contributed to a 20% increase in average ExtraCash size, enhancing wallet share without compromising credit quality [3] - DAVE introduced a new fee model with a flat 5% fee on ExtraCash transactions, making it more accessible and affordable for the underbanked population [4] Stock Performance and Valuation - DAVE's stock price surged 146.4% over the past year, outperforming peers AppLovin (92.2%) and Coherent Corp. (73.7%), while the industry overall gained 14% [5] - DAVE trades at a 12-month forward price-to-earnings ratio of 17.07, significantly lower than AppLovin's 72.08 and Coherent's 32.19 [9] Earnings Estimates and Rankings - DAVE holds a Zacks Rank 1 (Strong Buy), indicating strong market confidence [13] - The Zacks Consensus Estimate for DAVE's earnings for 2025 and 2026 has increased by 24.6% and 11.4%, respectively, over the past 60 days [12]

Financial Data and Key Metrics Changes - Revenue grew 63% year over year to $150.8 million, with adjusted EBITDA reaching $58.7 million, reflecting a 137% increase year over year [4][20] - Monthly transacting members (MTMs) increased by 17% to 2.77 million, while average revenue per user (ARPU) expanded by nearly 40% [4][21] - Non-GAAP gross profit rose 62% year over year to $104.2 million, with a non-GAAP gross margin of 69% [18][20] Business Line Data and Key Metrics Changes - Extra Cash origination grew 49% year over year, surpassing $2 billion for the first time, with a 20% increase in average origination size [9][10] - Total card spend increased by 25% year over year to $510 million, driven by growth in MTMs and card spend per active banking customer [10] - High-margin subscription revenue grew 57% year over year, with a new $3 monthly subscription fee for new members [10][18] Market Data and Key Metrics Changes - The 28-day delinquency rate improved by seven basis points sequentially to 2.33%, with further improvement to 2.19% in September [15][17] - The company reported a stable customer acquisition cost (CAC) of $19, with improvements in marketing efficiency [8][24] Company Strategy and Development Direction - The company is focused on maximizing gross profit dollars across the platform and enhancing credit performance through the rollout of Cache AI v5.5 [4][7] - Strategic growth pillars include efficient member acquisition, strengthening engagement through credit, and deepening monetization via Dave Cards [8][10] - The transition to Coastal Community Bank is expected to reduce funding obligations and lower the cost of capital, enhancing liquidity for strategic opportunities [20][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future growth, citing strong performance across all aspects of the business and raising 2025 revenue and adjusted EBITDA guidance [4][21] - The company anticipates continued improvements in credit performance and expects the provision expense as a percentage of originations to improve in Q4 [18][20] Other Important Information - The company is in the process of transitioning to a new funding arrangement with Coastal Community Bank, expected to be completed by early 2026 [20][30] - The introduction of a new Buy Now, Pay Later product is in internal testing, with customer testing expected in Q1 [60] Q&A Session Summary Question: What is driving the improvement in delinquency rates with Cache AI v5.5? - Management highlighted the extensive data inputs in Cache AI v5.5, which has led to superior credit performance and better control over loss rates [23] Question: What consumer trends are being observed? - Management noted that consumer spending and income appear stable, with a consistent CAC of $19, indicating healthy business conditions [24] Question: What is the timeline for the transition to Coastal Community Bank? - The transition is expected to be completed by early 2026, with a full migration of funding arrangements targeted for the end of Q1 or early Q2 [30] Question: How does the company view its operating leverage and future growth? - Management expressed satisfaction with the current EBITDA margin and indicated plans for further investments to support growth [36] Question: What percentage of members are using the Dave Card? - Approximately 30% of total customers are sending Extra Cash to the Dave Card, which is seen as a way to drive incremental retention [58] Question: What is the expected impact of the new pricing model on revenue? - The new pricing model is anticipated to stabilize yields and enhance revenue growth, with improvements in unit economics [70]

Financial Highlights - Dave's Adjusted EBITDA Margin expanded approximately 1,200 bps year-over-year to 39%[19] - ExtraCash origination volume grew 49% year-over-year to $2 billion[19] - Total revenue increased 63% year-over-year to $151 million[19] - The company is raising 2025 revenue guidance to $544 million - $547 million, representing a year-over-year growth of 57%-58%[23] - The company is raising 2025 Adjusted EBITDA guidance to $215 million - $218 million, representing a year-over-year growth of 149%-152%[23] Business Performance - New fee model drove a step-change improvement in ExtraCash net revenue, increasing gross monetization rate by approximately 70 bps year-over-year to 64%[20] - Average ExtraCash size increased 20% year-over-year to $207[20] - Average revenue per ExtraCash (net) increased 32% year-over-year to $10[20] - Dave acquired 843,000 new members in 3Q25, up 17% quarter-over-quarter, while CAC remained flat at $19[50] - Total members reached 135 million in 3Q25, up 17% year-over-year[55]

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]