Core Insights - Dave Inc.'s proprietary underwriting engine, CashAI, significantly enhances credit risk assessment and eligibility, leading to improved ExtraCash originations and delinquency rates [1] Financial Performance - In Q3 2025, Dave reported $2 billion in ExtraCash originations, marking a 49% year-over-year increase, with consistent growth observed in previous quarters (46% in Q1 and 51% in Q2) [2] - The average 28-day delinquency rate decreased by 7 basis points to 2.33% in Q3 2025, with a notable drop to 2.19% in September due to CashAI v5.5 [3] - Record revenues of $150.8 million were achieved in Q3 2025, representing a 63% year-over-year increase, with adjusted net income rising 193% year-over-year [4] Future Guidance - Management projects revenue for the full year to be between $544 million and $547 million, an increase from the previous guidance of $505 million to $515 million [6] - Adjusted EBITDA is expected to be between $215 million and $218 million, up from the prior estimate of $180 million to $190 million, indicating strong confidence in CashAI's performance [6] Stock Performance - Dave's stock has surged 131% over the past year, outperforming the industry average of 7.9% and contrasting with peers like First Advantage Corporation, which saw a 31.7% decline [7] Valuation Metrics - Dave trades at a 12-month forward price-to-earnings ratio of 14.56, which is lower than the industry average of 25.27, but higher than First Advantage's 10.75 [11] - The Zacks Consensus Estimate for Dave's earnings for 2025 and 2026 has increased by 24.7% and 12%, respectively, over the past 60 days [14]

Core Viewpoint - Mark Cuban's endorsement of Dave Inc. has generated significant market interest, but the sustainability of its stock price depends on the company's growth fundamentals rather than just celebrity backing [1][2][3] Company Overview - Dave Inc. is a banking app aimed at simplifying financial management, particularly for individuals facing cash flow challenges, offering up to $500 in five minutes through its "ExtraCash" feature [4] Financial Performance - The company reported impressive financial growth in its second quarter, with revenue increasing by 64% to $131.7 million, net income rising by 42% to $9.1 million, and adjusted net income soaring by 233% to $45.7 million [5][8] - Adjusted EBITDA skyrocketed by 236% to $50.9 million, while diluted GAAP earnings per share increased by 32% to $0.62, and adjusted EPS rose by 210% to $3.14 [8] Growth Projections - Dave Inc. has raised its 2025 revenue guidance to between $505 million and $515 million, and adjusted EBITDA guidance to between $180 million and $190 million, indicating strong growth expectations [6] Market Performance - As of November 14, the stock has increased approximately 138% year-to-date, reflecting its status as a favorite among momentum investors, despite being below its peak in early July [7]

Core Insights - Prospect Capital Advisors increased its stake in Dave Inc. by 23,455 shares during Q3 2025, bringing its total position to 40,000 shares valued at $7,974,000 as of September 30, 2025 [1][6] - Dave Inc. shares have surged approximately 1,790% over the past three years, with the firm expecting further gains [6] - The company's third-quarter revenue grew by 63% year over year to $150.8 million, marking the second consecutive quarter of over 60% growth [7][10] Company Overview - As of November 14, 2025, Dave Inc. had a market capitalization of $2.77 billion and a stock price of $205.30, reflecting a 156.75% increase over the past year [3][8] - The trailing twelve months (TTM) revenue was reported at $347.08 million, with a net income of $57.87 million [3][8] Business Model - Dave Inc. utilizes a digital platform to simplify money management and provide alternatives to traditional overdraft and credit products, focusing on technology and innovation [5][9] - The company offers digital banking services, including checking accounts, personal finance tools, and short-term credit solutions [9] Financial Performance - In Q3 2025, Dave Inc. achieved a record net income of $92 million on a GAAP basis, with adjusted net income increasing by 193% to $61.6 million [10] - The five-year revenue compound annual growth rate (CAGR) stands at 35.41% [8]

Core Insights - The Technology Services industry has experienced significant growth since the pandemic, driven by remote work adoption and technological advancements such as 5G, blockchain, AI, and ML [1][5][7] Industry Overview - The Zacks Technology Services industry includes companies that produce, develop, and design software support, data processing, computing hardware, and communications equipment [3] - This industry serves both consumer and business markets, offering a wide range of services including advanced analytics, clinical research, data storage technology, and technology-enabled financial services [4] Future Trends - The industry is mature with a healthy demand for services, and revenues are expected to return to pre-pandemic levels, supporting stable dividends for most players [5] - Economic recovery is benefiting the sector, with GDP growth of 3.8% in Q2 2025 and a strong Services PMI indicating robust non-manufacturing sector activity [6] - The global shift towards digitization is creating opportunities in markets like 5G, blockchain, and AI, with the GenAI market projected to reach $59 billion in 2025 and a CAGR of 37.6% from 2025 to 2031 [7] Industry Performance - The Zacks Technology Services industry has outperformed the broader Zacks Business Services sector and the S&P 500, with a 53% increase over the past year compared to a 7.5% decline in the sector and a 17.9% rise in the S&P 500 [10] - The industry is currently trading at an EV-to-EBITDA ratio of 17.19X, lower than the S&P 500's 18.33X, indicating potential valuation opportunities [11] Company Highlights - **Futu Holdings**: A digitalized securities brokerage with a 69.7% year-over-year revenue increase in Q2 2025, and a 1,570 basis points expansion in operating margin. The company added 262,000 funded accounts, totaling 2.7 million [12][13] - **Dave**: A financial services platform that added 843,000 members, resulting in a 60% year-over-year revenue increase. The company raised its full-year revenue guidance to $544-$547 million [15][19] - **Coherent Corp.**: A leader in photonics with a 16.4% year-over-year revenue growth in Q4 2025, driven by demand for 800G transceivers. The company introduced a new 1.6T transceiver, enhancing its market position [20][21]

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]

Core Insights - Dave Inc. reported record Q3 revenue of $150.8 million, representing a 63% year-over-year increase, driven by accelerating MTM growth and record ARPU [1][2] - The company achieved record profitability with net income reaching $92.0 million and adjusted net income increasing by 193% to $61.6 million [1][3] - Dave raised its 2025 revenue and adjusted EBITDA guidance to $544 - $547 million and $215 - $218 million, respectively [1][5] Financial Performance - Q3 operating revenues were $150.8 million, up from $92.5 million in Q3 2024, marking a 63% increase [3][16] - Adjusted EBITDA for Q3 was $58.7 million, a 137% increase compared to the same quarter last year [1][3] - The company reported a non-GAAP gross profit of $104.2 million, with a gross profit margin of 69% [3][19] Customer Metrics - New members increased significantly, with 843,000 new members acquired at a customer acquisition cost of $19 [3][6] - Monthly transacting members (MTMs) rose by 17% to 2.77 million [3][6] - ExtraCash originations grew by 49% to over $2 billion, with a monetization rate net of losses expanding to 4.8% [1][3] Liquidity and Capital Management - As of September 30, 2025, the company had $93.6 million in cash and cash equivalents, down from $104.7 million at the end of Q2 2025, primarily due to $25 million in share repurchases [4][6] - The average 28-day delinquency rate increased to 2.33% from 1.78% in the comparable period [4][6] Strategic Initiatives - The rollout of CashAI v5.5 led to improvements in origination size and delinquency rates [3][6] - The company emphasized its focus on directing acquisition spend toward high gross profit opportunities, resulting in improved payback periods [6][6]

Key Takeaways DAVE will report third-quarter 2025 results on Nov. 4 before market open.New fee model and CashAI likely lifted ExtraCash limits and ARPU growth.Higher card spend and expense control are expected to drive revenues and EPS.Dave Inc. (DAVE) will release third-quarter 2025 results on Nov. 4, before market open.DAVE has an impressive earnings surprise history. In the four trailing quarters, it surpassed the Zacks Consensus Estimate, with an average surprise of 105.4%.DAVE’s Q3 ExpectationsThe Zack ...

Company Overview - Dave Inc. was founded by CEO Jason Wilk to address traditional bank overdraft fees, offering an app that provides small, interest-free cash advances while utilizing AI for cash flow predictions [2] - The company targets underserved and underbanked Americans, expanding its services to include credit-building tools, job-finding services, and fee-free checking accounts with debit cards [2] Revenue Streams - Dave Inc. generates revenue through three primary streams: subscription fees, service fees, and interchange revenue [2] - The $1/month subscription provides access to budgeting and credit-building tools, showing a 14% year-over-year member growth, contributing to stable, recurring income [3] Core Services - The core service, ExtraCash, allows advances up to $500 with fees ranging from $5 to $15, supported by AI-driven underwriting [3] - Despite serving higher-risk members, Dave Inc. maintains low delinquency rates of 2.40% for 28-day delinquencies compared to 3.49% for similar unsecured borrowers, indicating strong credit management [3] Market Position and Growth Potential - The company benefits from increasing margins as fixed costs decline relative to revenue, with an expanding addressable market of financially stressed Americans [4] - While competition exists from platforms like $CHYM and Cash App, Dave Inc.'s niche market, combined with AI-driven risk management, positions it for continued growth [4] Recent Performance and Investor Sentiment - The stock price of Dave Inc. has appreciated approximately 12% since previous coverage, reflecting positive growth and monetization trends [5] - The current bullish thesis emphasizes revenue streams and per-member profitability, highlighting a compelling opportunity for investors [5]

Core Insights - SoFi Technologies (SOFI) and Dave Inc. (DAVE) are both innovative fintech companies that provide digital banking services, targeting underserved or digitally savvy audiences [1] - SOFI is focusing on scaling and innovation to enhance profitability, while DAVE is a newer player emphasizing short-term cash advances and budgeting tools [1][10] Summary of SOFI - SOFI's Q2 2025 results show strong performance with adjusted earnings of 8 cents per share, exceeding estimates by 33.3% and more than doubling year-over-year [3] - Revenues reached $858.2 million, surpassing estimates by 6.6% and growing 43.4% year-over-year, driven by a growing customer base and product portfolio [3][11] - The company added a record 850,000 new members in Q2, bringing total membership to 11.7 million, a 34% annual increase [4] - Fee-based revenue increased by 72% year-over-year to $378 million, contributing to a more than $1.5 billion annualized fee-based income [5] - Adjusted EBITDA rose 80.6% year-over-year to $249.1 million, with a margin improvement of 600 basis points [6] - SOFI raised its 2025 guidance, expecting adjusted net revenues of approximately $3.375 billion, implying about 30% annual growth [7][20] - The company anticipates adding at least 3 million new members in 2025, representing roughly 30% year-over-year growth [9] Summary of DAVE - DAVE's revenues grew 64% in Q2 2025, with monthly transacting members reaching 2.6 million, a 16% increase year-over-year [12][11] - The company experienced a 51% surge in ExtraCash originations and a 27% increase in Dave Debit Card usage [13] - However, DAVE faces challenges with rising delinquency rates, which increased to 2.4% from 2% a year earlier [14] - Competition from fintech peers and traditional banks is intensifying, putting pressure on DAVE's business model [15][16] - The Zacks Consensus Estimate for DAVE's 2025 sales is set at $512.4 million, indicating a 47.6% year-over-year increase [17] Comparative Analysis - SOFI is trading at a forward P/E ratio of 53.56X, while DAVE is at 18.05X, indicating a significant valuation difference [24] - SOFI demonstrates balanced growth with scaling membership and expanding product adoption, while DAVE's growth is challenged by its smaller scale and rising delinquency rates [25] - SOFI's raised guidance and strong EPS momentum reinforce its leadership in digital finance, despite a richer valuation [25][26]

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]