Core Insights - Both OppFi Inc. (OPFI) and Dave (DAVE) are key players in the fintech sector, focusing on digital lending solutions for customers [1] - DAVE offers interest-free cash advances, while OPFI collaborates with banks to serve the underbanked population [1] Group 1: Performance Metrics - DAVE's ExtraCash service allows customers to borrow up to $500 without interest, achieving a 49% year-over-year growth in originations in Q3 2025, resulting in a 63% increase in top-line growth and a 137% rise in adjusted EBITDA [3][9] - OPFI reported a 13.5% year-over-year revenue increase in Q3 2025, with adjusted net income growing by 41.4% and adjusted EPS rising by 39.1% [7][9] Group 2: Credit Risk Management - DAVE's average 28-day delinquency rate decreased by 7 basis points to 2.33% in Q3 2025, aided by the CashAI v5.5 rollout, which also improved the 28-day days past due metric [4][9] - OPFI's Model 6 led to a 430 basis point reduction in net charge-offs as a percentage of total revenues year-over-year, indicating effective credit risk management [8] Group 3: Financial Guidance and Estimates - DAVE raised its revenue guidance for the year to $544-$547 million, up from $505-$515 million, and adjusted EBITDA guidance to $215-$218 million from $180-$190 million [5] - The Zacks Consensus Estimate for DAVE's 2025 sales is $546.1 million, reflecting a 57.3% year-over-year increase, while OPFI's estimate is $597.6 million, suggesting a 13.6% growth [12][13] Group 4: Valuation Comparison - OPFI is trading at a forward P/E ratio of 6.47X, significantly lower than DAVE's 15.81X, making OPFI a more attractive investment option [14] - Both companies are rated Zacks Rank 1 (Strong Buy), indicating strong potential for investors [17]

Core Insights - Both OppFi Inc. (OPFI) and Dave (DAVE) are key players in the fintech sector, focusing on digital lending solutions for customers [1] - DAVE offers small, interest-free cash advances, while OPFI collaborates with banks to provide credit access to subprime and non-prime demographics using AI underwriting [1] Group 1: Dave's Performance - DAVE operates a subscription-based model charging $5 per month, providing various services including ExtraCash and financial management [2] - The ExtraCash service allows borrowing up to $500 without interest or credit checks, achieving a 46% growth in originations and a 29% increase in average revenues per user in Q1 2025 [3] - DAVE's revenue increased by 47% year-over-year, with adjusted EBITDA soaring by 235% in the March quarter, indicating strong operational leverage [3] - The company has improved its credit risk management through CashAI, reducing the 28-day delinquency rate by 18% year-over-year and lowering the provision for credit losses to 0.69% [4][12] - CashAI has enabled DAVE to resolve 90% of customer service tickets without agent involvement, enhancing efficiency [5] Group 2: OppFi's Performance - OPFI targets the underbanked population, leveraging AI and machine learning to serve subprime customers [6] - The company reported a 10.1% year-over-year revenue increase and a 285.1% rise in adjusted net income in Q1 2025, showcasing strong operating leverage [7] - OPFI's Model 6 has significantly reduced the net charge-off rate by 700 basis points from the previous quarter and by 1300 basis points year-over-year [8] - The company achieved a 16% year-over-year growth in net originations, aided by improved credit modeling [9] - An auto-approval rate of 79% reflects OPFI's effective credit evaluation models, enhancing its competitive position [10] Group 3: Financial Estimates and Valuation - The Zacks Consensus Estimate for DAVE's 2025 sales is $475.8 million, indicating a 37.1% year-over-year increase, with EPS expected to rise by 67.2% [13] - For OPFI, the 2025 sales estimate stands at $578.4 million, suggesting a 10% year-over-year growth, with EPS projected to increase by 29.5% [16] - OPFI is trading at a forward P/E ratio of 8.5X, while DAVE is at 18.53X, indicating that OPFI is valued lower than DAVE, making it potentially more attractive [19] Group 4: Comparative Analysis - DAVE is highlighted as the superior investment option in fintech, with significant revenue growth and operational efficiency driven by its AI-powered systems [21] - Despite OPFI's solid credit modeling, DAVE's subscription model, faster user growth, and stronger earnings revisions provide a competitive edge [22] - DAVE holds a Zacks Rank of 1 (Strong Buy), while OPFI has a Zacks Rank of 3 (Hold), further emphasizing DAVE's favorable position in the market [23]