Dave Stock Earnings Reports

Key points for investors: Dave delivered a strong Q1 2026: revenue +47% YoY to $158.4M and adjusted EBITDA +57% to $69.3M (44% margin). Management raised full-year 2026 guidance across revenue, adjusted EBITDA and adjusted EPS (new guidance: revenue $710M–$720M; adjusted EBITDA $305M–$315M; adjusted diluted EPS $16.25–$16.75). Credit performance meaningfully improved: 28-day past-due (28 DPD) improved to a record 1.69%, driven by Cash AI v5.5, and management expects further improvement with Cash AI v6.0 testing soon. Growth metrics remained durable: monthly transacting members (MTMs) +18% YoY to 2.99M and ARPU +24% YoY; CAC remained efficient at $18 with gross profit payback ~3 months. Product initiatives: the company began testing a new Pay-in-4 card, “Dave Flex,” (no compound interest, no late fees, no credit check) with existing members; management does not expect material revenue from it in 2026 and will focus on testing/optimization for potential scale in 2027. Funding and capital allocation: transition to an off‑balance sheet funding arrangement with Coastal Community Bank is on track for this summer and is expected to unlock >$200M in liquidity and lower cost of capital; Q1 repurchases and other transactions reduced share count by ~6% sequentially and the company continues to prioritize buybacks when risk-adjusted returns are attractive. Margin/provision dynamics: Q1 non-GAAP gross margin was 72% (management expects mid-70s for the rest of the year), and a calendar/timing effect (quarter-end weekday) mechanically increased Q1 provisions by roughly $5M; underlying credit trends are improving. Near-term priorities: continue scaling member acquisition, iterate Cash AI (v6), optimize ExtraCash monetization (e.g., removing the $15 fee cap for new members and launching “second draw”), test Dave Flex with an eye to 2027 scale, and operationalize the Coastal funding structure.