Dave (NASDAQ:DAVE) Announces Earnings Results

Dave (NASDAQ:DAVE - Get Free Report) announced its quarterly earnings results on Tuesday. The fintech company reported $3.64 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.86 by $0.78, FiscalAI reports. The company had revenue of $158.40 million for the quarter, compared to the consensus estimate of $153.67 million. Dave had a net margin of 37.22% and a return on equity of 72.06%. Dave updated its FY 2026 guidance to 16.250-16.750 EPS.

Here are the key takeaways from Dave's conference call:

• Strong Q1 results — Revenue grew 47% to $158.4M and adjusted EBITDA rose 57% to $69.3M (44% margin), and the company raised full‑year guidance to $710M–$720M revenue, $305M–$315M adjusted EBITDA, and $16.25–$16.75 adjusted EPS.
• Credit performance improved materially from CashAI v5.5, delivering a record low 28‑day past due rate of 1.69% and management expects further improvement as CashAI v6.0 is tested.
• Member growth and unit economics remain durable — 695k new members (+22% YoY), 2.99M Monthly Transacting Members (+18%), ARPU +24% YoY, CAC ~$18 with ~3‑month gross profit payback, supporting continued scaled marketing.
• Product roadmap — Dave Flex (a pay‑in‑four card powered by CashAI) is in limited testing, positioned to deepen engagement and displace subprime credit/BNPL long‑term, but it is not expected to meaningfully contribute to 2026 guidance.
• Capital & funding strategy — Completed a $200M convertible note, deployed ~$195M to repurchases (share count down ~6%), and plans to shift ExtraCash receivables to an off‑balance‑sheet Coastal funding structure this summer to unlock >$200M liquidity and lower cost of capital (though Coastal fees will burden non‑GAAP gross profit).

Dave Stock Down 6.6%

Dave stock opened at $246.37 on Thursday. The company's 50-day moving average price is $214.38 and its 200-day moving average price is $208.95. Dave has a twelve month low of $105.83 and a twelve month high of $287.69. The company has a market cap of $3.34 billion, a PE ratio of 15.84 and a beta of 3.93.

Wall Street Analyst Weigh In

A number of brokerages have recently weighed in on DAVE. Weiss Ratings restated a "hold (c+)" rating on shares of Dave in a research report on Friday, April 24th. Zacks Research upgraded Dave from a "hold" rating to a "strong-buy" rating in a research report on Monday, February 16th. Benchmark reissued a "buy" rating on shares of Dave in a research note on Tuesday, March 3rd. B. Riley Financial raised their price target on Dave from $297.00 to $303.00 and gave the company a "buy" rating in a report on Tuesday, March 3rd. Finally, UBS Group reaffirmed a "neutral" rating on shares of Dave in a research note on Friday, March 13th. One equities research analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $325.88.

Hedge Funds Weigh In On Dave

Several large investors have recently modified their holdings of the stock. Brevan Howard Capital Management LP lifted its position in Dave by 1.6% in the third quarter. Brevan Howard Capital Management LP now owns 3,846 shares of the fintech company's stock worth $767,000 after buying an additional 62 shares during the last quarter. JPMorgan Chase & Co. increased its position in Dave by 0.7% during the second quarter. JPMorgan Chase & Co. now owns 8,986 shares of the fintech company's stock valued at $2,412,000 after acquiring an additional 65 shares during the last quarter. Worth Venture Partners LLC increased its position in Dave by 9.4% during the third quarter. Worth Venture Partners LLC now owns 1,258 shares of the fintech company's stock valued at $251,000 after acquiring an additional 108 shares during the last quarter. WealthCollab LLC purchased a new stake in shares of Dave in the second quarter valued at $30,000. Finally, Mercer Global Advisors Inc. ADV raised its stake in shares of Dave by 12.7% in the third quarter. Mercer Global Advisors Inc. ADV now owns 1,137 shares of the fintech company's stock valued at $227,000 after acquiring an additional 128 shares during the period. Institutional investors own 18.01% of the company's stock.

More Dave News

Here are the key news stories impacting Dave this week:

• Positive Sentiment: Q1 results: Revenue grew 47% Y/Y to $158.4M, net income rose ~101% to $57.9M, net monetization expanded to 5.1% and credit performance hit record Q1 lows (28‑DPD 1.69%). Company‑reported EPS beat estimates. Dave Reports First Quarter 2026 Financial Results
• Positive Sentiment: FY2026 guidance raised: Dave set EPS of $16.25–$16.75 (well above consensus ~14.42) and revenue guidance of $710–$720M (vs. consensus ~698.3M), signaling stronger forward profitability. Guidance in Q1 Release
• Positive Sentiment: Capital return: Company deployed about $195M in share repurchases (~7.0% of shares outstanding) during the quarter, which is supportive of EPS and signals management confidence. Buyback Details
• Positive Sentiment: Analyst upgrade/target lift: Citizens JMP raised its price target from $335 to $365 and kept a "market outperform" rating, implying substantial upside from current levels. Benzinga
• Positive Sentiment: Third‑party coverage: Zacks and other outlets highlighted the quarter as an upside surprise on both earnings and revenue (Zacks reports an EPS beat vs. consensus). Zacks: Q1 Earnings and Revenues Surpass Estimates
• Neutral Sentiment: Unrelated media: A piece about the musician Dave Matthews and a music festival appeared in the news feed but is not company‑related. USA Today: Dave Matthews Band

Dave declared that its Board of Directors has approved a share repurchase program on Monday, March 2nd that allows the company to repurchase $300.00 million in shares. This repurchase authorization allows the fintech company to repurchase up to 11.2% of its shares through open market purchases. Shares repurchase programs are often a sign that the company's leadership believes its stock is undervalued.

About Dave

Dave, Inc is a Los Angeles–based financial technology company founded in 2016 by Jason Wilk and John Wolanin. The company offers a subscription-based mobile app designed to help consumers avoid overdraft fees, manage their budgets and track expenses. Through its platform, members receive low-balance alerts, expense categorization and cash-advance capabilities tied to upcoming deposits.

At the core of Dave's offering is fee-free overdraft protection: eligible users can request small, interest-free advances up to a preset limit, typically repaid on their next paycheck or deposit.