Dave NASDAQ: DAVE reported what executives described as a strong start to 2026, posting 47% year-over-year revenue growth and raising full-year guidance following first-quarter results and early second-quarter trends.
Revenue increased to $158.4 million, up 47% from the prior year period, while adjusted EBITDA rose 57% to $69.3 million, representing a 44% margin, CEO Jason Wilk said. CFO and COO Kyle Beilman added that the company is now raising guidance for the eighth consecutive quarter, citing durable growth, disciplined marketing, and improving credit performance.
Credit performance and CashAI metrics
Wilk emphasized credit performance improvements tied to CashAI v5.5, calling it a driver of the company’s “lowest Q1 loss rate on record.” He pointed investors to Dave’s 28-days-past-due (DPD) metric as the preferred gauge of credit performance, which fell to 1.69% in the quarter. Wilk said that represented a 1 basis point improvement year-over-year and was down 85 basis points from three years ago.
Beilman said the 1.69% DPD rate was a Q1 record and improved sequentially and year-over-year even with originations up 37%. He noted it was the first quarter DPD improved year-over-year since Dave transitioned to its new fee model, during which the company deliberately expanded its credit box while iterating on CashAI.
On loss provisioning, Beilman characterized the quarter’s sequential increase as “mechanical and calendar-driven.” He explained that because Q1 ended on a Tuesday—typically the intra-week peak for outstanding receivables—loss reserves were higher at the measurement date despite improving underlying credit. Beilman estimated that if the quarter had ended on the prior Friday, the provision impact would have been about $5 million lower and non-GAAP gross margin would have been approximately 75%. He said the company does not expect Q2 ending on a Tuesday to create the same adverse impact, and that Q3 and Q4 calendar positioning could be a tailwind for gross margin.
Growth drivers: MTMs, ARPU, and product usage
Wilk said Dave continued to demonstrate “the durability of our growth algorithm,” citing Monthly Transacting Members (MTMs) of 2.99 million, up 18% year-over-year, and ARPU growth of 24%. He attributed MTM gains to improving conversion and reactivation alongside strong retention rates.
ExtraCash originations totaled $2.1 billion, up 37% year-over-year, driven by MTM growth and a higher average origination size. Wilk said average ExtraCash size increased 10% year-over-year, largely due to CashAI v5.5, though he noted sequential size dipped modestly late in the quarter due to elevated tax refunds. He said the dynamic began reversing in April, with average size rebounding to 214.
Beilman noted the seasonal effects of tax refunds, stating Q1 is typically the company’s softest quarter. He said ExtraCash disbursements declined 5% sequentially, consistent with patterns seen in every first quarter since 2021, contributing to a 3% sequential decline in revenue. Both average origination size and disbursement volume rebounded in April, he said, and the company expects expansion in Q2 and beyond.
Dave Card spend was $534 million, up 9% year-over-year. In response to an analyst question about decelerating card volume growth, Wilk said the company sees limited differentiation across scaled neobanks on debit products and is focusing more on credit-led engagement, describing less friction “when we’re provisioning credit versus asking someone to switch their direct deposit.”
Dave Flex launch and monetization testing
Wilk highlighted the launch of a new pay-in-four product called Dave Flex, which the company began testing with a small group of existing members. He described Flex as “a responsible alternative to traditional credit cards,” with repayment in up to four installments aligned with paycheck dates, “no compound interest, no late fees, and no credit check.” Wilk said Dave Flex uses CashAI for 100% of underwriting.
Management cautioned that Dave Flex is still in early testing and is not expected to contribute meaningful revenue in 2026 and is not included in guidance. Wilk said the company’s focus this year is to “test and learn” and optimize lifetime value before scaling in 2027.
On monetization, Wilk told analysts the company is testing a higher monthly fee than ExtraCash and is also “market testing a per swipe transaction fee.” He also said early adoption points to incrementality in originations per customer, with early signs of ARPU lift and synergy with ExtraCash.
When asked about customer acquisition costs (CAC) for Flex, Wilk said the company is not focused on the lowest CAC but rather “the best and most attractive returns,” adding it is too early to provide CAC conclusions because Dave is not yet testing paid acquisition for new users.
Margins, marketing, capital allocation, and updated guidance
Non-GAAP gross profit rose to $114.4 million, up 37% year-over-year, while non-GAAP gross margin was 72%. Beilman said that result was consistent with the company’s “low 70s framework” and that Q1 should represent the low point for the year, with expectations for margin to expand into the mid-70s for the balance of 2026 due to improving DPD trends and more favorable calendar dynamics.
Beilman said marketing investment was seasonally lower in Q1 by design but that Dave plans to expand marketing spend for the rest of 2026 above fourth-quarter 2025 levels while maintaining return discipline. He also said the company is making targeted investments in product development headcount, expecting to grow from under 300 employees at the end of 2025 to around 325 by the end of 2026, representing about $10 million in annualized incremental expense.
On profitability and per-share results, Dave posted GAAP net income of $57.9 million, up 101% year-over-year. Adjusted net income was $52.3 million, up 61%, and adjusted diluted EPS was $3.64, up 64%, which Beilman said reflected operating performance and a reduced share count from repurchases.
Beilman outlined significant capital activity in the quarter, including $194.9 million deployed into share repurchases and restricted stock unit net settlements, reducing basic shares outstanding from 13.6 million to 12.7 million sequentially. He also noted that in early March, Dave completed a $200 million zero-coupon convertible notes offering, generating $175.7 million in net proceeds, and repurchased $70 million of stock in a privately negotiated transaction with noteholders. Dave ended the quarter with $113.3 million remaining under its repurchase authorization, which Beilman said it expects to use opportunistically.
Management also reiterated that it remains on track to transition ExtraCash receivables to an off-balance sheet funding structure with Coastal Community Bank this summer. At full implementation, Beilman said Dave expects to unlock over $200 million in incremental liquidity, reduce cost of capital, and repay its existing credit facility. Wilk also noted there was “no material update” on the DOJ matter and said the company continues to “vigorously defend our position.”
For full-year 2026, Dave raised guidance across revenue, adjusted EBITDA, and adjusted diluted EPS:
- Revenue: $710 million to $720 million (approximately 28% to 30% growth)
- Adjusted EBITDA: $305 million to $315 million
- Adjusted diluted EPS: $16.25 to $16.75 (assuming a 23% effective tax rate)
Beilman said the updated EPS outlook reflects strong operating performance and the reduced share count from Q1 repurchases, while also noting that the revised adjusted EPS guidance does not contemplate additional buybacks for the remainder of the year.
About Dave NASDAQ: 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.
Further Reading
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