Dave Q2 Earnings Call Highlights

Key Points

• Strong Q2 performance: Revenue rose 30% year over year to $171 million, while adjusted EBITDA increased 48% to $76 million, resulting in a 44% margin. Member growth accelerated, with 951,000 new members and monthly transacting members reaching 3.08 million.
• ExtraCash expansion and improving credit trends: ExtraCash originations climbed 27% to $2.3 billion, with the average advance reaching a record $215. Dave is expanding fee and advance limits while rolling out CashAI v6, which has shown higher originations and lower loss rates in early testing.
• 2026 outlook raised: Dave increased full-year revenue guidance to $725 million-$735 million and adjusted EBITDA guidance to $315 million-$325 million. The company also secured a $225 million funding facility with Coastal Community Bank, unlocking nearly $100 million in cash, while investing more heavily in customer acquisition.

Dave NASDAQ: DAVE reported second-quarter results marked by 30% revenue growth, expanding profitability and increased investment in customer acquisition, while raising its full-year outlook.

Revenue for the quarter ended June 30 rose 30% year over year to $171 million. Adjusted EBITDA increased 48% to $76 million, producing a 44% adjusted EBITDA margin. CEO Jason Wilk said the quarter represented the company’s ninth consecutive period of revenue growth above 30%.

“Our growth engine remains incredibly strong,” Wilk said, citing marketing efficiency, user growth and additional opportunities to increase average revenue per user, or ARPU.

Member Growth and ExtraCash Activity

Dave added 951,000 new members during the quarter, a 32% increase from a year earlier and its fastest member growth in nearly four years, according to Wilk. Customer acquisition cost remained flat at $19 while the company increased acquisition activity.

Monthly transacting members rose 17% year over year to 3.08 million, while ARPU increased 11%. CFO and COO Kyle Beilman said the company’s growth mix shifted toward member acquisition during the quarter as it increased spending at the top of the marketing funnel.

ExtraCash originations reached $2.3 billion, up 27% year over year. The average ExtraCash advance rose to a record $215. Wilk said the company has removed its $15 fee cap for new members and has begun removing the cap for a large portion of existing members. The remaining grandfathered members are expected to receive a higher $20 fee cap effective in August.

Beilman said the pricing changes had little effect on second-quarter results because they initially applied primarily to new customers, whose limits tend to be smaller. However, he said the impact should build over time as the changes reach more of the member base.

The company also plans to raise maximum ExtraCash limits beyond the current $500 threshold. Management said higher-limit customers are generally more tenured members with lower loss rates, potentially allowing the company to increase dollar-weighted originations without worsening credit performance.

CashAI Upgrade and Credit Performance

Dave began rolling out CashAI v6, the latest version of its cash-flow underwriting system. Wilk said the upgraded model uses more than 700 features, including nearly 400 new ones. The company said the model is intended to expand gross-profit dollars while keeping losses within its targeted range, rather than simply minimizing loss rates.

Beilman said the model had been rolled out to roughly one-third of the user base and early results pointed to higher average originations and lower loss rates. The company expects third-quarter loss rates to remain in a range similar to the second quarter while benefiting from larger ExtraCash advances.

Dave’s 28-day past-due rate improved 14 basis points year over year to 2.12%, though it increased sequentially after seasonal normalization from the first-quarter tax-refund period. Provision for credit losses totaled $29 million, up 14% from a year earlier.

Non-GAAP gross profit increased 34% to $124 million, while non-GAAP gross margin expanded about 300 basis points year over year to 72%. The company expects gross margin to move into the mid-70% range over the remainder of 2026.

Marketing, Flex Card and Funding Structure

Advertising and activation expense totaled $20 million, up 32% from a year earlier and 43% sequentially. Management said it intends to increase marketing investment further in the second half after seeing stable acquisition costs and what Wilk described as record payback periods below four months.

Dave Card volume was approximately $530 million, up 7% year over year. The company has shifted its focus from new debit initiatives to the Dave Flex Card, a credit product it is testing with expanding customer cohorts. Management said Flex has shown promising conversion, engagement and unit-economics trends, and that it has not seen material cannibalization of ExtraCash usage.

However, Dave does not expect Flex to provide meaningful revenue in 2026, and the product is not included in its guidance. The company said it views Flex as complementary to ExtraCash because customers use the products for different spending needs.

During the quarter, Dave began funding ExtraCash receivables through a new arrangement with Coastal Community Bank. Wilk said the structure has already unlocked nearly $100 million of cash on the balance sheet. Beilman said Dave had drawn roughly $93 million of a $225 million facility at quarter-end and was discussing a potential expansion of the facility.

The company ended the quarter with $254 million in cash, investments and restricted cash, compared with $178 million at March 31. It said the increase was primarily driven by funds from the Coastal arrangement, partly offset by share repurchases.

Raised 2026 Outlook

Dave raised its full-year outlook for revenue, adjusted EBITDA and adjusted diluted earnings per share. The updated guidance incorporates higher advertising and activation spending in the second half, continued ARPU support from pricing changes and maturing customer cohorts, and no meaningful revenue contribution from Flex.

• Revenue: $725 million to $735 million, compared with prior guidance of $710 million to $720 million.
• Adjusted EBITDA: $315 million to $325 million, compared with prior guidance of $305 million to $315 million.
• Adjusted diluted EPS: $17.00 to $17.50, compared with prior guidance of $16.25 to $16.75, assuming a 23% effective tax rate.

GAAP net income was $7 million, compared with $9 million a year earlier, reflecting $37 million of non-cash charges related to quarterly mark-to-market adjustments for warrant and earn-out liabilities. Adjusted net income rose 39% to $56 million, while adjusted diluted EPS increased 48% to $4.12.

Wilk said the company had no update regarding its Department of Justice matter and continues to “vigorously defend” its position.

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.

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