Dave Q3 Earnings Call Highlights

Key Points

• Dave raised its 2026 outlook, lifting revenue guidance to $746 million–$750 million and adjusted EBITDA guidance to $327 million–$330 million. Third-quarter revenue climbed 31% year over year to $198 million, while adjusted EBITDA rose 39% to $82 million.
• Growth was supported by 1.1 million new members, up 35% year over year, and $2.5 billion in ExtraCash originations, up 23%. Monthly transacting members reached 3.15 million, and average revenue per user increased 11% to $251.
• Dave expanded ExtraCash funding capacity through Coastal Community Bank to $325 million and reported improving delinquency on September originations. The company is refining Dave Flex before a broader rollout planned for 2027.

Dave NASDAQ: DAVE raised its full-year revenue and profit outlook after third-quarter revenue rose 31% from a year earlier, supported by record member additions, higher revenue per user and increased ExtraCash originations.

The financial technology company reported revenue of $198 million for the quarter ended Sept. 30, up nearly 16% from the second quarter. Adjusted EBITDA rose 39% year over year to $82 million, with the margin expanding to 41% from 39%.

Chairman and CEO Jason Wilk said the company increased marketing investment while maintaining attractive acquisition returns and improving credit performance. Dave added 1.1 million new members during the quarter, up 35% from a year earlier.

Raised outlook and third-quarter results

Dave increased its 2026 revenue forecast to $746 million to $750 million, from a prior range of $725 million to $735 million. It also raised its adjusted EBITDA outlook to $327 million to $330 million, from $315 million to $325 million, and its adjusted diluted earnings-per-share forecast to $17.45 to $17.65, from $17 to $17.50.

CFO and COO Kyle Beilman said the midpoint of the outlook implies fourth-quarter revenue of approximately $221 million, or roughly 35% growth from a year earlier, and an adjusted EBITDA margin of approximately 46%. The forecast assumes increased marketing spending, higher gross margin and no meaningful revenue contribution from Dave Flex.

Third-quarter GAAP net income was $64 million, or $3.30 per diluted share, including $26 million in non-cash gains from remeasurement of warrant and earnout liabilities. Adjusted net income was $60 million, while adjusted diluted earnings per share were $4.39, down 7% and 1%, respectively, from a year earlier. Beilman said the comparisons reflected a tax benefit in the prior-year quarter and a more normalized tax rate in the latest period.

Non-GAAP gross profit rose 33% to $138 million. Non-GAAP gross margin was 70%, up from 69% a year earlier but down from 72% in the second quarter. Beilman attributed the sequential decline partly to funding costs associated with Coastal Community Bank and a higher-than-forecast provision for credit losses.

Member growth and ExtraCash performance

Monthly transacting members rose 18% year over year to 3.15 million, while annualized average revenue per user increased 11% to $251. Dave changed its definition of monthly transacting members to exclude people whose only activity was low-engagement, non-monetized activity related to Goals accounts; prior periods were recast for comparison.

Advertising and activation expense rose 48% from a year earlier to $28 million. Wilk said customer acquisition cost rose to $22, but the payback period remained under four months. He said Dave was scaling existing channels, including television and social media, and using artificial intelligence to produce advertising creative more quickly.

ExtraCash originations reached $2.5 billion, up 23% year over year and 9% sequentially. The average advance was $218 for the quarter and rose to $225 in September following the rollout of the company’s CashAI v6.0 underwriting model.

The 28-day past-due rate on September originations fell below 2%, compared with 2.09% for the full quarter. Beilman said fourth-quarter performance to date was tracking in line with September.

The provision for credit losses was $37 million, or about 1.5% of originations. Beilman said collection improvements had accelerated some repayments but did not reduce ultimate losses as much as earlier data suggested. Dave has recalibrated its forecast to reflect the repayment timing patterns, he said.

Dave is also testing ExtraCash limits above $600. Existing fee-cap customers who qualify for a higher limit will be able to access an additional draw at a 5% fee. Beilman said some test customers had reached $1,000 limits and that he expected the average advance size to grow further in the fourth quarter.

Flex rollout and funding capacity

Dave Flex adoption grew from single-digit thousands to double-digit thousands of members during the quarter, Wilk said. He said existing ExtraCash users who adopted Flex generally continued to use ExtraCash, while customers acquired through Flex marketing also adopted the advance product.

Dave plans to refine the acquisition process and unit economics before a broader rollout in 2027. Wilk said the company expects a more significant Flex revenue contribution in the second half of that year.

Separately, Dave increased its ExtraCash funding capacity under its Coastal Community Bank agreement to $325 million from $225 million. Coastal funded approximately $159 million of receivables at quarter-end, up from $93 million at the end of the second quarter. Dave retains the economics and credit risk associated with the receivables, Beilman said.

The company ended the quarter with $315 million in cash, investments and restricted cash. It also repaid the $75 million outstanding under its Victory Park debt facility in early October. Wilk said there was no update on the company’s Department of Justice matter and that Dave continued to defend its position.

About Dave (NASDAQ:DAVE)

Dave Inc is a financial technology company that operates a digital banking platform in the United States. The company's mobile app is designed to help members manage everyday finances, access funds between paychecks and build financial flexibility.

Its primary offerings include ExtraCash, an advance product intended to provide eligible members with access to a portion of their expected income, and Dave Spending, a debit account and associated payment card. Dave also provides budgeting tools, automated savings features through Dave Goals, and Side Hustle resources that help members identify potential ways to earn additional income.

Dave was founded in 2016 by Jason Wilk, who serves as chief executive officer.

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