Dave’s third quarter saw revenue growth and profitability metrics that exceeded Wall Street expectations, but the market response was negative. Management attributed the quarter’s results to a combination of strategic pricing model changes and the rollout of enhancements to its CashAI underwriting platform. CEO Jason Wilk emphasized the impact of switching from an optional to a mandatory fee structure, leading to higher net monetization per transaction and improved member lifetime value. Wilk also highlighted record performance in net credit revenue and the successful deployment of CashAI v5.5, which contributed to better conversion and credit outcomes.
Is now the time to buy DAVE? Find out in our full research report (it’s free for active Edge members).
Dave (DAVE) Q3 CY2025 Highlights:
- Revenue: $150.7 million vs analyst estimates of $133.5 million (63% year-on-year growth, 12.9% beat)
- Adjusted EPS: $4.24 vs analyst estimates of $2.34 (81% beat)
- EBITDA guidance for the full year is $216.5 million at the midpoint, above analyst estimates of $186.9 million
- Operating Margin: 30.5%, up from 2.8% in the same quarter last year
- Market Capitalization: $3.34 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Dave’s Q3 Earnings Call
- Jacob Stephan (Lake Street Capital Markets) asked about the drivers behind improved delinquency rates and the role of CashAI v5.5. CEO Jason Wilk explained that the new model leverages a larger data set, resulting in more controlled loss rates and better credit outcomes.
- Harold Goetsch (B. Riley Securities) inquired about the timeline for completing the Coastal Community Bank transition and the deliverables for the new Chief Product Officer. CFO and COO Kyle Beilman projected completion by early 2026, while Wilk highlighted product acceleration and the BNPL roadmap as key objectives.
- Devin Ryan (Citizens Bank) questioned the sustainability of high EBITDA margins and the implications for future investment. Beilman indicated a balance between maintaining margin strength and investing in new products, with the margin profile seen as appropriate for continued growth.
- Pallav Saini (Canaccord, for Joe Vafi) sought details on Dave Card adoption and ExtraCash approval rates. Wilk noted steady card conversion rates and record-high approval rates, pointing to their positive impact on profitability and customer retention.
- Gary Prestopino (Barrington Research) asked about the rollout of the new $3 subscription fee and BNPL product development. Wilk clarified that only new members pay the updated fee and confirmed the BNPL product is in internal testing, with customer pilots planned for the next quarter.
Catalysts in Upcoming Quarters
In the coming quarters, we will focus on (1) tracking the rollout and customer adoption of Dave’s BNPL product, (2) monitoring the transition of banking and receivables to Coastal Community Bank for its impact on funding and liquidity, and (3) observing the continued growth in subscription revenue under the new pricing model. Execution on AI-driven credit enhancements and new member engagement strategies will also be important markers.
Dave currently trades at $249.44, up from $239.92 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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