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Dave Inc./DE (DAVE)·Q2 2025 Earnings Summary

Executive Summary

  • Revenue accelerated to $131.7M, up 64% year over year and 22% sequentially; GAAP diluted EPS was $0.62 and Adjusted diluted EPS was $3.14 as Adjusted EBITDA reached $50.9M with a 39% margin .
  • The company raised FY 2025 guidance to $505–$515M revenue and $180–$190M Adjusted EBITDA, citing momentum from the new fee structure, ARPU expansion, and strong MTM growth .
  • Unit economics improved: non-GAAP gross margin was 70% (+500 bps YoY) with CAC paybacks reduced to ~4 months; MTMs rose 16% to 2.6M and ExtraCash originations hit $1.8B (+51% YoY) .
  • Capital position and shareholder returns: Coastal program amendment expected to move receivables off balance sheet, lower cost of funds (~200 bps), and unlock >$100M of liquidity; buyback authorization expanded to $125M with ~$25M repurchased post-earnings, both potentially positive stock catalysts .

What Went Well and What Went Wrong

What Went Well

  • Record performance and broad-based strength: “accelerating revenue growth, robust unit economics and strong earnings growth,” with revenue up 64% YoY to $131.7M and Adjusted EBITDA up 236% YoY to $50.9M .
  • ARPU expansion and engagement: ARPU grew 42% YoY; ExtraCash originations reached a record $1.8B (+51% YoY), and Dave Card spend grew 27% to $493M .
  • Strategic funding shift: Coastal program amendment sets up off-balance-sheet receivables, ~200 bps funding cost reduction, and elimination of warehouse debt by mid-2026, improving capital efficiency .

What Went Wrong

  • Delinquency and provision headwinds: 28-day delinquency increased to 2.40% (vs. 2.03% YoY), with a third-party settlement delay adding ~19 bps and ~$3M to provision; adjusted delinquency would have been ~2.21% .
  • Gross margin normalization: non-GAAP gross margin stepped down to 70% from 77% in Q1 due to seasonal normalization post tax-refund season .
  • GAAP volatility from non-cash fair value remeasurements: $20.5M (warrants) and $7.9M (earnout) increased other expense, creating P&L volatility despite strong underlying performance .

Financial Results

Income Statement and Profitability

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$100.9 $108.0 $131.7
GAAP EPS (Diluted, $)$1.16 $1.97 $0.62
Adjusted EPS (Diluted, $)$2.04 $2.48 $3.14
Adjusted EBITDA ($USD Millions)$33.4 $44.2 $50.9
Non-GAAP Gross Profit ($USD Millions)$72.6 $83.4 $92.0
Non-GAAP Gross Margin (%)72% 77% 70%

Notes:

  • Q2 sequential revenue growth was +22% .
  • Adjusted EBITDA margin was 39% per management .

Revenue Breakdown

MetricQ4 2024Q1 2025Q2 2025
Service-based revenue, net ($USD Millions)$90.8 $97.9 $121.5
Transaction-based revenue, net ($USD Millions)$10.1 $10.1 $10.2
Total operating revenues, net ($USD Millions)$100.9 $108.0 $131.7

Key Performance Indicators (KPIs)

KPIQ4 2024Q1 2025Q2 2025
New Members (000s)766 569 722
Monthly Transacting Members (MM)2.5 2.5 2.6
ExtraCash Originations ($USD Billions)$1.5 $1.5 $1.8
28-Day Delinquency Rate (%)1.66% 1.50% 2.40% (adj. ~2.21%)
Dave Card Spend ($USD Millions)$457 $488 $493
Average CAC ($)$16 $18 $19

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
GAAP Operating Revenues, Net ($USD Millions)FY 2025$460–$475; 33%–37% YoY growth $505–$515; 46%–48% YoY growth Raised
Adjusted EBITDA ($USD Millions)FY 2025$155–$165; 79%–91% YoY growth $180–$190; 108%–120% YoY growth Raised
Gross Margin OutlookFY 2025N/AUpper 60s to low 70s expected remainder of year Maintained qualitative outlook

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
Cash AI underwritingQ4: CashAI improved credit performance and variable margin ; Q1: 28-day delinquency improved by 33 bps YoY Testing Cash AI V5.5 with double model features; expected higher origination sizes and lower delinquencies upon deployment later this year Improving risk split; supports ARPU and credit metrics
Fee structure & monetizationQ1: Early success of new fee model boosting monetization, conversion, retention Full-quarter benefit realized; $3 monthly subscription rolled out for new members (grandfathering existing at $1) with minimal impact to conversion/retention and accretive LTV Strengthening ARPU and LTV
Funding & capital efficiencyQ4: Strategic partnership with Coastal established ; Q1: Liquidity management, share repurchases Coastal program amendment moves receivables off balance sheet; ~200 bps funding cost reduction vs warehouse line; elimination of warehouse debt by mid-2026; >$100M liquidity expected Lower cost of capital and higher flexibility
Marketing & CAC paybacksQ1: Efficient CAC; paybacks strong CAC payback ~4 months; plan to ramp Q3–Q4 marketing given LTV/CAC improvements Scaling acquisition efficiently
Regulatory/data accessN/AJPMorgan/data aggregator fee dispute monitored; CFPB involvement; confidence in sharing any incremental costs, and optimizing data usage to mitigate impact Managed risk; limited expected P&L impact

Management Commentary

  • “Q2 represented a continuation of our momentum with accelerating revenue growth, robust unit economics and strong earnings growth all tracking ahead of plan.”
  • “We expect to begin deploying the V5.5 [Cash AI] model later this year.”
  • “We expect to move a significant portion of our ExtraCash receivables off balance sheet… lower our cost of capital… unlock substantial liquidity… and eliminate the warehouse line debt by mid-2026.”
  • “We are pleased to once again raise our full year revenue and adjusted EBITDA guidance.”

Q&A Highlights

  • Fee model and subscription pricing: Management confirmed full benefit of the new fee structure in Q2 and outlined $3 monthly subscription for new members, tested with “nothing negative” in conversion or retention; accretive to LTV .
  • Funding transition to Coastal: Direct funding cost will be ~200 bps lower than current warehouse line; plan to free “well north of $100M” cash and maintain flexibility for M&A and repurchases .
  • Delinquency uptick drivers: A third-party reporting/settlement delay caused ~$3M provision impact and ~19 bps delinquency increase; steps taken to prevent recurrence .
  • Cash AI V5.5 outcomes: Simulations indicate higher average origination sizes and lower delinquency; testing commenced and expected net monetization upside .
  • Data aggregator fee risk: Management does not view increases as a foregone conclusion; expects shared costs and optimization levers if fees rise .

Estimates Context

  • S&P Global Wall Street consensus estimates for Q2 2025 were unavailable for DAVE via our data source at this time; as a result, we cannot quantify beat/miss versus consensus for revenue or EPS. We note the company delivered 64% YoY revenue growth and raised FY 2025 guidance, which typically prompts upward estimate revisions .

Key Takeaways for Investors

  • Guidance raise and operating momentum: FY 2025 revenue guide to $505–$515M and Adjusted EBITDA to $180–$190M underscores sustained growth and profitability — a likely positive for sentiment and potential estimate revisions .
  • Unit economics strengthening: ARPU up 42% YoY, non-GAAP gross margin 70%, and CAC paybacks at ~4 months indicate durable economics as marketing scales in H2 .
  • Credit risk manageable: Reported delinquency increase was partly transient ($3M provision hit; ~19 bps); Cash AI V5.5 should support improved segmentation and net monetization .
  • Funding optimization: Coastal amendment lowers cost of funds (~200 bps), moves receivables off balance sheet, and unlocks >$100M liquidity — enhancing capital allocation optionality including M&A and buybacks .
  • Shareholder returns accelerating: Authorization expanded to $125M; ~$25M repurchased post-earnings — potentially supportive to share count and stock performance .
  • Near-term trading implications: Narrative catalysts include the guidance raise and buyback expansion; watch for deployment of Cash AI V5.5 and Q3 marketing ramp impacts on growth vs. credit normalization .
  • Medium-term thesis: A scalable model (service-based revenue mix, strong margins) plus improved funding structure and product synergies (ExtraCash + Dave Card) supports compounding FCF and optionality for strategic expansion .