Executive Summary

Record Q3 results: Revenue $150.8M (+63% Y/Y), GAAP net income $92.0M, Adjusted EBITDA $58.7M; management highlighted continued ARPU expansion, accelerating MTM growth, and solid credit performance within guardrails .
Raised FY25 outlook: revenue to $544–$547M (from $505–$515M) and Adjusted EBITDA to $215–$218M (from $180–$190M); year-over-year growth raised to 57–58% for revenue and 149–152% for Adjusted EBITDA .
Operating engine: ExtraCash originations exceeded $2.0B (+49% Y/Y), net monetization rate reached a record 4.8% (+45 bps Y/Y), and MTMs rose 17% to 2.77M; new members were 843k at $19 CAC .
Profitability drivers and tone: CEO cited CashAI v5.5 rollout improving origination size and delinquency; CFO cited 85% flow-through to Adjusted EBITDA and ~1,200 bps margin expansion to “nearly 40%,” underscoring operating leverage .

What Went Well and What Went Wrong

What Went Well
- Record top-line and profitability: Revenue $150.8M (+63% Y/Y), Adjusted EBITDA $58.7M; CEO: “Revenue grew over 60% year-over-year for the second consecutive quarter and Adjusted EBITDA more than doubled for the fourth straight quarter” .
- Underwriting/AI execution: “CashAI v5.5 yielded meaningful improvements in both origination size and delinquency rates in September and thus far in Q4,” supporting ARPU expansion and higher net monetization .
- Operating leverage: CFO highlighted 85% flow-through to Adjusted EBITDA and ~1,200 bps expansion in Adjusted EBITDA margin to nearly 40% on recalibrated underwriting/acquisition and disciplined fixed costs .
What Went Wrong
- Delinquencies higher Y/Y: Average 28-day delinquency rose to 2.33% vs. 1.78% a year ago, even as management said credit was within guardrails .
- Liquidity down Q/Q: Cash, equivalents, marketable securities, investments, and restricted cash fell to $93.6M from $104.7M (Jun 30), driven by $25M buybacks and higher ExtraCash receivables (partially offset by FCF) .
- Non-cash/one-time items complicate GAAP: Large GAAP net income benefited from non-cash fair value changes (warrants/earnout) and tax items; adjusted net income excludes these factors (e.g., -$27.4M tax benefit from valuation allowance release, -$9.1M warrant FV change) .

Financial Results

Overall results vs. prior periods

Metric	Q3 2024	Q4 2024	Q1 2025	Q2 2025	Q3 2025
GAAP Operating Revenues, Net ($M)	$92.5	$100.9	$108.0	$131.7	$150.8
Non-GAAP Gross Profit ($M)	$64.2	$72.6	$83.4	$92.0	$104.2
Non-GAAP Gross Profit Margin (%)	69%	72%	77%	70%	69%
GAAP Net Income ($M)	$0.5	$16.8	$28.8	$9.1	$92.0
Adjusted Net Income ($M)	$21.1	$29.6	$36.3	$45.7	$61.6
Adjusted EBITDA ($M)	$24.7	$33.4	$44.2	$50.9	$58.7
Adjusted Diluted EPS ($)	$1.51	$2.04	$2.48	$3.14	$4.24

Operating detail (GAAP) – selected P&L items

Metric ($M)	Q3 2024	Q3 2025
Service-based revenue, net	$83.4	$139.3
Transaction-based revenue, net	$9.1	$11.5
Provision for credit losses	$13.7	$29.9
Processing and servicing costs	$8.4	$9.4
Financial network and transaction costs	$6.2	$7.3
Advertising and activation costs	$14.9	$18.9
Compensation and benefits	$30.4	$24.8
Technology and infrastructure	$2.9	$3.2
Other operating expenses	$13.4	$11.3
Changes in FV of warrant liabilities	$0.2	$(9.1)
Changes in FV of earnout liabilities	—	$(4.8)
Provision (benefit) for income taxes	$0.4	$(33.6)

KPI snapshot

KPI	Q3 2024	Q3 2025
New Members (000s)	—	843 at $19 CAC
Monthly Transacting Members (MTMs, M)	—	2.77 (+17% Y/Y)
ExtraCash Originations ($B)	~1.34 (implied)	2.0 (+49% Y/Y)
ExtraCash Net Monetization Rate (%)	4.35% (implied, -45 bps)	4.80% (record)
Avg 28-day delinquency (%)	1.78%	2.33%
Dave Debit Card spend ($M)	~408 (implied +25%)	510

Liquidity

Metric	Q2 2025 (Jun 30)	Q3 2025 (Sep 30)
Cash, equivalents, marketable secs, investments, restricted cash ($M)	$104.7	$93.6
Credit facility utilization	No increase	No increase

Note: Non-GAAP reconciliations for Adjusted EBITDA and Adjusted Net Income are provided; adjustments include stock-based comp, legal expenses, fair value changes (warrants/earnout), and tax items (e.g., valuation allowance release) .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
GAAP Operating Revenues, Net ($M)	FY 2025	$505–$515	$544–$547	Raised
Revenue Y/Y Growth	FY 2025	46%–48%	57%–58%	Raised
Adjusted EBITDA ($M)	FY 2025	$180–$190	$215–$218	Raised
Adjusted EBITDA Y/Y Growth	FY 2025	108%–120%	149%–152%	Raised

Rationale: Management cited ARPU expansion, accelerating MTM growth, improved monetization net of losses, and CashAI v5.5 benefits, alongside disciplined fixed costs and underwriting/acquisition recalibration .

Earnings Call Themes & Trends

Transcript for Q3 2025 was referenced as to-be-posted; not available in the corpus at this time . Themes below reflect management’s press release commentary and stated multi-quarter patterns.

Topic	Previous Mentions (Q1–Q2 2025)	Current Period (Q3 2025)	Trend
AI/Technology (CashAI)	Not detailed in corpus	CashAI v5.5 improved origination size and delinquencies in Sept and into Q4	Improving
Monetization/ARPU	Revenue grew >60% Y/Y in Q2 per “second consecutive quarter” remark	Record ExtraCash net monetization 4.8%; ARPU expansion cited	Improving
Credit performance	Not detailed in corpus	“Solid” and within guardrails; 28-day delinquency 2.33% vs 1.78% Y/Y	Mixed (guardrails vs higher DQ)
Marketing efficiency	Not detailed in corpus	New members 843k at $19 CAC; payback improved nearly a month to <4 months	Improving
Operating leverage	Adj. EBITDA more than doubled for 4 straight quarters (implies momentum through Q2)	85% flow-through; ~1,200 bps margin expansion to nearly 40%	Improving
Regulatory/legal	Not detailed in corpus	DOJ lawsuit referenced as risk factor	Ongoing risk

Management Commentary

CEO Jason Wilk: “We delivered another record quarter… Revenue grew over 60% year-over-year for the second consecutive quarter and Adjusted EBITDA more than doubled for the fourth straight quarter… rollout of CashAI v5.5 yielded meaningful improvements in both origination size and delinquency rates… We are once again raising our 2025 guidance.”
CFO/COO Kyle Beilman: “Net revenue per origination is up 32%… we grew originations by nearly 50%… payback periods improved nearly a month to under four months… recalibration of our underwriting and acquisition strategies… resulted in 85% flow-through to Adjusted EBITDA… ~1,200 bps expansion in Adjusted EBITDA margin to nearly 40%.”

Q&A Highlights

The company scheduled a conference call and indicated the transcript would be posted, but the transcript was not available in the document corpus at time of analysis; Q&A highlights and any intra-call guidance clarifications are therefore unavailable and will be updated upon transcript posting .

Estimates Context

S&P Global/Capital IQ consensus estimates for EPS, revenue, and EBITDA for Q3 2025 (and for Q1–Q2 2025) were unavailable for DAVEW at the time of retrieval; as a result, we cannot assess beats/misses vs. Wall Street consensus. Actuals reported were: Revenue $150.8M, GAAP diluted EPS $6.34, Adjusted diluted EPS $4.24, Adjusted EBITDA $58.7M .

Actuals vs. Consensus (Q3 2025)

Metric	Actual	Consensus
Revenue ($M)	$150.8	N/A (S&P Global data unavailable)
GAAP Diluted EPS ($)	$6.34	N/A (S&P Global data unavailable)
Adjusted Diluted EPS ($)	$4.24	N/A (S&P Global data unavailable)
Adjusted EBITDA ($M)	$58.7	N/A (S&P Global data unavailable)

Key Takeaways for Investors

Guidance raise is the headline catalyst: FY25 revenue lifted to $544–$547M and Adjusted EBITDA to $215–$218M, signaling confidence in sustained monetization and scale benefits .
Profitability quality: While GAAP net income benefited from non-cash FV and tax items, Adjusted net income ($61.6M) and Adjusted EBITDA ($58.7M) show strong underlying profitability; focus on non-GAAP trends and flow-through .
Unit economics strengthening: Record 4.8% net monetization, 49% Y/Y originations growth to $2.0B, and improved payback to <4 months reflect durable growth engines with disciplined risk selection .
Credit watch: Delinquency increased Y/Y to 2.33%, but management asserts credit remains within guardrails; monitor trajectory through Q4 as CashAI v5.5 effects flow through .
Liquidity/use of capital: Cash/investments declined Q/Q, largely due to $25M buybacks and ExtraCash receivables growth; no increased draw on the credit facility—FCF helped offset outflows .
Operating leverage in motion: 85% flow-through and ~1,200 bps margin expansion toward ~40% Adjusted EBITDA margin suggest further earnings scalability if growth and credit trends hold .
Risk framework: Ongoing DOJ lawsuit and regulatory evolution remain overhangs; continue to track disclosures and any legal developments .

Additional Detail and Cross-Checks

GAAP to non-GAAP reconciliation: Adjustments include stock-based compensation, legal expenses, warrant/earnout fair value changes, and tax items (e.g., valuation allowance release), which materially affect GAAP vs. adjusted results .
Revenue mix: Service-based revenue was the primary driver ($139.3M of $150.8M total), with transaction revenue at $11.5M .
Multi-quarter growth pattern (management disclosure): Revenue up >60% Y/Y for two consecutive quarters and Adjusted EBITDA more than doubled for four straight quarters, indicating sustained momentum through Q2 and Q3 .

Sources

Q3 2025 8-K and Press Release (Exhibit 99.1): financials, KPIs, guidance, management commentary

Dave Inc./DE (DAVEW)·Q3 2025 Earnings Summary