The Dave story

What drives the business

• Dave serves consumers seeking liquidity between paychecks through ExtraCash, a bank partner overdraft product described in its annual report as offering up to $500, with CashAI using bank transaction histories rather than credit checks to determine eligibility.
• The February 2025 switch from optional fees to a mandatory 5% overdraft service fee with a $5 minimum reshaped monetization, and processing and overdraft service fees contributed $144.9 million of $170.8 million in revenue in the quarter to June 2026.
• Coastal Community Bank's Program Agreement has an initial term ending in 2030 and makes Coastal the exclusive provider for new customers, supporting a transition of ExtraCash receivables off Dave's balance sheet while Evolve Bank & Trust continues serving an existing program.
• Dave Checking adds interchange, Mastercard incentives, and partner bank deposit interest, while the monthly subscription fee for new members increased from $1 to $3 in mid-2025.
• In the quarter to June 2026, Monthly Transacting Members increased 17% to 3.08 million and new member additions rose 32% to 951,000 at a customer acquisition cost of $19.

What the price assumes

The growth assumption embedded in Dave's price is not measured because TenQ does not run a reverse DCF for finance industry classifications, where free cash flow may not measure earnings.

At $344.94, Dave trades at 22.4x earnings and 6.8x revenue, alongside revenue growth of 48.6% over the last twelve months and an annual growth pace of 39.3% over the last three years.

Dave passes 1 of 6 TenQ Value checks: its 7.4% free cash flow yield clears the 3.0% threshold, but its 4.5% earnings yield falls below the 5.3% Treasury benchmark and its cash yield trails its own 11.6% history.

What could change the story

• Inquiries and subpoenas from regulators in Connecticut, Maryland, and New York put ExtraCash and earned wage access licensing, fees, and compliance with usury laws under scrutiny.
• California's financial regulator intends to supervise Dave as a covered person, and adverse regulatory findings could bring compliance costs, fines, product changes, or discontinued activities.
• Moving existing members from Evolve to Coastal concentrates reliance on a bank relationship, making regulatory restrictions, operational disruptions, and migration execution important to the funding model.
• Starting in the quarter to June 2026, Dave expanded adjusted earnings exclusions to include strategic financing and transactional expenses and FTC/DOJ litigation expenses, with adjusted EBITDA also excluding funding costs, complicating comparisons with earlier periods.
• TenQ's interest coverage and return on employed capital checks fail, and shares increased 25.0% over three years despite repurchases.

What to watch next

• Dave raised its 2026 revenue guidance to between $725 million and $735 million and adjusted EBITDA guidance to between $315 million and $325 million, with management expecting non-GAAP gross margin to reach the mid-70s in the second half of 2026.
• The 28-day past due rate of 2.12% and ExtraCash monetization rate net of losses of 4.8% in the quarter to June 2026 provide benchmarks for CashAI v6.0 as Dave relaxes legacy fee caps and plans higher limits.
• Management expects faster Monthly Transacting Member growth in the second half of 2026, but says increased acquisition spending will initially bring in members with lower revenue per member.
• Dave expects the migration of existing members to Coastal to be substantially finalized by the end of 2026, making Coastal funding balances, member receivables, and liquidity important measures of that transition.

Sources

• Dave's earnings release, filed with the SEC
• Its latest 10-Q or 10-K, for the risk factors
• The DAVE stock report, for every figure and check