Dave (NASDAQ:DAVE) Issues Quarterly Earnings Results, Beats Estimates By $0.78 EPS

Dave (NASDAQ:DAVE) posted its quarterly earnings results on Tuesday. The fintech company reported $3.64 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.86 by $0.78, FiscalAI reports. The firm had revenue of $158.40 million during the quarter, compared to analysts’ expectations of $153.67 million. Dave had a net margin of 35.35% and a return on equity of 67.04%. Dave updated its FY 2026 guidance to 16.250-16.750 EPS.

Here are the key takeaways from Dave’s conference call:

• Strong Q1 results — Revenue grew 47% to $158.4M and adjusted EBITDA rose 57% to $69.3M (44% margin), and the company raised full‑year guidance to $710M–$720M revenue, $305M–$315M adjusted EBITDA, and $16.25–$16.75 adjusted EPS.
• Credit performance improved materially from CashAI v5.5, delivering a record low 28‑day past due rate of 1.69% and management expects further improvement as CashAI v6.0 is tested.
• Member growth and unit economics remain durable — 695k new members (+22% YoY), 2.99M Monthly Transacting Members (+18%), ARPU +24% YoY, CAC ~$18 with ~3‑month gross profit payback, supporting continued scaled marketing.
• Product roadmap — Dave Flex (a pay‑in‑four card powered by CashAI) is in limited testing, positioned to deepen engagement and displace subprime credit/BNPL long‑term, but it is not expected to meaningfully contribute to 2026 guidance.
• Capital & funding strategy — Completed a $200M convertible note, deployed ~$195M to repurchases (share count down ~6%), and plans to shift ExtraCash receivables to an off‑balance‑sheet Coastal funding structure this summer to unlock >$200M liquidity and lower cost of capital (though Coastal fees will burden non‑GAAP gross profit).

Dave Stock Performance

NASDAQ DAVE traded down $15.36 on Tuesday, reaching $263.81. 705,631 shares of the company’s stock traded hands, compared to its average volume of 573,650. The firm has a market cap of $3.58 billion, a price-to-earnings ratio of 19.54 and a beta of 3.93. The stock has a 50 day moving average price of $211.02 and a 200-day moving average price of $208.40. Dave has a fifty-two week low of $102.11 and a fifty-two week high of $287.69.

Key Headlines Impacting Dave

Here are the key news stories impacting Dave this week:

• Positive Sentiment: Q1 beat: Dave reported EPS of $3.64 versus consensus $2.86 and revenue of $158.4M vs. $153.7M; net margin (35.4%) and ROE (67.0%) were notably strong. This confirms better-than-expected profitability. Q1 Press Release PDF
• Positive Sentiment: Raised FY‑2026 guidance: Dave set EPS guidance of $16.25–$16.75 (consensus ~$14.42) and revenue guidance of $710–$720M (consensus ~$698.3M), signaling stronger forward profitability and top‑line growth. Q1 2026 Financial Results
• Positive Sentiment: Capital return: Dave deployed ~ $195M in share repurchases (~7% of shares outstanding), a meaningful buyback that reduces float and supports EPS. Q1 2026 Financial Results
• Positive Sentiment: Analyst support: Keefe, Bruyette & Woods raised its price target to $330 and kept an outperform rating; Barrington reaffirmed an outperform with a $290 target—both signal continued analyst confidence. Keefe Target Raise Barrington Reaffirmation
• Neutral Sentiment: Pre-earnings coverage and sector context: Several articles reviewed DAVE ahead of and after earnings, and sector comparisons may influence relative flows rather than company fundamentals. Yahoo Preview Zacks Sector Note
• Negative Sentiment: Market reaction/volatility: Despite the beat and stronger guidance, DAVE is down today on heavier-than-average volume — likely profit‑taking after a strong run, plus elevated volatility (beta ~3.9) and valuation considerations (current P/E ~19.5) that can amplify moves. Investors should view the drop as short‑term market reaction rather than a change in the company’s improving fundamentals.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. National Bank of Canada FI acquired a new position in Dave during the third quarter valued at $30,000. WealthCollab LLC purchased a new position in shares of Dave during the 2nd quarter valued at approximately $30,000. Kestra Advisory Services LLC acquired a new position in shares of Dave in the 4th quarter valued at $36,000. Atlas Capital Advisors Inc. purchased a new stake in Dave during the fourth quarter worth $84,000. Finally, Inspire Advisors LLC purchased a new stake in Dave during the fourth quarter worth $207,000. 18.01% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes

Several equities research analysts have weighed in on the stock. Citigroup restated an “outperform” rating on shares of Dave in a research note on Friday, April 10th. B. Riley Financial raised their price target on Dave from $297.00 to $303.00 and gave the stock a “buy” rating in a report on Tuesday, March 3rd. Keefe, Bruyette & Woods raised their price target on Dave from $295.00 to $330.00 and gave the stock an “outperform” rating in a report on Monday. Canaccord Genuity Group raised their price target on Dave from $274.00 to $328.00 and gave the stock a “buy” rating in a report on Tuesday, March 3rd. Finally, Zacks Research upgraded shares of Dave from a “hold” rating to a “strong-buy” rating in a research note on Monday, February 16th. One investment analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, Dave presently has a consensus rating of “Moderate Buy” and an average price target of $319.63.

Dave declared that its board has initiated a share repurchase plan on Monday, March 2nd that allows the company to buyback $300.00 million in shares. This buyback authorization allows the fintech company to repurchase up to 11.2% of its stock through open market purchases. Stock buyback plans are typically a sign that the company’s board of directors believes its stock is undervalued.

Dave Company Profile

Dave, Inc is a Los Angeles–based financial technology company founded in 2016 by Jason Wilk and John Wolanin. The company offers a subscription-based mobile app designed to help consumers avoid overdraft fees, manage their budgets and track expenses. Through its platform, members receive low-balance alerts, expense categorization and cash-advance capabilities tied to upcoming deposits.

At the core of Dave’s offering is fee-free overdraft protection: eligible users can request small, interest-free advances up to a preset limit, typically repaid on their next paycheck or deposit.