Dave Reports Second Quarter 2026 Financial Results
Rhea-AI Summary
Dave (Nasdaq: DAVE) reported second quarter 2026 GAAP operating revenues of $170.8 million, up 30% year-over-year, with non-GAAP gross profit of $123.8 million and a 72% non-GAAP gross margin. Adjusted EBITDA rose 48% to $75.5 million, a 44% margin, while adjusted net income increased to $56.4 million, or $4.12 per diluted share.
GAAP net income was $6.7 million, including $36.9 million of non-cash warrant and earnout remeasurement charges. Operating metrics improved: MTMs grew 17% to 3.08 million, ExtraCash originations rose 27% to $2.3 billion, and 28-day past due rate improved to 2.12%. Liquidity reached $254.4 million, helped by $93.0 million funded through the Coastal Community Bank arrangement and offset by $19.1 million in share repurchases.
Dave raised its 2026 outlook, guiding GAAP operating revenues, net, to $725–$735 million, adjusted EBITDA to $315–$325 million, and adjusted diluted EPS to $17.00–$17.50.
Positive
- Revenue up 30% YoY to $170.8M in Q2 2026
- Adjusted EBITDA up 48% YoY to $75.5M (44% margin)
- Adjusted net income up 39% YoY to $56.4M; diluted $4.12
- MTMs +17% to 3.08M; ExtraCash originations +27% to $2.3B
- Non-GAAP gross margin expanded ~300 bps YoY to 72%
- 2026 guidance raised: revenue $725–$735M, adj. EBITDA $315–$325M, adj. EPS $17.00–$17.50
Negative
- GAAP net income down 26% YoY to $6.7M in Q2 2026
- Non-cash warrant and earnout remeasurement charges totaled $36.9M in Q2
- Provision for credit losses increased to $28.8M from $25.2M YoY
- Total liabilities rose to $362.9M from $134.7M at year-end 2025, while shareholders’ equity declined to $207.9M from $352.7M
Market Reaction – DAVE
Following this news, DAVE has declined 15.85%, reflecting a significant negative market reaction. Argus tracked a trough of -14.4% from its starting point during tracking. Our momentum scanner has triggered 8 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $362.00.
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Q2 Revenue Grows
28-DPD Rate Improves 14 Basis Points Y/Y to
Net Income of
Adj. EBITDA Increases
Raises 2026 Revenue, Adj. EBITDA and Adj. Diluted EPS Guidance
"We closed the first half with our ninth consecutive quarter of at least
Wilk continued, "Based on our strong first-half performance, the depth of our product roadmap, and the significant operating leverage we continue to see in our model, we are raising our full-year 2026 guidance for Revenue, Adjusted EBITDA, and Adjusted Diluted EPS."
Quarterly Financial Highlights ($ in millions, except for per share amounts, unaudited)
2Q25 | 3Q25 | 4Q25 | 1Q26 | 2Q26 | |
GAAP Operating Revenues, Net | |||||
% Change vs. prior year period | 64 % | 63 % | 62 % | 47 % | 30 % |
Non-GAAP Gross Profit* | |||||
% Change vs. prior year period | 78 % | 62 % | 68 % | 37 % | 34 % |
Non-GAAP Gross Profit Margin* | 70 % | 69 % | 74 % | 72 % | 72 % |
Change vs. prior year period | 500 bps | 0 bps | 300 bps | (500) bps | 300 bps |
GAAP Net Income | |||||
% Change vs. prior year period | 42 % | 19,658 % | 292 % | 101 % | -26 % |
Adjusted Net Income*(1) | |||||
% Change vs. prior year period | 290 % | 208 % | 92 % | 61 % | 39 % |
Adjusted EBITDA*(1) | |||||
% Change vs. prior year period | 236 % | 137 % | 118 % | 57 % | 48 % |
Adj. Net Income per Diluted Share*(1) | |||||
% Change vs. prior year period | 263 % | 196 % | 93 % | 64 % | 48 % |
*Non-GAAP measures. See reconciliation of non-GAAP measures at the end of the press release. |
(1) Beginning in the second quarter of 2026, the Company updated its definitions of Adjusted Net Income and Adjusted EBITDA to exclude: (i) other strategic financing and transactional expenses and (ii) litigation expenses related to the FTC/DOJ matter; Adjusted EBITDA was further updated to exclude (iii) funding costs. Prior periods have not been recast because the effect of these items on such periods was immaterial. |
Second Quarter 2026 Operating Highlights (vs. Second Quarter 2025)
- New members increased
32% to 951,000, at a customer acquisition cost of$19 - Monthly Transacting Members ("MTMs") increased
17% to 3.08 million - ExtraCash originations increased
27% to$2.3 billion 4.8% - 28-day past due rate improved
6% to2.12% - Dave Debit Card spend increased
7% to$530 million
Liquidity Summary
As of June 30, 2026, the Company had
2026 Financial Guidance ($ in millions)
Prior FY 2026 | New FY 2026 | |
GAAP Operating Revenues, Net | ||
Year-Over-Year Growth | ||
Adjusted EBITDA* | ||
Adj. Net Income per Diluted Share* |
*Non-GAAP measure. The Company does not provide a quantitative reconciliation of forward-looking non-GAAP financial measures because it is unable to predict without unreasonable effort the exact amount or timing of the reconciling items, including interest expense, investment income, and loss provision, among others. The variability of these items could have a significant impact on our future GAAP financial results. |
Dave's CFO and COO, Kyle Beilman, commented: "This quarter demonstrated the quality of our earnings growth. Non-GAAP gross margin expanded nearly 300 basis points year-over-year to
"Marketing and activation investment grew
"Our Coastal Community Bank funding structure had
Conference Call
Dave management will host a conference call on Wednesday, August 5, 2026, at 5:00 p.m. Eastern time to discuss its financial results for the second quarter ended June 30, 2026, followed by a question-and-answer period. The conference call details are as follows:
Date: Wednesday, August 5, 2026
Time: 5:00 p.m. Eastern time
Conference Call Registration: link
Webcast: link
The conference call will also be available for replay in the Events section of the Company's website, along with the transcript, at https://investors.dave.com.
If you have any difficulty registering for or connecting to the conference call, please contact Elevate IR at DAVE@elevate-ir.com.
About Dave
Dave (Nasdaq: DAVE) is a U.S. neobank pioneering innovative credit products for everyday Americans. For more information about the Company, visit: www.dave.com. For investor information and updates, visit: investors.dave.com and follow @davebanking on X.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "might," "opportunity," "plans," "projects," "remains," "should," "targets," "well-positioned," or the negative of such terms, or other comparable terminology and include, among other things, the quotations of our Chief Executive Officer and Chief Financial Officer relating to Dave's future performance and growth, statements relating to fiscal year 2026 guidance, projected financial results for future periods and other statements about future events. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: the ability of Dave to compete in its highly competitive industry; the ability of Dave to keep pace with the rapid technological and AI-related developments in its industry and the larger financial services industry; the ability of Dave to manage risks associated with providing ExtraCash; the ability of Dave to retain its current customers, acquire new customers (collectively, "Members") and sell additional functionality and services to its Members; the ability of Dave to successfully launch new products and services; the ability of Dave to protect intellectual property and trade secrets; the ability of Dave to maintain the integrity of its confidential information and information systems or comply with applicable privacy and data security requirements and regulations; the reliance by Dave on two bank partners; the ability of Dave to maintain or secure current and future key banking relationships and other third-party service providers, including its ability to comply with applicable requirements of such third parties; the ability of Dave to comply with extensive and evolving laws and regulations applicable to its business; changes in applicable laws or regulations and extensive and evolving government regulations that impact operations and business; the ability to attract or maintain a qualified workforce; the level of product service failures that could lead Members to use competitors' services; investigations, claims, disputes, enforcement actions, arbitration, litigation and/or other regulatory or legal proceedings, including the Department of Justice's lawsuit against Dave; the possibility that Dave may be adversely affected by other macroeconomic factors, including regulatory uncertainty, fluctuating interest rates, inflation, tariffs, unemployment rates, consumer sentiment, market volatility and business, and/or competitive factors; and other risks and uncertainties discussed in Dave's Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 2, 2026 and any subsequent Quarterly Reports on Form 10-Q under the heading "Risk Factors," filed with the SEC and other reports and documents Dave files from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and Dave undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release.
Non-GAAP Financial Information
This press release contains references to adjusted net income, adjusted EBITDA, adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross profit margin, and adjusted net income per share (basic and diluted) of Dave, which are adjusted from results based on generally accepted accounting principles in the United States ("GAAP") and exclude certain expenses, gains and losses. The Company defines and calculates adjusted EBITDA as GAAP net income before the impact of interest income and/or expense, and funding costs, provision for income taxes, depreciation and amortization, and adjusted to exclude legal settlement and litigation expenses related to the FTC/DOJ matter, stock-based compensation expense, other strategic financing and transactional expenses, discretionary or non-recurring income, changes in fair value of earnout liabilities and changes in fair value of public and private warrant liabilities. The Company defines and calculates adjusted EBITDA margin as adjusted EBITDA as a percentage of GAAP operating revenues, net. The Company defines and calculates variable operating expenses as provision for credit losses, processing and servicing costs and financial network and transaction costs. The Company defines and calculates non-GAAP gross profit as GAAP operating revenues, net excluding variable operating expenses. The Company defines and calculates non-GAAP gross profit margin as non-GAAP gross profit as a percentage of GAAP operating revenues, net. The Company defines and calculates adjusted net income as GAAP net income adjusted to exclude stock-based compensation, discretionary or non-recurring income, legal settlement and litigation expenses related to the FTC/DOJ matter, other strategic financing and transactional expenses, changes in fair value of earnout liabilities and changes in fair value of public and private warrant liabilities, the income tax impact related to the release of the valuation allowance and the income tax impact related to stock-based compensation. The Company defines and calculates non-GAAP adjusted net income per share - basic and non-GAAP adjusted net income per share - diluted as adjusted net income divided by weighted average shares of common stock-basic and weighted average shares of common stock-diluted, respectively.
These non-GAAP financial measures may be helpful to the user in assessing our operating performance and facilitate an alternative comparison among fiscal periods. The Company's management team uses these non-GAAP financial measures in assessing performance, as well as in planning and forecasting future periods. The methods the Company uses to compute these non-GAAP financial measures may differ from the methods used by other companies. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP.
Refer to the section further below for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures for the three and six months ended June 30, 2026, and 2025.
Investor Relations Contact
Sean Mansouri, CFA or Stefan Norbom
Elevate IR
DAVE@elevate-ir.com
Media Contact
Dan Ury
press@dave.com
DAVE INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
(in millions, except per share data) | ||||||||
(unaudited) | ||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
Operating revenues: | ||||||||
Service based revenue, net | $ 160.0 | $ 121.5 | $ 307.6 | $ 219.4 | ||||
Transaction based revenue, net | 10.8 | 10.2 | 21.6 | 20.3 | ||||
Total operating revenues, net | 170.8 | 131.7 | 329.2 | 239.7 | ||||
Operating expenses: | ||||||||
Provision for credit losses | 28.8 | 25.2 | 55.4 | 35.8 | ||||
Processing and servicing costs | 10.3 | 7.2 | 19.9 | 14.2 | ||||
Financial network and transaction costs | 7.9 | 7.3 | 15.7 | 14.3 | ||||
Advertising and activation costs | 20.3 | 15.5 | 34.6 | 27.4 | ||||
Compensation and benefits | 35.7 | 26.4 | 63.3 | 53.7 | ||||
Technology and infrastructure | 3.8 | 2.9 | 7.2 | 5.6 | ||||
Other operating expenses | 11.7 | 6.2 | 21.3 | 12.5 | ||||
Total operating expenses | 118.5 | 90.7 | 217.4 | 163.5 | ||||
Other (income) expenses: | ||||||||
Interest expense, net | 0.7 | 1.2 | 1.6 | 2.5 | ||||
Changes in fair value of earnout liabilities | 11.3 | 7.9 | 8.1 | 7.5 | ||||
Changes in fair value of public and private warrant liabilities | 25.6 | 20.4 | 17.3 | 20.8 | ||||
Total other (income) expense, net | 37.6 | 29.5 | 27.0 | 30.8 | ||||
Net income before provision for income taxes | 14.7 | 11.5 | 84.8 | 45.4 | ||||
Provision for income taxes | 8.0 | 2.4 | 20.2 | 7.5 | ||||
Net income | $ 6.7 | $ 9.1 | $ 64.6 | $ 37.9 | ||||
Net income per share: | ||||||||
Basic | $ 0.53 | $ 0.68 | $ 4.94 | $ 2.86 | ||||
Diluted | $ 0.49 | $ 0.62 | $ 4.60 | $ 2.61 | ||||
Weighted-average shares used to compute net income per share | ||||||||
Basic | 12,719,166 | 13,364,926 | 13,075,038 | 13,246,266 | ||||
Diluted | 13,679,803 | 14,554,218 | 14,037,743 | 14,475,435 | ||||
RECONCILIATION OF TOTAL OPERATING REVENUES, NET | ||||||||
(in millions) | ||||||||
(unaudited) | ||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
Service based revenue, net | ||||||||
Processing and overdraft service fees, net | $ 144.9 | $ 113.5 | $ 278.5 | $ 196.9 | ||||
Tips | — | — | — | 7.5 | ||||
Subscriptions | 15.1 | 8.1 | 29.0 | 14.9 | ||||
Other | — | (0.1) | 0.1 | 0.1 | ||||
Transaction based revenue, net | ||||||||
Interchange revenue, net | 6.0 | 6.0 | 12.2 | 11.9 | ||||
ATM revenue, net | 0.6 | 0.7 | 1.3 | 1.5 | ||||
Other | 4.2 | 3.5 | 8.1 | 6.9 | ||||
Total operating revenues, net | $ 170.8 | $ 131.7 | $ 329.2 | $ 239.7 | ||||
CALCULATION OF NON-GAAP GROSS PROFIT | ||||||||
(in millions) | ||||||||
(unaudited) | ||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||
2026 | 2025 | 2026 | 2025 | |||||
GAAP operating revenues, net | $ 170.8 | $ 131.7 | $ 329.2 | $ 239.7 | ||||
Less: Variable operating expenses | ||||||||
Provision for credit losses | (28.8) | (25.2) | (55.4) | (35.8) | ||||
Processing and servicing costs | (10.3) | (7.2) | (19.9) | (14.2) | ||||
Financial network and transaction costs | (7.9) | (7.3) | (15.7) | (14.3) | ||||
Non-GAAP gross profit | $ 123.8 | $ 92.0 | $ 238.2 | $ 175.4 | ||||
Non-GAAP gross profit margin | 72 % | 70 % | 72 % | 73 % | ||||
DAVE INC. | |||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA | |||||||||
(in millions) | |||||||||
(unaudited) | |||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||
2026 | 2025 | 2026 | 2025 | ||||||
Net income | $ 6.7 | $ 9.1 | $ 64.6 | $ 37.9 | |||||
Interest expense, net and funding costs | 1.2 | 1.2 | 2.1 | 2.5 | |||||
Provision for income taxes | 8.0 | 2.4 | 20.2 | 7.5 | |||||
Depreciation and amortization | 2.0 | 1.6 | 3.6 | 3.1 | |||||
Stock-based compensation | 16.4 | 8.3 | 23.5 | 15.8 | |||||
Legal settlement and litigation expenses | 4.0 | — | 5.1 | — | |||||
Other strategic financing and transactional expenses | 0.3 | — | 0.3 | — | |||||
Changes in fair value of earnout liabilities | 11.3 | 7.9 | 8.1 | 7.5 | |||||
Changes in fair value of public and private warrant liabilities | 25.6 | 20.4 | 17.3 | 20.8 | |||||
Adjusted EBITDA | $ 75.5 | $ 50.9 | $ 144.8 | $ 95.1 | |||||
Adjusted EBITDA margin | 44 % | 39 % | 44 % | 40 % | |||||
DAVE INC. | |||||||||
RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME | |||||||||
(in millions, except per share data) | |||||||||
(unaudited) | |||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||
2026 | 2025 | 2026 | 2025 | ||||||
Net income | $ 6.7 | $ 9.1 | $ 64.6 | $ 37.9 | |||||
Stock-based compensation | 16.4 | 8.3 | 23.5 | 15.8 | |||||
Legal settlement and litigation expenses | 4.0 | — | 5.1 | — | |||||
Other strategic financing and transactional expenses | 0.3 | — | 0.3 | — | |||||
Changes in fair value of earnout liabilities | 11.3 | 7.9 | 8.1 | 7.5 | |||||
Changes in fair value of public and private warrant liabilities | 25.6 | 20.4 | 17.3 | 20.8 | |||||
Income tax expense (benefit) related to stock-based compensation | (7.9) | (5.2) | (10.2) | (9.0) | |||||
Adjusted net income | $ 56.4 | $ 40.5 | $ 108.7 | $ 73.0 | |||||
Adjusted net income per share: | |||||||||
Basic | $ 4.43 | $ 3.03 | $ 8.31 | $ 5.51 | |||||
Diluted | $ 4.12 | $ 2.78 | $ 7.74 | $ 5.04 | |||||
DAVE INC. | |||||
SUMMARY BALANCE SHEET | |||||
(in millions) | |||||
June 30, | December 31, | ||||
2026 | 2025 | ||||
(unaudited) | |||||
Cash, cash equivalents, restricted cash, and investments | $ 254.4 | $ 123.2 | |||
Member receivables, net of allowance for credit losses | 232.2 | 297.3 | |||
Other assets | 84.2 | 66.9 | |||
Total assets | $ 570.8 | $ 487.4 | |||
Debt facility, current | $ 75.0 | $ 75.0 | |||
Other current liabilities | 47.9 | 39.0 | |||
Convertible notes, net of discount and issuance costs | 193.1 | — | |||
Other liabilities | 46.9 | 20.7 | |||
Total liabilities | $ 362.9 | $ 134.7 | |||
Total shareholders' equity | $ 207.9 | $ 352.7 | |||
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SOURCE Dave Inc.