Dave (DAVE) AI Stock Analysis

• Market Cap: $2.44B
• Dividend Yield: N/A
• Average Volume (3M): 523.66K
• Price to Earnings (P/E): 17.7
• Beta (1Y): 2.32
• Revenue Growth: 53.82%
• EPS Growth: 227.54%
• Country: US
• Employees: 274
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 6.34
• Shares Outstanding: 12,190,000
• 10 Day Avg. Volume: 403,695
• 30 Day Avg. Volume: 523,664
• PEG Ratio: -0.09
• Price to Book (P/B): 5.94
• Price to Sales (P/S): 3.14
• P/FCF Ratio: 8.72
• Enterprise Value/Market Cap: 0.99
• Enterprise Value/Revenue: 4.90
• Enterprise Value/Gross Profit: 5.75
• Enterprise Value/Ebitda: 17.73
• 1Y Price Target: $312.50
• Price Target Upside: 77.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 11.44
• Revenue Forecast (FY): $628.73M

• Rating: 72 Outperform
• Price Target: $182.00 ▲(3.11% Upside)
• Action: Reiterated Date: 01/21/26
• Date: Action: Reiterated 01/21/26

Score is driven primarily by strong financial performance (profitability and cash generation with minimal leverage) and a bullish earnings update with raised guidance. Offsetting these positives, technical indicators are notably weak with the stock below major moving averages and bearish momentum signals. Valuation is moderate based on the P/E, with no dividend yield data to support the score.

Positive Factors

Strong revenue and EBITDA growth

Sustained, high single-digit to double-digit top-line growth with rapidly improving adjusted EBITDA demonstrates scalable unit economics and operating leverage. Durable margin expansion supports reinvestment and resilience across product lines over the next several quarters.

Improved credit model and product originations

Algorithmic credit improvements and strong growth in ExtraCash originations indicate durable enhancements to underwriting and product-market fit, potentially lowering long-run loss rates and increasing lifetime value and interchange revenue as the portfolio scales.

Healthy balance sheet and cash generation

Minimal leverage and materially positive free cash flow growth provide financial flexibility for investment, product development, and sponsor transitions. Strong cash conversion reduces refinancing risk and supports durable execution of strategic initiatives.

Negative Factors

Higher loss rates from pricing/approval changes

Sustained increases in loss rates from relaxed approval limits can erode margin gains from higher ARPU and subscription fees, requiring higher provisions, more conservative credit policies, or capital buffers to maintain long-term profitability and growth.

Reliance on bank sponsors and transition risk

Dependence on third-party bank sponsors for deposits and card products creates structural operational and regulatory risk; a sponsor transition can disrupt funding, interchange flows, or product features and requires flawless execution to avoid lasting customer or liquidity impacts.

Historical volatility in margins and equity levels

Prior swings in profitability and equity introduce uncertainty about repeatability of margins; persistent volatility can hinder long-term planning, raise cost of capital, and complicate scaling efforts as the business balances growth with credit and funding stability.

Dave Business Overview & Revenue Model

Company Description

Dave Inc. provides a suite of financial products and services through its financial service online platform. The company offers Insights, a personal financial management tool to manage income and expenses between paychecks for members; ExtraCash, a free overdraft and short-term credit alternative, which allows members to advance funds to their account and avoid a fee; and Side Hustle, a job application portal. It also provides Dave Banking, a digital checking and demand deposit account. The company was founded in 2015 and is based in West Hollywood, California.

How the Company Makes Money

Dave generates revenue through several key streams. Primarily, the company earns money by charging users a monthly subscription fee for access to premium features, including financial insights and budgeting tools. Additionally, Dave offers cash advances to users, which may involve fees for late repayments or interest charges, contributing to its earnings. The company also partners with various financial institutions to facilitate transactions and may receive referral fees or commissions for these partnerships. Furthermore, revenue is supplemented through interchange fees collected when users make purchases using their Dave debit card.

Dave Financial Statement Overview

Summary

Strong operating trajectory: revenue growth is positive (10.81% TTM) with very high gross and net margins (88.44% and 30.56%) and improving EBIT/EBITDA. Balance sheet leverage is minimal (debt-to-equity 0.00 TTM) and cash generation is solid (FCF growth 22.78% TTM; FCF/net income 1.01). Main risk is historical volatility in margins and equity levels.

Income Statement

Dave has shown impressive revenue growth with a 10.81% increase in TTM, supported by strong gross and net profit margins of 88.44% and 30.56%, respectively. The company has successfully turned around its profitability, with a significant improvement in EBIT and EBITDA margins compared to previous years. However, the historical volatility in margins and profitability should be monitored.

Balance Sheet

The balance sheet reflects a healthy financial position with a low debt-to-equity ratio of 0.00 in TTM, indicating minimal leverage. The return on equity is robust at 65.84%, showcasing efficient use of equity capital. However, the equity ratio is not explicitly provided, and historical fluctuations in equity levels suggest potential risks.

Cash Flow

Cash flow analysis reveals strong free cash flow growth of 22.78% in TTM, with a free cash flow to net income ratio of 1.01, indicating efficient cash generation relative to earnings. The operating cash flow to net income ratio is not provided, but the overall cash flow position appears solid, with improvements over previous periods.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	491.30M	347.08M	259.09M	204.84M	153.01M	121.80M
Gross Profit	419.00M	316.70M	230.17M	172.89M	129.55M	100.15M
EBITDA	135.85M	76.02M	-31.08M	-112.64M	-14.30M	-5.08M
Net Income	146.73M	57.87M	-48.52M	-128.91M	-19.99M	-6.96M
Balance Sheet
Total Assets	433.25M	299.33M	294.02M	321.49M	147.19M	76.41M
Cash, Cash Equivalents and Short-Term Investments	91.73M	90.29M	155.94M	191.96M	40.23M	22.45M
Total Debt	75.30M	75.55M	181.29M	178.15M	73.64M	6.11M
Total Liabilities	141.94M	116.23M	206.96M	214.93M	108.45M	26.56M
Stockholders Equity	291.31M	183.10M	87.06M	106.56M	38.74M	49.84M
Cash Flow
Free Cash Flow	236.75M	124.88M	25.17M	-54.20M	-7.02M	-13.37M
Operating Cash Flow	238.44M	125.14M	33.75M	-44.88M	-541.00K	-9.15M
Investing Cash Flow	-178.73M	-45.84M	-14.38M	-285.58M	-37.20M	3.42M
Financing Cash Flow	-44.59M	-71.00M	22.00K	321.77M	65.05M	4.24M

Dave Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 176.51
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAVE, the sentiment is Negative. The current price of 176.51 is above the 20-day moving average (MA) of 175.03, below the 50-day MA of 196.53, and below the 200-day MA of 208.68, indicating a neutral trend. The MACD of -5.44 indicates Negative momentum. The RSI at 45.71 is Neutral, neither overbought nor oversold. The STOCH value of 56.96 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DAVE.

Dave Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAVE	72 Outperform	$2.44B	17.66	65.63%	―	53.82%	227.54%
FRSH	71 Outperform	$2.09B	11.73	16.93%	―	18.18%	70.94%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
GBTG	61 Neutral	$2.85B	25.02	0.76%	―	5.71%	―
GRND	53 Neutral	$1.98B	-29.37	-171.54%	―	28.97%	-4.18%
ASAN	51 Neutral	$1.80B	-7.99	-102.48%	―	9.47%	16.97%
RUM	42 Neutral	$2.56B	-4.32	-122.08%	―	21.17%	-108.27%

Dave Corporate Events

Dave strengthens board with new independent director

On January 20, 2026, Dave Inc. announced a series of board changes, highlighted by the appointment of Meta Vice President of Engineering Nima Khajehnouri as an independent Class III director and member of the Audit Committee, in a move aimed at bolstering the company’s technical and AI-focused leadership as it scales its digital banking platform. His appointment coincides with the planned resignation of director Imran Khan, which the company said was not due to any disagreement, and comes with standard non-employee director compensation and an inducement restricted stock unit award, underscoring the competitive market for high-caliber technology talent. The board also restructured its leadership, naming Mike Pope as Lead Independent Director, succeeding Brendan Carroll who remains on the board, and appointing Andrea Mitchell as Chair of the Nominating and Corporate Governance Committee, changes that reflect an effort to strengthen governance, institutional knowledge, and oversight as Dave pursues further growth in the neobanking sector.

The most recent analyst rating on (DAVE) stock is a Buy with a $206.00 price target. To see the full list of analyst forecasts on Dave stock, see the DAVE Stock Forecast page.