Dave (DAVE) AI Stock Analysis

• Market Cap: $2.78B
• Dividend Yield: N/A
• Average Volume (3M): 551.66K
• Price to Earnings (P/E): 57.3
• Beta (1Y): 2.12
• Revenue Growth: 39.29%
• EPS Growth: N/A
• Country: US
• Employees: 274
• Sector: Technology
• Sector Strength: 79
• Industry: Software - Application
• EPS (TTM): 1.97
• Shares Outstanding: 11,826,259
• 10 Day Avg. Volume: 456,469
• 30 Day Avg. Volume: 551,656
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.98
• Enterprise Value/Market Cap: 0.09
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 0.98
• Enterprise Value/Ebitda: 1.94
• 1Y Price Target: $216.33
• Price Target Upside: 3.88% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: $233.00 ▲(11.89%Upside)

Dave's overall stock score reflects strong financial performance and positive earnings call insights, countered by a high valuation and operational challenges. The company's robust revenue and cash flow growth, alongside strategic advancements, support future growth potential, although operational efficiency improvements are needed.

Positive Factors

Fee Structure

The implementation of a simplified fee structure for ExtraCash advances led to an increase in average loan size and revenue per loan.

Financial Performance

Dave Inc. exceeded expectations in both top and bottom lines due to improvements in operating metrics.

User Growth

User growth exceeded expectations, with a significant majority of loans taken by existing users, indicating strong customer retention.

Negative Factors

Revenue Monetization

Only 60% of 1Q25 loan originations were monetized under the new fee model, indicating potential for further ARPU benefits in the subsequent quarter.

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 makes money primarily through its subscription service, which offers users access to premium features like budgeting tools and cash advance options for a monthly fee. Additionally, the company generates revenue from interchange fees when customers use their Dave debit cards for transactions. Dave also partners with various financial institutions and service providers to enhance its product offerings and expand its market reach, contributing to its revenue streams.

Dave Financial Statement Overview

Summary

Dave's financial statements reflect strong revenue growth and cash flow generation capabilities, countered by challenges in operational efficiency as indicated by the negative EBIT margin. The low debt levels and strong equity position provide financial stability, but there is a need for improved operational execution to enhance profitability.

Income Statement

Dave's income statement shows a strong improvement in revenue, with a TTM revenue growth rate of 6.98% and a significant increase from previous years. The gross profit margin is healthy at 72.56% for the TTM period, indicating effective cost management. However, the EBIT margin is negative at -20.44%, reflecting challenges in operational efficiency. While the company has managed to turn a net profit in the TTM period, the negative EBIT suggests potential issues in core operations.

Balance Sheet

The balance sheet reflects a strong equity position with an equity ratio of 63.20% in the TTM period, providing a buffer against liabilities. However, the debt-to-equity ratio has significantly improved to a low of 0.002, indicating very low leverage. Return on equity is relatively modest at 26.29%, suggesting efficient use of equity but with room for improvement. Overall, the balance sheet indicates financial stability but highlights the need for careful management of operational efficiency.

Cash Flow

Dave's cash flow statement is strong, with a robust free cash flow growth rate of 21.35% in the TTM period, reflecting effective cash management. The operating cash flow to net income ratio is a healthy 2.90, indicating strong cash generation relative to net income. The free cash flow to net income ratio of 2.89 further supports the company's ability to generate cash from operations. These metrics suggest a strong cash position that can support future growth initiatives.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
371.30M	347.08M	259.09M	204.80M	153.00M	121.80M
	Gross Profit
269.46M	240.05M	135.26M	172.90M	129.50M	100.15M
	EBIT
-75.89M	34.61M	-42.20M	-146.13M	-46.90M	-2.33M
	EBITDA
58.71M	76.02M	-31.08M	-113.18M	-14.27M	-5.08M
	Net Income Common Stockholders
52.44M	57.87M	-48.52M	-128.90M	-20.00M	-6.96M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
47.10M	90.29M	155.94M	191.96M	32.00M	22.45M
	Total Assets
315.65M	299.33M	294.02M	321.49M	147.19M	76.41M
	Total Debt
469.00K	75.55M	181.29M	178.15M	73.64M	6.11M
	Net Debt
-46.53M	25.84M	139.53M	155.26M	41.64M	1.32M
	Total Liabilities
116.19M	116.23M	206.96M	214.93M	108.45M	26.56M
	Stockholders Equity
199.46M	183.10M	87.06M	106.56M	-33.40M	49.84M
Cash Flow		Free Cash Flow
151.57M	124.88M	25.17M	-54.20M	-47.18M	-13.37M
	Operating Cash Flow
152.04M	125.14M	33.75M	-44.88M	-40.70M	-9.15M
	Investing Cash Flow
-140.03M	-45.84M	-14.38M	-285.58M	3.00M	3.42M
	Financing Cash Flow
-20.43M	-71.00M	22.00K	321.77M	65.05M	4.24M

Dave Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 208.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DAVE, the sentiment is Positive. The current price of 208.24 is below the 20-day moving average (MA) of 210.27, above the 50-day MA of 149.51, and above the 200-day MA of 92.51, indicating a bullish trend. The MACD of 19.74 indicates Positive momentum. The RSI at 61.51 is Neutral, neither overbought nor oversold. The STOCH value of 47.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DAVE.

Dave Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DAVE	74 Outperform	$2.78B	57.29	32.09%	―	39.29%	―
OLO	74 Outperform	$1.42B	484.00	0.49%	―	23.31%	―
ML	69 Neutral	$972.40M	114.79	3.34%	―	28.92%	―
SPT	66 Neutral	$1.20B	―	-36.95%	―	17.79%	16.49%
SEMR	63 Neutral	$1.33B	193.12	2.81%	―	22.75%	-47.45%
AMPL	63 Neutral	$1.49B	―	-32.87%	―	8.56%	-4.21%
Sector *	62 Neutral	$11.80B	10.10	-7.47%	2.99%	7.37%	-8.16%

Dave Corporate Events

Dave Inc. Stockholders Approve Key Proposals at Annual Meeting

At the 2025 annual meeting held on June 2, Dave Inc. stockholders voted on two key proposals. The first was the election of Michael Pope and Yadin Rozov as Class I directors for three-year terms ending in 2028. The second proposal ratified Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. Approximately 90.84% of the voting power was represented at the meeting, indicating strong shareholder engagement.

The most recent analyst rating on (DAVE) stock is a Buy with a $65.00 price target. To see the full list of analyst forecasts on Dave stock, see the DAVE Stock Forecast page.