Dave (DAVE) AI Stock Analysis

• Market Cap: $2.62B
• Dividend Yield: N/A
• Average Volume (3M): 403.25K
• Price to Earnings (P/E): 19.2
• Beta (1Y): 2.40
• 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: 568,150
• 30 Day Avg. Volume: 403,245
• 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: 1.10
• Enterprise Value/Revenue: 5.86
• Enterprise Value/Gross Profit: 6.87
• Enterprise Value/Ebitda: 21.19
• 1Y Price Target: $310.14
• Price Target Upside: 59.86% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 11.4
• Revenue Forecast (FY): $632.95M

• Rating: 72 Outperform
• Price Target: $206.00 ▲(6.18% Upside)

The score is driven primarily by strong financial performance (high margins, improving profitability, and solid cash generation) and a very positive earnings call with raised guidance and rapid YoY growth. Offsetting these strengths, technicals are weak with the stock trading below major moving averages and momentum still under pressure, while valuation is reasonable but not boosted by dividends.

Positive Factors

High Profitability and Margins

Sustained high gross and net margins indicate a scalable, low-cost delivery model (app/subscription/interchange mix) that can convert incremental revenue into profit. These margins support durable free cash flow generation and capacity to reinvest in product and risk models over the next several quarters.

Rapid User and Revenue Growth

Strong top-line growth accompanied by 17% growth in monthly transacting members and ~40% ARPU expansion shows both user acquisition and improved monetization. Durable user base and rising ARPU create a structural growth runway that should sustain revenue momentum over the medium term.

Strong Cash Generation and Low Leverage

Meaningful FCF growth combined with a near-zero reported debt-to-equity position provides financial flexibility. This durable cash generation reduces refinancing risk, funds product investment and marketing, and cushions against episodic credit losses or funding cost changes in the coming months.

Negative Factors

Rising Credit Loss Rates

A structural shift to higher approval limits and pricing has increased loss rates; if credit deterioration persists, it can erode margins and require higher reserves. Managing underwriting and vintage performance is crucial for sustained profitability over the medium term.

Dependence on Bank Sponsorships

Reliance on third-party bank sponsors creates counterparty and operational risk; executing the announced transition to Coastal Community Bank adds execution risk. Any sponsor disruption or contract changes could materially affect deposit, card product availability, and funding liquidity over months.

Historical Margin and Equity Volatility

Past swings in margins and equity levels signal that earnings and returns can be sensitive to credit cycles, pricing shifts and product mix. This reduces predictability of future profitability and implies investors should expect variable operating performance across 2–6 month horizons.

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

Dave demonstrates strong financial performance with impressive revenue growth, profitability, and cash flow generation. The balance sheet is solid with minimal leverage, although historical volatility in margins and equity levels presents potential risks.

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: 194.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 194.01 is below the 20-day moving average (MA) of 219.19, below the 50-day MA of 212.90, and below the 200-day MA of 198.34, indicating a bearish trend. The MACD of -2.96 indicates Positive momentum. The RSI at 38.93 is Neutral, neither overbought nor oversold. The STOCH value of 13.84 is Positive, 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	$2.62B	19.23	65.63%	―	53.82%	227.54%
FRSH	72 Outperform	$3.13B	-112.36	-2.98%	―	18.18%	70.94%
GBTG	62 Neutral	$3.98B	339.73	0.76%	―	5.71%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASAN	57 Neutral	$2.59B	-11.72	-102.48%	―	9.47%	16.97%
GRND	53 Neutral	$2.24B	-32.77	-171.54%	―	28.97%	-4.18%
RUM	42 Neutral	$2.63B	-4.50	-122.08%	―	21.17%	-108.27%