Dave Inc. earnings

Management highlights

### Key Takeaways - Credit performance from Cash AI v5.5 led to lowest Q1 loss rate on record, with 28 days past due metric at 1.69%. - Demonstrated durability of growth algorithm with mid-teens member growth and low double-digit ARPU growth. - Launched new pay-in-for-credit product, DaveFlex, in trial. ### Growth Pillars - Member acquisition: Added 695,000 new members in Q1, up 22% year-over-year, with customer acquisition cost at $18, flat year over year and improved 11% sequentially. - Engagement through extra cash: Originations reached $2.1 billion, up 37% year-over-year, driven by growth in MTMs and average origination size. - Deepening engagement: Dave's debit card spend was $534 million in Q1, up 9%. ### Strategic Updates - DaveFlex is in trial with existing members, not expected to contribute meaningfully to 2026 revenue. - Partnership with Coastal Community Bank on track to transition extra cash receivables this summer. - No material update on DOJ matter.

Guidance

Based on Q1 results, full year 2026 guidance is raised. Now expects full year revenue of $710 to $720 million (approx 28% to 30% growth), adjusted EBITDA to 305 to 315 million, and adjusted diluted EPS to a range of $16.25 to $16.75 (up from $14 to $15).

Segment performance

Revenue grew 47% year over year to $158.4 million. Adjusted EBITDA grew 57% to $69.3 million at a 44% margin. Revenue was driven by 18% MTM growth and 24% ARPU expansion. New member conversion, dormant member reactivation, and retention contributed. Non-GAAP gross profit was $114.4 million, up 37% year-over-year, with non-GAAP gross margin 72% initially but expected to expand into mid-70s for the balance of the year.

Analyst Q&A

• Q: Andrew Jeffrey with William Blair asked about focusing on engagement and where engagement goes.

  A: Jason Wilk said Dave has a differentiated offering with Dave Flex, and there's a huge opportunity to drive more engagement through credit share of wallet.

• Q: Ryan Tomasella with KBW asked about monetization rates for Flex pay product and CAC.

  A: Jason Wilk said they're in market testing higher monthly fee and per swipe transaction fee for Flex, and will spend on Flex acquisition where there are positive returns.

• Q: Joseph Baffey with Canaccord asked about credit algo and removing fee cap.

  A: Kyle Bauman said removing the fee cap opens up the credit box and increases limits, with benefits to conversion.

• Q: Devin Ryan with Citizens Bank asked about capital and liquidity.

  A: Kyle Bauman said share purchases are a top capital allocation priority, and they'll evaluate M&A but mainly focus on share purchases.

• Q: Jeff Cantwell with C4 Research asked about provision expense and CAC for new product.

  A: Kyle Bauman said provision timing had a $5 million swing, and they'll invest in Flex where there are positive returns.

• Q: Hal Ghosh with B Riley Securities asked about share count and BNPL usage.

  A: Kyle Bauman said no specific share count guidance, and around 50% of people engage with BNPL at some point in a quarter.

• Q: Jacob Steffen with Lake Street Capital Markets asked about dormant reactivation and removal of fee cap.

  A: Kyle Bauman said dormant reactivation is driven by lifecycle marketing and cash AI, and removal of fee cap applies to new customers.