Dave (DAVE) AI Stock Analysis

• Market Cap: $2.79B
• Dividend Yield: N/A
• Average Volume (3M): 499.81K
• Price to Earnings (P/E): 57.9
• Beta (1Y): 2.10
• 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: 388,536
• 30 Day Avg. Volume: 499,812
• PEG Ratio: 0.93
• Price to Book (P/B): 11.65
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 18.12
• Enterprise Value/Market Cap: 0.81
• Enterprise Value/Revenue: 1.83
• Enterprise Value/Gross Profit: 8.43
• Enterprise Value/Ebitda: 35.86
• 1Y Price Target: $205.50
• Price Target Upside: -2.29% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: $207.00 ▼(-1.58%Downside)

Dave Inc.'s overall score reflects strong financial growth and strategic advancements, with significant improvements in revenue and operational metrics. The stock's strong technical momentum is balanced by a high valuation, indicating investor confidence but also a premium pricing. Challenges such as operational efficiency and litigation risks are noted but outweighed by positive earnings guidance and strategic initiatives, suggesting a promising outlook for future growth.

Positive Factors

Earnings

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

Financial Performance

The company experienced a strong rally in its shares, with a notable 41.6% increase due to its exceptional quarterly performance.

User Growth

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

Negative Factors

Economic Conditions

DAVE's focus on providing ExtraCash advances to financially stretched U.S. consumers puts it in a very different position from traditional financial institutions in terms of the expected demand for its loans during an economic pullback.

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 (DAVE) is a financial technology company that aims to improve the financial well-being of its users by providing tools for budgeting, financial planning, and accessing short-term financial assistance. Operating primarily in the digital banking and financial services sector, the company offers a mobile application that helps users manage their finances through features like budgeting tools, cash advances, and credit building services.

How the Company Makes Money

Dave makes money through a combination of subscription fees, transaction fees, and interest income. The company offers a subscription-based model where users pay a monthly fee for access to premium features within the app, such as more advanced budgeting tools and financial insights. Additionally, Dave generates revenue through transaction fees associated with its cash advance services, where users can access short-term funds with nominal fees attached. The company also earns interest on the cash advances it provides. Partnerships with banks and financial institutions further contribute to its revenue by facilitating financial products and services offered through the app.

Dave Financial Statement Overview

Summary

Dave's financial statements reflect a strong turnaround with significant revenue and profit growth, improved margins, and enhanced cash flow performance. The balance sheet exhibits strengthened equity and reduced leverage, signaling financial stability. Despite historic challenges in profitability and cash flow consistency, the current financial health indicates a positive trajectory and robust operational performance, positioning Dave favorably within the software industry.

Income Statement

Dave has exhibited strong revenue growth, increasing from $259.1 million in 2023 to $311.4 million in 2024, a growth rate of approximately 20.2%. The gross profit margin improved from 52.2% to 65.6%, indicating enhanced operational efficiency. Notably, the company transitioned from a net loss of $48.5 million in 2023 to a net income of $57.9 million in 2024, reflecting significant profitability improvements. However, EBIT and EBITDA margins remain negative, suggesting challenges in covering operating expenses and depreciation/amortization costs.

Balance Sheet

The balance sheet shows a robust equity position with an equity ratio of 61.1% in 2024, up from 29.6% in 2023, indicating improved financial stability. The debt-to-equity ratio decreased substantially from 2.08 in 2023 to 0.003, showcasing successful debt reduction efforts. Return on Equity (ROE) turned positive to 31.6% in 2024, reflecting effective shareholder value creation. The improvements in equity and reduction in leverage highlight a strengthened financial foundation, although historic volatility in equity levels poses a potential risk.

Cash Flow

Operating cash flow has increased significantly, from $33.8 million in 2023 to $125.1 million in 2024, indicating enhanced cash generation capabilities. Free cash flow has also seen remarkable growth, reaching $124.9 million, demonstrating efficient capital expenditure management and robust liquidity. The operating cash flow to net income ratio is strong at 2.16, signaling effective conversion of income to cash. While past fluctuations in cash flow were evident, the current trajectory presents a positive outlook for cash management.

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

Dave Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 210.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 210.32 is above the 20-day moving average (MA) of 183.18, above the 50-day MA of 125.68, and above the 200-day MA of 84.31, indicating a bullish trend. The MACD of 25.90 indicates Positive momentum. The RSI at 76.24 is Negative, neither overbought nor oversold. The STOCH value of 62.93 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	76 Outperform	$2.79B	57.87	32.09%	―	39.29%	―
OLO	74 Outperform	$1.42B	492.57	0.49%	―	23.31%	―
SEMR	68 Neutral	$1.45B	215.48	2.81%	―	22.75%	-47.45%
SPT	63 Neutral	$1.26B	―	-36.95%	―	17.79%	16.49%
AMPL	63 Neutral	$1.60B	―	-32.87%	―	8.56%	-4.21%
Sector *	61 Neutral	$11.55B	10.41	-6.86%	2.93%	7.50%	-8.30%

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.

Dave Inc. Announces $50 Million Share Buyback Plan

On March 10, 2025, Dave Inc. announced that its Board of Directors has authorized a share repurchase program to buy back up to $50 million of its outstanding Class A common stock. This decision reflects the company’s confidence in its financial strength and long-term growth potential, aiming to enhance shareholder value. The repurchase program will be executed based on market conditions and may involve various methods, including open market and privately negotiated transactions. The program does not obligate Dave to repurchase a specific number of shares and can be modified or terminated at any time.