Dave Q1 2025 slides: Revenue surges 47%, company raises full-year guidance

Dave Inc (NASDAQ:DAVE) shares surged 23.8% in premarket trading after the fintech company delivered exceptional first-quarter results and significantly raised its full-year guidance. The company, which positions itself as an affordable banking alternative for everyday Americans, reported its Q1 2025 earnings on May 8, showing accelerating growth across key metrics.

Quarterly Performance Highlights

Dave reported total revenue of $108 million for Q1 2025, representing a 47% year-over-year increase from $74 million in Q1 2024. Adjusted EBITDA reached $44 million, more than tripling from $13 million in the same period last year. The company also reported a 46% year-over-year increase in ExtraCash origination volume, which reached $1.53 billion.

As shown in the following chart highlighting key financial metrics:

Credit performance also improved significantly, with the 28-day delinquency rate decreasing to 1.50%, a 33 basis point improvement from 1.83% in Q1 2024.

Detailed Financial Analysis

Dave’s growth trajectory has been consistent over the past five quarters, with revenue increasing sequentially each quarter. The company’s revenue growth has accelerated from $73.6 million in Q1 2024 to $108 million in Q1 2025, as illustrated in the following chart:

The company has demonstrated impressive operational leverage, with fixed expenses as a percentage of total revenue declining from 40% in Q1 2024 to 28% in Q1 2025:

This improved efficiency, combined with expanding variable margins that reached 77% in Q1 2025 (up from 68% a year earlier), has driven the substantial increase in Adjusted EBITDA:

Dave’s ExtraCash product, which provides short-term liquidity of $25-$500, continues to be a key growth driver. The average size of ExtraCash advances increased to $192 in Q1 2025 from $159 a year earlier, while average revenue per ExtraCash rose to $11.4 from $9.0 during the same period.

The following chart shows the consistent growth in ExtraCash origination volumes:

Strategic Initiatives

Dave’s business model is built around a three-pronged strategy of "Acquire, Engage, and Deepen" customer relationships. The company targets approximately 180 million Americans who struggle with finances, particularly those living paycheck to paycheck.

As illustrated in the following market overview:

Dave positions itself as a significantly more affordable alternative to traditional banks, offering lower overdraft fees and no annual maintenance fees:

The company’s ExtraCash product serves as an entry point for customer acquisition, with the Dave Card enabling deeper banking relationships. Dave Card spend volumes have shown steady growth, reaching $488 million in Q1 2025, up from $394 million in Q1 2024:

Dave’s customer acquisition strategy focuses on marketing liquidity solutions to financially struggling Americans:

This approach has helped the company grow its total member base to 12.4 million in Q1 2025, up from 10.8 million a year earlier, while maintaining relatively stable customer acquisition costs of $18 per new member.

Forward-Looking Statements

In the most significant development from the earnings presentation, Dave substantially raised its full-year 2025 guidance. The company now expects total revenue of $460-$475 million, representing 33-37% year-over-year growth, up from its previous guidance of $415-$435 million (20-25% growth).

Similarly, Dave raised its Adjusted EBITDA guidance to $155-$165 million (79-91% year-over-year growth) from the previous $110-$120 million (27-39% growth).

As shown in the following guidance update:

The company’s investment thesis is built around its efficient customer acquisition, proprietary CashAI underwriting technology, increasing Dave Card adoption, and technology-enabled operating leverage:

The significant premarket stock price jump of 23.8% to $133.50 suggests investors are responding positively to Dave’s accelerating growth and improved profitability outlook. This continues the stock’s strong momentum, which saw a 334% return over the past year according to previous earnings reports.

With its focus on serving financially struggling Americans through affordable banking solutions and short-term liquidity products, Dave appears well-positioned to continue its growth trajectory in the competitive fintech space.

Full presentation:

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