Dave’s CashAI upgrade aims to improve credit access and performance

LOS ANGELES - Dave Inc. (NASDAQ:DAVE) announced Wednesday the full implementation of CashAI v5.5, the latest version of its artificial intelligence-driven cash flow underwriting engine. The fintech company, which has demonstrated strong performance with nearly 48% revenue growth over the last twelve months and maintains a "GREAT" financial health rating according to InvestingPro, continues to innovate in the AI-driven financial services space.

The updated model nearly doubles the feature set compared to previous versions and has been trained on more than 7 million recent ExtraCash originations that have reached full maturity, according to a company press release.

Early results show the new version provides more accurate risk ranking, leading to higher average approval amounts, stronger conversion, and lower delinquency and loss rates compared to second-quarter performance.

Dave expects the upgrade to expand access to ExtraCash for its members while improving credit performance and gross profit. The company anticipates a modest impact in the third quarter, with full benefits expected in the fourth quarter and beyond.

"CashAI is a powerful differentiator for Dave, and this latest model underscores our leadership in AI for financial services," said Jason Wilk, Founder and CEO of Dave.

The company’s CashAI system assesses credit risk in real-time through automated analysis of cash flow data from members’ primary bank accounts. The system has leveraged insights from 150 million ExtraCash originations and billions of bank transactions since Dave’s inception.

Dave, which describes itself as a leading U.S. neobank, provides banking services through partnerships with bank partners. The company offers ExtraCash to members through these banking relationships.

The implementation of the new underwriting model comes as the company continues to operate in what it acknowledges is a highly competitive industry with rapid technological developments.

In other recent news, Dave Inc. reported robust second-quarter earnings for 2025, with revenue reaching $131.7 million, marking a 64% year-over-year increase and surpassing the consensus estimate of $112.83 million. The company also posted adjusted earnings of $3.14 per share, significantly beating the analyst estimate of $1.49. Following these strong earnings, Dave Inc. raised its full-year 2025 revenue guidance to between $505 million and $515 million, exceeding previous forecasts and analyst expectations. JMP Securities responded by raising its price target for Dave Inc. to $280 from $260, while maintaining a Market Outperform rating. Benchmark also reiterated its Buy rating with a price target of $320 after a meeting with the company’s CEO and CFO. Additionally, Dave Inc. announced an increase in its share repurchase authorization to $125 million, replacing the previous $50 million authorization. The company has already deployed approximately $25 million for stock repurchases since the second-quarter earnings report. Despite these positive developments, concerns about rising delinquency rates and operating leverage have been noted.

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