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Investing.com -- Dave Inc. (NASDAQ:DAVE), a leading neobank, saw its shares tumble 22.8% despite reporting second-quarter earnings that significantly exceeded analyst expectations, as investors focused on rising delinquency rates and concerns about operating leverage.
The company reported adjusted earnings of $3.14 per share for the quarter ended June 30, 2025, substantially beating the analyst estimate of $1.49. Revenue surged 64% YoY to $131.7 million, well above the consensus estimate of $112.83 million. The company also raised its full-year 2025 revenue guidance to $505-515 million from its previous forecast of $460-475 million, exceeding analyst expectations of $469.5 million.
Despite these strong results, investors appeared concerned about the company’s ExtraCash delinquency rate, which increased to 2.40% from 2.03% in the same period last year. The sharp stock decline also suggests the market may be questioning the sustainability of Dave’s operating leverage and GAAP earnings performance, which showed net income of $9.1 million, up 42% YoY.
"It was another standout quarter for Dave as we delivered record-setting performance across key metrics," said Jason Wilk, Founder and CEO of Dave. "Revenue growth accelerated for the third consecutive quarter to the fastest rate in over five years, driven by a step-change in ARPU expansion and continued momentum in Monthly Transacting Member growth."
The company reported that Monthly Transacting Members increased 16% to 2.6 million, while ExtraCash originations rose 51% to $1.8 billion. Non-GAAP gross profit margin expanded to 70%, up 500 basis points from the prior year, and adjusted EBITDA reached a record $50.9 million, representing a 39% margin.
Dave’s CFO & COO Kyle Beilman noted, "Member lifetime value has improved meaningfully, driven by stronger monetization and conversion as well as sustained retention under our new fee model."
The company ended the quarter with $104.7 million in cash and cash equivalents, marketable securities, investments, and restricted cash, up from $89.7 million at the end of the previous quarter.
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