10-Q · May 5, 2026
Dave Inc. delivered robust Q1 2026 results with revenues of $158.4 million, a 47% increase year-over-year, and an impressive EPS of $4.39, reflecting significant growth driven by a surge in transaction volume and active…
Earnings analysis · 10-Q
DAVE earnings analysis
Filed November 4, 2026 · Our reading of the company's report
The latest report
Dave delivered strong top-line momentum in Q3 2026, with revenue up 31% year over year to $197.7 million, ExtraCash origination volume up 23% to approximately $2.5 billion, and subscription revenue up 74% to $17.3…
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Dave delivered strong top-line momentum in Q3 2026, with revenue up 31% year over year to $197.7 million, ExtraCash origination volume up 23% to approximately $2.5 billion, and subscription revenue up 74% to $17.3 million. However, GAAP diluted EPS declined to $3.30 from $6.34 because the prior-year quarter benefited from a $33.6 million tax benefit, while the current quarter recorded $10.7 million of tax expense; operating margin was approximately 24.3%, below the 30.4% prior-year level. Liquidity improved substantially, with $315.1 million of cash, investments and restricted cash, although credit-loss exposure, Coastal funding concentration, and regulatory litigation remain significant risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.3
- Operating margin
- 24.3%
- Segment
- Single reportable segment: total operating revenue was $197.7 million in Q3 2026 versus $150.7 million in Q3 2025; service-based revenue was $186.3 million and transaction-based revenue was $11.4 million.
What stood out
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Revenue growth accelerated
Revenue increased 31% year over year to $197.7 million from $150.7 million and increased approximately 15.6% sequentially from $171 million in Q2 2026. Service-based revenue rose 34% to $186.3 million, led by processing and overdraft fees of $168.9 million, while transaction-based revenue declined 1% to $11.4 million.
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Subscriptions and card engagement grew
Subscription revenue increased 74% year over year to $17.3 million, supported by paying-member growth and the increase in the monthly fee for new Members from $1 to $3 implemented in June 2025. Dave Debit Card spend increased 5% year over year to $533 million.
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ExtraCash volume and underwriting expanded
ExtraCash origination volume increased 23% year over year to approximately $2.5 billion in Q3, while average ExtraCash amounts increased from $207 to $218. Management stated that CashAI v6.0 was deployed across all ExtraCash originations by the end of Q3.
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Strong operating cash generation
Nine-month operating cash flow increased 18% to $231.8 million from $196.7 million. Capitalized internally developed software costs were $6.1 million, while property and equipment purchases were $0.2 million; the filing does not report a formal free-cash-flow measure.
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Liquidity increased materially
Cash, investments and restricted cash totaled $315.1 million at September 30, 2026 versus $123.2 million at December 31, 2025. The increase was driven in part by $192.7 million of net convertible-note proceeds and $231.8 million of operating cash flow.
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Variable-rate debt eliminated
The company repaid the $75.0 million Debt Facility in full on October 8, 2026. It retains $200.0 million of 0% convertible notes due April 1, 2031, with a September 30 carrying value of $193.5 million and no regular cash interest obligation.
What to watch
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Credit losses remain material
Provision for credit losses rose 22% year over year to $36.5 million in Q3, and nine-month provision increased 40% to $92.0 million. The allowance plus off-balance-sheet credit-loss liability was $51.8 million, or 12.7% of related receivables, and a hypothetical 10% relative increase in loss rates would reduce pretax income by approximately $5.2 million.
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Coastal exposure and funding reliance
Under the Coastal arrangement, Coastal held approximately $158.8 million of ExtraCash receivables at September 30 for which Dave bears economic credit risk. Dave maintained a $20.8 million Cash Collateral Account and recorded a $6.1 million guarantee liability plus a $6.4 million credit-loss liability; the November 3 amendment increased Coastal capacity to up to $325 million of ExtraCash receivables.
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Regulatory and litigation uncertainty
Regulatory and litigation exposure expanded with a Pennsylvania complaint filed on September 28, 2026, while the DOJ matter and other proceedings remain outstanding. Dave had an aggregate legal-contingency accrual of $10.0 million at September 30, 2026, but stated that losses could exceed the accrued amount; the filing also disclosed expected immediate DFPI supervision.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance; its MD&A provides directional commentary that processing and overdraft fees are expected to increase with ExtraCash volume and Member engagement. Numeric outlook was provided in the company’s November 4, 2026 earnings release rather than this filing.
Earlier filings 4
10-K · March 2, 2026
Dave Inc. delivered strong financial growth in 2025, reflecting robust demand for its neobanking services. The company reported a 60% increase in revenue year-over-year, driven by increased ExtraCash originations and a…
10-Q · November 4, 2025
Dave Inc. reported a strong third quarter for 2025, with revenues of $151 million, a 64% increase year-over-year, significantly surpassing estimates. The company reflected impressive earnings growth with EPS reaching…
10-Q · August 6, 2025
Dave Inc. reported strong growth in revenue and earnings for Q2 2025, outperforming expectations with actual EPS of 3.14 compared to the estimated 1.65. Total revenue rose to $132 million, reflecting a 65% increase…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.