Dave Inc

Dave Inc. raised its 2026 guidance, now projecting revenues of $710 million to $720 million, adjusted EBITDA of $305 million to $315 million, and adjusted earnings per share of $16.25 to $16.75. The company reported first-quarter 2026 GAAP operating revenues of $158.4 million, up 47% year over year, with Monthly Transacting Members increasing 18% to 2.99 million. ExtraCash originations climbed 37% to $2.1 billion, and the Net Monetization Rate reached 5.1%, the highest in over four years. Dave is transitioning ExtraCash funding to Coastal Community Bank, a move expected to unlock more than $200 million in balance sheet liquidity. The company also plans to test CashAI v6.0 and remove the $15 fee cap for new members to boost monetization.

Dave Inc. shares have surged 101.9% over the past three months, outpacing the broader market, after management raised full-year 2026 guidance for the eighth consecutive quarter. First-quarter 2026 revenues rose 47% year over year to $158.4 million, adjusted EBITDA increased 57% to $69.3 million, and adjusted EPS climbed 64% to $3.64. The Zacks Consensus Estimate calls for 2026 revenues of $714 million and earnings of $16.61 per share, with management guiding adjusted EPS of $16.25 to $16.75. However, the stock trades at 6.1 times forward sales, well above its five-year median of 1.7 times and the sub-industry average of 2.6 times, though its forward price-to-earnings ratio of 22.2 and PEG ratio of 0.9 suggest earnings growth partially supports the premium. Execution risks remain, including the shift of ExtraCash receivables to Coastal Community Bank, which is expected to unlock more than $200 million of liquidity but will pressure reported non-GAAP gross margin, and quarter-end timing added about $5 million of unfavorable impact to first-quarter provisions. Dave currently carries a Zacks Rank of 1, or Strong Buy, with a Growth Score of A but a Value Score of D and Momentum Score of F.

Zacks Investment Research recommends adding Dave to portfolios while holding SoFi Technologies, citing Dave's explosive first-quarter 2026 performance and cheaper valuation. Dave registered 47% year-over-year growth in its top line, coupled with a lofty 101% jump in its net income, and this highly profitable business model helped the bottom line surge 64% year over year. SoFi also posted strong top and bottom-line growth, but faces headwinds from rising interest rates and high sensitivity to funding costs. Dave trades at a forward P/E of 18.6 times, significantly lower than SoFi's 25.8 times, and carries a Zacks Rank #1 (Strong Buy) versus SoFi's #3 (Hold).