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Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5:00 p.m. ET Founder and Chief Executive Officer - Jason Wilk Chief Financial Officer and Chief Operating Officer - Kyle Beilman Operator: Good afternoon, everyone, and thank you for participating in today's conference call to discuss Dave's financial results for the second quarter ended June 30, 2026. Joining us today are Dave's CEO, Mr. Jason Wilk; and the company's CFO and COO, Mr. Kyle Beilman. By now, everyone should have access to the second quarter 2026 earnings press release, which was issued today after the market closed. The release is available in the Investor Relations section of Dave's website at investors.dave.com. This call will also be available for webcast replay on the company's website. Please note that this call is being recorded. [Operator Instructions]. Certain comments made during this conference call and webcast are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain known and unknown risks and uncertainties as well as assumptions that could cause actual results to differ materially from those reflected in these forward-looking statements. These forward-looking statements are also subject to other risks and uncertainties that are described from time to time in the company's filings with the SEC. Do not place undue reliance on any forward-looking statements, which are being made only as of the date of this call. The company undertakes no obligation to revise or update any forward-looking statements, except as required by law. The company's presentation also includes certain non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted net income, non-GAAP gross profit, non-GAAP gross margin, adjusted earnings per share and compensation expense, excluding stock-based compensation as supplemental measures of the performance of our business. All non-GAAP measures have been reconciled to the most directly comparable GAAP measures in accordance with the SEC rules. You will find reconciliation tables and other important information in the earnings press release and Form 8-K furnished to the SEC. I would now like to turn the call over to Dave's CEO, Mr. Jason Wilk. Please go ahead. Jason Wilk: Good afternoon, and thank you all for joining us. The business is performing exceptionally well as we close out the first half of 2026. Q2 revenue grew 30% year-over-year to $171 million, and adjusted EBITDA grew 48% to $76 million at a 44% margin. On the strength of these results and the trends we see in the business, we are once again raising our full year guidance for revenue, adjusted EBITDA and adjusted diluted EPS. The key takeaway from today's call is that our growth engine remains incredibly strong with Q2 representing our ninth consecutive quarter of 30% plus revenue growth. Marketing efficiency and overall user growth continue to outperform. That gives us the confidence to lean further into marketing in the second half, which should accelerate MTM growth. Combined with more levers than ever on ARPU, we're well positioned to sustain this trajectory for the foreseeable future. Turning to our growth pillars. Starting with member acquisition. We added 951,000 new members in the quarter, up 32% year-over-year, our fastest growth in nearly four years, and we delivered it at many times the scale we had back then. We did this while holding CAC flat at $19, which we believe tells us two things. Our brand and funnel are getting more efficient as we grow, and we are still in the early innings of penetrating the enormous 185 million customer TAM in the U.S. Moving to our second pillar, engagement through ExtraCash. Originations reached $2.3 billion, up 27% year-over-year as member engagement and overall demand remains very strong. Additionally, average ExtraCash size reached a new high of 215, meaning members are getting more of the short-term liquidity they need for gas, groceries and rent from Dave while also driving incremental monetization for us. We are monetizing that growing demand more effectively than ever. Last quarter, we removed the $15 fee cap for new members. Earlier this quarter, we removed that fee cap for a large portion of grandfathered members, and we plan to increase the fee cap to $20 for the remaining grandfathered members effective late August. The more efficient monetization enables us to increase average origination sizes per user with planned initiatives to raise our maximum well above $500 without compromising margin. We additionally began rolling out Cash AI V6, the latest generation of our proprietary cash flow underwriting engine. V6 is built on more than 700 model features, nearly 400 of which are brand new. As with any model upgrade, V6 is designed to expand gross profit dollars within our controlled range of loss rates, not necessarily to drive the lowest possible loss rates. With stronger gross spreads from our new pricing, the model has greater flexibility to optimize unit economics. Early results suggest V6 is delivering higher credit limits and is driving the desired outcome of expanded gross profit dollars. Those higher limits also deepen member value, which tends to compound into better conversion, retention and reactivation and ultimately MTM revenue growth, a win-win. Moving to our third pillar, deepening card engagement. Dave Card was approximately $530 million, up 7% year-over-year as card volume continues to benefit from its natural synergy with ExtraCash. As we discussed last quarter, we have deliberately shifted our focus from new debit focus initiatives to our new Dave Flex Card, which we believe has more differentiation in the market to win top of wallet spend given our advantages in underwriting. We continue to expand test cohorts as unit economics have improved and early engagement has been promising. Our focus remains to test and learn and optimize through year-end. We do not expect Dave Flex to contribute meaningful revenue in 2026 and is not embedded in our guidance. We will share more as performance data matures. Before I turn it over to Kyle, a couple of strategic updates. First, on our partnership with Coastal Community Bank. During the quarter, we began funding ExtraCash receivables through our new structure with Coastal. As it scales, it makes our funding model significantly more capital efficient, lowers our cost of funds and frees up meaningful liquidity to pursue high-return investment opportunities and return capital to shareholders. We have already unlocked nearly $100 million of cash on the balance sheet as a result of this favorable arrangement. Finally, on the DOJ matter, we have no updates and continue to vigorously defend our position. In closing, halfway through the year, this business is delivering exactly what we said it would. Members are growing quickly. Credit is further improving from an already favorable level, and we are expanding revenue per user. My thanks to the entire Dave team for another exceptional quarter. And with that, I'll turn it over to Kyle. Kyle Beilman: Thanks, Jason, and good afternoon, everyone. The second quarter brought together the things we care most about, durable, high-quality revenue growth driven by a healthy mix of efficient customer acquisition and improving revenue per user, all while delivering strong credit performance. We additionally delivered on continued operating leverage and growing capital efficiency as we moved receivables off balance sheet to coastal. The combination, in addition to the ongoing momentum we continue to see gives us the confidence to raise our full year outlook across all metrics. Today, I'll cover the drivers of the quarter and how we are thinking about the ARPU trajectory, credit and provision, margins, capital and our financial targets for the year. As always, there is a detailed KPI breakdown in the earnings supplement on our IR site. Starting with revenue. Total revenue was $171 million, up 30% year-over-year and nearly 8% sequentially. Growth was driven by a 17% increase in MTMs to $3.08 million and 11% ARPU growth. New member conversion, retention and reactivation performed well. And this quarter, the mix shifted toward member-led growth as acquisition reaccelerated. The mix shift is deliberate and healthy as a result of the sizable ramp we're seeing at the top of the funnel. So let me expand on the ARPU trajectory Jason mentioned a moment ago. As acquisition increases, newer members represent a larger share of the MTM base. Their ARPU begins lower and expands with tenure, more than doubling on average from the acquisition month to the fourth month on book. At the same time, several monetization tailwinds are stacking. By late August, nearly all of our members are expected to have either no fee cap or a $20 cap, and we expect the share with no fee cap to continue increasing. Lifting the fee cap gives us meaningful monetization headroom to expand ExtraCash limits, not only up to the current $500 maximum, but as Jason mentioned, we have plans to go beyond that, increasing both member value and total monetization. Additionally, our high-margin subscription mix continues to expand, reaching 9% of total revenue compared with 6% a year ago. Together, these factors reinforce our confidence in the ARPU opportunity ahead, even before accounting for the impact of Dave Flex and other future products. The quarterly cadence will reflect acquisition mix and as newer cohorts mature and these monetization levers scale, we expect to enter 2027 with a significantly larger MTM base and increasing monetization across that base. Turning to credit and provision. Our 28-day past due rate, which we believe is the most direct measure of underlying credit quality, improved 14 basis points year-over-year to 2.12%. Sequentially, the rate increased due to seasonal normalization following Q1's tax refund season. More importantly, year-over-year performance strengthened from roughly flat in Q1 to 6% better in Q2, even as originations grew by 27%. Credit performance has remained strong thus far in the quarter, based in part from the early impact of the V6 model rollout, which we expect will deliver Q3 loss rate in a similar range to Q2 with the benefit of higher ExtraCash origination sizes. Provision for credit losses was $29 million, up 14% year-over-year. Provision reflects three main drivers: portfolio growth, credit performance and the day of the week on which the quarter ends. Sequentially, provisions increased 8% compared with a 15% increase in gross ExtraCash receivables, including the portion funded through Coastal. Both Q2 and Q1 ended on a Tuesday, which is typically the intra-week peak in outstanding receivables. As we noted last quarter, Q1 established the loss reserve at that peak, so we do not expect Q2's Tuesday quarter end to create the same incremental pressure, and that's what we saw. With a neutral day of week effect, provision as a percentage of ExtraCash originations improved by 1 basis point sequentially. Looking ahead, Q3 and Q4 will end on a Wednesday and Thursday, respectively, which should be favorable for provision as a percentage of originations and for gross margin. On gross margin, we said last quarter that the first quarter would be the low point for the year and margin expanded sequentially as expected. Non-GAAP gross profit was $124 million, up 34% year-over-year, and non-GAAP gross margin was 72%, up about 300 basis points year-over-year. We continue to expect gross margin to expand into the mid-70s over the balance of the year, and that is after absorbing the fees under the coastal funding arrangement, which are recorded in financial network and transaction costs. Now working down the P&L. This was the quarter we began accelerating our top-of-funnel marketing. Advertising and activation expense was $20 million, up 32% year-over-year and 43% sequentially. Part of the sequential increase reflects a deliberately lighter first quarter when tax refunds temporarily reduced members' need for short-term liquidity and marketing is typically less efficient. The balance of the step-up was by design. ExtraCash demand remained strong, while acquisition returns improved as the removal of fee caps enhanced monetization for new members, credit quality improved and CAC remained stable as we scaled. As Jason noted, given those returns, we plan to expand investment over the balance of the year, which should be further supported by the ongoing rollout of Cash AI V6.0 that we expect to drive both stronger conversion and higher monetization as a result of higher limits. On fixed costs, total compensation was $36 million, including $16 million of stock-based compensation tied to performance-based restricted stock awards granted in 2024, 2025 and earlier this year as achievement of the underlying 2026 financial targets became probable during the quarter. Excluding stock-based compensation, compensation grew 7% year-over-year and declined 5% sequentially as modest headcount additions were more than offset by the seasonal step down in payroll taxes. Our incremental investment over the next couple of quarters is planned to be concentrated in three areas: product development, marketing and embedding AI more deeply across the organization, which we expect will deliver greater speed and scalability to our business over time. Those investments are modest and may temper fixed cost leverage over the next two quarters. Thereafter, we expect operating leverage to become more pronounced as the business continues to scale. Finally, other operating expenses include approximately $4.4 million of nonrecurring items. Excluding those items, other operating expenses were down sequentially. Pulling it together on profitability, adjusted EBITDA grew 48% year-over-year to $76 million, more than 1.5x the rate of revenue growth. Adjusted EBITDA margin was 44%, up nearly 600 basis points year-over-year. Sequentially, margin remained flat despite the marketing step-up I just described. That was a deliberate investment at what we believe are attractive returns and does not change our expectation for continued annual adjusted EBITDA margin expansion. Below the operating line, several items affected the comparability of our GAAP net income results for this quarter. We recorded $37 million of noncash charges from the required quarterly mark-to-market of our warrant and earn-out liabilities as our share price appreciated during the quarter. These items are excluded from our adjusted results as they do not reflect operating performance. Note that the warrant and earn-out securities expire in January of 2027, thereby eliminating the noncash gains and losses in our P&L that we've been subject to over the last several years. GAAP net income was $7 million compared to $9 million a year ago, reflecting the noncash charges I just described. Adjusted net income was $56 million, up 39% year-over-year, and adjusted diluted EPS was $4.12, up 48%, reflecting both solid financial performance and our lower share count that now includes a full quarter of the repurchases we completed in March following the convertible note transaction. Turning to our capital position. We ended the quarter with $254 million of cash, investments and restricted cash, up $77 million from $178 million at March 31. The increase was primarily driven by $93 million funded through the coastal arrangement, offset by share repurchases during the quarter. As a result of the coastal structure, net cash from ExtraCash receivables shifted from a $51.7 million use of cash in the second quarter of last year to a $30.5 million source of cash this quarter, demonstrating how the arrangement reduces our direct funding requirements and enhances the free cash flow generation of the business. We repurchased $19 million of shares during the quarter, leaving $94 million available under our authorization. Our capital priorities remain unchanged: fund high-return organic growth and repurchase shares opportunistically when we believe doing so creates attractive per share value. Turning to our updated 2026 outlook. Based on first half results and the trajectory we see, we are raising guidance across all three metrics. We now expect revenue of $725 million to $735 million, representing 32% year-over-year growth at the midpoint, up from our prior range of $710 million to $720 million. We expect adjusted EBITDA of $315 million to $325 million from $305 million to $315 million, and we expect adjusted diluted EPS of $17 to $17.50, up from $16.25 to $16.75, assuming a 23% effective tax rate. Our updated outlook assumes a higher level of advertising and activation investment in the second half than contemplated in our prior outlooks, reflecting the attractive returns we are seeing a near-term growth mix weighted more towards MTMs, continued ARPU support from pricing actions, cohort maturation, subscription mix and Cash AI V6.0. Gross margin expansion towards the mid-70s, inclusive of the Coastal Fees and no meaningful revenue contribution from Flex. In closing, our second quarter results demonstrate the durability of our growth, continued control over credit and the flexibility of our operating model. We are increasing investment where returns are strongest while maintaining discipline on costs and the coastal transition is expected to further strengthen our liquidity and capital position. We believe these factors support the updated outlook that we provided today and position us well for the balance of 2026. With that, operator, please open the line for questions. Operator: [Operator Instructions] Our first question comes from Devin Ryan with Citizens Bank. Devin Ryan: I want to ask a question on the new pricing. Good to see that. So on the removal of the fee cap, if you can, what percentage of advances were being impacted by the $15 cap above $300. We can do some math on that, but it would be great just if you can give us a little bit of color. And then ultimately, just trying to get a sense of like how much this will benefit the blended fee per advance. And I appreciate the number has probably been growing, but just trying to dig in a little bit on the actual impact of this. Kyle Beilman: Devin, it's Kyle. I appreciate the question. I mean we didn't remove the fee cap for existing users in the second quarter. That's rolling out as we speak. So it was really just impacting new customer cohorts in the quarter. As you can imagine, new customers their limits start out smaller and grow over time. So it's really that above $300 cohort of new customers that we would have had enhanced monetization for as a result of the fee change. That number is pretty small, just given that, that represents a small portion of new customers and new customers represent an overwhelming minority of the overall MTM base. So I would say it had very little impact in the quarter, but will compound very dramatically over time as that proportion becomes a larger mix of the overall MTM base moving forward. I think really, really importantly, the movement of that fee cap plus the fee cap on existing customers, this gives us a ton of room on the ExtraCash origination side as we don't have a cap on our monetization. We can continue unlocking higher limits as a result of that dynamic. It just gives us a lot of stored energy within the business moving forward. So we think that, that really is impactful and something we really wanted people to take away from this call. So just to kind of recap, very minimal impact in Q2, but expect it to be very meaningful on an ongoing basis. Devin Ryan: I appreciate that comment. Maybe I could have been more clear. Essentially, what I was just trying to get at is the amount of advances above $300. So just within now that more are essentially not going to be capped on a go-forward basis, and there's already, we can do our own estimates of how much of the advances are in that $300 to $500 range currently that are now going to have a fee uplift. Kyle Beilman: I was just to kind of dig in around what that It's the rough majority, I would say. Devin Ryan: Great. Okay. I appreciate that. And then as a follow-up, as you consider obviously going higher and potentially even above $500, could you give some color around kind of the different customer cohorts and credit across early versus more seasoned customers. I'm assuming, obviously, the more seasoned, the better the credit profile. But obviously, the more seasoned, typically the larger advance as well. So as you kind of go up market to some degree, not up market, but into higher advances, what does that look like from a credit perspective for the firm? And are the higher advances actually better credit profiles because you have more data on these customers. And so that kind of drives the comfort, which I guess the point being if you go even above $500, you still end up at a better credit profile. Jason Wilk: Devin, it's Jason. So I'd say the majority of the higher limit customers are mostly tenured members. We know a lot about them. They're highly repeat members. And so we feel very good about letting them go well in excess of the $500 limit given we have the more flexible and scalable pricing model at this point. So if they need extra money above and beyond $500 for a short-term liquidity issue, we're not going to say no to that. So excited to test into some new cohorts and existing cohorts on the take rate behavior utilization trends and ultimately ARPU and origination size uplift as a result of the change. Kyle Beilman: I mean, Devin, maybe just one quick thing to add on to Jason's point, if I can. The interesting thing when you look at the users at the very high end of the limit spectrum, their loss rates are very, very low. And so on a dollar-weighted basis, we feel like unlocking higher limits on our DPD rate can actually reduce our overall DPD rate because on a weighted basis, those users loss rates are so low. And so we think it could be quite additive given the sort of net monetization impact of the very low loss rates that we see on those cohorts and the higher gross monetization that we think we can generate as we move those specific users up higher. Devin Ryan: Yes. That was the premise of the question. I appreciate that. Operator: Our next question comes from Joseph Vafi with Canaccord Genuity. Joseph Vafi: Once again, terrific results. Nice to see a momentum stock in fintech out there. Maybe kind of just drill down a little bit on the card strategy from here. I know the new Flex cards coming out, maybe you could kind of double-click on the opportunity there? And is there a kind of target market to grow payment volume, interchange revenue kind of more in line with ExtraCash and the rest of the revenue line? Or how should we be thinking about what your plan is here on that line item? And then I have a quick follow-up. Jason Wilk: Well, we think the Flex Card is highly differentiated within two markets we're looking at, one, BNPL, where there's high fragmentation with the idea you have to go to a merchant online to check out versus our card has the flexibility of a credit card where you can go shop anywhere, anytime at any merchant online or offline compared to subprime credit cards that are monetizing via late fees and significant compounding APRs, monthly fee plus a small per transaction. But we feel that the market is massive, helps us continue to penetrate the $185 million customer TAM of which we are already going after with ExtraCash. And the margin profile of Flex is fairly similar to that of ExtraCash. We just feel like it's an opportunity to have a different vehicle with a slightly longer duration that helps customers get into different categories of spend, which we see in BNPL and credit card, whereas with ExtraCash, it tends to be mostly for things like gas, grocery and more of the nondiscretionary items. But it feels very differentiated. We're using Cash AI as the underpinning for the underwriting for that product, and we are continuing to roll it out to more and more test cohorts, starting with our higher credit quality members and then further penetrating from there. Joseph Vafi: Got it. And then any update on, I mean, you have a lot going on, obviously, but any update on making that direct deposit relationship perhaps a little bit more of a strategic goal versus maybe where you are now? Jason Wilk: Yes. Thanks, Joe. Look, I think over time, we envision ourselves deepening the direct deposit penetration with our customers, but we really want to focus our efforts right now on deepening our relationship within credit. We think compared to debit and direct deposit, of which there's very little differentiation in the market, most competitors having to give away cash balance sheets to get sign-ups. We think that the harder problem to solve is through underwriting this population of consumers effectively as we do right now. If we can lean further into new credit products we might flex and then further lean into ExtraCash via higher limits, that's the harder problem to solve, and we feel that, that's where our product resources are best spent right now versus trying to find new ways to get people over to a nondifferentiated product. It is our view though that the more things we can do for our members in short-term credit, the better chance we have of people considering us as their primary account and moving their paycheck. If they don't, we're completely fine with them having either ExtraCash or Flex being their top of wallet, which is what we're really going for ultimately is our strategy, not necessarily where your paycheck goes into. Operator: Our next question comes from Chris Zhang with UBS. Chao Zhang: First question is about the increase in the second half marketing spend. It's definitely encouraging to see you're leaning more into the short payback, low CAC opportunity. But since the components of the revenue growth in the second half may shift a little bit, maybe can you give us a better sense of maybe some of the metrics you're looking at in terms of the marketing spend? Are you targeting a certain payback period, a certain CAC or maybe just a little more color on that would be helpful. Jason Wilk: Yes. Thanks, Chris. So as we said before, we're not selling for the lowest possible CAC, we are looking for is generating positive returns on all of our incremental ad dollars. And so we're seeing this incredibly positive trends here. Our CAC has been roughly flat sequentially at $19 at many multiples of the scale we've achieved in prior periods of $19 CAC. So it's very promising to see. We think we're seeing a lot of the benefits around our investments in brand, investments in our funnel optimizations and therefore, feel very good about leaning more into marketing in the second half. We've consistently gotten questions from investors about that. given the short payback periods that are record sub four months now, why not spend more? So we've been testing our way into incrementality, and we've seen some really positive outcomes there, which is giving us more confidence to lean in, in the second half. Chao Zhang: All right. Awesome. And just have a separate question related to the second impact. On the one hand, we know that it's definitely an improvement in terms of the customer experience. And there can be also incremental extra cash just from the second draw. But on the other hand, we thought that some of the customers might just be more conservative in terms of getting the first draw, knowing that there could be a second chance but not ending up using the second draw. I'm not sure if this is the right way to think about it, but maybe if you can talk about some of the puts and takes and maybe some of the impact on the second quarter results you have seen from that initiative, that would be helpful. Kyle Beilman: Chris, thanks for the question. This is Kyle. I mean so that was one of the things that we were looking at, which is what we refer to as sort of utilization. And so of the approved limit for customers, how much of that approved limit do they ultimately take? We did test that throughout the quarter to make sure that it was both additive to the customer experience, as you mentioned, because it's just a better feature, but that it wasn't negatively impacting monetization. We had a pretty sizable test cohort of that available to you throughout the quarter, and it was all positive from a utilization perspective. So definitely a win-win from the standpoint of better customer experience, providing more flexibility with the product. Then on the business side, making sure that we weren't eroding monetization as well. I'd say it's a pretty modest impact just given the testing ramp throughout the quarter, but that is something that is accretive to overall average origination size per customer as a result of that utilization dynamic being more favorable with the second draw. Jason Wilk: Chris, the only thing I'd add there is just with the increase in ExtraCash limits over time we plan to test, that feature will become more and more valuable as somebody is looking to take a much larger EC might want to take that in two tranches. Operator: Our next question comes from Adam Frisch with Evercore. Unknown Analyst: This is Ethan Hammett in for Adam Frisch. So regarding the Flex trial, do you have any early reads on credit quality, usage trends and potential cannibalization of ExtraCash volumes as a result of the usage of Flex? Jason Wilk: I'd say conversion trends are positive, well in line with what we expected for the product. And same with the credit cannibalization as well with respect to ExtraCash, we're very pleased to see that it's a complementary solution. Customers that are using Flex are still utilizing ExtraCash and they do use the product in very different ways for different types of purchases. So all in line there, continue to expand the test cohorts, unit economics are continuing to improve, and we're excited about this thing being a big business for the company over time once we get past our test trial period. Operator: Our next question comes from Harold Goetsch with B. Riley Securities. Harold Goetsch: Terrific results. I just want to get your thoughts on gross adds in the quarter, 951,000. It looked to be a record high and up 31% year-over-year. I was wondering what are the tactics you're using to really move that number higher? It's meaningfully better than Q1 and it's much better than Q2 of a year ago. Jason Wilk: Thanks, Harold. Look, I think the good news here is it's just more of the same. We are just proving our ability to expand our marketing acquisition dollars across our channels. But we've also gotten a lot more efficient on the things like onboarding. Cash AI has done a very good job at offering better limits at the front door. So all those things do factor into our ability to have efficient cash. So yes, nothing new. We're on very scaled channels. We have no exposure to search or AI disruption whatsoever. These are big brand channels, TV, streaming television and all the social channels. So overall, feeling very good and the numbers speak for themselves. Kyle Beilman: I mean just to jump in there, I mean, to see acquisition up almost at an exact same rate as our amount of spend and speaking to the sort of incrementality of that spend at nearly 100% at this level of scale, I think, just speaks to the overall size of the market that we're serving and to Jason's point, just the execution and channel expansion that we're doing on top of funnel there. But yes, I just wanted to make that incrementality point. Harold Goetsch: A second follow-up for Kyle. Could you refresh our memory of using cash flow underwriting and seeing transaction data, what percentage of your monthly transacting members or total user base are transacting in BNPL transactions that you can see? Have you ever given that number out or refresh our memories on that? Kyle Beilman: It's more than half. More than half. Operator: Our next question comes from Ryan Tomasello with KBW. Ryan Tomasello: A few questions on Flex. Based on the early data points you're seeing, do you have any data you can share on where the average monthly credit limits are shaking out for that product? And how much wallet share you're able to capture with those early adopters inclusive of ExtraCash. I think in the past, you've talked about ExtraCash credit, wallet share of credit usage being, I believe, sub-20%. Just curious where you think that could go with Flex over time. Jason Wilk: Yes. Ryan, thanks for the question. So again, feeling very good about the Flex numbers. We have been targeting roughly 2x the limit is the sort of go-to-market for that product to get people not only more duration as Flex is pay in four versus ExtraCash is pay in one and the larger limit is also expected to be a big driver of utilization there. So far, too early to say on the trends you're mentioning. I mean we're not ready to give that level of disclosure yet, but looking forward to giving more color on that as we season the product portfolio and get the product in the hands of more people. Ryan Tomasello: And then on the funding side, how much capacity does the arrangement with Coastal give you for ExtraCash funding? And when should we expect that to be fully migrated? And then for Flex, should we expect a similar funding arrangement with Coastal that's off balance sheet? Kyle Beilman: Ryan, this is Kyle. So to answer the first part of the question, we had roughly $93 million drawn on a $225 million facility as of the end of the quarter. We are in discussions with them about increasing the size of that facility as well, and they've indicated that there is appetite to do that. Part of the scaling there is dictated or dependent on our full migration from our Evolve bank partnership as well, which we were in the process of migrating away from. But we have plenty of capacity there to continue ramping up originations on that facility and feel like it's based on our discussions with them, that there's a lot of room to expand that moving forward as well. That we would also expect to replicate that structure with Coastal as it pertains to Flex as well. Operator: Our next question comes from Jeff Cantwell with Seaport Research. Jeffrey Cantwell: A couple of quick questions. I wanted to follow up on what you said earlier on direct deposit. Thinking back, that area has been kind of an on again, off again initiative for you guys. And understandably so, I would say, because of the other areas like Day Flex that have very good synergies with your existing strategy. But on direct deposit, my question is, how would you plan on driving more direct deposit customers as you look ahead? I'm curious how you're thinking about it we thought it'd be worth go ask to hear how you're maybe thinking about now, particularly as you move past 15 million total members, maybe there's a growing number there that might be interested if you offer that product. So I would love to hear your updated thoughts, if you don't mind. Jason Wilk: Well, look, ultimately, we think that the more we can do for our customers within short-term credit to help solve liquidity issues for both discretionary and nondiscretionary items, we have a better chance of someone considering us their primary account. Our new thinking at this point is that we just focus on being top of wallet for our customers. We often give the example of if your paycheck goes into your Chase account, if you spend all your money on your Amex card, who has top of wallet I'd argue Amex does. We think that within our differentiation with underwriting, we have a better chance to win the primary share of wallet with credit versus asking for someone to switch their bank account, which has a lot of friction associated with it. Nonetheless, we do like the more we do for our members, the better chance we have of winning that relationship. You can imagine there are levers we can pull around reducing the cost of credit, increasing credit limits to winning that direct deposit. It's just not a strategic area of focus at this point. Jeffrey Cantwell: Yes. Okay. Then on Cash AI version 6, can you just underline for us the differences between version 6 versus version 5.5 and version 5 back end of that. I guess any details in terms of the increase in average origination drivers or improvement in loss rates. I'm just curious if you guys have any details that might help us as we think about our models and expectations going forward. Kyle Beilman: Yes, Jeff. So I think at a very high level, we expect and what we've seen from testing data thus far is that with the 6.0, we will see higher average origination sizes as well as lower loss rates. So from a net monetization perspective, you're going to get an amplified benefit of those dynamics. We're rolled out to, call it, 1/3 of our user base as of right now with that model and everything looks quite positive. We haven't quantified necessarily what those origination sizes are at this point, but what we will say is that the new model from a risk splitting perspective, in combination with the removal of the fee caps will give us a lot of room to run on average origination size moving forward, and we feel very confident in that as a monetization lever for the business moving forward, and that will support our overall objectives on the ARPU expansion part of our growth algorithm. So I mean as far as impacts, that's what we're prepared to share at this point. In terms of the model itself, there's more features. As Jason mentioned in the prepared remarks, there's about 400 new features in the model. The total number of features in the model is up about 50% and the risk splitting capabilities of the new model are far superior. Just some of the features that we're more focused on or that are new here is really about kind of competitor utilization, more institution level features on where users are coming to us from that are really driving the impact there. Operator: Our next question comes from Jacob Stephan with Lake Street Capital Markets. Jacob Stephan: Maybe just first, looking at kind of the larger size advances, your 121-day kind of charge-off rate ticked up in the quarter a little bit. But while you pushed the size higher above kind of the $500 limit and kind of the commentary figured about loss rates similar to Q2, I guess how do you separate kind of the size-driven loss dollars versus like a rate deterioration in V6.0? Kyle Beilman: Well, so first of all, the 121-day loss rate is the estimates at this point for Q2 are actually better than they were in Q2 of 2025, and that's really primarily a function of just the iterations that we had made to V5. No real impact there from V6. I think we're being relatively conservative with our statements around loss rate performance being equitable quarter-on-quarter based on the impact of V6. I think there is some opportunity to potentially drive those loss rates down. But our real focus with V6 is on keeping loss rates generally where they are. We're very happy with the unit economics kind of in this loss rate range, but really driving up average origination size as we mentioned. I mean there are sort of other dynamics at play there as we ramp up acquisition, new user origination sizes are smaller. So that's a little bit of a headwind to the headline average origination size and new user loss rates tend to be a little bit higher than the average performance across the portfolio. But sort of net-net, moving forward, we expect that loss rates will come in and around this level that we observed in the second quarter while meaningfully scaling average origination size moving forward, driving much higher net monetization. Jacob Stephan: Okay. Got it. And I guess when you look at kind of the competitive environment, it feels like there's been quite a few earned wage access products out there now from some of the larger kind of neobanks. But I guess, how do you feel like Dave stacks up in comparison? And also just maybe give us a sense on how the consumer is adjusting to several different products being in the market. Jason Wilk: Well, one, clearly, it's not impacting our ability to acquire customers. It was a record quarter for us on new sign-ups with CAC being flat. So either way, it just shows the size of the market. But importantly, our go-to-market is also very different in the sense that you can access credit just by linking a bank account, and we view the friction associated with our competition, which largely requires a direct deposit to bet us far less friction, which leads to better speed to value, more referrals, 1/3 of our acquisition still comes via friends and family. So we just feel very good about where we sit in the stack and our ability to acquire, whereas our competitors are really roughly fishing within their pool of direct deposit users of which to cross-sell this solution to. Even with that, we still see a lot of their customers using our product in addition to. So not worried about competition. I think the more we can continue to lean into things like V6, these are hard problems to solve and much harder to solve with external bank accounts versus requiring a direct deposit. Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect. Before you buy stock in Dave, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dave wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!* Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 12, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Dave (DAVE) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Dave Inc. DAVE recently delivered another solid quarter in second-quarter 2026, with revenues rising 30% year over year to $170.8 million. According to the results released last week, adjusted EBITDA increased 48% to about $76 million, while adjusted EPS reached $4.12. The company also raised its full-year revenue, adjusted EBITDA and adjusted EPS outlook, suggesting that operating momentum remains healthy despite a tougher comparison with last year.However, the market focused on something different. DAVE shares dropped 15.1% on Aug. 6 as investors reacted to slowing revenue growth after the stock’s strong run earlier in 2026. Second-quarter’s 30% growth was notably below the 47% pace reported in the first quarter and 64% in second-quarter 2025. The decline, therefore, appears tied more to elevated expectations and growth deceleration than to weak quarterly execution.This leaves investors weighing Dave’s improving earnings profile against a still-demanding growth story. Comparisons with fintech names such as SoFi Technologies SOFI and Affirm Holdings AFRM are useful, especially as investors assess growth, profitability, credit quality and valuation across the industry. Image Source: Zacks Investment Research Dave’s earnings were strong, but the rate of expansion is slowing. Revenue growth has stepped down from 64% in second-quarter 2025 and 47% in first-quarter 2026 to 30% this quarter. With DAVE having appreciated sharply ahead of the report, investors were looking for results capable of supporting those elevated expectations. The softer growth rate gave the market a reason to reset the valuation.Higher near-term spending may have added to the caution. Management plans to increase investment in marketing, product development and AI over the next few quarters and said those investments could temper fixed-cost leverage in the near term before operating leverage becomes more pronounced as the business scales.Still, the increased spending is backed by favorable acquisition economics. Dave added 951,000 new members during the second quarter, 32% more than a year ago, while keeping customer acquisition cost at $19. The member payback period improved to less than four months. Those figures give management a reasonable basis for investing more aggressively in growth. The quality of Dave’s growth looks better than the headline slowdown suggests. Monthly transacting members increased 17% year over year, supported by new-member conversion, retention and reactivation. ExtraCash originations reached $2.3 billion, up 27%, while the 28-day past-due rate improved 14 basis points to 2.12%. The combination of higher volumes and stable credit performance is important as Dave increases lending activity.Profitability is another upside. Adjusted EBITDA grew 48% to $75.5 million, considerably faster than revenues, while adjusted EBITDA margin expanded nearly 600 basis points to 44%. Adjusted net income increased 39% to $56.4 million. This operating leverage helps distinguish Dave within a fintech group that includes SoFi Technologies and Affirm Holdings, where investors also closely watch the balance between rapid customer growth and sustainable profitability. Management increased its 2026 revenue outlook to $725-$735 million from $710-$720 million. The adjusted EBITDA forecast moved to $315-$325 million from $305-$315 million, while adjusted diluted EPS guidance increased to $17-$17.50 from $16.25-$16.75.CashAI v6.0 could support further monetization. Early testing indicates that the updated underwriting model can support larger average ExtraCash originations while maintaining favorable loss trends. Management said roughly one-third of users had moved onto the model at the time of the earnings call.Dave Flex provides another longer-term opportunity. The pay-in-four card is being tested as Dave attempts to capture more everyday spending. However, management expects no meaningful Flex revenue contribution during 2026. Over the past 30 days, earnings estimates for both 2026 and 2027 have been revised upward, signaling a bullish outlook from analysts. These figures also suggest year-over-year growth of 27.47% and 28.63%, respectively. Image Source: Zacks Investment Research The pullback makes DAVE more appealing, and one should note that its strong growth and margin profile still support a premium valuation. The stock trades at 4.98X forward 12-month sales per share versus 5.05X for the S&P 500 composite. On the other hand, SoFi Technologies trades at 4.36X forward 12-month sales per share, while Affirm Holdings trades near 4.59X forward 12-month sales per share. SoFi Technologies offers broader exposure across lending, deposits and other financial services, while Affirm Holdings is more concentrated on consumer credit and buy-now-pay-later financing. Dave’s business is narrower, with ExtraCash playing a central role. The concentration creates additional risk, although its efficient customer acquisition, improving margins and expanding product lineup provide meaningful offsets.Valuation: Price/Sales F12M Image Source: Zacks Investment Research Dave’s post-earnings decline reflects legitimate concerns about slowing revenue growth after a strong share-price run. Yet the second quarter also showed that the underlying business continues to improve. Member acquisition remains efficient, credit trends are healthy, margins are expanding, and management has lifted its 2026 forecasts.Near-term volatility is likely as Dave increases marketing investment and expands ExtraCash limits. Even so, the lower share price offers a more favorable way to gain exposure to its earnings growth and improving operating leverage. With CashAI, higher monetization and Dave Flex providing additional avenues for expansion, the current risk-reward looks attractive for investors comfortable with fintech volatility.At present, DAVE carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave Inc. (DAVE) : Free Stock Analysis Report Affirm Holdings, Inc. (AFRM) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved a ninth consecutive quarter of 30% plus revenue growth, driven by record new member acquisition and improved monetization efficiency. Maintained stable Customer Acquisition Cost (CAC) at $19 despite scaling to nearly 1 million new members, signaling significant brand efficiency and market penetration potential. Implemented a strategic pricing shift by removing the $15 fee cap for most members, creating headroom to expand ExtraCash limits beyond $500 without compromising margins. Launched Cash AI V6.0, a proprietary underwriting engine with 400 new features designed to optimize gross profit dollars rather than just minimizing loss rates. Successfully transitioned ExtraCash receivables funding to a new structure with Coastal Community Bank, unlocking nearly $100 million in balance sheet liquidity. Shifted product focus from traditional debit initiatives to the Dave Flex Card to capture top-of-wallet spend through differentiated credit underwriting. Reported that credit quality improved 14 basis points year-over-year, even as originations grew 27%, validating the efficacy of the proprietary risk models. Raised full-year 2026 guidance across revenue, adjusted EBITDA, and EPS based on strong first-half momentum and anticipated marketing efficiency. Planned acceleration of marketing investment in the second half of 2026 to capitalize on short payback periods and high incrementality. Expects gross margins to expand into the mid-70s range by year-end, even after absorbing fees associated with the new Coastal funding arrangement. Anticipates that the maturation of new member cohorts and the full rollout of fee cap removals will drive significant ARPU expansion entering 2027. Assumes no meaningful revenue contribution from the Dave Flex Card in 2026 as the company prioritizes testing and optimization through year-end. Recorded $37 million in non-cash charges due to mark-to-market adjustments on warrant and earn-out liabilities, which are set to expire in January 2027. Shifted ExtraCash funding from a $51.7 million use of cash to a $30.5 million source of cash, fundamentally altering the company's capital efficiency profile. Acknowledged the ongoing DOJ matter but stated there are no updates and the company continues to vigorously defend its position. Identified a $4.4 million non-recurring expense within other operating expenses, though underlying fixed costs remained disciplined. Management noted the Q2 impact was minimal as it only applied to new members, but it will be 'very meaningful' as it rolls out to the existing base in late August. The removal of the cap is viewed as 'stored energy' that allows the company to unlock higher credit limits for tenured members. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Higher limit customers are primarily tenured members with very low loss rates; management believes increasing these limits could actually reduce the overall portfolio DPD rate. The new pricing model provides the flexibility to serve these high-quality members' larger liquidity needs while maintaining attractive unit economics. Dave Flex is positioned as a 'pay-in-four' credit card that can be used anywhere, unlike fragmented BNPL solutions that are often merchant-specific. Early data suggests Flex is complementary to ExtraCash, with users utilizing both products for different types of discretionary and nondiscretionary spending. Management is pivoting to a 'top-of-wallet' strategy focused on credit rather than forcing direct deposit switches, which they view as high-friction. They believe winning the credit relationship is the harder problem to solve and will naturally lead to deeper primary account consideration over time. The new model includes 50% more features, specifically focusing on competitor utilization and institution-level data to improve risk splitting. Early results from the first third of the user base show higher average origination sizes and lower loss rates compared to previous versions.

Dave Inc. DAVE entered the second half of 2026 with a larger marketing budget, wider ExtraCash pricing flexibility and an upgraded underwriting model. Management raised its full-year outlook while arguing that acquisition, monetization and credit can advance together. The call centered on whether CashAI v6, higher advance limits and Dave Flex can extend growth without weakening losses or margins. Management emphasized disciplined testing, short marketing paybacks and capital-efficient funding. Second-quarter revenues rose 30% to $170.8 million, beating the Zacks Consensus Estimate of $169.8 million. Adjusted earnings per share of $4.12 surpassed the earnings estimate of $3.69. Co-founder and CEO Jason Wilk said that this was Dave’s ninth consecutive quarter of at least 30% revenue growth. COO and CFO Kyle Beilman attributed the gain to a 17% increase in monthly transacting members to 3.08 million and 11% ARPU growth. Management lifted its 2026 revenue guidance to $725-$735 million from $710-$720 million. The adjusted EBITDA guidance increased to $315-$325 million, and the adjusted earnings guidance rose to $17-$17.50 per share. Dave Inc. price-consensus-eps-surprise-chart | Dave Inc. Quote New members increased 32% to 951,000 while customer acquisition costs held at $19. CEO Wilk said that it was the fastest new-member growth in nearly four years, supporting greater second-half advertising investment. A UBS analyst asked how Dave evaluates incremental spending. CEO Wilk said that the company targets positive returns rather than the lowest acquisition costs and cited record payback periods below four months. CFO Beilman said that heavier acquisition will initially favor lower-ARPU members, whose revenues more than double on average by their fourth month. The payoff is a larger transacting base entering 2027. ExtraCash originations climbed 27% to $2.3 billion, and average advance size reached $215. CEO Wilk said that removing legacy fee caps gives Dave room to raise the current $500 maximum without sacrificing unit economics. A Citizens JMP analyst pressed management on pricing. CFO Beilman said that the change had little second-quarter impact because it initially covered new members, but should compound as existing cohorts move to no cap or a $20 cap. CFO Beilman said that a rough majority of advances exceed $300. CEO Wilk added that higher-limit users are typically tenured members with low loss rates, supporting tests above $500. CashAI v6 uses more than 700 features, including nearly 400 new ones, and was deployed to about one-third of users by the call. CFO Beilman said that early testing produced larger advances and lower loss rates. The 28-day past-due rate improved 14 basis points year over year to 2.12% as originations grew. CFO Beilman expects third-quarter losses near the second-quarter levels, while average advance sizes rise. The non-GAAP gross margin rose 300 basis points to 72%. CFO Beilman expects it to move into the mid-70s during the second half, helped by credit performance and favorable provision timing. CEO Wilk said Dave Flex remains in controlled testing, with improving unit economics and positive early engagement. The pay-in-four card targets broader spending occasions and is not expected to contribute meaningful 2026 revenues. A Canaccord Genuity analyst asked about positioning. Wilk added that Flex complements ExtraCash, while a KBW analyst was told initial limits target roughly twice those of ExtraCash. Dave ended the second quarter with $254.4 million in cash, investments and restricted cash. CFO Beilman said that $93 million was drawn on a $225-million Coastal Community Bank facility, with discussions underway to expand capacity and use a similar structure for Flex. CEO Wilk prioritized higher ExtraCash limits, CashAI-led underwriting and Flex testing over a renewed direct-deposit push. He said that differentiated credit offers a better path to top-of-wallet status. CFO Beilman framed higher marketing, product and AI spending as targeted investments that may temper fixed-cost leverage for two quarters. Dave still expects annual adjusted EBITDA margin expansion and plans opportunistic share repurchases. DAVE currently carries a Zacks Rank #2 (Buy), indicating a favorable near-term earnings-estimate revision picture. Its Growth Score of A and a VGM Score of B support growth and blended style characteristics, while Value and Momentum Scores of D are less favorable. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Style Scores complement the Zacks Rank, with A or B grades generally preferred. The current Rank and mixed Style Scores do not assure performance, and the Zacks Rank can change as analysts revise estimates after the reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave Inc. (DAVE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Dave Inc.? Here are five stocks we like better. Strong Q2 performance: Revenue rose 30% year over year to $171 million, while adjusted EBITDA increased 48% to $76 million, resulting in a 44% margin. Member growth accelerated, with 951,000 new members and monthly transacting members reaching 3.08 million. ExtraCash expansion and improving credit trends: ExtraCash originations climbed 27% to $2.3 billion, with the average advance reaching a record $215. Dave is expanding fee and advance limits while rolling out CashAI v6, which has shown higher originations and lower loss rates in early testing. 2026 outlook raised: Dave increased full-year revenue guidance to $725 million-$735 million and adjusted EBITDA guidance to $315 million-$325 million. The company also secured a $225 million funding facility with Coastal Community Bank, unlocking nearly $100 million in cash, while investing more heavily in customer acquisition. 3 Stocks You’ll Wish You Bought Before 2026 Dave (NASDAQ:DAVE) reported second-quarter results marked by 30% revenue growth, expanding profitability and increased investment in customer acquisition, while raising its full-year outlook. Revenue for the quarter ended June 30 rose 30% year over year to $171 million. Adjusted EBITDA increased 48% to $76 million, producing a 44% adjusted EBITDA margin. CEO Jason Wilk said the quarter represented the company’s ninth consecutive period of revenue growth above 30%. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control 5 Small-Cap Stocks With Impressive Growth and Upside Potential “Our growth engine remains incredibly strong,” Wilk said, citing marketing efficiency, user growth and additional opportunities to increase average revenue per user, or ARPU. Dave added 951,000 new members during the quarter, a 32% increase from a year earlier and its fastest member growth in nearly four years, according to Wilk. Customer acquisition cost remained flat at $19 while the company increased acquisition activity. → 3 Drone Stocks That Should Soar After the Summer Slump Dave Stock: 180% Gain + Q3 Beat = Breakout Setup? Monthly transacting members rose 17% year over year to 3.08 million, while ARPU increased 11%. CFO and COO Kyle Beilman said the company’s growth mix shifted toward member acquisition during the quarter as it increased spending at the top of the marketing funnel. ExtraCash originations reached $2.3 billion, up 27% year over year. The average ExtraCash advance rose to a record $215. Wilk said the company has removed its $15 fee cap for new members and has begun removing the cap for a large portion of existing members. The remaining grandfathered members are expected to receive a higher $20 fee cap effective in August. → The Bitcoin Comeback May Already Be Underway—2 ETFs for Exposure Beilman said the pricing changes had little effect on second-quarter results because they initially applied primarily to new customers, whose limits tend to be smaller. However, he said the impact should build over time as the changes reach more of the member base. The company also plans to raise maximum ExtraCash limits beyond the current $500 threshold. Management said higher-limit customers are generally more tenured members with lower loss rates, potentially allowing the company to increase dollar-weighted originations without worsening credit performance. Dave began rolling out CashAI v6, the latest version of its cash-flow underwriting system. Wilk said the upgraded model uses more than 700 features, including nearly 400 new ones. The company said the model is intended to expand gross-profit dollars while keeping losses within its targeted range, rather than simply minimizing loss rates. Beilman said the model had been rolled out to roughly one-third of the user base and early results pointed to higher average originations and lower loss rates. The company expects third-quarter loss rates to remain in a range similar to the second quarter while benefiting from larger ExtraCash advances. Dave’s 28-day past-due rate improved 14 basis points year over year to 2.12%, though it increased sequentially after seasonal normalization from the first-quarter tax-refund period. Provision for credit losses totaled $29 million, up 14% from a year earlier. Non-GAAP gross profit increased 34% to $124 million, while non-GAAP gross margin expanded about 300 basis points year over year to 72%. The company expects gross margin to move into the mid-70% range over the remainder of 2026. Advertising and activation expense totaled $20 million, up 32% from a year earlier and 43% sequentially. Management said it intends to increase marketing investment further in the second half after seeing stable acquisition costs and what Wilk described as record payback periods below four months. Dave Card volume was approximately $530 million, up 7% year over year. The company has shifted its focus from new debit initiatives to the Dave Flex Card, a credit product it is testing with expanding customer cohorts. Management said Flex has shown promising conversion, engagement and unit-economics trends, and that it has not seen material cannibalization of ExtraCash usage. However, Dave does not expect Flex to provide meaningful revenue in 2026, and the product is not included in its guidance. The company said it views Flex as complementary to ExtraCash because customers use the products for different spending needs. During the quarter, Dave began funding ExtraCash receivables through a new arrangement with Coastal Community Bank. Wilk said the structure has already unlocked nearly $100 million of cash on the balance sheet. Beilman said Dave had drawn roughly $93 million of a $225 million facility at quarter-end and was discussing a potential expansion of the facility. The company ended the quarter with $254 million in cash, investments and restricted cash, compared with $178 million at March 31. It said the increase was primarily driven by funds from the Coastal arrangement, partly offset by share repurchases. Dave raised its full-year outlook for revenue, adjusted EBITDA and adjusted diluted earnings per share. The updated guidance incorporates higher advertising and activation spending in the second half, continued ARPU support from pricing changes and maturing customer cohorts, and no meaningful revenue contribution from Flex. Revenue: $725 million to $735 million, compared with prior guidance of $710 million to $720 million. Adjusted EBITDA: $315 million to $325 million, compared with prior guidance of $305 million to $315 million. Adjusted diluted EPS: $17.00 to $17.50, compared with prior guidance of $16.25 to $16.75, assuming a 23% effective tax rate. GAAP net income was $7 million, compared with $9 million a year earlier, reflecting $37 million of non-cash charges related to quarterly mark-to-market adjustments for warrant and earn-out liabilities. Adjusted net income rose 39% to $56 million, while adjusted diluted EPS increased 48% to $4.12. Wilk said the company had no update regarding its Department of Justice matter and continues to “vigorously defend” its position. Dave, Inc is a Los Angeles–based financial technology company founded in 2016 by Jason Wilk and John Wolanin. The company offers a subscription-based mobile app designed to help consumers avoid overdraft fees, manage their budgets and track expenses. Through its platform, members receive low-balance alerts, expense categorization and cash-advance capabilities tied to upcoming deposits. At the core of Dave's offering is fee-free overdraft protection: eligible users can request small, interest-free advances up to a preset limit, typically repaid on their next paycheck or deposit. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Dave Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Dave Inc. (DAVE) came out with quarterly earnings of $4.12 per share, beating the Zacks Consensus Estimate of $3.69 per share. This compares to earnings of $3.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.65%. A quarter ago, it was expected that this company would post earnings of $2.86 per share when it actually produced earnings of $3.64, delivering a surprise of +27.27%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. DAVE INC, which belongs to the Zacks Technology Services industry, posted revenues of $170.8 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.62%. This compares to year-ago revenues of $131.7 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. DAVE INC shares have added about 93.9% since the beginning of the year versus the S&P 500's gain of 13%. While DAVE INC has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for DAVE INC was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $4.39 on $186.2 million in revenues for the coming quarter and $16.80 on $714.1 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 39% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Viant Technology (DSP), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This advertising software company is expected to post quarterly earnings of $0.13 per share in its upcoming report, which represents a year-over-year change of +44.4%. The consensus EPS estimate for the quarter has been revised 40% lower over the last 30 days to the current level. Viant Technology's revenues are expected to be $99.9 million, up 28.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave Inc. (DAVE) : Free Stock Analysis Report Viant Technology Inc. (DSP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Q2 Revenue Grows 30% Y/Y to $170.8 Million Driven by Continued MTM Growth and ARPU Expansion 28-DPD Rate Improves 14 Basis Points Y/Y to 2.12%, While ExtraCash Originations Grew 27% Y/Y to $2.3 Billion Net Income of $6.7 Million Includes $36.9 Million of Non-Cash Warrant and Earnout Remeasurement Charges Adj. EBITDA Increases 48% Y/Y to $75.5 Million, Representing a 44% Margin Raises 2026 Revenue, Adj. EBITDA and Adj. Diluted EPS Guidance LOS ANGELES, Aug. 5, 2026 /PRNewswire/ -- Dave Inc. ("Dave" or the "Company") (Nasdaq: DAVE), one of the nation's leading neobanks, today reported its financial results for the second quarter ended June 30, 2026. "We closed the first half with our ninth consecutive quarter of at least 30% year-over-year revenue growth as we once again demonstrated the strength and durability of our business," said Jason Wilk, Founder and CEO of Dave. "The rollout of CashAI v6.0, alongside the relaxing of legacy fee caps and planned higher ExtraCash limits, gives us even greater conviction in our ARPU outlook. In addition, early engagement with Dave Flex has been promising and we continue to expand test cohorts. At the same time, we expect MTM growth to accelerate in the second half of 2026, supported by strong member acquisition trends." Wilk continued, "Based on our strong first-half performance, the depth of our product roadmap, and the significant operating leverage we continue to see in our model, we are raising our full-year 2026 guidance for Revenue, Adjusted EBITDA, and Adjusted Diluted EPS." Quarterly Financial Highlights ($ in millions, except for per share amounts, unaudited) Second Quarter 2026 Operating Highlights (vs. Second Quarter 2025) New members increased 32% to 951,000, at a customer acquisition cost of $19 Monthly Transacting Members ("MTMs") increased 17% to 3.08 million ExtraCash originations increased 27% to $2.3 billion, while ExtraCash Monetization Rate Net of Losses expanded nearly 9 basis points to 4.8% 28-day past due rate improved 6% to 2.12% Dave Debit Card spend increased 7% to $530 million Liquidity SummaryAs of June 30, 2026, the Company had $254.4 million in cash and cash equivalents, investments, and restricted cash, compared to $177.8 million as of March 31, 2026. The $76.6 million increase was primarily driven by $93.0 million funded through the Coastal Community Bank arrangement, offset by $19.1 million of share repurchases during the quarter, leaving $94.1 million available under the Company's share repurchase authorization. 2026 Financial Guidance ($ in millions) Dave's CFO and COO, Kyle Beilman, commented: "This quarter demonstrated the quality of our earnings growth. Non-GAAP gross margin expanded nearly 300 basis points year-over-year to 72%. Credit performance remained strong, with our 28-day past due rate improving 6% year-over-year while originations grew 27%. That strength has continued into the third quarter, supported by the early rollout of our CashAI v6.0 underwriting model, which we expect to sustain loss rates in a similar range to Q2 while driving larger ExtraCash origination sizes. With loss provision calendar dynamics turning favorable in the second half, we expect non-GAAP gross margin to continue expanding into the mid-70s." "Marketing and activation investment grew 32% year-over-year while CAC held flat at $19, further demonstrating the scalability of our growth engine. As returns have exceeded our expectations at higher spend levels, we plan to invest above our original plan in the second half. Near term, that incremental investment is expected to shift our growth mix toward MTMs, as newer members begin at lower ARPU and monetize more over time." "Our Coastal Community Bank funding structure had $93.0 million outstanding at the end of Q2. As this program scales, it makes our funding model significantly more capital-efficient, lowers our cost of funds, and frees up meaningful liquidity to pursue high-return organic growth opportunities and continue to return capital to shareholders." Conference CallDave management will host a conference call on Wednesday, August 5, 2026, at 5:00 p.m. Eastern time to discuss its financial results for the second quarter ended June 30, 2026, followed by a question-and-answer period. The conference call details are as follows: Date: Wednesday, August 5, 2026Time: 5:00 p.m. Eastern timeConference Call Registration: linkWebcast: link The conference call will also be available for replay in the Events section of the Company's website, along with the transcript, at https://investors.dave.com. If you have any difficulty registering for or connecting to the conference call, please contact Elevate IR at [email protected]. About DaveDave (Nasdaq: DAVE) is a U.S. neobank pioneering innovative credit products for everyday Americans. For more information about the Company, visit: www.dave.com. For investor information and updates, visit: investors.dave.com and follow @davebanking on X. Forward-Looking StatementsThis press release includes forward-looking statements within the meaning of the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "anticipates," "believes," "could," "estimates," "expects," "intends," "may," "might," "opportunity," "plans," "projects," "remains," "should," "targets," "well-positioned," or the negative of such terms, or other comparable terminology and include, among other things, the quotations of our Chief Executive Officer and Chief Financial Officer relating to Dave's future performance and growth, statements relating to fiscal year 2026 guidance, projected financial results for future periods and other statements about future events. Such forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, which could cause actual results to differ materially from the forward-looking statements contained herein due to many factors, including, but not limited to: the ability of Dave to compete in its highly competitive industry; the ability of Dave to keep pace with the rapid technological and AI-related developments in its industry and the larger financial services industry; the ability of Dave to manage risks associated with providing ExtraCash; the ability of Dave to retain its current customers, acquire new customers (collectively, "Members") and sell additional functionality and services to its Members; the ability of Dave to successfully launch new products and services; the ability of Dave to protect intellectual property and trade secrets; the ability of Dave to maintain the integrity of its confidential information and information systems or comply with applicable privacy and data security requirements and regulations; the reliance by Dave on two bank partners; the ability of Dave to maintain or secure current and future key banking relationships and other third-party service providers, including its ability to comply with applicable requirements of such third parties; the ability of Dave to comply with extensive and evolving laws and regulations applicable to its business; changes in applicable laws or regulations and extensive and evolving government regulations that impact operations and business; the ability to attract or maintain a qualified workforce; the level of product service failures that could lead Members to use competitors' services; investigations, claims, disputes, enforcement actions, arbitration, litigation and/or other regulatory or legal proceedings, including the Department of Justice's lawsuit against Dave; the possibility that Dave may be adversely affected by other macroeconomic factors, including regulatory uncertainty, fluctuating interest rates, inflation, tariffs, unemployment rates, consumer sentiment, market volatility and business, and/or competitive factors; and other risks and uncertainties discussed in Dave's Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") on March 2, 2026 and any subsequent Quarterly Reports on Form 10-Q under the heading "Risk Factors," filed with the SEC and other reports and documents Dave files from time to time with the SEC. Any forward-looking statements speak only as of the date on which they are made, and Dave undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release. Non-GAAP Financial InformationThis press release contains references to adjusted net income, adjusted EBITDA, adjusted EBITDA margin, non-GAAP gross profit, non-GAAP gross profit margin, and adjusted net income per share (basic and diluted) of Dave, which are adjusted from results based on generally accepted accounting principles in the United States ("GAAP") and exclude certain expenses, gains and losses. The Company defines and calculates adjusted EBITDA as GAAP net income before the impact of interest income and/or expense, and funding costs, provision for income taxes, depreciation and amortization, and adjusted to exclude legal settlement and litigation expenses related to the FTC/DOJ matter, stock-based compensation expense, other strategic financing and transactional expenses, discretionary or non-recurring income, changes in fair value of earnout liabilities and changes in fair value of public and private warrant liabilities. The Company defines and calculates adjusted EBITDA margin as adjusted EBITDA as a percentage of GAAP operating revenues, net. The Company defines and calculates variable operating expenses as provision for credit losses, processing and servicing costs and financial network and transaction costs. The Company defines and calculates non-GAAP gross profit as GAAP operating revenues, net excluding variable operating expenses. The Company defines and calculates non-GAAP gross profit margin as non-GAAP gross profit as a percentage of GAAP operating revenues, net. The Company defines and calculates adjusted net income as GAAP net income adjusted to exclude stock-based compensation, discretionary or non-recurring income, legal settlement and litigation expenses related to the FTC/DOJ matter, other strategic financing and transactional expenses, changes in fair value of earnout liabilities and changes in fair value of public and private warrant liabilities, the income tax impact related to the release of the valuation allowance and the income tax impact related to stock-based compensation. The Company defines and calculates non-GAAP adjusted net income per share - basic and non-GAAP adjusted net income per share - diluted as adjusted net income divided by weighted average shares of common stock-basic and weighted average shares of common stock-diluted, respectively. These non-GAAP financial measures may be helpful to the user in assessing our operating performance and facilitate an alternative comparison among fiscal periods. The Company's management team uses these non-GAAP financial measures in assessing performance, as well as in planning and forecasting future periods. The methods the Company uses to compute these non-GAAP financial measures may differ from the methods used by other companies. Non-GAAP financial measures are supplemental, should not be considered a substitute for financial information presented in accordance with GAAP and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP. Refer to the section further below for a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures for the three and six months ended June 30, 2026, and 2025. Investor Relations ContactSean Mansouri, CFA or Stefan NorbomElevate [email protected] Media ContactDan [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/dave-reports-second-quarter-2026-financial-results-302844186.html

Dave Inc. DAVE is slated to release second-quarter 2026 results on Aug. 5, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings per share (EPS) and revenues is pegged at $3.69 and $169.75 million, respectively. While the consensus mark for second-quarter 2026 EPS has been revised slightly southward over the past 30 days, it suggests a 17.52% improvement year over year. The Zacks Consensus Estimate for quarterly revenues implies a notable year-over-year increase of 28.89%.For the current year, the Zacks Consensus Estimate for Dave’s revenues is pegged at $714.10 million, indicating a rise of 28.85% year over year. The consensus mark for 2026 EPS stands at $16.80, calling for a 27.47% expansion from the year-ago period. Image Source: Zacks Investment Research Over the trailing four quarters, the company’s EPS surpassed the Zacks Consensus Estimate on each occasion, with an average beat of 45.78%. This is depicted in the graph below: Dave Inc. price-eps-surprise | Dave Inc. Quote Our proven model predicts an earnings beat for DAVE this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here. You can see the complete list of today’s Zacks #1 Rank stocks here.DAVE currently carries a Zacks Rank of 2 and has an Earnings ESP of +1.42%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter. Dave’s second-quarter results are expected to show whether the post-tax-refund rebound became durable overall. ExtraCash demand is expected to have supported growth as average advance size and disbursement activity recovered from first-quarter softness. Continued member additions, reactivation and retention are also likely to have contributed to higher monthly transacting members and revenues.Monetization remains a key focus. Removing the $15 fee cap for new members and introducing a second draw may have benefited ExtraCash utilization, average advance size and ARPU. The completed rollout of the $3 subscription fee is expected to have improved revenue visibility, while Dave Card spending is likely to have added transaction-based revenues. Credit performance will be another test. CashAI v5.5 optimization, along with progress toward v6.0, is expected to have strengthened underwriting and kept delinquencies controlled despite higher originations. Management said second quarter momentum had remained favorable, so investors need to watch whether the 28-day past-due rate stayed near last year’s level or improved further again.Margins present a mixed setup. Better credit performance and the absence of the first quarter’s unusual reserve build are expected to have supported gross margin recovery. However, marketing spending, product-development hiring and Coastal funding fees are likely to have affected margins in the quarter under review, as revenue growth supported operating leverage.The Coastal funding transition may also have shaped the outlook. Lower funding needs could have strengthened liquidity, but related fees are likely to have affected margins in the quarter under review. Overall, the second quarter is expected to reveal whether Dave balanced originations, ARPU growth and credit control without allowing investment to weaken profitability. The stock has been a standout performer. Over the past three months, DAVE has rallied more than 51%. Meanwhile, peers like Upstart Holdings, Inc. UPST and SoFi Technologies, Inc. SOFI have shown a mixed trend. UPST has declined 5.6%, while SOFI has advanced 12.5%, while the S&P 500 composite has risen 2.3%. Image Source: Zacks Investment Research After the sharp rally, valuation is the biggest pushback on DAVE. The stock trades at 6.36X forward 12-month sales per share versus 2.80X for the Zacks sub-industry. This is no longer cheap, but it looks fair for a fintech growing revenues around 28% to 30%, producing strong adjusted EBITDA and buying back stock. On the other hand, SoFi Technologies trades at 4.29X forward 12-month sales per share, while Upstart Holdings trades near 1.67X forward 12-month sales per share. Dave deserves some premium because its margins and capital efficiency are improving quickly, especially after the Coastal funding transition. Image Source: Zacks Investment Research Dave’s second-quarter setup supports a constructive investment thesis. Recovering ExtraCash demand, higher advance sizes and continued member growth are expected to have supported revenues, while fee changes and second-draw functionality may have benefited ARPU. CashAI improvements are likely to have strengthened credit performance, though faster originations, heavier marketing and product hiring are expected to have affected margins in the quarter under review. The Coastal funding transition may have constrained gross margin initially, but it could improve liquidity and lower funding costs over time. With scalable growth, improving monetization and disciplined credit trends, the stock appears attractive for investors seeking upside at present. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave Inc. (DAVE) : Free Stock Analysis Report Upstart Holdings, Inc. (UPST) : Free Stock Analysis Report SoFi Technologies, Inc. (SOFI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Fiserv, Inc. FISV is scheduled to release second-quarter 2026 results on Aug. 6, before market open. FISV has outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average negative surprise of 0.4%. Fiserv, Inc. price-eps-surprise | Fiserv, Inc. Quote The Zacks Consensus Estimate for revenues is $5.1 billion, relative to the year-ago quarter’s $5.2 billion. The consensus mark suggests a 2.8% fall from the year-ago quarter’s actual. While merchant solutions is expected to deliver slightly elevated revenues from the year-ago quarter, the top line is likely to have been weakened by the sharp fall in financial solutions’ revenues. The consensus estimate for merchant solutions revenues is pinned at $2.6 billion, hinting at a marginal uptick from the year-ago quarter’s actual. We expect the primary growth factor to have been Clover platform expansion. Healthcare and Professional Services launched in March 2026 showed progress, which we anticipate to have continued in the second quarter of 2026 as well. The Zacks Consensus Estimate for merchant solutions operating income is $791.4 million against the year-ago quarter’s $914 million. It reflects a sharp 13.4% year-over-year decline. Rising personnel costs, driven by client-facing workforce expansion and higher operating expenses incurred to fund investments, are the prominent reasons that are likely to have led to this cut. For financial solutions, the consensus estimate for revenues is pegged at $2.4 billion, suggesting a 6.3% year-over-year decline. We anticipate non-recurring project and implementation fees to have led to this downturn. The Zacks Consensus Estimate for the financial solutions segment’s operating income is pegged at $970.9 million, while it logged $1.2 billion in the year-ago quarter. This underscores a sizable 22% year-over-year slide from the year-ago quarter’s actual. Growing expenses associated with funding core improvements, Finxact infrastructure, Vision Next and CashFlow Central are likely to have affected the operating income. The consensus estimate for earnings is pinned at $1.89 per share, suggesting a 23.5% year-over-year tailspin from the year-ago quarter’s actual of $2.47. Incremental expenses from investments fueling long-term client growth are expected to have affected the bottom line. Our proven model does not conclusively predict an earnings beat for Fiserv this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter. Fiserv has an Earnings ESP of -0.20% and a Zacks Rank of 4 (Sell) at present. Here are some stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season. Thomson Reuters TRI: The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $1.9 billion, hinting at a 7.3% increase from the year-ago quarter’s actual. For earnings, the consensus estimate is pegged at 96 cents per share, suggesting a 9.1% rally from the year-ago quarter’s reported number. Over the four trailing quarters, the company has an average earnings surprise of 3.1%. TRI has an Earnings ESP of +2.35% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. The company is scheduled to announce second-quarter 2026 results on Aug. 5. Dave Inc. DAVE: The Zacks Consensus Estimate for the company’s second-quarter 2026 revenues is $169.8 million, suggesting a 28.9% jump from the year-ago quarter’s actual. For earnings, the consensus mark is $3.69 per share, indicating 17.5% growth. DAVE beat the consensus estimate for earnings in the trailing four quarters, with an average surprise of 45.8%. DAVE has an Earnings ESP of +1.42% and a Zacks Rank of 2 at present. The company is scheduled to declare second-quarter 2026 results on Aug. 5. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fiserv, Inc. (FISV) : Free Stock Analysis Report Thomson Reuters Corp (TRI) : Free Stock Analysis Report Dave Inc. (DAVE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Dave Inc. (DAVE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $3.69 per share in its upcoming report, which represents a year-over-year change of +17.5%. Revenues are expected to be $169.75 million, up 28.9% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.9% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For DAVE INC, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +1.42%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination indicates that DAVE INC will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that DAVE INC would post earnings of $2.86 per share when it actually produced earnings of $3.64, delivering a surprise of +27.27%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. DAVE INC appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Technology Services industry, Aptiv PLC (APTV), is soon expected to post earnings of $1.42 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -33%. Revenues for the quarter are expected to be $3.32 billion, down 36.3% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for APTIV PLC has been revised 1.4% down to the current level. Nevertheless, the company now has an Earnings ESP of +1.81%, reflecting a higher Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that APTIV PLC will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dave Inc. (DAVE) : Free Stock Analysis Report Aptiv PLC (APTV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research