Dave Inc. Reports 47% Revenue Growth to $107.98 Million, Net Income Declines

Dave Inc. reported significant financial performance in its latest quarterly filing, with total operating revenues reaching $107.98 million for the three months ended March 31, 2025, a 47% increase from $73.63 million in the same period last year. The growth was primarily driven by a substantial rise in service-based revenue, which surged by 87% to $97.85 million, largely due to increased ExtraCash origination volume and a higher average number of monthly transacting members. However, net income for the quarter decreased to $28.81 million, down from $34.24 million in the prior year, reflecting a higher provision for credit losses and changes in fair value of warrant liabilities.

In terms of operational metrics, Dave's ExtraCash product saw a notable increase in origination volume, rising from approximately $1.05 billion in Q1 2024 to $1.53 billion in Q1 2025. The average ExtraCash amount also increased from $159 to $192 during the same period. The company reported a total of over 17 million members, with more than 12 million having utilized at least one of its products. The average monthly transacting members grew by approximately 13%, indicating strong engagement with the platform.

Strategically, Dave has made significant changes, including the elimination of the member tipping option in February 2025, which contributed to a 50% decline in tip-related revenues. The company has also focused on expanding its product offerings, with subscription revenue increasing by 15% to $6.82 million, driven by growth in the number of paying members. Additionally, Dave has initiated a share repurchase program, authorizing up to $50 million for repurchases of its Class A common stock, with $6.9 million already spent on repurchasing 81,370 shares.

The company’s balance sheet reflects a total asset increase to $315.66 million as of March 31, 2025, up from $299.33 million at the end of 2024. Cash and cash equivalents decreased slightly to $47.00 million, while ExtraCash receivables rose to $194.67 million, indicating a growing demand for its credit products. The provision for credit losses increased to $10.60 million, attributed to the higher volume of ExtraCash originations, although improved collections performance was noted.

Looking ahead, Dave Inc. remains optimistic about its growth trajectory, emphasizing its commitment to expanding financial access for underserved consumers. The company plans to continue leveraging technology to enhance its product offerings and improve customer engagement. However, it also acknowledges potential challenges from macroeconomic factors, including fluctuating interest rates and regulatory uncertainties, which could impact its operations and financial performance in the future.