Latest news with #ExtraCash
Yahoo
16-07-2025
- Business
- Yahoo
DAVE Rallies 133% YTD: Is Acquiring the Stock Now Justified?
Dave Inc.'s DAVE shares have demonstrated remarkable growth in the year-to-date period. The stock has soared 132.9%, surpassing the industry's 9.8% growth and the Zacks S&P 500 composite's 6% rise. The stock has outpaced its industry peers, CoreCard CCRD and Qifu Technology QFIN. CoreCard and Qifu Technology have gained 24.1% and 10.5%, respectively, over the same period. YTD Price Performance Image Source: Zacks Investment Research DAVE has outperformed its industry peers in the past three months as well. Dave has skyrocketed 140.3%, exceeding CoreCard's and Qifu Technology's 38.9% and 47.6% growth, respectively. The stock's performance over the past three months and the year-to-date period is noteworthy, spiking investors' interest, prompting them to buy the shares for the long run. Let us assess DAVE's performance to conclude whether it deserves a place in investors' portfolios. Dave's ExtraCash: Guiding Through the Neobank Market The underbanked demography is often neglected by traditional banks, forcing them to find shade under neobanks. Hence, the rising needs of these non-prime/sub-prime consumers become a driving force in the neobank market, such that currently it is anticipated to expand, seeing a CAGR of 40.3% from 2025 to 2034. DAVE, one of the leading names in the neobank market, meets the rising demand of the underbanked through ExtraCash. This service addresses the challenges faced by the underbanked by offering interest-free cash advances up to $500. What appeals to consumers is that there are no traditional credit checks. Dave assesses bank account history and spending patterns to determine customers' creditworthiness, enabling the company to extend credit to sub-prime or non-prime consumers with limited credit history. The company simplified its optional fee model, wherein consumers will pay a 5% fee with a $5 minimum and a $15 cap. This brand-new fee structure enhances transparency around ExtraCash advances, strengthening the company's position among the underbanked. Since consumers can avail of ExtraCash via DAVE's mobile-first platform, we expect the rising popularity of mobile banking to provide an impetus to the company's gains. The risk profile of a consumer who uses ExtraCash may concern investors. To reduce the risks, DAVE has implemented CashAI, its proprietary underwriting engine. This technology has improved customer engagement, with ExtraCash originations increasing 46% year over year to $1.5 billion during the recent March quarter. A tell-tale sign of CashAI's success is the increase in the company's 28-day delinquency rate by 33 basis points year over year in the first quarter of 2025. DAVE: Discounted With Solid Financials Dave shares appear cheap, raising a green flag for investors. The stock is currently priced at 19.74X forward 12-month earnings per share, lower than the industry's average of 23.35X. Image Source: Zacks Investment Research The return on equity (ROE) and return on invested capital (ROIC) capture DAVE's impressive profitability position. Currently, the company's trailing 12-month ROE stands at 59.2% way above the industry average of 6.6%. In terms of ROIC, Dave's 26.7% looks promising when compared with the industry's -8.5%. Image Source: Zacks Investment Research Image Source: Zacks Investment Research Dave's striking liquidity position should reassure investors of the company's solid financial position. In the recent March quarter, the company's current ratio of 8.59 exceeded the industry average of 1.84, increasing 15% from the year-ago quarter on the back of higher ExtraCash receivables. A current ratio exceeding 1 suggests that the company can cover short-term obligations effectively. Image Source: Zacks Investment Research Dave's Top & Bottom-Line Outlook Appears Promising The Zacks Consensus Estimate for the company's 2025 revenues is $475.8 million, suggesting a 36.7% rise from the prior-year reported level. For 2026, revenues are estimated to increase 23.8% year over year. The consensus estimate for 2025 earnings per share is $8.76, hinting at a 67.2% surge from the year-ago reported level. The same is anticipated to rise 35.1% year over year in 2026. Verdict: Buy DAVE Now Dave appears to be a compelling investment opportunity for now. ExtraCash, which is the company's main product, is successful at catering to the growing needs of the underbanked in an expanding neobank market. The company has simplified its fee structure, strengthening its position. Dave's CashAI has shown promising results in reducing credit risk, steering away from the talks serving risky profiles. The company's optimistic top and bottom-line outlook reflects its strong fundamentals. With that, the stock possesses a discounted valuation, which captures investors' attention. A strong profitability and liquidity position should reassure investors about the company's robust financials. Taking all these factors into consideration, we recommend that investors buy the stock right now and expect a significant return in the long run. DAVE sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank 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 Qifu Technology, Inc. (QFIN) : Free Stock Analysis Report CoreCard Corporation (CCRD) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
30-06-2025
- Business
- Yahoo
NU vs. DAVE: Which Fintech Stock Should Investors Back Right Now?
Both Nu Holdings NU and Dave DAVE are major players in the digital financial services sector. NU is a prominent digital bank serving more than 118 million customers across Brazil, Colombia and Mexico. DAVE is a U.S.-based financial services platform offering an array of financial products, including ExtraCash and Dave Banking. This comparative analysis helps investors develop their strategy to choose between these two stocks, allowing them to gain exposure in the fintech space. In conclusion, this analysis aims to make it easier for investors to decide which stock to support right now. NU is emerging as a formidable player within the fintech space. With 19% year-over-year growth in new customers in the first quarter of 2025 and nearly 100 million active users, the company is confident that it can scale rapidly without compromising its potential to generate revenues. Nu Holdings derives this growth momentum from its expansion in Brazil, where nearly 59% of the adult population is its customers. This ascent underscores the company's success in tapping into a previously underbanked population. From a financial perspective, NU's performance was exceptional in the quarter ending in March. First, the top line grew 40% year over year, with net income increasing 74% from the previous year. Monthly average revenues per active customer rose 5% from the previous quarter and 17% year over year on a FX-neutral basis, highlighting the company's strong potential for long-term monetization. Furthermore, the 15-90 NPL ratio increases by 60 basis points (bps), reflecting the continued strength of NU's underwriting and effective risk management strategy. There is no denying the fact that the company's astounding performance was further bolstered by NU's expansion in Mexico. Nubank Mexico witnessed a 67% year-over-year increase in the customer base to 11 million. That being said, the company obtained regulatory approval for its banking license in April, which unlocks product capabilities, boosts the ability to scale deposits and reinforces its long-term mission to drive financial inclusion. In doing so, we can expect NU to reap benefits exponentially not only from Brazil but also from Mexico, aiding its growth trajectory. We expect Nu Holdings to capture a greater market share as the Latin American fintech market grows, seeing an 8% CAGR from 2025 to 2030. DAVE is one of the leading neobanks in the United States that has distinguished itself by providing services like ExtraCash. With the fee structure being revised, ExtraCash has become more popular among the masses, driving the growth narrative of the company. In the first quarter of 2025, DAVE witnessed 46% growth in its ExtraCash originations, which had a positive impact on average revenues per user, as it increased 29% year over year Moving on, the company's financial position got solidified as the top line rallied 47% year over year. Adjusted EBITDA skyrocketed 235% year over year, which was certainly impressive, underscoring the company's robust operating leverage. With the addition of 569,000 members, Dave registered 15% year-over-year growth in its member base, a testament to its growing demand for its offerings. DAVE's ability to manage credit risk separates it from the rest. By utilizing CashAI, a proprietary underwriting engine, the company improved its credit performance significantly. It witnessed an 18% year-over-year enhancement in the 28-day delinquency rate and a reduction in the percentage of provision for credit losses to originations to 0.69% from the year-ago quarter's 0.94%. CashAI's ability to improve cost management had a distinct influence on Dave's profitability position. It led to a 67% year-over-year surge in non-GAAP variable profit, with variable margin growing 950 bps. Dave's sole focus on the U.S. market hinders its means of diversification. This provides the company with a bedrock of motive to expand into different markets. With the global fintech market anticipated to grow, witnessing a healthy 15.3% CAGR from 2025 to 2030, DAVE is presented with a massive opportunity to capture a larger market share. The Zacks Consensus Estimate for Nu Holdings' 2025 sales is pegged at $14.8 billion, hinting at 28.5% year-over-year growth. The consensus estimate for earnings is pegged at 54 cents, suggesting a 20% rise from the preceding year's actual. One earnings estimate for 2025 has moved north in the past 60 days, versus two southward revisions. Image Source: Zacks Investment Research The Zacks Consensus Estimate for Dave's 2025 sales is pegged at $474.4 million, indicating 36.7% year-over-year growth. The consensus estimate for earnings is $8.74 per share, suggesting a 66.8% year-over-year surge. Two earnings estimates for 2025 have moved north in the past 60 days, versus no southward revisions. Image Source: Zacks Investment Research Nu Holdings is currently trading at a forward 12-month P/E ratio of 20.21X, which is slightly below the 12-month median of 20.71X. Dave is trading at 24.64X, substantially lower than the 12-month median of 33.74X. Although both stocks are trading at a discount compared with their historical valuations, NU appears much cheaper than DAVE. Image Source: Zacks Investment Research Dave is a 'Buy,' driven by ExtraCash's product improvements and popularity, strong operating leverage and advanced credit risk management with CashAI. While the company focuses on the U.S. market, the growing global fintech landscape positions it to capture a larger market share. Although Nu Holdings presents a strong case, we urge investors to take a cautious approach and refrain from adding it to their portfolios. Our recommendation for NU is based on its top and bottom-line outlook, which is weaker than that of DAVE and its downward earnings estimates revision, hinting at a lack of analyst confidence. DAVE flaunts a Zacks Rank #1 (Strong Buy) and NU has a Zacks Rank #3 (Hold) at present. You can see the complete list of today's Zacks #1 Rank 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 Nu Holdings Ltd. (NU) : Free Stock Analysis Report Dave Inc. (DAVE) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-06-2025
- Business
- Yahoo
Dave Skyrockets 540% in a Year: Should You Buy the Stock Now?
Dave Inc. DAVE stock has shown outstanding growth over the past year. The stock has skyrocketed 540.5%, outperforming the industry's 51.6% rally and the Zacks S&P 500 composite's 12.3% growth. DAVE's performance is significantly higher than that of its industry peers, Katapult Holdings KPLT and MediaAlpha MAX. KPLT and MAX have declined 43.8% and 33.5% over the past year, respectively. Image Source: Zacks Investment Research Dave has also outperformed Katapult Holdings, MediaAlpha, and the industry as a whole in the past six months. DAVE shares have soared 152.6%, outperforming the industry's 3.1% rise. Katapult Holdings and MediaAlpha have gained 38.5% and 3.2% in the past six months, respectively. Image Source: Zacks Investment Research Dave shares have performed exceptionally well over the past year and the past six months. Investors must be flattered by this performance and are planning to initiate a buy. We have analyzed the stock and answered whether buying is the option or if investors should stay away from it. DAVE's CashAI is its proprietary underwriting engine, which has been proven to boost the company's financial performance, as evidenced by the first-quarter 2025 results. During this quarter, non-GAAP variable profit surged 67% year over year, with variable margin growing 950 basis points (bps). The credit goes to CashAI and its ability to improve Dave's cost management strategy, improving its profit margin. CashAI improved customer engagement, with ExtraCash originations increasing 46% year over year to $1.5 billion. Dave managed to approve higher ExtraCash amounts due to CashAI's ability to underwrite profitably despite it being a seasonally soft quarter. Furthermore, it enhanced the company's credit performance, evidenced by a 33-basis-point year-over-year improvement in the 28-day delinquency rate. CashAI leveraged insights and performance data to reduce the percentage of provisions for credit losses to origination from the 0.94% reported in the year-ago quarter down to 0.69%. With an expansion in the training data set, we expect CashAI to identify good risk and maximize approval rates, retaining its competitive edge. The underwriting engine's ability to precisely manage delinquency and loss rates while improving profitability puts Dave further than the existing fintech players that use traditional methods that are slower and less agile. Return on equity (ROE), a measure of profitability, reflects how effectively a company uses its shareholders' investments to generate earnings. Dave's trailing 12-month ROE is 59.2% compared with the industry's average of 6.6%. Image Source: Zacks Investment Research DAVE's current ratio in the first quarter of 2025 was 8.59, significantly higher than the industry average of 1.84. The metric has improved from the previous quarter and the year-ago quarter by 6.7% and 15%, respectively. The current ratio exceeds 1, which signals a positive outlook for investors by indicating the company's capacity to pay off short-term obligations efficiently. Image Source: Zacks Investment Research The Zacks Consensus Estimate for the company's 2025 revenues is pegged at $474.4 billion, suggesting a 36.7% increase from the year-ago reported level. For 2026, the top line is anticipated to rise 24.2% year over year. The consensus estimate for 2025 earnings is $8.74 per share, implying 66.8% growth from the year-ago reported level. For 2026, the bottom line is anticipated to rise 32.3% year over year. Over the past 60 days, two EPS estimates for both 2025 and 2026 have been revised upward with no downward adjustments. In the same period, the Zacks Consensus Estimate for 2025 earnings has gained 31.4% and that for 2026 has soared 42.4%. These upward revisions highlight analysts' growing confidence in Dave's ability to improve its financial performance, fueled by its strong business model and robust growth potential. Image Source: Zacks Investment Research We understand Dave's CashAI, an AI-based underwriting engine, is improving its credit quality. In doing so, the company has enhanced its financial performance and finds itself competing with fintech giants. Banking on this technology, the company can easily dominate in a space where fintech players rely on traditional methods that are slower and less agile. Apart from this, DAVE's robust capital return and strong liquidity position raise the green flag for investors. In addition to that, the company is fundamentally strong and has upward EPS revisions, exuding growing confidence among analysts. Factors like these compel us to recommend a 'Buy' on DAVE stocks. Investors who are looking to dip their hands in the fintech space must add Dave to their portfolio now. DAVE sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank 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 MediaAlpha, Inc. (MAX) : Free Stock Analysis Report Katapult Holdings, Inc. (KPLT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
09-05-2025
- Business
- Yahoo
Dave price target raised to $150 from $110 at Barrington
Barrington raised the firm's price target on Dave (DAVE) to $150 from $110 and keeps an Outperform rating on the shares. The company reported much better than expected Q1 results, the analyst tells investors in a research note. The firm says Dave's new fee structure is benefitting financial results in terms of greater ExtraCash generation, monetization, and member lifetime value. Discover companies with rock-solid fundamentals in TipRanks' Smart Value Newsletter. Receive undervalued stocks, resilient to market uncertainty, delivered straight to your inbox. Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See today's best-performing stocks on TipRanks >> Read More on DAVE: Disclaimer & DisclosureReport an Issue Dave reports Q1 adjusted EPS $2.48, consensus $1.41 Dave sees FY25 revenue $460M-$475M, consensus $421.83M 3 Best Stocks to Buy Now, 4/18/2025, According to Top Analysts 3 Russell 2000 Small-Cap Stocks to Buy, According to Analysts 3 Best Stocks to Buy Now, 4/10/2025, According to Top Analysts Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
07-03-2025
- Business
- Yahoo
Dave, Coastal Community Bank team up in pivot away from Evolve
This story was originally published on Banking Dive. To receive daily news and insights, subscribe to our free daily Banking Dive newsletter. Neobank Dave has lined up Coastal Community Bank as a partner financial institution, and customer onboarding to that bank will begin as early as the second quarter, the companies said Monday. The Los Angeles-based fintech's partnership with Coastal Community Bank and CCBX, the lender's banking-as-a-service unit, will fuel Dave's business growth and expansion while offering competitive products in the market, the fintech said. 'This partnership marks a milestone moment for Dave,' Jason Wilk, the fintech's CEO and founder, said in a statement. 'Coastal Community Bank is the right partner for our company because of their customer-first mission, deep knowledge across credit and banking products, strong risk management, and our shared ambition to make a difference in the communities that need it most.' The partnership marks a pivot away from Evolve Bank & Trust. That bank has been the fintech's only bank partner for its ExtraCash and other deposit accounts, debit card services and other transaction services, Dave said Tuesday in its annual filing with the Securities and Exchange Commission. The fintech eventually plans to drop Evolve as its partner bank, Bloomberg reported. Dave underscored some risks when relying on one bank partner, including difficulties transitioning between bank partners that involve operational errors, data breaches and service disruptions; potential business differences with new partners and challenges operating with multiple bank partners during transitions. 'We currently rely on a single bank partner, and if our present or any future key banking relationships are terminated and we are not able to secure or successfully migrate client portfolios to a new bank partner or partners, or our bank partner becomes subject to regulatory restrictions or other operational disruptions, our business would be adversely affected,' Dave noted in the filing. The fintech also highlighted challenges Evolve has been grappling with for some time. The Federal Reserve issued an enforcement action against the lender last June, citing shortcomings in anti-money laundering, risk management and consumer compliance. The central bank alleged Evolve 'fail[ed] to have in place an effective risk management framework' for its fintech partnerships. Evolve was the partner bank of the bankrupt middleware firm Synapse. Though the Fed said Synapse's bankruptcy had nothing to do with the enforcement action issued against Evolve, Dave said Synapse's bankruptcy 'affected the ability of customers of financial technology companies that used Synapse as a service provider to access funds placed at Synapse's partner banks, including Evolve, for a number of months.' To add to Evolve's woes, the lender faced a data breach in which customer information was released to the dark web, two weeks after the Fed enforcement action. Dave, for its part, has had its share of challenges, as well. The Federal Trade Commission sued the fintech in November, alleging it misled consumers about its cash advance application. The FTC further alleged Dave charged consumers who needed financial assistance with undisclosed fees and 'tips' without their consent. Wilk said at the time that the lawsuit followed months of 'good-faith negotiations' and was 'another example of regulatory overreach by the FTC.' However, the FTC referred the case to the Justice Department, which filed an amended complaint against the firm and Wilk in December. Dave slammed the DOJ for its amended complaint and noted that it updated its mandatory fee structure to eliminate optional tips and express fees for the company's ExtraCash product. In its annual filing, the firm said its optimal fee revenue model, including tips and instant transfer fees for its ExtraCash product, was completed last month. The optional fee model was replaced with a 'simplified' 5% overdraft service fee structure including a minimum fee of $5 and a maximum of $15, starting with new customers in December 2024; existing customers were transitioned to that structure as of Feb. 19, according to the filing. Dave did not immediately respond to questions regarding its recent partnership. In November, Wilk hinted at diversifying Dave's key commercial relationships given the scale it's reached and the continued membership growth it's experienced. 'From our first discussions with their team, it was clear that we are aligned in bringing accessible, transparent financial services to traditionally underbanked populations,' Brian Hamilton, president of CCBX, said in a statement Monday. Recommended Reading Green Dot CHRO eyes 'engagement,' tech hires amid BaaS buildout Sign in to access your portfolio
