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DAVE Stock Analysis: Top Mid-Cap Hold (Score 59.7/100) | Blank Capital Research | Blank Capital Research
DAVE
Dave Inc./DE
$185.41
+3.53 (+1.94%)
Score59.7
Data as of Apr 6, 2026
DAVE
Dave Inc./DE
FinancialsBanking
$185.41
+3.53 (+1.94%)
Open $182.72High $186.39Low $176.57Prev $181.88Vol ---52W: $65.46 – $286.45
Hold
Composite score
01234567890123456789.0123456789
Global rank
#406
Percentile
Top 9%
Business quality
93rd
percentile
Exceptional capital efficiency and structural profitability. This enterprise generates superior returns on invested capital compared to industry peers.
Relative valuation derived from Financials sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 92.9GRADE A+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
37.0%
Sector: 8.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
Unlock Valuation Tools
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Based on our 6-factor quantitative model, Dave Inc./DE (DAVE) receives a "Hold" rating with a composite score of 59.7/100, ranked #406 out of 4446 stocks. Key factor scores: Quality 93/100, Value 69/100, Momentum 51/100. This is quantitative analysis only — not investment advice.
Dave Inc./DE (DAVE) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does Dave Inc./DE Do?
Dave Inc. provides a suite of financial products and services through its financial service online platform. The company offers Insights, a personal financial management tool to manage income and expenses between paychecks for members; ExtraCash, a free overdraft and short-term credit alternative, which allows members to advance funds to their account and avoid a fee; and Side Hustle, a job application portal. It also provides Dave Banking, a digital checking and demand deposit account. The company was founded in 2015 and is based in West Hollywood, California. Dave Inc./DE (DAVE) is classified as a mid-cap stock in the Financials sector, specifically within the Banking industry. The company is led by CEO Jason Wilk and employs approximately 250 people. With a market capitalization of $2.3B, DAVE is one of the notable companies in the Financials sector.
Dave Inc./DE (DAVE) Stock Rating — Hold (April 2026)
As of April 2026, Dave Inc./DE receives a Hold rating with a composite score of 59.7/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.DAVE ranks #406 out of 4,446 stocks in our coverage universe. Within the Financials sector, Dave Inc./DE ranks #135 of 891 stocks, placing it in the top quartile of its Financials peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
DAVE Stock Price and 52-Week Range
Dave Inc./DE (DAVE) currently trades at $185.41. The stock gained $3.53 (1.9%) in the most recent trading session. The 52-week high for DAVE is $286.45, which means the stock is currently trading -35.3% from its annual peak. The 52-week low is $65.46, putting the stock 183.2% above its annual trough. Recent trading volume was 471K shares, suggesting relatively thin trading activity.
Is DAVE Overvalued or Undervalued? — Valuation Analysis
Dave Inc./DE (DAVE) carries a value factor score of 69/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 18.14x, compared to the Financials sector average of 14.88x — a premium of 22%. The price-to-book ratio stands at 6.71x, versus the sector average of 1.22x. The price-to-sales ratio is 4.90x, compared to 0.90x for the average Financials stock. On an enterprise value basis, DAVE trades at 18.97x EV/EBITDA, versus 3.26x for the sector.
Overall, DAVE's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
Dave Inc./DE Profitability — ROE, Margins, and Quality Score
Dave Inc./DE (DAVE) earns a quality factor score of 93/100, reflecting elite profitability and capital efficiency that places it among the highest-quality businesses in the market. The return on equity (ROE) is 37.0%, compared to the Financials sector average of 8.5%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 26.8% versus the sector average of 1.2%.
On a margin basis, Dave Inc./DE reports gross margins of 80.0%. The operating margin is 24.2% (sector: 21.8%). Net profit margin stands at 23.8%, versus 17.7% for the average Financials stock. Revenue growth is running at 88.1% on a trailing basis, compared to 9.4% for the sector. These metrics collectively paint a picture of a highly profitable business with durable competitive advantages.
DAVE Debt, Balance Sheet, and Financial Health
Dave Inc./DE has a debt-to-equity ratio of 38.0%, compared to the Financials sector average of 121.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 3.83x, indicating strong short-term liquidity. Total debt on the balance sheet is $75M. Cash and equivalents stand at $50M.
DAVE has a beta of 2.00, meaning it is more volatile than the broader market — a $10,000 investment in DAVE would be expected to move 99.7% more than the S&P 500 on any given day. The stability factor score for Dave Inc./DE is 25/100, suggesting elevated price swings that may be unsuitable for conservative portfolios.
Dave Inc./DE Revenue and Earnings History — Quarterly Trend
In TTM 2026, Dave Inc./DE reported revenue of $483M and earnings per share (EPS) of $14.65. Net income for the quarter was $130M. Gross margin was 80.0%. Operating income came in at $125M.
In FY 2025, Dave Inc./DE reported revenue of $554M and earnings per share (EPS) of $14.65. Net income for the quarter was $196M. Revenue grew 59.7% year-over-year compared to FY 2024. Operating income came in at $187M.
In Q3 2025, Dave Inc./DE reported revenue of $151M and earnings per share (EPS) of $6.84. Net income for the quarter was $92M. Revenue grew 63.0% year-over-year compared to Q3 2024. Operating income came in at $46M.
In Q2 2025, Dave Inc./DE reported revenue of $132M and earnings per share (EPS) of $0.68. Net income for the quarter was $9M. Revenue grew 64.5% year-over-year compared to Q2 2024. Operating income came in at $41M.
Over the past 8 quarters, Dave Inc./DE has demonstrated a growth trajectory, with revenue expanding from $80M to $483M. Investors analyzing DAVE stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
DAVE Dividend Yield and Income Analysis
Dave Inc./DE (DAVE) does not currently pay a dividend. This is common among smaller companies in the Banking industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Financials dividend stocks may want to explore other Financials stocks or use the stock screener to filter by dividend yield.
DAVE Momentum and Technical Analysis Profile
Dave Inc./DE (DAVE) has a momentum factor score of 51/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 21/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 40/100 reflects moderate short selling activity.
DAVE vs Competitors — Financials Sector Ranking and Peer Comparison
Comparing DAVE against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full DAVE vs S&P 500 (SPY) comparison to assess how Dave Inc./DE stacks up against the broader market across all factor dimensions.
DAVE Next Earnings Date
No upcoming earnings date has been announced for Dave Inc./DE (DAVE) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy DAVE? — Investment Thesis Summary
Dave Inc./DE presents a balanced picture with arguments on both sides. The quality score of 93/100 indicates above-average profitability and business fundamentals. The value score of 69/100 suggests attractive pricing relative to fundamentals. High volatility (stability score 25/100) increases portfolio risk.
In summary, Dave Inc./DE (DAVE) earns a Hold rating with a composite score of 59.7/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on DAVE stock.
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Institutional Research Dossier
Dave Inc./DE (DAVE) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We initiate coverage of Dave Inc. with a Buy rating. This rating is predicated on the company's impressive revenue growth, strong profitability metrics, and attractive valuation relative to its peers in the financial sector. While acknowledging the inherent risks associated with the fintech industry and Dave's relatively short operating history, we believe the company's innovative approach to addressing the financial needs of its target demographic, coupled with its robust financial performance, warrants a positive outlook.
The most critical takeaway is Dave's ability to generate substantial net income and maintain high operating margins, a feat rarely observed in high-growth fintech companies. This profitability, combined with a compelling valuation, suggests that the market is undervaluing Dave's potential for continued growth and market share expansion. However, investors should closely monitor free cash flow generation and the sustainability of its growth trajectory.
Business Strategy & Overview
Dave Inc. operates as a digital financial services platform catering primarily to the needs of the underbanked and those seeking alternatives to traditional banking services. The company's core offerings include ExtraCash, a short-term, interest-free advance product designed to help users avoid overdraft fees; Dave Banking, a digital checking account; Insights, a personal financial management tool; and Side Hustle, a platform connecting users with gig economy opportunities. This suite of services is strategically designed to create a holistic financial ecosystem, fostering user engagement and retention.
The company's revenue model is multifaceted, deriving income from interchange fees associated with Dave Banking debit card transactions, subscription fees for premium features, and optional tips from ExtraCash advances. The Side Hustle platform generates revenue through referral fees from partner companies. This diversified revenue stream mitigates reliance on any single product or service, enhancing the company's resilience to market fluctuations and evolving consumer preferences.
Dave's strategic positioning centers on providing accessible and affordable financial solutions to a demographic often underserved by traditional financial institutions. By leveraging technology and data analytics, the company aims to offer personalized financial guidance and products tailored to individual user needs. This customer-centric approach differentiates Dave from larger, more bureaucratic financial institutions, fostering brand loyalty and driving organic growth.
The company's product pipeline appears focused on expanding its suite of financial services and enhancing the user experience. While specific details are not available, potential areas of expansion could include credit building tools, investment products, and more sophisticated financial planning resources. Successful execution of these initiatives will be crucial for sustaining long-term growth and solidifying Dave's position in the competitive fintech landscape.
Dave operates within the broader fintech industry, which is characterized by rapid innovation, intense competition, and evolving regulatory scrutiny. Key competitors include other neobanks, payday lenders, and traditional financial institutions offering digital banking services. Dave's ability to differentiate itself through superior product offerings, exceptional customer service, and effective marketing will be paramount to its success.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
88.1%
Sector: 9.4%
+840% VS SCTR
Economic Moat Analysis
Dave Inc. possesses a narrow economic moat, primarily derived from switching costs and network effects, although the strength of these advantages is still developing. The company's ExtraCash product, while not unique, creates a degree of switching cost as users become reliant on the service to avoid overdraft fees and manage short-term cash flow needs. The convenience and accessibility of ExtraCash, coupled with the potential disruption of switching to a competing service, can lead to customer stickiness.
Network effects are present within the Dave platform, albeit to a lesser extent. As more users join the platform and utilize its various services, the value of the platform increases for all users. For example, the Side Hustle platform benefits from a larger pool of job seekers and employers, creating a virtuous cycle of growth. However, the strength of these network effects is limited by the availability of alternative platforms and the relatively low barriers to entry in the gig economy.
The company's brand recognition and reputation also contribute to its narrow moat. Dave has cultivated a strong brand image as a consumer-friendly and accessible financial services provider. This brand equity can attract new users and retain existing ones, providing a competitive advantage over less established players. However, maintaining this brand reputation requires ongoing investment in customer service and product innovation.
While Dave's quality score is high, its investment score is low, suggesting that the company may not be effectively allocating capital to strengthen its moat. Further investment in technology, marketing, and product development is crucial for solidifying its competitive advantages and sustaining long-term growth. The company's negative free cash flow also raises concerns about its ability to self-fund these investments.
Overall, Dave's narrow moat provides a degree of protection against competition, but it is not insurmountable. The company must continue to innovate and invest in its platform to strengthen its competitive advantages and maintain its market position. The fintech industry is rapidly evolving, and complacency could quickly erode Dave's moat.
Financial Health & Profitability
Dave Inc. exhibits a strong financial profile, characterized by impressive revenue growth and robust profitability metrics. The company's revenue has grown significantly over the past few years, with a TTM revenue of $554.18 million, representing an 88.1% increase compared to the sector average of 9.3%. This rapid revenue growth indicates strong demand for Dave's products and services and effective execution of its growth strategy.
The company's profitability metrics are also noteworthy. Dave boasts a TTM net income of $195.87 million and an EBITDA of $186.62 million. Its operating margin of 24.2% and net margin of 23.8% significantly exceed the sector averages of 22.0% and 17.8%, respectively. This superior profitability demonstrates Dave's ability to efficiently manage its expenses and generate substantial earnings from its revenue.
Dave's balance sheet is relatively healthy, with total cash of $49.89 million and total debt of $75.00 million. The company's current ratio of 3.83 indicates strong liquidity and the ability to meet its short-term obligations. The debt-to-equity ratio of 38.00 is significantly lower than the sector average of 115.00, suggesting a conservative approach to leverage.
However, Dave's free cash flow is negative, with a TTM FCF of -$46.60 million. This negative FCF raises concerns about the company's ability to self-fund its growth initiatives and may necessitate external financing in the future. Investors should closely monitor Dave's FCF generation and its ability to achieve positive FCF in the coming years.
Analyzing the quarterly financial history reveals a consistent trend of revenue growth and improving profitability. The company's operating margin has steadily increased over the past few quarters, indicating improved operational efficiency. The significant increase in net income from FY2024 to FY2025 is particularly encouraging, demonstrating the scalability of Dave's business model.
Overall, Dave's financial health is strong, characterized by rapid revenue growth, robust profitability, and a healthy balance sheet. However, the negative free cash flow warrants close monitoring. The company's ability to sustain its growth trajectory and achieve positive FCF will be crucial for its long-term success.
Valuation Assessment
Dave Inc.'s valuation appears attractive relative to its growth prospects and profitability. The company's P/E ratio of 14.3x is slightly below the sector average of 15.5x, despite its significantly higher revenue growth and profitability. This suggests that the market may be undervaluing Dave's earnings potential.
The company's EV/EBITDA ratio of 3.7x is slightly above the sector average of 3.5x. However, considering Dave's superior growth rate and profitability, this premium appears justified. The EV/EBITDA multiple reflects the market's recognition of Dave's strong earnings power and growth potential.
Given the negative free cash flow, a traditional FCF yield analysis is not applicable. However, the company's strong net income and EBITDA suggest that it has the potential to generate significant free cash flow in the future as it scales its operations and achieves greater operational efficiency.
Compared to its historical valuation, Dave's current multiples appear reasonable. The company's rapid revenue growth and improving profitability have likely driven an increase in its valuation multiples over time. However, it is important to note that Dave's valuation is still subject to market sentiment and investor expectations.
A relative valuation analysis, comparing Dave to its peers in the fintech industry, reveals that the company is trading at a discount to some of its high-growth counterparts. This discount may reflect the market's concerns about Dave's negative free cash flow and its relatively short operating history.
Overall, Dave's valuation appears attractive, considering its strong growth prospects, robust profitability, and healthy balance sheet. While the negative free cash flow warrants close monitoring, the company's potential to generate significant free cash flow in the future suggests that the stock is undervalued. We believe that Dave's valuation will likely increase as it continues to execute its growth strategy and demonstrate its ability to generate sustainable profits.
Risk & Uncertainty
Dave Inc. faces several risks and uncertainties that could impact its future performance. One of the most significant risks is regulatory scrutiny. The fintech industry is subject to evolving regulations, particularly concerning consumer protection, data privacy, and anti-money laundering. Changes in these regulations could increase Dave's compliance costs and limit its ability to offer certain products and services.
Competition is another significant risk. The fintech industry is highly competitive, with numerous players vying for market share. Dave faces competition from other neobanks, traditional financial institutions, and payday lenders. Increased competition could erode Dave's market share and pressure its margins.
Credit risk is also a concern, particularly related to the ExtraCash product. While Dave does not charge interest on ExtraCash advances, it relies on users to repay the funds. A significant increase in default rates could negatively impact Dave's profitability and financial condition. The company's ability to effectively manage credit risk is crucial for its long-term success.
Customer acquisition costs are also a key risk. Dave relies on marketing and advertising to attract new users. Increased competition and rising advertising costs could make it more expensive to acquire new customers, impacting Dave's profitability. The company's ability to efficiently acquire and retain customers is essential for its growth.
Finally, reliance on third-party providers poses a risk. Dave relies on third-party providers for certain services, such as payment processing and data storage. Disruptions in these services could negatively impact Dave's operations and customer experience. The company's ability to effectively manage its relationships with third-party providers is crucial for its operational efficiency.
Bulls Say / Bears Say
The Bull Case
BULL VIEWDave's innovative ExtraCash product addresses a critical need for short-term liquidity among its target demographic, driving strong user growth and engagement.
BULL VIEWThe company's high operating margins and net income demonstrate the scalability of its business model and its ability to generate substantial profits.
The Bear Case
BEAR VIEWDave's negative free cash flow raises concerns about its ability to self-fund its growth initiatives and may necessitate external financing.
BEAR VIEWThe highly competitive fintech landscape and evolving regulatory environment pose significant challenges to Dave's long-term growth and profitability.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score DAVE and 4,400+ other equities.
Dave Inc./DE exhibits a 350% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
26.8%
Sector: 1.2%
Gross Margin
Pricing power and cost efficiency
80.0%
Sector: 0.0%
Operating Margin
Core business profitability
24.2%
Sector: 21.8%
Net Margin
Bottom-line profitability
23.8%
Sector: 17.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
