What caused DAVE's Q3 earnings to fall short of forecasts?

Dave's Q3 earnings fell short of forecasts due to several factors:

1. Increased Costs: Dave incurred significant increases in compensation-related expenses and marketing costs. Compensation-related expenses rose to $27.2 million in Q4 from $23.5 million in the prior year period. Marketing costs also increased by 25% year-over-year.
2. Litigation and Regulatory Challenges: Dave is facing litigation from the Federal Trade Commission and the Department of Justice regarding consumer disclosures and fee consent processes. These legal challenges likely contributed to the company's increased costs and impacted its financial performance.
3. Strategic Transitions: The transition to a new fee structure for ExtraCash transactions may not have significantly improved conversion rates for Dave Card adoption. This strategic transition could have had a negative impact on short-term earnings, despite potential long-term benefits.

In summary, Dave's Q3 earnings fell short due to increased costs, litigation, and strategic transitions. These factors combined to negatively impact the company's financial performance, leading to earnings that fell below forecasts.