Dave Inc.'s Q2 2025: Key Contradictions in Fee Changes, Growth Projections, and Credit Performance

Impact of new fee structure on customer acquisition and retention, growth expectations and revenue guidance, impact of CashAI on credit performance, delinquency rate impact and resolution are the key contradictions discussed in Dave Inc.'s latest 2025Q2 earnings call.



Revenue Growth and Strategic Pillars:
- Dave Inc. reported revenue of $131.7 million for Q2, up 64% year-over-year.
- Growth was driven by a 16% increase in monthly transacting members and a 42% rise in ARPU, reflecting the execution of strategic growth pillars such as efficient member acquisition, enhanced member engagement through ExtraCash, and deepening relationships via the Dave Card.

ExtraCash Growth and Credit Performance:
- ExtraCash originations reached $1.8 billion in Q2, up 51% year-over-year and 17% sequentially.
- The increase in originations was attributed to growth in monthly transacting members, an increase in average ExtraCash size, and the impact of the new fee model driving higher ExtraCash approval limits.

Operating Leverage and Adjusted EBITDA:
- Adjusted EBITDA demonstrated growing operating leverage, tripling year-over-year to $50.9 million.
- This was supported by disciplined expense management and the new fee structure, which strengthened monetization and member engagement.

Capital Efficiency and Financial Structure:
- Dave Inc. amended its program agreement with Coastal Community Bank to move ExtraCash receivables off the balance sheet, potentially reducing direct funding obligations and lowering the cost of capital.
- This shift is expected to unlock substantial liquidity and allow for the elimination of warehouse line debt by mid-2026.