DAVE vs. SEZL: Which Fintech Stock Is Poised Well for Growth Now?

In the post-pandemic fintech landscape, capital efficiency and scalability have emerged as critical differentiators for companies navigating shifting consumer behaviors and tighter credit markets. Two players in the buy-now-pay-later (BNPL) and financial wellness spaces—Dave (DAVE) and Sezzle (SEZL)—offer contrasting approaches to growth. While Sezzle prioritizes aggressive market expansion through high-risk, high-reward strategies, Dave has focused on disciplined monetization and operational leverage. This analysis evaluates which stock is better positioned for sustainable growth in 2025 and beyond.

Sezzle's High-Stakes Growth Play

Sezzle's 2025 performance underscores its commitment to rapid scaling, even at the expense of short-term profitability. The company reported a $36.3 million cash burn in Q2 2025, driven by a nine-fold increase in marketing spend to $8.8 million Sezzle's GMV Soars 74%, But Aggressive Growth Strategy Masks Revenue Dip and Ignites Cash Burn^[1]. This aggressive investment fueled a 74.2% year-over-year surge in gross merchandise volume (GMV) to $927.0 million, translating to a 76.4% YoY revenue increase to $98.7 million Sezzle's GMV Soars 74%, But Aggressive Growth Strategy Masks Revenue Dip and Ignites Cash Burn^[1]. However, this growth came at a cost: operating cash flow turned negative in Q2 after a positive Q1, and a 5.9% sequential revenue dip highlighted challenges in monetizing its expanding user base Sezzle's GMV Soars 74%, But Aggressive Growth Strategy Masks Revenue Dip and Ignites Cash Burn^[1].

Sezzle's strategy hinges on flexible underwriting and product innovation, which have boosted user acquisition but also increased credit risk Sezzle's GMV Soars 74%, But Aggressive Growth Strategy Masks Revenue Dip and Ignites Cash Burn^[1]. While operating expenses as a percentage of revenue improved by 680 basis points to 63.4% YoY, the company's adjusted EBITDA guidance of $170.0–$175.0 million for 2025 suggests a path to profitability is still distant Sezzle's GMV Soars 74%, But Aggressive Growth Strategy Masks Revenue Dip and Ignites Cash Burn^[1]. For investors, Sezzle's model resembles a “race to scale,” where long-term rewards depend on capturing market share before regulatory or economic headwinds disrupt its momentum.

Dave's Disciplined Scalability

Dave, by contrast, has demonstrated a more balanced approach to growth. In Q2 2025, the company achieved 64% year-over-year revenue growth to $131.7 million, with adjusted EBITDA surging 236% to $50.9 million—a 39% margin Dave Q2 Earnings: Revenue Surges 64%, Raises 2025 Guidance^[2]. This performance was underpinned by a $19 customer acquisition cost, significantly lower than Sezzle's marketing spend per user, and a 16% increase in monthly transacting members to 2.6 million Dave Q2 Earnings: Revenue Surges 64%, Raises 2025 Guidance^[2].

Dave's capital efficiency is further highlighted by its non-GAAP gross profit margin of 70%, up 500 basis points YoY, and a 77% variable profit margin, nearly double its three-year average Dave Q2 Earnings: Revenue Surges 64%, Raises 2025 Guidance^[2]. These metrics reflect strong cost management and a fee structure that enhances monetization without sacrificing member retention. Additionally, Dave's liquidity position remains robust, with $104.7 million in cash and equivalents as of Q2 2025, and a $50 million share repurchase program signaling confidence in its capital allocation Dave Q2 Earnings: Revenue Surges 64%, Raises 2025 Guidance^[2].

Capital Efficiency vs. Scalability: A Post-Pandemic Lens

The post-pandemic fintech environment demands a delicate balance between growth and profitability. Sezzle's high-burn strategy aligns with a “growth-at-all-costs” ethos, which may appeal to investors seeking explosive user acquisition but carries risks in a climate of rising interest rates and tighter credit. Dave's approach, however, mirrors the resilience of companies that prioritize operational leverage and margin expansion, a model that has historically outperformed in volatile markets.

For example, Dave's ability to raise 2025 guidance to $505–$515 million in revenue and $180–$190 million in adjusted EBITDA—despite macroeconomic uncertainty—demonstrates a scalable business model with strong unit economics Dave Q2 Earnings: Revenue Surges 64%, Raises 2025 Guidance^[2]. Meanwhile, Sezzle's reliance on aggressive marketing to sustain GMV growth raises questions about its ability to maintain profitability without a material shift in monetization rates.

Conclusion: Dave Emerges as the More Attractive Bet

While both DAVE and SEZL operate in high-growth fintech niches, Dave's disciplined capital efficiency and scalable profitability metrics position it as the stronger candidate for long-term value creation. Sezzle's aggressive expansion may yield market share gains, but its cash burn and credit risk exposure make it a higher-volatility play. For investors prioritizing sustainable growth and capital preservation, Dave's combination of strong EBITDA margins, low customer acquisition costs, and robust liquidity offers a compelling edge in the post-pandemic era.