Dave Inc. Shares Plummet Despite Q2 Earnings Beat and Raised Revenue Forecasts

Dave Inc. (DAVE) shares fell 22% despite Q2 results beating expectations with a net operating revenue of $131.7 million. Analysts predict a 26.41% upside from the current price, with a consensus "Outperform" rating and average price target of $228.25. The one-year estimated GF Value is $40.18, indicating a 77.75% downside from the current price.

Dave Inc. (DAVE) reported its second-quarter (Q2) 2025 financial results, which showed significant growth in key metrics. Despite the positive performance, the company's stock price fell by 22% on July 2, 2025. Analysts predict a 26.41% upside from the current price, with a consensus "Outperform" rating and an average price target of $228.25. The one-year estimated GF Value is $40.18, indicating a 77.75% downside from the current price.

Q2 Highlights

- Revenue Growth: Dave Inc. reported a 64% year-over-year (YoY) increase in revenue, reaching $131.7 million.
- Net Income: Net income increased by 42% YoY to $9.1 million.
- Adjusted Net Income: Adjusted net income rose by 210% to $3.14 per share.
- Adjusted EBITDA: Adjusted EBITDA increased by 236% to $50.9 million.
- Gross Profit Margin: Non-GAAP gross profit margin expanded to 70%, a 500 basis points increase over the previous year.

Guidance for 2025

Dave Inc. raised its 2025 revenue and adjusted EBITDA guidance to $505-$515 million and $180-$190 million, respectively. The company attributed its strong performance to a step-change in average revenue per user (ARPU) expansion and continued momentum in monthly transacting member growth.

Stock Performance

Despite the positive financial results, Dave Inc.'s stock price dropped by 22% on July 2, 2025. Analysts predict a 26.41% upside from the current price, with a consensus "Outperform" rating and an average price target of $228.25. The one-year estimated GF Value is $40.18, indicating a 77.75% downside from the current price.

Forward-Looking Statements

Dave Inc. provided several forward-looking statements, which are subject to risks and uncertainties. The company's ability to compete in its highly competitive industry, manage risks associated with providing ExtraCash, retain customers, and comply with extensive and evolving laws and regulations are among the factors that could affect its future performance.

Conclusion

Dave Inc.'s Q2 2025 results demonstrated robust growth across key metrics. However, the stock price decline highlights the market's sensitivity to various factors, including future performance expectations and competitive dynamics. Investors should closely monitor Dave Inc.'s progress and the broader market trends to assess the potential upside and downside risks.

References

[1] https://finance.yahoo.com/news/dave-reports-second-quarter-2025-120000666.html