Dave stock falls 22% despite strong Q2 earnings and revenue guidance lift

Dave shares fell 22% despite beating Q2 earnings expectations and raising full-year revenue and adjusted EBITDA guidance. The neobank and fintech now expects 2025 GAAP net operating revenue of $505M-$515M, up from the previous midpoint of $469.6M.

Dave Inc. (Nasdaq: DAVE) reported its second-quarter 2025 financial results, beating market expectations with a 64% year-over-year (YoY) revenue growth to $131.7 million and a 42% YoY increase in net income to $9.1 million [1]. However, the company's stock fell by 22% despite the strong performance. This unusual reaction can be attributed to several factors.

Dave's adjusted net income increased by 233% to $45.7 million, and adjusted EBITDA rose by 236% to $50.9 million. The company also raised its full-year revenue and adjusted EBITDA guidance to $505-$515 million and $180-$190 million, respectively [1]. These figures demonstrate the company's robust financial health and growth trajectory.

The stock's decline could be attributed to several factors. Firstly, the company's stock has been volatile in recent quarters, with significant fluctuations in its share price. Secondly, investors may have been expecting even more impressive results, leading to a sell-off. Additionally, the company's reliance on a single bank partner and the potential risks associated with its ExtraCash service could have contributed to investor concerns.

Dave's Chief Executive Officer, Jason Wilk, expressed confidence in the company's future performance. He stated, "Our strong first-half results reinforce our confidence that Dave is firmly on track for another record year. We are once again raising our 2025 Revenue and Adjusted EBITDA outlook. We’re entering the second half of the year with strong momentum and even greater conviction in our long-term opportunity, as we remain committed to innovation, member value, and long-term shareholder returns" [1].

Despite the stock's decline, Dave's financial performance remains strong, with significant growth in key metrics such as revenue, net income, and adjusted EBITDA. The company's ability to maintain this growth trajectory will be crucial in rebuilding investor confidence and driving long-term shareholder returns.

References:
[1] Dave Inc. (2025). News Release: Dave Reports Second Quarter 2025 Financial Results. Retrieved from https://investors.dave.com/news-releases/news-release-details/dave-reports-second-quarter-2025-financial-results